Which of the following helps ensure that the cost is justifiable when selecting an IT control?

Which of the following helps ensure that the cost is justifiable when selecting an IT control?

• A. The investment is within budget.
• B. The risk likelihood and its impact are reflected.
• C. The net present value (NPV) is high.
• D. Open source technology is used.

Answer: (B)

When selecting an IT control, ensuring that the cost is justifiable is a critical aspect of risk management and financial decision-making within an organization. The correct choice highlights the importance of evaluating the likelihood and impact of risks that the control is designed to mitigate. By quantifying these factors, organizations can better assess whether the costs associated with implementing a particular IT control are warranted. This approach aligns expenditures with potential risk reduction. If a control addresses high-probability, high-impact risks, the associated costs may be justified compared to a situation where controls are applied to risks that are infrequent or less severe. This thorough analysis allows businesses to invest resources wisely into controls that effectively reduce their overall risk profile, helping to secure sensitive data and maintain regulatory compliance. On the other hand, focusing solely on whether the investment is within budget does not inherently validate the effectiveness or necessity of the control being implemented. Similarly, while a high net present value indicates favorable returns on investment, it does not take into account whether the control genuinely addresses significant risks. Lastly, utilizing open-source technology may provide cost benefits, but it does not automatically ensure that the control is either effective or suitable for addressing specific risks. Hence, the justification for the cost is best supported by an assessment that considers the

When selecting an IT control, ensuring that the cost is justifiable is a critical aspect of risk management and financial decision-making within an organization. The correct choice highlights the importance of evaluating the likelihood and impact of risks that the control is designed to mitigate. By quantifying these factors, organizations can better assess whether the costs associated with implementing a particular IT control are warranted.

This approach aligns expenditures with potential risk reduction. If a control addresses high-probability, high-impact risks, the associated costs may be justified compared to a situation where controls are applied to risks that are infrequent or less severe. This thorough analysis allows businesses to invest resources wisely into controls that effectively reduce their overall risk profile, helping to secure sensitive data and maintain regulatory compliance.

On the other hand, focusing solely on whether the investment is within budget does not inherently validate the effectiveness or necessity of the control being implemented. Similarly, while a high net present value indicates favorable returns on investment, it does not take into account whether the control genuinely addresses significant risks. Lastly, utilizing open-source technology may provide cost benefits, but it does not automatically ensure that the control is either effective or suitable for addressing specific risks. Hence, the justification for the cost is best supported by an assessment that considers the