A large manufacturing organization arranges to buy an industrial machine system to produce a new line of products. The system includes software provided to the vendor by a third-party organization. The financial risk to the manufacturing organization starting production is high. What step should the manufacturing organization take to minimize its financial risk in the new venture prior to the purchase?
To minimize financial risk in purchasing a new system, the manufacturing organization should ensure the software is thoroughly tested by an accredited independent software testing company. This step helps identify and resolve potential issues before they impact production, thereby reducing the risk of software bugs and vulnerabilities that could lead to costly production errors or downtime.
Not sure why people are choosing C. How can you calculate the ROI if you don't know the ARO?
Single Loss Expectancy represents the cost associated with a single realized risk against a specific asset: SLE (single Loss Expectancy) = Asset Value * Exposure factor (% loss of asset) So seems you don t need the ARO to have a first risk calculation based on asset value and since they are depending on this specific asset, answer C seems right
without the thoroughly tested how can you know the SW's real asset value.
C is correct
"prior to the purchase" is a key. Answer C.
I go with A. While calculating the possible loss in revenue due to software bugs and vulnerabilities may be useful in assessing the financial risk, it is not a replacement for a thorough software testing process. The organization should prioritize testing the software in advance to reduce the risk of these issues occurring in the first place.
Can’t force accreditation unless other options available. Answer is C.
I'm torn between A and C, anyone have input?
Wouldn't A encompass C, testing the software would expose this to the company.
I went with C, thinking about the risk math. ALExAR=RIO, or EFxAV=SLE
Software testing cost more money and the company is worried about money. C fits the bill.
The financial risk to the manufacturing organization starting production is high. Risk Acceptance/Mitigation
C. Calculate the possible loss in revenue to the organization due to software bugs and vulnerabilities, and compare that to the system's overall price. To minimize financial risk in the new venture prior to the purchase, the manufacturing organization should calculate the possible loss in revenue that could result from software bugs and vulnerabilities in the industrial machine system's software. By comparing this potential loss to the overall price of the system, the organization can make a more informed decision about whether the investment is financially viable. While the other options (requiring thorough testing by an independent company, hiring a performance tester, placing the machine behind a Layer 3 firewall) may be relevant to the organization's overall risk management strategy, they do not directly address the need to assess financial risk and determine the cost-effectiveness of the investment.
C. Calculate the possible loss in revenue to the organization due to software bugs and vulnerabilities, and compare that to the system's overall price. To minimize financial risk, the manufacturing organization should perform a cost-benefit analysis by calculating the potential loss in revenue that could result from software bugs and vulnerabilities in the industrial machine system. By comparing this potential loss to the system's overall price, the organization can make an informed decision about whether the investment is justified and if additional measures, such as thorough testing, are necessary.
Answer A) I think C is wrong. How can you calculate something when you don't know anything about the problems a software may or may not have. FYI, This is not a plug for this company...but it makes sense to do you due diligence prior to spending, potentially, millions on a software. https://www.testpros.com/automation/software-testing-services/
Its asking what steps to take to minimize the financial risk. Wouldn't it be A to begin with because C is not really helping minimize anything?
C or A ... Answer is C. It is much more wholesome and comprehensive than A.