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NEW QUESTION: 1
ThetaBank has extended substantial financing to two mortgage companies, which these mortgage lenders use
to finance their own lending. Individually, each of the mortgage companies has an exposure at default (EAD)
of $20 million, with a loss given default (LGD) of 100%, and a probability of default of 10%. ThetaBank's risk
department predicts the joint probability of default at 5%. If the default risk of these mortgage companies were
modeled as independent risks, what would be the probability of a cumulative $40 million loss from these two
mortgage borrowers?
A. 0.1%
B. 1%
C. 10%
D. 0.01%
Answer: B
NEW QUESTION: 2
The Orange Book describes four hierarchical levels to categorize security systems. Which of the following levels require mandatory protection?
A. B and D.
B. A and B.
C. A, B, and C.
D. B and C.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The U.S. Department of Defense developed the Trusted Computer System Evaluation Criteria (TCSEC), which was used to evaluate operating systems, applications, and different products. These evaluation criteria are published in a book known as the Orange Book.
TCSEC provides a classification system that is divided into hierarchical divisions of assurance levels:
A. Verified protection
B. Mandatory protection
C. Discretionary protection
D. Minimal security
Classification A represents the highest level of assurance, and D represents the lowest level of assurance.
Level B is the lowest level that requires mandatory protection. Level A, being a higher level also requires mandatory protection.
Incorrect Answers:
B: Mandatory protection is not required for level C. Level C is Discretionary protection.
C: Mandatory protection is not required for level C. Level C is Discretionary protection.
D: Mandatory protection is not required for level D. Level D is Minimal security.
References:
Harris, Shon, All In One CISSP Exam Guide, 6th Edition, McGraw-Hill, New York, 2013, pp. 392-393
NEW QUESTION: 3
If the device pool in the phone record does not match the device pools in the matching subnet, what will the system consider the phone to be?
A. unregistered
B. roaming
C. unknown
D. new device
Answer: B
NEW QUESTION: 4
Management must ___________ assess business risk and develop clearly defined control objectives:
A. Weekly
B. Annually
C. Continually
D. Periodically
Answer: C
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