Which method is being used when a company evaluates the acceptable loss exposure associated with a cloud solution for a given set of objectives and resources?

Prepare for the WGU C838 Managing Cloud Security Exam. Study effectively with flashcards and multiple-choice questions, complete with hints and explanations. Ensure your success with this comprehensive preparation guide.

The method described in the question focuses on evaluating the acceptable loss exposure in relation to specific objectives and available resources within a cloud environment. This concept aligns closely with risk appetite, which refers to the level of risk that an organization is willing to accept while pursuing its objectives.

Understanding risk appetite is crucial for organizations as it guides decision-making regarding investments, project management, and resource allocation in cloud solutions. By assessing the acceptable loss exposure, the organization can ensure that its cloud strategy aligns with its risk tolerance, balancing potential risks against the benefits of the cloud engagement. This evaluation allows the organization to determine which risks are manageable and acceptable in pursuing its business goals.

In contrast, the other methods mentioned—such as business impact analysis, business continuity planning, and risk management—serve different purposes. Business impact analysis focuses on identifying the effects of interruptions on business operations; business continuity planning is dedicated to maintaining essential functions during and after a disaster; and risk management encompasses the broader process of identifying, assessing, and mitigating risks across various domains. While all of these practices are important in the realm of cloud security, they do not specifically address the concept of evaluating acceptable loss exposure in the context of an organization's risk appetite.

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