1. Risk involves the measurement of which three elements?
A. Frequency, probability, and severity of losses Correct
B. Threat, intent, and severity of losses
C. Threat, opportunity, and cost to implement
D. Probability of attack, consequence of loss, and cost/benefit
Explanation
Risk assessment in security management requires evaluating three core components: how often a loss might occur (frequency), the likelihood it will happen (probability), and the potential impact or damage (severity). These elements provide a structured way to quantify and prioritize risks. Without measuring all three, decisions about countermeasures lack a solid foundation and may result in either overspending on low-impact risks or ignoring high-severity threats.
2. Knowing where security fits into a company's budget is critical to the manager successfully accessing financial resources. Which of the following statements best describes a security department's impact on the bottom line?
A. The security department's costs must be minimized to reduce the expense side of the corporate ledger.
B. The security department is an investment with a predictable rate of return.
C. The security department's expense requests must be supported by a cost-benefit analysis.
D. The security department helps the profit margin by reducing or preventing losses of company assets. Correct
Explanation
Security is not merely a cost center; it directly protects revenue-generating assets, prevents shrinkage, reduces insurance premiums, and avoids costly disruptions. By preventing theft, fraud, vandalism, and liability claims, security contributes measurable value to profitability. Senior management is far more receptive to security budgets when they are presented as profit-protection investments rather than unavoidable overhead.
3. The human behavior theory that a person is actuated by values, beginning with the most basic need for survival, is:
A. Maslow's Hierarchy of Needs. Correct
B. Corey's First Things First.""
C. McGregor's Theory X and Theory Y.
D. Herzberg's Motivation Theory.
Explanation
Abraham Maslow's Hierarchy of Needs is the foundational theory stating that human motivation begins with physiological survival needs (food, water, safety) and progresses upward only after lower needs are satisfied. Security professionals use this model to understand employee behavior, predict reactions under stress, and design programs that address basic security needs before expecting compliance with higher-level policies.
4. Insurance is a form of risk:
A. spreading.
B. avoidance.
C. transfer. Correct
D. reduction.
Explanation
Insurance transfers the financial consequence of a loss from the organization to an insurance carrier in exchange for premiums. It does not prevent the event (avoidance), share the risk among many (spreading), or lessen the likelihood or severity (reduction). It is a classic financial risk-transfer tool widely used when residual risk remains after other countermeasures are applied.
5. An employee who both orders and receives merchandise is violating which of the following principles?
A. Audit control
B. Separation of responsibility Correct
C. Unity of command
D. Delegation of duty
Explanation
Separation (or segregation) of duties is a fundamental internal control that prevents fraud and error by ensuring no single person controls all phases of a transaction. Allowing one employee to both order and receive creates opportunity for theft, kickbacks, or fictitious purchases. This principle is a cornerstone of inventory and procurement integrity.