CCISO 712-50 Full Course Free

 Understanding NPV

Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period. It is used to determine the profitability of an investment or project.

The formula involves annual profit and annual investment and indicates whether the project is financially viable.

 Why Not Other Options?

A. Net profit – per capita income: Not related to NPV calculations.

B. Total investment – Discounted cash: Misleading and not reflective of NPV.

D. Initial investment – Future value: Incorrect; future value is not part of NPV.

 EC-Council References

NPV is a key metric in project selection processes and is highlighted in financial decision-making frameworks for CISOs.

 Reducing the Burden of Key Distribution

Asymmetric encryption provides a secure mechanism for distributing symmetric keys without requiring physical transfer.

Public keys are used to encrypt the symmetric key, which can then be decrypted by the corresponding private key.

 Why Not Other Options?

B. Use a self-generated key: Does not address distribution challenges.

C. Use a certificate authority: Distributes certificates, not symmetric keys.

D. Symmetrically encrypt and then decrypt: Adds unnecessary complexity without addressing distribution.

 EC-Council References

Recommends hybrid encryption models that combine the strengths of symmetric and asymmetric encryption to streamline secure key distribution.

The total cost of security controls must always be less than the value of the protected asset, ensuring cost-effectiveness in resource allocation.

Economic Principle of Security:

Spending more to protect an asset than its value undermines the financial justification for security.

Cost-Benefit Consideration:

Security investments should provide value greater than their cost by reducing potential losses and improving operational resilience.

Relevance of Other Options:

Equal to Value: Break-even point but not cost-efficient.

Greater than Value: Leads to inefficiencies.

Should Not Matter: Contradicts sound financial practices.

Economic Feasibility of Security Measures: Discusses balancing security costs with asset value.

Risk-Driven Decision Making: Guides the alignment of resource allocation with organizational goals and asset value.

EC-Council CISO References: