Question

The Chief Executive Officer (CEO) of a small startup company has an urgent need for a security policy and assessment to address governance, risk management, and compliance. The company has a resource-constrained IT department, but has no information security staff. The CEO has asked for this to be completed in three months.

Which of the following would be the MOST cost-effective solution to meet the company's needs?

A. Select one of the IT personnel to obtain information security training, and then develop all necessary policies and documents in-house.
B. Accept all risks associated with information security, and then bring up the issue again at next yearג€™s annual board meeting.
C. Release an RFP to consultancy firms, and then select the most appropriate consultant who can fulfill the requirements.
D. Hire an experienced, full-time information security team to run the startup companyג€™s information security department.

Answer 1

Option C, which involves releasing an RFP to consultancy firms for information security policy development, is the most cost-effective and flexible solution for a resource-constrained startup that needs to address governance, risk management, and compliance urgently.

Step-by-step explanation:

In considering the most cost-effective solution for developing a security policy and assessment for a small startup company with limited resources, the options presented each have their own pros and cons. Option A involves selecting an existing IT personnel to obtain information security training and then develop policies in-house. This approach may save on immediate consultant fees, but may not be as efficient due to potential knowledge gaps and the additional workload on the employee. Option B, which suggests accepting all risks and postponing the issue, neglects the importance of immediate governance, risk management, and compliance, potentially exposing the company to significant risks.

Option C proposes releasing an Request for Proposal (RFP) to consultancy firms and selecting the most suitable consultant to fulfill all requirements. This approach leverages external expertise and allows the small startup to focus on its core competencies. Lastly, Option D suggests hiring a full-time experienced information security team which could be a longer-term solution but may not be financially viable for a resource-constrained startup. Given the urgency and the resource limitations of the IT department, the most balanced and cost-effective option for the startup is Option C. This approach not only provides access to experts who can efficiently address the company's immediate information security needs, but also maintains flexibility for future scaling and adjustments without the commitment of a full-time hire. A consultancy can offer tailored, expert advice and deliver a comprehensive security policy and risk assessment within the required timeframe while allowing the company to maintain operational focus.