A risk assessment will identify- the business impact of such vulnerability being exploited and is, thus, the correct process. A penetration test or a security baseline review may identify the vulnerability but not the remedy. A business impact analysis (BIA) will more likely identify the impact of the loss of the mail server.

Section: INFORMATION RISK MANAGEMENT
Explanation:
Risk should be reduced to a level that an organization is willing to accept. Reducing risk to a level too small to measure is impractical and is often cost-prohibitive. To tie risk to a specific rate of return ignores the qualitative aspects of risk that must also be considered. Depending on the risk preference of an organization, it may or may not choose to pursue risk mitigation to the point at which the benefit equals or exceeds the expense.
Therefore, choice C is a more precise answer.

Explanation
A recovery strategy identifies the best way to recover a system in ease of disaster and provides guidance based on detailed recovery procedures that can be developed. Different strategies should be developed and all alternatives presented to senior management. Senior management should select the most appropriate strategy from the alternatives provided. The selected strategy should be used for further development of the detailed business continuity plan. The selection of strategy depends on criticality of the business process and applications supporting the processes. It need not necessarily cover all applications. All recovery strategies have associated costs, which include costs of preparing for disruptions and putting them to use in the event of a disruption. The latter can be insured against, but not the former. The best recovery option need not be the least expensive.

Section: INFORMATION SECURITY PROGRAM MANAGEMENT
Explanation