Explanation
Compliance status reporting is the best element of a service contract that would enable an organization to monitor the information security risk associated with a cloud service provider, as it provides the organization with regular and timely information on the cloud service provider's compliance with the agreed-upon security requirements, standards, and regulations. Compliance status reporting also helps the organization to identify any gaps or issues that need to be addressed or resolved, and to verify the effectiveness of the cloud service provider's controls. (From CISM Review Manual 15th Edition) References: CISM Review Manual 15th Edition, page 184, section 4.3.3.2.

Explanation/Reference:
Explanation:
Process owners implement information protection controls as determined by the business' needs. Process owners have the most knowledge about security requirements for the business application for which they are responsible. The system analyst, quality control manager, and information security manager do not possess the necessary knowledge or authority to implement and maintain the appropriate level of business security.

Cost-benefit analysis (CBA) is a method of comparing the costs and benefits of different alternatives for achieving a desired outcome. CBA can help information security managers to choose the best controls to mitigate risk to acceptable levels by providing a rational and objective basis for decision making. CBA can also help information security managers to justify their choices to senior management, stakeholders, and auditors by demonstrating the value and return on investment of the selected controls. CBA can also help information security managers to prioritize and allocate resources for implementing and maintaining the controls12.
CBA involves the following steps12:
Identify the objectives and scope of the analysis
Identify the alternatives and options for achieving the objectives
Identify and quantify the costs and benefits of each alternative
Compare the costs and benefits of each alternative using a common metric or criteria Select the alternative that maximizes the net benefit or minimizes the net cost Perform a sensitivity analysis to test the robustness and validity of the results Document and communicate the results and recommendations CBA is mainly driven by the information security manager's decision, but it can also take into account other factors such as best practices, control frameworks, and regulatory requirements. However, these factors are not the primary drivers of CBA, as they may not always reflect the specific needs and context of the organization. Best practices are general guidelines or recommendations that may not suit every situation or environment. Control frameworks are standardized models or methodologies that may not cover all aspects or dimensions of information security. Regulatory requirements are mandatory rules or obligations that may not address all risks or threats faced by the organization. Therefore, CBA is the best method to choose the most appropriate and effective controls to mitigate risk to acceptable levels, as it considers the costs and benefits of each control in relation to the organization's objectives, resources, and environment12. Reference = CISM Domain 2: Information Risk Management (IRM) [2022 update], Five Key Considerations When Developing Information Security Risk Treatment Plans