Certified Governance Risk and Compliance (CGRC) Practice Exam 2025 - Free CGRC Practice Questions and Study Guide

The selected answer is C, FIPS 199, which is indeed crucial for determining the impact level of threats on agency systems. This Federal Information Processing Standard provides a standard for categorizing information and information systems based on the potential impact of loss, which includes loss of confidentiality, integrity, and availability. It defines the criteria for assessing information system impact levels as low, moderate, or high, guiding organizations in making informed decisions about necessary security controls.

FIPS 199 helps agencies perform risk assessments and prioritize their resources effectively by understanding the significance of the data they handle and the consequences of threats acting upon their systems. By establishing impact levels, organizations can determine the appropriate security measures necessary to protect their systems against potential threats.

In contrast, the other options do not specifically focus on impact level determination. NIST SP 800-41 focuses on firewalls and related devices, NIST SP 800-37 deals with the risk management framework for information systems, and NIST SP 800-14 covers the generally accepted security principles for information systems but does not provide a direct methodology for assessing impact levels. Thus, FIPS 199 stands out as the proper document for this specific purpose.