What does the prudent person rule require of an organization?

The prudent person rule requires organizations to take reasonable actions to protect their assets. This principle is grounded in the expectation that individuals and organizations will act with care and in a responsible manner when it comes to safeguarding their resources. Essentially, it emphasizes a standard of behavior that can be expected from a reasonable person in similar circumstances, focusing on actions that are deemed appropriate and responsible to minimize risks.

Organizations are responsible for establishing policies and procedures that adequately protect their assets, which include both physical and informational resources. This may involve risk assessments, implementing security measures, and ensuring compliance with relevant laws and regulations. The goal is not to eliminate all risks completely—which is often impractical—but to manage them effectively through prudent actions.

Other options like identifying threats, mitigating vulnerabilities, or eliminating threats completely, while important aspects of a comprehensive security strategy, do not encapsulate the essence of the prudent person rule. The rule is more about the overall reasonable measures taken rather than focusing singularly on threat identification or vulnerability mitigation.