Section: Analysis and Monitoring
Explanation/Reference:
The reporting process should be centralized else employees won't bother.
The other answers are incorrect because :
They are afraid of being pulled into something they don't want to be involved with is incorrect as most of the employees fear of this and this would prevent them to report an incident.
They are afraid of being accused of something they didn't do is also incorrect as this also prevents them to report an incident.
They are unaware of the company's security policies and procedures is also incorrect as mentioned above.
Reference : Shon Harris AIO v3 , Ch-10 : Laws , Investigatio & Ethics , Page : 675.

Section: Security Operation Adimnistration
Explanation/Reference:
RAD stands for Rapid Application Development.
RAD is a methodology that enables organizations to develop strategically important systems faster while reducing development costs and maintaining quality.
RAD is a programming system that enables programmers to quickly build working programs.
In general, RAD systems provide a number of tools to help build graphical user interfaces that would normally take a large development effort.
Two of the most popular RAD systems for Windows are Visual Basic and Delphi. Historically, RAD systems have tended to emphasize reducing development time, sometimes at the expense of generating in-efficient executable code. Nowadays, though, many RAD systems produce extremely faster code that is optimized.
Conversely, many traditional programming environments now come with a number of visual tools to aid development. Therefore, the line between RAD systems and other development environments has become blurred.
Reference:
Information Systems Audit and Control Association, Certified Information Systems Auditor 2002 review manual, chapter 6: Business Application System Development, Acquisition, Implementation and Maintenance (page
307)
http://www.webopedia.com

"Ultimately, people are the last line of defense for your company's assets"
(Pastore & Dulaney, 2006, p. 529).
Pastore, M. and Dulaney, E. (2006). CompTIA Security+ study guide: Exam SY0-101.
Indianapolis, IN: Sybex.

Explanation/Reference:
Controls are implemented to mitigate risk and reduce the potential for loss. Preventive controls are put in place to inhibit harmful occurrences; detective controls are established to discover harmful occurrences; corrective controls are used to restore systems that are victims of harmful attacks.
It is not feasible and possible to eliminate all risks and the potential for loss as risk/threats are constantly changing.
Source: KRUTZ, Ronald L. & VINES, Russel D., The CISSP Prep Guide: Mastering the Ten Domains of Computer Security, 2001, John Wiley & Sons, Page 32.

Section: Network and Telecommunications
Explanation/Reference:
The use of a firewall is a requirement to protect a local area network (LAN) that has external connections without that you have no real protection from fraudsters.
The following answers are incorrect:
dial-up. This is incorrect because this offers little protection once the connection has been established.
passwords. This is incorrect because there are tools to crack passwords and once a user has been authenticated and connects to the external connections, passwords do not offer protection against incoming TCP packets.
fiber optics. This is incorrect because this offers no protection from the external connection.