CRISC Certified in Risk and Information Systems Control (CRISC) Questions and Answers

The risk profile is the most important document to update following a change in organizational risk appetite and tolerance, because it summarizes the current and target state of the organization’s risk exposure, as well as the risk response strategies and actions. The risk profile should reflect the alignment of the organization’s risk appetite and tolerance with its strategic objectives and operational capabilities. Updating the risk profile will help the organization to monitor and manage its risks effectively and efficiently.

References

•ISACA CRISC Review Manual, 7th Edition, Domain 1: IT Risk Identification, Section 1.2.1: Risk Profile

•Risk Profile - ISACA

•What is a Risk Profile? Definition, Examples, and More

Automated asset management software is the best method to track asset inventory because it can provide real-time, accurate, and comprehensive data on the location, condition, value, and usage of assets. It can also help to optimize asset utilization, reduce costs, improve compliance, and enhance security.

References

•Free Asset Tracking Templates | Smartsheet

•5 Best Asset Management Software (2023) – Forbes Advisor

•What Is Asset Tracking? Benefits & How It Works - Forbes

•Inventory and Asset Tracking: Keep it Simple (But Powerful)

When moving critical assets to the cloud, the most important KPI to include in the SLA is the percentage of standard supplier uptime, which measures the availability and reliability of the cloud service provider. This KPI indicates how often the cloud service is operational and accessible, and how well it meets the agreed service level objectives. A high percentage of standard supplier uptime means that the cloud service provider can deliver the expected performance and functionality of the critical assets, and minimize the risk of service disruptions, downtime, or data loss. The percentage of standard supplier uptime should be aligned with the organization’s business continuity and disaster recovery requirements, and should be monitored and reported regularly by the cloud service provider. The SLA should also specify the compensation or remediation actions in case of any breach of the agreed percentage of standard supplier uptime.

References:

•ISACA, Risk and Information Systems Control Review Manual, 7th Edition, 2020, p. 2501

•ISACA, Cloud Computing: Business Benefits With Security, Governance and Assurance Perspectives, 2009, p. 142

•What is an SLA? Best practices for service-level agreements3

 The areas to address first when classifying and prioritizing risk responses are those with high cost effectiveness ratios and high risk levels, as they represent the most optimal and urgent risk responses that can reduce the risk exposure and impact significantly with a reasonable cost. The other options are not the areas to address first, as they may indicate suboptimal or less urgent risk responses that may not align with the risk tolerance and appetite of the organization. References = CRISC Review Manual, 7th Edition, page 109.

Capacity management is crucial when transitioning employees to remote work during a crisis. It involves ensuring that the IT infrastructure can handle increased loads and that resources are available to support remote operations effectively.

According to the ISACA Risk and Information Systems Control study guide and handbook, the most important reason to communicate control effectiveness to senior management is to ensure management understands the current risk status. Control effectiveness is a measure of how well a control reduces the likelihood or impact of a risk event. By communicating control effectiveness, risk managers can provide management with relevant and timely information about the residual risk level, the risk appetite and tolerance, and the potential gaps or weaknesses in the control environment. This can help management make informed decisions about risk response strategies, resource allocation, and risk oversight12

1: ISACA Risk and Information Systems Control Study Guide, 4th Edition, page 33 2: ISACA Risk and Information Systems Control Handbook, 1st Edition, page 25

The scenario that is most important to communicate to senior management is the accepted risk scenarios with impact exceeding the risk tolerance, as it indicates a significant risk issue or breach that may affect the achievement of the organizational objectives, and may require a review or escalation action. The other options are not the most important scenarios, as they may not indicate a risk issue or breach, but rather a risk monitoring, sharing, or management activity, respectively, that may not affect the organizational objectives directly or significantly. References = CRISC Review Manual, 7th Edition, page 109.

The best tool to support the management of identified risk scenarios is maintaining a risk register, as it provides a comprehensive and structured record of the risk information and decisions, such as the risk description, rating, ownership, response, and status, and facilitates the communication and accountability of the risk management process and activities. The other options are not the best tools, as they are more related to the collection, measurement, or definition of the risk scenarios, respectively, rather than the management of the risk scenarios. References = CRISC Review Manual, 7th Edition, page 101.

Updating the risk likelihood in the risk register is appropriate when an improved control, such as an automated interface, is implemented. This change affects the probability of the risk occurring, thus reflecting the enhanced control environment.

Assessing the threat and associated impact is the next thing that a risk practitioner should do after learning that Internet of Things (IoT) devices installed in the production environment lack appropriate security controls for sensitive data. This is because assessing the threat and associated impact can help determine the level and nature of the risk posed by the IoT devices, as well as the potential consequences and costs of a security breach or incident. Assessing the threat and associated impact can also provide the basis for further risk analysis and response steps, such as evaluating risk appetite and tolerance levels, recommending device management controls, or enabling role-based access control. According to the CRISC Review Manual 2022, assessing the threat and associated impact is one of the key steps in the IT risk assessment process1. According to the web search results, assessing the threat and associated impact is a common and recommended practice for addressing the security risks of IoT devices

Presenting the impact of IT risks on organizational processes in monetary terms is effective for obtaining management buy-in because it directly relates to the organization's financial health and decision-making. It provides a clear and tangible understanding of the potential financial implications of risks, making it easier for management to appreciate the need for additional controls.

 Encrypting data before it leaves the organization is the best way to protect sensitive data from administrators within a public cloud, as it ensures that the data is secured at the source and remains encrypted throughout the transmission and storage in the cloud. Using an encrypted tunnel to connect to the cloud, encrypting the data in the cloud database, and encrypting physical hard drives within the cloud are not the best ways, as they may not prevent the cloud administrators from accessing the data or the encryption keys, or may not protect the data from unauthorized interception or modification during the transmission. References = CRISC Review Manual, 7th Edition, page 153.

The first step in selecting a risk response after a penetration test reveals several vulnerabilities in a web-facing application is to assess the level of risk associated with the vulnerabilities, as it involves evaluating the likelihood and impact of the vulnerabilities being exploited, and comparing them with the risk tolerance and appetite of the organization. Correcting the vulnerabilities, developing a risk response action plan, and communicating the vulnerabilities are possible steps in selecting a risk response, but they are not the first step, as they require the prior knowledge of the risk level and the optimal risk response. References = CRISC Review Manual, 7th Edition, page 108.

 The situation where the cost of maintaining a control has grown to exceed the potential loss is best described as an over-controlled environment, as it indicates that the control is not cost-effective and may be unnecessary or excessive. Insufficient risk tolerance, optimized control management, and effective risk management are not the best descriptions, as they do not reflect the imbalance between the control cost and the potential loss. References = CRISC Review Manual, 7th Edition, page 149.

When an organization restructures its business processes, the first step in revising the BCP is to identify new potentially disruptive scenarios that may affect the continuity of the critical functions and processes. This can be done by conducting a risk assessment or a business impact analysis (BIA) to determine the likelihood and impact of various threats and vulnerabilities on the organization’s objectives and operations. By identifying new potentially disruptive scenarios, the organization can then update its recovery strategies, objectives, and plans accordingly.

References:

•ISACA, Risk IT Framework, 2nd Edition, 2019, p. 761

•ISACA, IT Business Continuity/Disaster Recovery Audit Program, 2021, p. 52

The ultimate objective of utilizing key control indicators (KCIs) in the risk management process is to provide early warning signs of a potential change in risk level, as they indicate the performance and adequacy of the controls, and alert the stakeholders to any control gaps or deficiencies that may affect the risk exposure and impact. The other options are not the ultimate objectives, as they are more related to the insight, basis, or benchmark of the risk management process, respectively, rather than the early warning sign of the risk management process. References = CRISC Review Manual, 7th Edition, page 110.

A gap analysis is the process of comparing the current state of the organization’s compliance with the new regulation and the desired state of compliance. It helps to identify the gaps or deficiencies that need to be addressed and prioritize the actions to close them. Performing a gap analysis is the first step to understand the impact of the new regulation and plan the appropriate risk response.

References

•ISACA CRISC Review Manual, 7th Edition, Domain 2: IT Risk Assessment, Section 2.2.3: Gap Analysis

•Regulatory Change: Future of Risk in the Digital Era | Deloitte US

•Gap Analysis: What It Is and How to Perform One | The Blueprint

The greatest benefit of using IT risk scenarios is that they facilitate communication of risk, as they provide a clear and realistic description of the risk sources, events, impacts, and responses, and enable the stakeholders to understand and appreciate the risk exposure and appetite of the organization. Supporting compliance with regulations, providing evidence of risk assessment, and enabling the use of key risk indicators (KRIs) are also benefits of using IT risk scenarios, but they are not the greatest benefit, as they are more related to the outcomes or consequences of risk communication, rather than the process or value of risk communication. References = CRISC Review Manual, 7th Edition, page 100.

The risk practitioner’s next course of action should be to review the contract and SLAs with the third-party cloud provider, as they define the roles, responsibilities, expectations, and obligations of both parties regarding the backup and recovery procedures. The contract and SLAs should specify the scope, frequency, quality, security, availability, and performance of the backup and recovery services, as well as the reporting, monitoring, auditing, and remediation mechanisms. The risk practitioner should ensure that the contract and SLAs are aligned with the organization’s business continuity and disaster recovery requirements, and that they provide sufficient assurance and accountability for the third-party provider.

References:

•ISACA, Risk and Information Systems Control Review Manual, 7th Edition, 2020, p. 2501

•ISACA, Cloud Computing: Business Benefits With Security, Governance and Assurance Perspectives, 2009, p. 142

•ISACA, Guidelines on outsourcing to cloud service providers, 2020, p. 63

Assessing the impact of applying the patches on the production environment is the most important task to be performed prior to implementation, because it helps to identify and mitigate any potential risks or issues that may arise from the patching process. Patching is a process of applying updates or fixes to software or hardware to address vulnerabilities, bugs, or performance issues. Patching is essential for maintaining the security and functionality of IT systems, but it also introduces the risk of introducing new problems or breaking existing features. Therefore, before applying patches, the organization should assess the impact of the patches on the production environment, such as compatibility, performance, availability, functionality, and security. Surveying other enterprises regarding their experiences with applying these patches, seeking information from the software vendor to enable effective application of the patches, and determining in advance an off-peak period to apply the patches are all helpful tasks to be performed prior to implementation, but they are not the most important task, as they do not directly address the impact of the patches on the production environment. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.4.2, page 211

 A compensating control is a control that is implemented to reduce the risk exposure when the primary control is not feasible or cost-effective. A compensating control may not directly address the root cause of the risk, but it can provide an alternative or supplementary way of mitigating the risk. A residual risk is the risk that remains after the risk response has been implemented. A residual risk can be accepted, monitored, or further reduced depending on the risk tolerance and appetite of the organization. During a risk assessment, a risk practitioner is a person who is responsible for identifying and analyzing the potential sources and consequences of risk events. When a risk practitioner learns that an IT risk factor is adequately mitigated by compensating controls in an associated business process, the action that would enable the most effective management of the residual risk is to schedule periodic reviews of the compensating controls’ effectiveness, which means to measure and evaluate the performance and compliance of the compensating controls on a regular basis. By scheduling periodic reviews of the compensating controls’ effectiveness, the risk practitioner can ensure that the compensating controls are still operating as intended, and that they are delivering the expected results. The risk practitioner can also identify any gaps or weaknesses in the compensating controls, and recommend any improvements or adjustments as needed. References = CRISC Review Manual, 7th Edition, page 177.

Sensitivity and reliability are the most important criteria for selecting KRIs, as they indicate how well the KRIs reflect the changes in the risk level and how consistent and accurate the KRIs are in measuring the risk. Sensitivity means that the KRIs should respond quickly and proportionally to the variations in the risk exposure, and provide early warning signals of potential risk events. Reliability means that the KRIs should be based on valid and verifiable data sources, and produce consistent and comparable results over time and across different units or functions. Historical data availability, implementation and reporting effort, and ability to display trends are also useful criteria, but they are not as critical as sensitivity and reliability.

References:

•ISACA, Risk IT Framework, 2nd Edition, 2019, p. 751

•ISACA, Risk and Information Systems Control Review Manual, 7th Edition, 2020, p. 2122

Ensuring segregation of duties are implemented within key systems or processes is the best strategy employed by risk management to prevent internal fraud, because it reduces the opportunity for a single person to manipulate or misuse the system or process for fraudulent purposes. Segregation of duties is a control that assigns different roles and responsibilities to different individuals, such that no one person can perform all the steps of a transaction or process. Requiring control owners to conduct an annual control certification, conducting regular internal and external audits on the systems supporting financial reporting, and requiring the information security officer to review unresolved incidents are all useful strategies to detect or deter internal fraud, but they are not the best strategy to prevent it, as they do not directly address the root cause of fraud. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.1, page 197

Testing is completed by IT support users without input from end users should be of most concern to a risk practitioner reviewing the system development life cycle (SDLC). This is because testing without input from end users can result in poor quality, usability, and functionality of the system, as well as increased errors, defects, and rework. Testing without input from end users can also lead to user dissatisfaction, resistance, and non-compliance, as well as misalignment with the business requirements and objectives. According to the CRISC Review Manual 2022, one of the key risk identification techniques for IT projects is to involve the end users and other relevant parties in the testing process1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, testing without input from end users is the correct answer to this question2.

Testing in phases, overriding segregation of duties controls, and using data anonymization are not the most concerning issues for a risk practitioner reviewing the SDLC. These are possible practices or techniques that can be used in the testing process, but they do not necessarily pose significant risks or problems. Testing in phases can help ensure that the system meets the technical and functional specifications, as well as the user acceptance criteria, at each stage of the development. Overriding segregation of duties controls can be justified and authorized during the testing phases, as long as the controls are restored and verified before the system goes live. Using data anonymization can help protect the privacy and security of the data used in the testing process, as well as comply with the relevant regulations and standards.

A risk assessment with stakeholders is the best course of action because it will help the risk practitioner to evaluate the value and risk of the third-party blockchain integration platform in relation to the organization’s objectives, risk appetite, and risk tolerance. A risk assessment will also help to identify and prioritize the risks and opportunities associated with the platform, and to develop appropriate risk responses and controls.

References: The answer is based on the following sources:

•CRISC Review Manual, 7th Edition, Chapter 2: IT Risk Assessment, pages 75-761

•CRISC Review Questions, Answers & Explanations Database, 12 Month Subscription, Question ID: QID-10012

 Business process owners are the most important to include in the assessment of existing IT risk scenarios, as they have the authority and responsibility to manage the business processes and their associated risks and controls, and to provide the business perspective and requirements for the IT risk scenarios. Technology subject matter experts, business users of IT systems, and risk management consultants are not the most important to include, as they may have different roles and responsibilities related to the technical, operational, or advisory aspects of IT risk scenarios, respectively, but they do not own the business processes or the IT risk scenarios. References = CRISC Review Manual, 7th Edition, page 101.

Providing opinions on control strength after the initial design is the best time for the risk practitioner, because it helps to ensure that the controls are aligned with the requirements and objectives of the new cloud-based service, and that they are effective and efficient in mitigating the risks associated with the service. A cloud-based service is a service that is delivered over the internet, where the service provider owns and manages the IT infrastructure, platforms, or applications, and the customer pays only for the resources or functions they use. An access management capability is a capability that enables the organization to control and monitor the access to its IT systems or networks, such as authentication, authorization, or auditing. Controls are policies, procedures, or mechanisms that help to reduce or eliminate the risks that may affect the security, reliability, performance, or compliance of the cloud-based service. Providing opinions on control strength after the initial design is the best time, as it allows the risk practitioner to review the design specifications and requirements, and to provide feedback and recommendations on the adequacy and suitability of the controls. Providing opinions on control strength before production rollout, after a few weeks in use, or before end-user testing are all possible times for the risk practitioner, but they are not the best time, as they may be too late or too early to influence the design and implementation of the controls. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.2.1, page 183

The percentage of projects with developed controls on scope creep is the best key performance indicator (KPI) to measure how effectively risk management practices are embedded in the project management office (PMO), as it reflects the ability of the PMO to identify, assess, and respond to the risk of project scope changes that may affect the project objectives, budget, and schedule. The other options are not the best KPIs, as they do not directly measure the effectiveness of risk management practices in the PMO, but rather the outcomes or consequences of risk management decisions. References = CRISC Review Manual, 7th Edition, page 110.

Change management is the best way to prevent an unscheduled application of a patch, because it ensures that any changes to the IT environment are planned, approved, tested, and documented. Change management is a process that controls the implementation of changes to IT systems, applications, infrastructure, or processes. It aims to minimize the risk of disruption, errors, or failures caused by changes. Applying a patch is a type of change that may affect the security, functionality, or performance of an IT system or application. Therefore, applying a patch should follow the change management process and schedule, and avoid any unscheduled or unauthorized patching. Network-based access controls, compensating controls, and segregation of duties are all useful controls to protect the IT environment from unauthorized or malicious access, but they do not prevent an unscheduled application of a patch, as they do not address the change management process. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.4.2, page 211

The most important information for the risk practitioner to communicate to senior management for contract negotiation purposes when the organization wants to transfer risk by purchasing cyber insurance is the current annualized loss expectancy report, as it provides an estimate of the potential financial loss or impact that the organization may incur due to a cyber risk event in a given year, and helps to determine the optimal coverage and premium of the cyber insurance. The other options are not the most important information, as they are more related to the audit, asset, or industry aspects of the cyber risk, respectively, rather than the financial aspect of the cyber risk. References = CRISC Review Manual, 7th Edition, page 111.

Establishing executive management support is the most important success factor when introducing risk management in an organization. This is because executive management support can help ensure that risk management is aligned with the organization’s vision, mission, and strategy, as well as provide the necessary resources, authority, and accountability for risk management activities. Executive management support can also help foster a risk-aware culture, promote stakeholder engagement, and facilitate risk communication and reporting. According to the CRISC Review Manual 2022, one of the key elements of IT governance is to obtain executive management support and commitment for risk management1. According to the web search results, executive management support is a critical success factor for risk management in various contexts and industries234.

Reviewing the risk register change log is the best way for management to validate whether risk response activities have been completed, because it helps to track and monitor the changes and updates that have been made to the risk register, and to verify that the risk response activities have been implemented and closed. A risk register is a document that captures, identifies, assesses and tracks risk as part of the risk management process4. A risk register change log is a record that documents the date, description, and reason for each change or update that is made to the risk register. A risk response activity is an action or task that is performed to implement the chosen risk response strategy for a specific risk, such as avoid, transfer, mitigate, or accept. Reviewing the risk register change log is the best way, as it helps to ensure that the risk register is accurate and current, and that the risk response activities have been completed and reported. Reviewing evidence of risk acceptance, control effectiveness test results, and control design documentation are all possible ways to validate whether risk response activities have been completed, but they are not the best way, as they may not cover all the risk response activities, and they may not reflect the changes or updates in the risk register. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.1, page 101

According to the CRISC Review Manual, an enterprise-wide ethics training and awareness program is one of the key elements of a strong risk culture, as it helps to promote ethical behavior, raise awareness of risk management principles and practices, and foster a culture of accountability and transparency2

1: Developing Collective Risk Leadership Through CRISC - ISACA 2: CRISC Review Manual, 7th Edition, page 23

A risk is the possibility of an event that may have a negative impact on the achievement of an organization’s objectives. A risk can be measured by the probability and impact of the event, which indicate the likelihood and consequence of the event. A risk manager is a person who is responsible for performing risk management activities, such as identifying, analyzing, evaluating, treating, monitoring, and communicating risks. When an organization retains footage from its data center security camera for 30 days when the policy requires 90-day retention, the risk manager’s best response to the business owner who challenges whether the situation is worth remediating is to evaluate the risk as a measure of probable loss, which means to estimate the potential harm or damage that may result from the non-compliance with the policy. By evaluating the risk as a measure of probable loss, the risk manager can provide the business owner with the rationale and justification for the risk remediation, and help the business owner to understand the cost-benefit analysis of the risk response. References = CRISC Review Manual, 7th Edition, page 63.

Data classification is the process of assigning labels or categories to data based on its sensitivity, value, and criticality to the organization. Data classification is the first consideration when analyzing the risk associated with the web application hosted by a cloud service, as it determines the level of protection and controls required for the data. Data classification can help the organization to comply with legal, regulatory, and contractual obligations, such as GDPR, CCPA, and PCI DSS, and to prevent data breaches, leaks, or losses. Data classification can also help the organization to evaluate the suitability and trustworthiness of the cloud service provider, and to negotiate the terms and conditions of the service level agreement (SLA).

References:

•ISACA, Cloud Computing: Business Benefits With Security, Governance and Assurance Perspectives, 2009, p. 141

•ISACA, Data Classification: What It Is, Why You Should Care and How to Perform It2

The recovery time objective (RTO) is the planned recovery time for a process or system which should occur before reaching the business process’s maximum tolerable downtime (MTD) or maximum allowable outage (MAO). The RTO must be aligned with the MAO to ensure that the continuity of the business process is not compromised by a prolonged outage. The RTO is determined by the business impact analysis (BIA) based on the criticality and urgency of the business process and its dependencies. The RTO also helps to select and implement appropriate recovery methods and procedures for the process or system. References = Risk and Information Systems Control Study Manual, Chapter 6: IT Risk Monitoring and Reporting, Section 6.2: IT Risk Reporting, Page 307; What is the difference between RPO, RTO, and MTD? - Tandem Blog.

Participation in the risk assessment may constitute a conflict of interest, because it may create a situation where the risk practitioner’s personal or professional interests or relationships interfere with their objectivity, independence, or impartiality in conducting the risk assessment. A conflict of interest is a type of risk that may compromise the integrity, quality, or validity of the risk assessment process and outcomes, and may damage the reputation or trust of the risk practitioner or the organization. A conflict of interest may arise when the risk practitioner has a direct or indirect connection or involvement with the subject or stakeholder of the risk assessment, such as a previous or current role, responsibility, or relationship, that may influence or bias their judgment or decision. Participation in the risk assessment may constitute a conflict of interest, as the risk practitioner may have a prior or residual interest or loyalty to the financial process team or the new critical application, and may not be able to assess the risk in a fair and unbiased manner.

The risk assessment team being overly confident of its ability to identify issues, the risk practitioner being unfamiliar with recent application and process changes, and the risk practitioner still having access rights to the financial system are all possible concerns with the request, but they are not the greatest concern, as they do not necessarily imply a conflict of interest, and they may be mitigated or resolved by other means, such as training, documentation, or review.

Internet of Things (IoT) is an emerging technology that refers to the network of devices, such as cameras, sensors, appliances, or vehicles, that can communicate and exchange data via the internet. IoT is frequently used for botnet distributed denial of service (DDoS) attacks, which are cyberattacks that aim to disrupt or disable a target’s online services by overwhelming them with traffic from multiple sources. IoT devices are often unsecured, unpatched, or misconfigured, which makes them vulnerable to being infected by malware and controlled by attackers. Attackers can use IoT devices to create large and powerful botnets that can launch DDoS attacks against various targets, such as websites, servers, or networks. According to the CRISC Review Manual 2022, IoT is one of the key emerging technologies that pose new IT risks, including DDoS attacks1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, IoT is the correct answer to this question2. According to the web search results, IoT devices are commonly used for botnet DDoS attacks, such as the Mirai botnet, the Emotet botnet, and the BoT-IoT dataset345.

Cybersecurity incident response procedures are the plans and actions that an organization takes to respond to and recover from a cybersecurity attack. They include identifying the source and scope of the attack, containing and eradicating the threat, restoring normal operations, and analyzing the root cause and lessons learned. Reviewing cybersecurity incident response procedures is the most effective course of action when the probability of a successful cybersecurity attack is increasing and the potential loss could exceed the organization’s risk appetite, as it helps to prepare the organization for minimizing the impact and duration of the attack, as well as improving the resilience and security posture of the organization.

Risk threshold exceptions are instances when a KRI exceeds or falls below a predefined level or point that triggers an action or a warning. An increase in the number of risk threshold exceptions indicates that the KRIs are not reflecting the current risk exposure or environment accurately or effectively. This may suggest that the KRIs are outdated, irrelevant, or poorly defined. Therefore, the KRIs should be revised to ensure that they are aligned with the organizational objectives, risk appetite, and risk management strategy.

References

•Key Risk Indicators: A Practical Guide | SafetyCulture

•Key Risk Indicators: Examples & Definitions - SolveXia

•Choosing and Using Key Risk Indicators - Institute of Risk Management

The organization has adopted the risk treatment of transfer, which means that it has shifted some or all of the potential negative consequences of a risk event to another party, such as a vendor, an insurer, or a partner. By including penalties for loss of availability in the contract, the organization has transferred the financial impact of a service disruption to the vendor, who will be liable for compensating the organization for the loss. Transfer does not eliminate the risk, but it reduces the organization’s exposure to the risk.

References:

•ISACA, Risk and Information Systems Control Review Manual, 7th Edition, 2020, p. 2111

•ISACA, A Nuanced View of Risk Response2

Risk tolerance is the most useful input when evaluating the appropriateness of risk responses, as it defines the acceptable level of risk for the organization and guides the selection of the optimal risk response. Incident reports, cost-benefit analysis, and control objectives are also useful inputs, but they are not the most useful, as they provide information on the actual or potential impact, cost, and effectiveness of the risk responses, but not the desired level of risk. References = CRISC Review Manual, 7th Edition, page 108.

Scheduling periodic audits is the best way to facilitate the maintenance of data classification requirements, because it helps to verify and validate that the data are classified and handled according to the established policies, standards, and guidelines, and that the data classification requirements are updated and aligned with the changes in the data environment or regulations. Data classification is a process of categorizing data according to their sensitivity, confidentiality, and value to the organization, and specifying the appropriate handling and protection measures for each category. Data classification requirements are the rules or criteria that define how data should be classified and treated. Scheduling periodic audits is the best way to ensure that the data classification requirements are followed and maintained, and that any issues or gaps are identified and addressed. Assigning a data custodian, implementing technical controls over the assets, and establishing a data loss prevention (DLP) solution are all useful ways to facilitate the maintenance of data classification requirements, but they are not the best way, as they do not provide a comprehensive and independent review and assessment of the data classification process and outcomes. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158

The risk owner is the person who should be accountable for any related losses to the organization, because they are the person who has the authority and responsibility to manage the risk and its associated controls. The risk owner is also the person who accepts the risk and its residual level, and who monitors and reports on the risk status and performance. The IT risk manager, the server administrator, and the risk practitioner are all involved in the risk management process, but they are not the person who should be accountable for the risk and its outcomes, as they do not have the ultimate decision-making power and accountability for the risk. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.1.1, page 79

Least privilege is the best way to reduce the likelihood of an individual performing a potentially harmful action as the result of unnecessary entitlement, because it limits the access and permissions of the individual to the minimum level that is required to perform their role or function, and prevents the individual from accessing or modifying the resources or data that are not relevant or authorized. An entitlement is a right or privilege that grants an individual the ability to access or use a resource or data, such as a file, a system, or an application. An unnecessary entitlement is an entitlement that is not needed or justified for the individual’s role or function, and may pose a risk of unauthorized or inappropriate access or use of the resource or data. A potentially harmful action is an action that may cause harm or damage to the organization or its objectives, such as a data breach, a fraud, or a sabotage. Least privilege is the best way, as it helps to minimize the exposure and impact of the unnecessary entitlement, and to reduce the likelihood and severity of the potentially harmful action. Application monitoring, separation of duty, and nonrepudiation are all possible ways to reduce the likelihood of an individual performing a potentially harmful action as the result of unnecessary entitlement, but they are not the best way, as they do not directly address the unnecessary entitlement, and may not prevent the potentially harmful action. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2, page 200

The information classification policy is the most important document regarding the treatment of sensitive data, because it defines the categories and criteria for classifying data according to their sensitivity, confidentiality, and value to the organization, and specifies the appropriate handling and protection measures for each category. Sensitive data are data that contain personal, proprietary, or confidential information that may cause harm or damage to the organization or its stakeholders if disclosed, modified, or destroyed without authorization. An information classification policy helps to ensure that sensitive data are identified and treated in a consistent and secure manner, and that the organization complies with the applicable laws and regulations regarding data protection and privacy. An encryption policy, an organization risk profile, and a digital rights management policy are all useful documents for the treatment of sensitive data, but they are not the most important document, as they do not directly address the classification and handling of sensitive data. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158

Risk mitigation is most effective when the residual risk is optimized, as it means that the risk exposure and impact have been reduced to the level that is aligned with the risk tolerance and appetite of the organization, and that the risk response is cost-effective and optimal. The other options are not the factors that determine the effectiveness of risk mitigation, as they are more related to the types or sources of risk, respectively, rather than the level or outcome of risk. References = CRISC Review Manual, 7th Edition, page 111.

The effectiveness of a control refers to how well it achieves its intended purpose of reducing the risk of material misstatement or error in a process or activity2. One way to measure the effectiveness of a control is to monitor the number of control deviations detected, which are instances where the control fails to operate as designed or is not applied consistently or correctly3. A high number of control deviations indicates a low effectiveness of the control, while a low number of control deviations indicates a high effectiveness of the control. The other options are not good indicators of the effectiveness of a control, as they do not directly relate to the performance or outcome of the control. The scope of the control coverage, the number of exceptions granted, and the number of steps necessary to operate the process are more relevant to the design or efficiency of the control, not its effectiveness

A vulnerability assessment is a process that identifies and quantifies vulnerabilities in a system. It is the most effective process to determine the relevance of threats for risk scenarios as it helps in identifying potential security threats and vulnerabilities, quantifying the seriousness of each, and prioritizing techniques to mitigate attack and protect IT resources1.

References

2Identifying and Estimating Cybersecurity Risk for Enterprise Risk Management

3Threat Modeling Process | OWASP Foundation

1Threat modeling explained: A process for anticipating cyber attacks

4Hazard Identification and Risk Assessment: A Guide - SafetyCulture

5How to Write Strong Risk Scenarios and Statements - ISACA

The greatest challenge for a risk practitioner during a merger of two organizations is the variances between organizational risk appetites, as they may indicate a significant difference in the risk culture, strategy, and objectives of the two organizations, and may require a complex and lengthy process of alignment and integration. Different taxonomies to categorize risk scenarios, disparate platforms for governance, risk, and compliance (GRC) systems, and dissimilar organizational risk acceptance protocols are not the greatest challenges, as they are more related to the technical, operational, or procedural aspects of risk management, rather than the strategic or cultural aspects of risk management. References = CRISC Review Manual, 7th Edition, page 109.

Automated asset management software is the best method to track asset inventory, as it can provide accurate, timely, and comprehensive information about the organization’s IT assets, such as their location, status, configuration, ownership, and value. Automated asset management software can also help to optimize the utilization, performance, and lifecycle of the IT assets, and to reduce the risks of loss, theft, damage, or obsolescence. Automated asset management software can integrate with other systems, such as configuration management database (CMDB), service desk, and security tools, to enable better visibility, control, and governance of the IT assets.

References:

•ISACA, IT Asset Valuation, Risk Assessment and Control Implementation Model1

•ISACA, IT Asset Management: It’s All About Process2

•ISACA, IT Asset Management Audit/Assurance Program3

A key performance indicator (KPI) is a metric that measures the achievement of a specific goal or objective. A KPI for the internal control that requires all access for employees be removed within 15 days of their termination date could be the percentage of employees whose access was removed within the specified time frame. This KPI would help the risk practitioner to monitor the compliance and effectiveness of the control and identify any deviations or issues.

References

•Key Performance Indicators (KPIs) - ISACA

•How to Improve Risk Awareness in the Workplace [+ Template] - AlertMedia

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There is no definitive answer to this question, as different factors may be more or less important depending on the context and the nature of the risk. However, based on some web search results, one possible factor that could be considered essential for managing risk in a highly dynamic environment is D. Implementing detection and response measures.

Detection and response measures are the practices and procedures that enable an organization to identify and mitigate any potential or actual cybersecurity events that could compromise its network, systems, data, or assets. Detection and response measures can help an organization to reduce the impact and duration of a cyberattack, as well as to learn from the incident and improve its security posture and resilience. Detection and response measures can also help an organization to comply with regulatory and legal requirements, as well as to maintain its reputation and trust among its stakeholders.

Some examples of detection and response measures include:

•Using threat intelligence, user behavior analytics, and attacker behavior analytics to monitor and analyze the network activity and identify any anomalies or signs of compromise 12

•Implementing security continuous monitoring, intrusion detection and prevention systems, and antivirus and antimalware software to detect and block malicious traffic and malware 3

•Establishing incident response plans, teams, and tools to contain, eradicate, and recover from a cyberattack, as well as to communicate and coordinate with internal and external parties 45

•Conducting regular audits, assessments, and tests to evaluate the effectiveness of the detection and response measures and to identify any gaps or weaknesses 6

Therefore, implementing detection and response measures could be seen as an essential factor for managing risk in a highly dynamic environment, as it can help an organization to protect its critical assets and functions, and to respond quickly and effectively to any emerging or evolving threats.

Reporting the activity to the supervisor is the first thing that the risk practitioner should do when learning that a risk owner has been accepting gifts from a supplier of IT products. This is because accepting gifts from a supplier of IT products can create a conflict of interest, compromise the integrity and objectivity of the risk owner, and violate the organizational ethics policies. Reporting the activity to the supervisor can help ensure that the issue is escalated to the appropriate authority, investigated, and resolved in a timely and transparent manner. According to the CRISC Review Manual 2022, one of the key risk response techniques is to report the risk to the relevant stakeholders, such as the supervisor1. According to the web search results, reporting the activity to the supervisor is a common and recommended action when encountering a potential ethical violation in the workplace

Using a common risk taxonomy is the most important factor to consider when creating a separate IT risk register for a large organization with regard to the existing corporate risk register, as it ensures consistency, clarity, and alignment of the IT risk identification, classification, and reporting with the corporate risk management framework and strategy. Leveraging business risk professionals, relying on generic IT risk scenarios, and describing IT risk in business terms are not the most important factors, as they are more related to the resources, inputs, or outputs of the IT risk register, respectively, rather than the structure or format of the IT risk register. References = CRISC Review Manual, 7th Edition, page 100.

Conducting interviews with senior management is the best method for determining an enterprise’s current appetite for risk, because it helps to obtain the direct and qualitative input and feedback from the senior management on their expectations and preferences regarding the level and type of risk that the enterprise is willing to accept or pursue, in relation to its objectives and strategy. Risk appetite is the amount and nature of risk that an enterprise is willing to take in order to achieve its objectives and create value. Risk appetite is influenced by factors such as the enterprise’s culture, values, vision, mission, and strategy, as well as the external environment and stakeholders. Risk appetite may vary depending on the context and situation, and may change over time. Conducting interviews with senior management is the best method, as it helps to understand and capture the current and explicit risk appetite of the enterprise, and to align the risk management process and activities with the senior management’s risk vision and direction. Conducting comparative analysis of peer companies, reviewing brokerage firm assessments, and performing trend analysis using prior annual reports are all possible methods for determining an enterprise’s current appetite for risk, but they are not the best method, as they may provide only indirect, quantitative, or historical information, and may not reflect the current and specific risk appetite of the enterprise. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 45

Inherent risk is the most likely to increase as a result of the new initiative, because it is the risk that exists before any controls or mitigating factors are applied. Inherent risk reflects the natural or raw level of exposure that the organization faces from a given risk source or scenario. Accepting credit card payments from customers via the corporate website introduces new sources and types of risk, such as fraud, theft, data breach, or non-compliance, that increase the inherent risk level of the organization. Risk tolerance, risk appetite, and residual risk are all related to the risk management process, but they are not the most likely to increase as a result of the new initiative, as they depend on the organization’s risk strategy, objectives, and controls. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.1, page 51

The best course of action when a new application is added to the environment after testing of the SSO control has been completed is to initiate a retest of the full control, as it may reveal any new issues or gaps that the new application may introduce to the SSO control, and ensure that the control remains effective and adequate. Retesting the control using the new application as the only sample, reviewing the corresponding change control documentation, and re-evaluating the control during the next assessment are not the best courses of action, as they may not provide sufficient assurance, evidence, or timeliness of the control testing, respectively. References = CRISC Review Manual, 7th Edition, page 154.

According to the CRISC Review Manual, the most important time to involve business stakeholders in the development of bottom-up IT risk scenarios is when validating the risk scenarios, as they can provide valuable input on the relevance, completeness, and accuracy of the scenarios and their impact on the business objectives and processes2

1: CRISC Review Questions, Answers & Explanations Database, Question ID: 100001 2: CRISC Review Manual, 7th Edition, page 97

The number of emergency change requests is the most important factor to review when confirming whether implemented controls are operating effectively, as it indicates the frequency and severity of incidents or issues that require urgent changes to the controls, and may reflect the control deficiencies or failures. The results of benchmarking studies, the results of risk assessments, and the maturity model are not the most important factors, as they are more related to the comparison, evaluation, or improvement of the controls, respectively, rather than the confirmation of the control effectiveness. References = CRISC Review Manual, 7th Edition, page 154.

A risk awareness program is a set of activities and communication methods that aim to increase the understanding and knowledge of risk among the stakeholders of an organization. The primary objective of a risk awareness program is to enhance the organizational risk culture, which is the shared values, beliefs, and attitudes that influence how risk is perceived and managed in the organization. A risk awareness program can help to promote a risk-aware culture by:

•Educating stakeholders on the concepts and benefits of risk management

•Aligning risk management with the organization’s vision, mission, and objectives

•Encouraging stakeholder participation and collaboration in risk management processes

•Fostering a positive attitude towards risk taking and learning from failures

•Reinforcing risk management roles and responsibilities

•Recognizing and rewarding good risk management practices

References: The answer is based on the following sources:

•CRISC Review Manual, 7th Edition, Chapter 2: IT Risk Assessment, page 781

•Developing Collective Risk Leadership Through CRISC2

The percent of patches implemented within established timeframe is the best metric to demonstrate the effectiveness of an organization’s patch management process, as it measures how well the organization meets its patching objectives and reduces its exposure to vulnerabilities. This metric reflects the timeliness, completeness, and quality of the patching process, and can be compared against the organization’s patch management policy and standards. A high percent of patches implemented within established timeframe indicates that the organization has a mature and efficient patch management process that minimizes the risk of security breaches or operational disruptions due to unpatched systems.

References:

•ISACA, Risk and Information Systems Control Review Manual, 7th Edition, 2020, p. 2501

•ISACA, Practical Patch Management and Mitigation2

•NIST, Guide to Enterprise Patch Management Planning3

Reviewing the risk register is the best way to help an organization gain insight into its overall risk profile, because it provides a comprehensive and structured representation of all the key risks that the organization faces, along with their likelihood, impact, and response strategies. A risk register is a tool that records and tracks the current status of risks, their sources, causes, consequences, and controls. A risk register helps to facilitate the communication and reporting of risks, and to support the risk-based decision making and prioritization. A risk profile is a summary of the key risks that an organization faces, and their implications for the organization’s objectives and strategy. Reviewing the risk register is the best way to understand the risk profile, as it reflects the nature and level of exposure that the organization has from the various risk sources and scenarios. Reviewing the threat landscape, the risk appetite, and the risk metrics are all useful ways to help an organization gain insight into its overall risk profile, but they are not the best way, as they do not provide a comprehensive and structured view of the risks and their responses. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 83

Assessing risk scenarios is the starting point when performing a risk analysis for an asset. A risk scenario is a description of a possible event or situation that could cause harm or loss to an asset. Assessing risk scenarios involves identifying the sources and causes of risk, the potential impacts and consequences of risk, and the likelihood and frequency of risk occurrence. Assessing risk scenarios can help establish the risk context, scope, and criteria for the asset, and provide the basis for further risk analysis steps, such as evaluating threats, assessing controls, and updating the risk register. According to the CRISC Review Manual 2022, assessing risk scenarios is the first step in the IT risk assessment process1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, assessing risk scenarios is the correct answer to this question

Risk events are specific occurrences or changes that have a potential impact on the achievement of objectives. They can be positive or negative, and they can be internal or external to the organization. Risk events provide the basis for developing realistic risk scenarios, which are hypothetical situations that illustrate the possible consequences of a risk event. Risk scenarios help to understand and communicate the nature, sources, and causes of risk, as well as the potential impact and likelihood of risk occurrence. Risk scenarios can also be used to test the effectiveness of risk responses and controls.

The other options are not as useful as risk events for developing realistic risk scenarios. A balanced scorecard (A) is a strategic management tool that measures the performance of the organization against its objectives, vision, and strategy. It does not provide specific information about risk events or their consequences. A risk appetite (B) is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. It does not describe the risk events or their scenarios, but rather the level of risk tolerance and acceptance. A risk map © is a graphical representation of the risk profile of the organization, showing the relationship between the likelihood and impact of different risks. It does not provide the details or context of the risk events or their scenarios, but rather the relative ranking and prioritization of risks.

 The global organization has adopted risk acceptance as the risk response with regard to privacy requirements, as it has decided to continue with the implementation of the application that does not address all privacy requirements across multiple jurisdictions, and bear the potential consequences of noncompliance. Risk avoidance, risk transfer, and risk mitigation are not the risk responses adopted by the organization, as they would involve avoiding, sharing, or reducing the risk of noncompliance with privacy requirements, respectively. References = CRISC Review Manual, 7th Edition, page 111.

Risk management is the process of identifying, analyzing, evaluating, treating, monitoring, and communicating the risks that may affect the achievement of an organization’s objectives. Risk management helps to optimize the risk exposure and performance of the organization, and support the business objectives and strategies. The primary reason to engage business unit managers in risk management processes is to enable better-informed business decisions, which are the decisions that incorporate the risk information and analysis into the strategic and operational choices of the organization. By engaging business unit managers in risk management processes, the organization can ensure that the business unit managers have the insight and understanding of the current and potential risks, their likelihood and impact, their interrelationships and dependencies, and their alignment with the risk appetite and tolerance. This can help the business unit managers to prioritize the risks, allocate the resources, select the risk responses, monitor the risk performance, and evaluate the risk outcomes. References = 5

Continuous monitoring of key risk indicators (KRIs) will provide an early warning so that proactive action can be taken, because it helps to detect and measure the changes or trends in the risk level or performance, and to alert the risk owners and stakeholders when the risk exceeds the predefined thresholds or targets. A KRI is a metric or indicator that helps to monitor and evaluate the likelihood or impact of a risk, or the effectiveness or efficiency of a control. A KRI can be quantitative or qualitative, and can be derived from internal or external sources. Continuous monitoring is a process of collecting and analyzing data on a regular or real-time basis, to provide timely and relevant information for decision making or action taking. Continuous monitoring of KRIs will provide an early warning, as it helps to identify and address the risk issues or incidents before they escalate or cause significant damage or disruption. Ensuring that risk will not exceed the defined risk appetite of the organization, providing a snapshot of the risk profile, and ensuring that risk tolerance and risk appetite are aligned are all possible outcomes of continuous monitoring of KRIs, but they are not the best answer, as they do not reflect the main purpose and benefit of continuous monitoring of KRIs, which is to provide an early warning. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.2, page 97

The source that provides the most reliable evidence to support conclusions after completing an information systems controls assessment is the information generated by the systems, as it reflects the actual and objective data and results of the system operations and performance, and can be verified and tested against the control objectives and criteria. The other options are not the most reliable sources, as they may be subjective, biased, or incomplete, and may not reflect the actual or current state of the system controls, respectively. References = CRISC Review Manual, 7th Edition, page 154.

Residual risk is the risk that remains after the risk response has been implemented. Risk tolerance is the acceptable level of variation from the desired outcome or objective. If the residual risk is within the risk tolerance, it means that the risk response has been effective in reducing the risk to an acceptable level.

References

•ISACA CRISC Review Manual, 7th Edition, Domain 3: Risk Response, Section 3.1.1: Residual Risk

•Residual Risk: Definition, Formula & Management - Video & Lesson Transcript | Study.com

•Risk Tolerance - ISACA

Lack of common understanding of the organization’s risk culture is the greatest barrier to achieving the initiative’s objectives, because it hinders the alignment and integration of risk management across the organization. Risk culture is the set of shared values, beliefs, and behaviors that influence how risk is perceived and managed in an organization. A risk universe is a comprehensive and structured representation of all the sources and types of risk that an organization faces. Developing a risk universe requires a common understanding of the organization’s risk culture, as it affects the risk appetite, tolerance, and strategy of the organization. Lack of cross-functional risk assessment workshops, lack of quantitative methods to aggregate the total risk exposure, and lack of an integrated risk management system are all challenges that may affect the development of a risk universe, but they are not the greatest barrier, as they can be overcome with appropriate tools and techniques. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 44

Updating the risk register to include outcomes from a risk assessment is the greatest benefit because it enables the organization to prioritize and respond to the most significant risks in a timely manner. The risk register is a tool that records and tracks the current status of risks, their likelihood, impact, and response strategies. By updating the risk register with the results of a risk assessment, the organization can ensure that the risk information is accurate, relevant, and actionable. Maintaining evidence of compliance with risk policy, validating the organization’s risk appetite, and helping to mitigate internal and external risk factors are all possible benefits of updating the risk register, but they are not the greatest benefit, as they do not directly support risk-based decision making. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 83

Payroll system risk mitigation plans are the actions that are taken to reduce or eliminate the risk associated with payroll processing. When a migration from an in-house developed system to an external cloud-based solution is affecting a previously rated key risk scenario related to payroll processing, the first part of the risk register that should be updated is the payroll system risk mitigation plans. This is because the migration may introduce new risks or change the existing risks, and the risk mitigation plans may need to be revised or replaced accordingly. Updating the payroll system risk mitigation plans can help ensure that the risk level is acceptable and the payroll process is secure and reliable. According to the CRISC Review Manual 2022, one of the key risk treatment techniques is to update the risk action plan, which is a document that outlines the risk mitigation plans1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, updating the risk mitigation plans is the correct answer to this question2.

Payroll system risk factors, payroll process owner, and payroll administrative controls are not the first part of the risk register that should be updated when a migration is affecting a key risk scenario. Payroll system risk factors are the sources or causes of risk, such as threats, vulnerabilities, or uncertainties. Payroll process owner is the person who is responsible for the payroll process and its outcomes. Payroll administrative controls are the policies, procedures, or guidelines that govern the payroll process. These parts of the risk register may also need to be updated, but they are not as urgent or critical as the risk mitigation plans. Updating the risk factors, process owner, and administrative controls can help identify, assess, and monitor the risk, but they do not directly address the risk response. The risk response is the most important part of the risk management process, as it determines how the risk is handled and controlled.

The risk practitioner’s primary consideration when participating in development of a new IT risk strategy should be the risk culture of the organization. Risk culture is the set of values, beliefs, attitudes, and behaviors that shape how the organization perceives, manages, and responds to risks. Risk culture influences the organization’s risk appetite, risk objectives, risk policies, risk processes, and risk performance. The risk practitioner should consider the risk culture when developing a new IT risk strategy, because it helps to align the IT risk strategy with the organization’s mission, vision, values, and strategy, and to ensure that the IT risk strategy is supported and accepted by the organization’s stakeholders, such as the board, management, employees, customers, regulators, etc. The risk practitioner should also consider the risk culture when developing a new IT risk strategy, because it helps to identify and address any gaps, issues, or challenges that may affect the implementation and effectiveness of the IT risk strategy, such as lack of awareness, communication, coordination, or accountability. The other options are not the primary consideration for the risk practitioner, although they may be related to the IT risk strategy. Scale of technology, risk indicators, and proposed risk budget are all factors that could affect the feasibility and sustainability of the IT risk strategy, but they do not necessarily reflect or influence the organization’s risk culture. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.1, page 1-9.

The best way to mitigate the high cost of retrieving electronic evidence associated with potential litigation is to implement policies and procedures for data retention and destruction. Data retention and destruction policies and procedures define the criteria, methods, and schedules for retaining and disposing of electronic data. They help to ensure that the electronic data is stored, managed, and deleted in a consistent, secure, and compliant manner. They also help to reduce the volume, complexity, and cost of retrieving electronic evidence, as they limit the scope, duration, and frequency of the data preservation and discovery process. The other options are not as effective as data retention and destruction policies and procedures, as they are related to the collection, analysis, or classification of electronic data, not the retention or destruction of electronic data. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

The greatest concern for the risk practitioner when a big data project has resulted in the creation of an application used to support important investment decisions is the data quality. Data quality is the degree to which the data is accurate, complete, consistent, reliable, relevant, and timely. Data quality is essential for the success of any big data project, as it affects the validity and reliability of the analysis and the outcomes. Poor data quality could lead to erroneous or misleading results, which could have negative consequences for the investment decisions and the organization’s performance and reputation. The other options are not as concerning as the data quality, although they may also pose some challenges or risks for the big data project. Maintenance costs, data redundancy, and system integration are all factors that could affect the efficiency and effectiveness of the big data project, but they do not directly affect the accuracy and reliability of the analysis and the outcomes. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, page 3-20.

The best way to prevent technical vulnerabilities from being exploited is to update the software with the latest patches and updates. Patches and updates are software modifications that fix the known bugs, errors, or flaws in the software. They also improve the performance, functionality, and security of the software. By updating the software with the latest patches and updates, the company can reduce the exposure and likelihood of the technical vulnerabilities, and protect the software from potential attacks or exploits. The other options are not as effective as updating the software with the latest patches and updates, as they are related to the quality assurance, legal protection, or error handling of the software, not the prevention or mitigation of the technical vulnerabilities. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

Conducting vulnerability scans is the best way for a risk practitioner to validate the effectiveness of a patching program. Vulnerability scans are automated tools that identify and report on the vulnerabilities in a system or network, such as missing patches, misconfigurations, or outdated software. Vulnerability scans can help the risk practitioner to verify that the patches have been applied correctly and consistently, and that there are no remaining or new vulnerabilities that need to be addressed. Conducting penetration testing, interviewing IT operations personnel, and reviewing change control board documentation are also useful methods to evaluate the patching program, but they are not as comprehensive, objective, or timely as vulnerability scans. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.3, page 2-28.

The most effective way to mitigate the risk of unintentional data disclosure through the use of social media sites is to conduct user awareness training. User awareness training is a process of educating and informing the users about the security policies, procedures, and practices that are relevant and applicable to their roles and responsibilities. User awareness training can help to increase the knowledge, understanding, and compliance of the users regarding the data protection and privacy requirements, and the potential risks and consequences of data disclosure through social media sites. User awareness training can also help to influence the behavior, attitude, and culture of the users toward data security and privacy. The other options are not as effective as conducting user awareness training, as they are related to the technical, procedural, or contractual measures to mitigate the risk, not the human or behavioral measures to mitigate the risk. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

 The best method of creating risk awareness in an organization is to ensure senior management commitment to risk training. Senior management plays a vital role in setting the tone and direction of the risk culture and governance in the organization. By demonstrating their support and participation in risk training, they can influence and motivate the employees to follow the risk policies and procedures, and to enhance their risk knowledge and skills. Marking the risk register available to project stakeholders, providing regular communication to risk managers, and appointing the risk manager from the business units are other methods of creating risk awareness, but they are not as effective as ensuring senior management commitment to risk training. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

The most reliable evidence of the effectiveness of security controls implemented for a web application is penetration testing. Penetration testing is a process that simulates an attack on the web application by exploiting its vulnerabilities, using the same tools and techniques as real attackers. Penetration testing helps to evaluate the effectiveness of security controls, because it helps to verify that the security controls can prevent, detect, or mitigate the attack, and to measure the impact and severity of the attack. Penetration testing also helps to identify and address any weaknesses or gaps in the security controls, and to provide recommendations and solutions for improving the security of the web application. The other options are not as reliable as penetration testing, although they may provide some evidence of the effectiveness of security controls. IT general controls audit, vulnerability assessment, and fault tree analysis are all examples of analytical or evaluative methods, which may help to assess or estimate the effectiveness of security controls, but they do not necessarily test or measure the effectiveness of security controls in a realistic scenario. References = 10

Effective risk communication best benefits an organization by helping personnel make better-informed decisions. Risk communication is the process of exchanging information and opinions among stakeholders about the nature, magnitude, significance, or control of a risk. By communicating risk information clearly and consistently, the organization can enhance the understanding and awareness of the risk, and enable the personnel to make decisions that are aligned with the risk appetite and objectives of the organization. Assisting the development of a risk register, improving the effectiveness of IT controls, and increasing participation in the risk assessment process are other possible benefits, but they are not as important as helping personnel make better-informed decisions. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

The most concerning factor for a risk practitioner reviewing risk action plans for documented IT risk scenarios is that many action plans were discontinued after senior management accepted the risk. Risk action plans are documents that define the roles, responsibilities, procedures, and resources for implementing the risk responses and strategies for the IT risk scenarios. Risk action plans help to reduce, transfer, avoid, or accept the IT risks, and to monitor and report on the IT risk performance and improvement. Discontinuing risk action plans after senior management accepted the risk is a major concern, because it may indicate that the risk acceptance decision was not based on a proper risk analysis or evaluation, or that the risk acceptance decision was not communicated or coordinated with the relevant stakeholders, such as the board, management, business units, and IT functions. Discontinuing risk action plans after senior management accepted the risk may also create challenges or risks for the organization, such as compliance, legal, reputational, or operational risks, or conflicts or inconsistencies with the organization’s risk appetite, risk objectives, or risk policies. The other options are not as concerning as discontinuing risk action plans after senior management accepted the risk, although they may also pose some difficulties or limitations for the risk management process. Individuals outside IT managing action plans for the risk scenarios, target dates for completion missing from some action plans, and senior management approving multiple changes to several action plans are all factors that could affect the quality and timeliness of the risk management process, but they do not necessarily indicate a lack of risk management accountability or oversight. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.1, page 4-32.

The relationship owner is the person who has the authority and responsibility for managing the relationship with the service provider. The relationship owner should be accountable for ensuring that risk responses are implemented, as they are the primary point of contact and communication with the service provider. The relationship owner can also monitor and evaluate the performance and compliance of the service provider, and enforce the contractual obligations and service level agreements. The other options are not as accountable as the relationship owner, as they are related to the assessment, security, or legal aspects of the service provider, not the management or oversight of the service provider. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

Risk management is the process of identifying, analyzing, evaluating, treating, monitoring, and communicating the risks that may affect the achievement of an organization’s objectives. The activity that best facilitates effective risk management throughout the organization is conducting periodic risk assessments, which are the systematic and structured methods of identifying and analyzing the potential sources and consequences of risk events. By conducting periodic risk assessments, an organization can proactively identify and prioritize the risks that pose the greatest threat or opportunity, and implement the appropriate risk responses to optimize the risk exposure and align it with the risk appetite and tolerance. References = CRISC Review Manual, 7th Edition, page 63.

The best way to determine whether system settings are in alignment with control baselines is to perform configuration validation. Configuration validation is the process of verifying that the system settings and parameters are consistent with the predefined standards and requirements, and that they reflect the current and desired state of the system. Configuration validation helps to ensure that the system is configured correctly and securely, and that it complies with the relevant policies, regulations, and best practices. Configuration validation also helps to identify and correct any deviations or errors in the system settings, and to prevent or mitigate any potential risks or issues. The other options are not as effective as configuration validation, although they may provide some input or information for the system alignment. Control attestation, penetration testing, and internal audit review are all activities that can help to assess or evaluate the system alignment, but they do not necessarily determine or validate the system settings. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.

The most helpful factor to align when defining thresholds for control key performance indicators (KPIs) is the control performance with the risk tolerance of business owners. Control KPIs are metrics that measure the effectiveness and efficiency of the controls that are implemented to mitigate the risks. By aligning the control performance with the risk tolerance of business owners, the thresholds for control KPIs can reflect the acceptable level of risk and the desired level of control for the business processes and objectives. Information risk assessments with enterprise risk assessments, key risk indicators (KRIs) with risk appetite of the business, and control KPIs with audit findings are other possible factors to align, but they are not as helpful as control performance with risk tolerance of business owners. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

 The primary reason to report the information about the new risk scenarios identified after the implementation of Internet of Things (IoT) devices to risk owners is to confirm the impact to the risk profile. The risk profile is a summary of the level and nature of the risks that the organization faces or may face in the future. The risk profile reflects the risk appetite, tolerance, and capacity of the organization, and guides the risk management decisions and actions. The implementation of IoT devices may introduce new risks or increase the likelihood or impact of existing risks, such as data privacy, security, or interoperability issues. Therefore, the information about the new risk scenarios should be reported to the risk owners, who have the authority and responsibility for managing the risks and their responses, to confirm the impact to the risk profile and to determine the appropriate risk treatment plans. The other options are not as primary as confirming the impact to the risk profile, as they are related to the reevaluation, mitigation, or recommendation of the IoT devices, not the confirmation or assessment of the risk profile. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.2: IT Risk Register, page 19.

 Scenario analysis is the best method to identify significant events that could impact an organization. Scenario analysis is the process of creating and evaluating hypothetical situations or scenarios that represent plausible outcomes of various events or actions. Scenario analysis helps to anticipate and prepare for potential risks and opportunities, as well as to test the robustness and resilience of the organization’s strategies and plans. Control analysis, vulnerability analysis, and heat map analysis are not as effective as scenario analysis, because they focus on the existing or current state of the organization, rather than the future or alternative states. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

The risk practitioner’s most important action related to the decision to commit to a business activity with the knowledge that the risk exposure is higher than the risk appetite is to document formal acceptance of the risk. Formal acceptance of the risk means that the organization acknowledges and agrees to bear the risk and its potential consequences. Formal acceptance of the risk should be documented and approved by the appropriate authority level, such as senior management or the board of directors. Formal acceptance of the risk should also include the rationale, assumptions, and conditions for accepting the risk, as well as the monitoring and reporting mechanisms for the risk. Formal acceptance of the risk provides evidence and accountability for the risk management decision and helps to avoid disputes or misunderstandings in the future. The other options are not as important as documenting formal acceptance of the risk, as they are related to the alternatives, adjustments, or rejections of the risk, not the actual acceptance of the risk. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.2: IT Risk Response Options, page 133.

The best tool to enable risk-based decision making in support of a business continuity plan (BCP) is an impact analysis. An impact analysis is a process of identifying and evaluating the potential effects of an interruption or disruption of business operations on the organization’s critical functions, processes, and resources. An impact analysis can help to determine the recovery priorities, objectives, and strategies for the BCP. Control analysis, root cause analysis, and threat analysis are other possible tools, but they are not as effective as an impact analysis. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

The strongest evidence to support a risk response decision is a memo indicating risk acceptance. A memo is a formal and written document that can clearly communicate the rationale, criteria, and approval of the risk acceptance decision. Verbal majority acceptance of risk by committee, list of compensating controls, and IT audit follow-up responses are weaker evidence, as they may not be documented, verified, or aligned with the risk response decision. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

 The most important thing to do when establishing an enterprise IT risk management program is to review the alignment with the organization’s strategy. The organization’s strategy is the plan or direction that the organization follows to achieve its vision, mission, and goals. The IT risk management program should be aligned with the organization’s strategy, so that it supports and enables the organization’s strategic objectives, and addresses the IT risks that could affect the organization’s performance and value. Reviewing the alignment with the organization’s strategy helps to ensure that the IT risk management program is relevant, effective, and consistent with the organization’s expectations and needs. The other options are not as important as reviewing the alignment with the organization’s strategy, although they may be useful or necessary steps or components of the IT risk management program. Understanding the organization’s information security policy, validating the organization’s data classification scheme, and reporting identified IT risk scenarios to senior management are all activities that can help to implement and improve the IT risk management program, but they are not the initial or primary thing to do. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 2-12.

The first thing that should be done when addressing security concerns associated with a new Internet of Things (IoT) solution is to develop new IoT risk scenarios. IoT is a network of physical devices, such as sensors, cameras, appliances, etc., that are connected to the internet and can collect, process, and exchange data. IoT introduces new security concerns, such as privacy, confidentiality, integrity, availability, and accountability of the data and devices, as well as new threats and vulnerabilities, such as unauthorized access, manipulation, or disruption of the data and devices. Developing new IoT risk scenarios is the first thing that should be done, because it helps to identify, analyze, and evaluate the potential risks that could affect the IoT solution’s objectives or operations. Developing new IoT risk scenarios also helps to select the most appropriate and effective controls to minimize the risks, such as avoiding, reducing, transferring, or accepting the risks. The other options are not the first thing that should be done, although they may be part of or derived from the IoT risk scenarios. Implementing IoT device monitoring software, introducing controls to the new threat environment, and engaging external security reviews are all activities that can help to support or improve the security of the IoT solution, but they do not necessarily identify, analyze, or evaluate the risks that could affect the IoT solution. References = 1

The first consideration when establishing a new risk governance program is embedding risk management into the organization. Embedding risk management means integrating risk management principles and practices into the organization’s culture, values, processes, and decision-making. Embedding risk management helps to ensure that risk management is not seen as a separate or isolated activity, but as a part of the organization’s normal operations and strategic objectives. Embedding risk management also helps to create a risk-aware and risk-responsive organization, where risk management is shared and supported by all stakeholders. The other options are not the first consideration, although they may be important steps or components of the risk governance program. Developing an ongoing awareness and training program, creating policies and standards that are easy to comprehend, and completing annual risk assessments on critical resources are all activities that can help to embed risk management into the organization, but they are not the initial or primary consideration. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.1, page 1-8.

The primary basis for prioritizing risk responses is the impact of the risk. The impact of the risk is the consequence or effect of the risk on the organization’s objectives or operations, such as financial loss, reputational damage, operational disruption, or legal liability. The impact of the risk is one of the key dimensions of risk analysis, along with the likelihood of the risk. The impact of the risk helps to determine the severity and priority of the risk, and to select the most appropriate and effective risk response. The impact of the risk also helps to evaluate the cost-benefit and trade-off of the risk response, and to measure the residual risk and the risk performance. The other options are not the primary basis for prioritizing risk responses, although they may be considered or influenced by the impact of the risk. The replacement cost of the business asset, the cost of risk mitigation controls, and the classification of the business asset are all factors that could affect the value or importance of the business asset, but they do not necessarily reflect the impact of the risk on the business asset or the organization. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-25.

The best approach to mitigate the risk associated with a control deficiency is to implement compensating controls. A control deficiency is a situation where a control is missing, ineffective, or inefficient, and cannot provide reasonable assurance that the objectives or requirements are met. A compensating control is a control that provides an alternative or additional measure of protection when the primary or preferred control is not feasible or effective. A compensating control can help to reduce the likelihood and/or impact of the risk associated with the control deficiency, and maintain the compliance or performance level. The other options are not as effective as implementing compensating controls, as they are related to the analysis, assessment, or provision of the risk, not the mitigation of the risk. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

Information asset classification is the process of assigning a level of sensitivity and criticality to an information asset based on its value, importance, and impact to the organization. The major reason to classify information assets is to determine their sensitivity and criticality, which are the measures of how confidential, proprietary, or sensitive the information is, and how essential, urgent, or time-sensitive the information is for the business operations. By determining the sensitivity and criticality of information assets, the organization can prioritize the protection and recovery of the information assets, implement the appropriate security controls and safeguards, comply with the regulatory and contractual requirements, and manage the information lifecycle and disposal. References = CRISC Review Manual, 7th Edition, page 74.

 The main purpose of selecting a risk response is to mitigate the residual risk to be within tolerance. Residual risk is the risk that remains after applying a risk response. Risk tolerance is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk response is the process of selecting and implementing actions to address risk. The goal of risk response is to reduce the residual risk to a level that is acceptable to the organization and its stakeholders. The other options are not the main purpose of selecting a risk response, although they may be secondary benefits or outcomes. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.

The most important factor for senior management to review during an acquisition is the risk appetite and tolerance of the target organization. The risk appetite and tolerance reflect the amount and type of risk that an organization is willing to accept in pursuit of its objectives. By reviewing the risk appetite and tolerance of the target organization, senior management can determine if they are compatible with their own, and if the acquisition will create any significant risk exposure or opportunity for the acquiring organization. Risk framework and methodology, key risk indicator (KRI) thresholds, and risk communication plan are other factors that may be reviewed, but they are not as important as the risk appetite and tolerance. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.

The best course of action for a risk practitioner when senior management is deciding whether to share confidential data with the organization’s business partners is to submit a report to senior management containing the possible risk and suggested mitigation plans. A risk practitioner is a professional who is responsible for identifying, assessing, and managing the risks that could affect the organization’s objectives or operations. A risk practitioner should provide senior management with the information and guidance they need to make informed and effective decisions regarding the sharing of confidential data. A risk practitioner should submit a report that outlines the possible risk scenarios, such as data loss, theft, or compromise, and their likelihood and impact. A risk practitioner should also suggest mitigation plans, such as encryption, access control, monitoring, or contractual agreements, that could reduce or transfer the risk. The other options are not as effective as submitting a report containing the possible risk and suggested mitigation plans, although they may be part of or derived from the report. Designing controls to encrypt the data to be shared, developing a project plan for classification of the data, and summarizing the data protection and privacy legislation are all activities or outcomes that could be included or referenced in the report, but they are not the best course of action for a risk practitioner. References = CISA Review Manual, 27th Edition, Chapter 2, Section 2.3.1, page 2-23

The best course of action for the risk practitioner who has identified that the agreed RTO with a SaaS provider is longer than the business expectation is to collaborate with the risk owner to determine the risk response plan. The risk owner is the person who has the authority and accountability to manage the risk within their scope of responsibility. The risk response plan is the document that describes the actions and resources needed to address the risk. By collaborating with the risk owner, the risk practitioner can help to analyze the gap between the agreed RTO and the business expectation, evaluate the potential impact and consequences, and select the most appropriate risk response option, such as avoiding, reducing, transferring, or accepting the risk. Documenting the gap in the risk register, including a right to audit clause in the service provider contract, or advising the risk owner to accept the risk are not the best courses of action, because they do not address the root cause of the problem, or provide a solution to reduce the risk to an acceptable level. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.

The greatest concern of maintaining independent departmental risk registers that are not automatically aggregated is that management may be unable to accurately evaluate the risk profile. The risk profile is the overall view of the risks that the organization faces and their impact on the organization’s objectives. It helps management to prioritize and allocate resources for risk management and to align the risk appetite and strategy. If the departmental risk registers are not aggregated, management may not have a complete and consistent picture of the risks across the organization. They may miss some important risks, overestimate or underestimate some risks, or have conflicting or redundant risk information. This may lead to poor risk management decisions and outcomes. The other options are also concerns, but they are not as critical as the inability to evaluate the risk profile. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.2: IT Risk Analysis, page 63.

 The control environment is the set of standards, processes, and structures that provide the basis for carrying out internal control across the organization. The control environment is most effective when the controls perform as intended, meaning that they achieve their objectives, mitigate the risks, and comply with the policies and regulations. The other options are desirable attributes of the controls, but they do not necessarily indicate the effectiveness of the control environment. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: IT Control Assessment, page 69.

 The most likely cause of the situation where the recovery team does not know what steps to take to recover critical data backups following a major flood is the failure to test the disaster recovery plan (DRP). A DRP is a document that describes the procedures and resources needed to restore the normal operations of an organization after a disaster. Testing the DRP is essential to ensure that the plan is feasible, effective, and up-to-date. Testing the DRP also helps to train the recovery team members, identify and resolve any issues or gaps, and improve the confidence and readiness of the organization. The lack of a well-documented business impact analysis (BIA), the lack of annual updates to the DRP, and the significant changes in management personnel are also possible factors that could affect the recovery process, but they are not as likely or as critical as the failure to test the DRP. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.1, page 5-19.

Granting remote access to a system containing sensitive data to an overseas third party poses various risks to the organization, such as data breaches, unauthorized access, data loss, compliance violations, or reputational damage. The greatest concern to management when granting remote access to a third party is the lack of monitoring over vendor activities, meaning that the organization may not be able to control or verify how the third party is accessing, using, storing, or transferring the sensitive data. The lack of monitoring over vendor activities can increase the risk exposure and uncertainty of the organization, as well as reduce the accountability and transparency of the third party. Therefore, the organization should implement appropriate measures to monitor and audit the vendor activities, such as logging, reporting, reviewing, or testing, and to ensure that the vendor complies with the contractual obligations and the security policies and standards of the organization. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2.1, p. 243-244

 The most important key performance indicator (KPI) to monitor the effectiveness of disaster recovery processes is the percentage of IT systems meeting the recovery time objective (RTO) during the disaster recovery test. The RTO is the maximum acceptable time that a system or process can be unavailable after a disruption. The disaster recovery test is a simulation of a disaster scenario to evaluate the readiness and capability of the organization to restore its critical functions and systems. By measuring the percentage of IT systems meeting the RTO during the test, the organization can assess how well the disaster recovery processes meet the predefined objectives and standards. Percentage of IT systems recovered within the mean time to restore (MTTR), percentage of issues arising from the disaster recovery test resolved on time, and percentage of IT systems included in the disaster recovery test scope are other possible KPIs, but they are not as important as the percentage of IT systems meeting the RTO. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

The most helpful information to review when determining a system’s criticality is the associated business impact analysis (BIA). A BIA is a process of identifying and evaluating the potential effects of disruptions to the organization’s critical business functions and processes. A BIA can help to determine the system’s criticality by assessing its impact on the organization’s objectives, performance, and value. Process flow, service level agreement (SLA), and system architecture are other possible information sources, but they are not as helpful as the BIA. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.

The greatest concern for an IT risk practitioner when an employee transfers to another department is that unnecessary access permissions have not been removed. Unnecessary access permissions are the access rights or privileges that are no longer needed, relevant, or appropriate for the employee’s new role or responsibility. If these access permissions are not removed, they may pose a significant security risk, as the employee may be able to access, modify, or delete sensitive or critical data and systems that are not related to their current function. This may result in data leakage, fraud, sabotage, or compliance violations. The other options are not as concerning as unnecessary access permissions, as they are related to the organizational, operational, or knowledge aspects of the employee transfer, not the security or risk aspects of the employee transfer. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

When performing a risk assessment of a new service to support a core business process, the first step is to identify the conditions that may cause disruptions to the service or the process. This involves identifying the sources and causes of potential risk events, such as natural disasters, cyberattacks, human errors, equipment failures, power outages, etc. that may affect the availability, integrity, or confidentiality of the service or the process. By identifying the conditions that may cause disruptions, the risk practitioner can then analyze the probability and impact of the risk events, evaluate the risk exposure, and determine the appropriate risk responses to ensure the continuity of operations. References = CRISC Review Manual, 7th Edition, page 66.

The potential scenario that presents the greatest risk to an organization when implementing a new database technology is that data may not be recoverable due to system failures. Data recovery is the process of restoring or retrieving data that has been lost, corrupted, or damaged due to system failures, such as hardware malfunctions, software errors, power outages, or natural disasters. Data recovery is essential for the continuity and integrity of the organization’s operations and information, as data is one of the most valuable and critical assets of the organization. Data recovery is also important for the compliance and accountability of the organization, as data may be subject to legal or regulatory requirements, such as retention, backup, or audit. Data recovery may be challenging or impossible when implementing a new database technology, because the new technology may not be compatible or interoperable with the existing systems, applications, or backups, or because the new technology may not have adequate or tested recovery mechanisms or procedures. Data recovery may also be costly or time-consuming when implementing a new database technology, because the new technology may require additional or specialized resources, tools, or expertise, or because the new technology may involve large or complex data sets or structures. The other options are not as risky as data recovery, although they may also pose some difficulties or limitations for the new database technology implementation. The organization may not have a sufficient number of skilled resources, application and data migration cost for backups may exceed budget, and the database system may not be scalable in the future are all factors that could affect the feasibility and sustainability of the new database technology, but they do not directly affect the continuity and integrity of the organization’s operations and information. References = 2

The main purpose of monitoring risk is to provide decision support for the organization. Risk monitoring is the process of tracking and reviewing the risk management activities, the risk profile, and the risk performance of the organization. By monitoring risk, the organization can obtain timely and relevant information and feedback on the risk situation, and use it to make informed and effective decisions on risk management and business objectives. Communication, risk analysis, and benchmarking are other possible purposes of risk monitoring, but they are not as important as decision support. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

The greatest concern when establishing key risk indicators (KRIs) is using ineffective methods to assess risk. KRIs are metrics that measure the likelihood and impact of risks, and help monitor and prioritize the most critical risks. To establish effective KRIs, the risk assessment methods should be reliable, valid, consistent, and timely. Ineffective methods to assess risk could lead to inaccurate or misleading KRIs, which could result in poor risk management decisions and outcomes. The other options are not as significant as using ineffective methods to assess risk, although they may also affect the quality and usefulness of KRIs. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.1, page 4-36.

The best recommendation to reduce the risk associated with potential system compromise when a vendor stops releasing security patches and updates for a business-critical legacy system is to segment the system on its own network. Network segmentation is the process of dividing a network into smaller subnetworks or segments, based on different criteria, such as function, location, or security level. Network segmentation helps to isolate the system from the rest of the network, and limit the exposure and access to the system. Network segmentation also helps to improve the performance and security of the network, by reducing the network traffic and congestion, and enhancing the monitoring and control capabilities. The other options are not as effective as segmenting the system on its own network, although they may provide some additional protection or recovery options. Ensuring regular backups take place, virtualizing the system in the cloud, and installing antivirus software on the system are all measures that can help to reduce the risk of data loss or system damage, but they do not address the root cause of the risk, which is the lack of security patches and updates for the system. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.

 The best course of action for a risk practitioner when a bank recently incorporated Blockchain technology with the potential to impact known risk within the organization is to analyze the risk and update the risk register as needed. Blockchain technology is a new and emerging technology that may introduce new risks or change the existing risks for the bank. Therefore, the risk practitioner should perform a risk analysis to identify, assess, and evaluate the risks associated with the Blockchain technology, and update the risk register accordingly. Determining whether risk responses are still adequate, analyzing and updating control assessments, and conducting testing of the controls are possible actions that may follow the risk analysis, but they are not the best initial course of action. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.

The best way to increase the chances of a successful delivery of a new application and to assure the business management that IT has a plan in place for early identification of potential issues is to include business management on a weekly risk and issues report. A risk and issues report is a document that summarizes the current status, progress, and challenges of the IT project, as well as the actions and resources needed to address them. A risk and issues report helps to communicate and align the expectations and objectives of the IT and business stakeholders, and to facilitate timely and effective decision-making and problem-solving. A risk and issues report also helps to monitor and control the project scope, schedule, budget, and quality, and to ensure that the project delivers the desired value and benefits to the organization. The other options are not as effective as including business management on a weekly risk and issues report, although they may be part of the IT project management process or outcomes. Implementing a release and deployment plan, conducting comprehensive regression testing, and developing enterprise-wide key risk indicators (KRIs) are all activities that can help to ensure the quality and reliability of the new application, but they do not necessarily involve the business management or provide assurance for the early identification of potential issues. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.4.1, page 5-32.

A risk profile is a summary of the nature and level of risk that an organization faces. It includes information such as the sources, causes, and consequences of the risks, their likelihood and impact, their interrelationships and dependencies, and their alignment with the risk appetite and tolerance. A risk profile is influenced by various factors, such as the organization’s objectives, strategies, activities, processes, resources, capabilities, culture, etc. When an organization configures a new business division, the factor that is most likely to be affected is the risk profile, as the new business division may introduce new or change existing risks, opportunities, and uncertainties that may affect the achievement of the organization’s objectives. Therefore, the organization should update its risk profile to reflect the current and potential risks associated with the new business division, and implement the appropriate risk management actions to optimize the risk exposure and performance. References = 4

The most helpful source in providing an overview of an organization’s risk management program is the risk management framework. The risk management framework is a set of components that provide the foundations and organizational arrangements for designing, implementing, monitoring, reviewing, and continually improving risk management throughout the organization. The framework includes the risk management principles, policies, processes, procedures, roles, responsibilities, and resources that enable the organization to manage risk effectively. Risk management treatment plan, risk assessment results, and risk register are other sources that may provide some information about the risk management program, but they are not as comprehensive as the risk management framework. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

The most important information to review when developing plans for using emerging technologies is the organizational strategic plan. The organizational strategic plan is a document that defines the vision, mission, goals, and objectives of the organization. It also outlines the strategies, actions, and resources that are needed to achieve them. The organizational strategic plan provides the direction, alignment, and guidance for the use of emerging technologies, and ensures that they are aligned with and support the organizational needs and priorities. The other options are not as important as the organizational strategic plan, as they are related to the current state, specific area, or potential issues of the use of emerging technologies, not the overall purpose and value of the use of emerging technologies. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.2: IT Risk Identification Methods, page 19.

The best representation of the desired risk posture for an organization is when the residual risk is lower than the risk tolerance. Residual risk is the remaining risk after the implementation of risk responses or controls. Risk tolerance is the acceptable level of risk that the organization is willing to take or bear. The desired risk posture is when the organization has reduced the residual risk to a level that is equal to or lower than the risk tolerance, which means that the organization has achieved its risk objectives and is comfortable with the remaining risk exposure. The other options are not the best representation of the desired risk posture, as they indicate that the organization has not effectively managed its risk. Inherent risk is lower than risk tolerance means that the organization has not identified or assessed its risk properly, as inherent risk is the risk before any controls or responses are applied. Operational risk is higher than risk tolerance means that the organization has not implemented or monitored its risk responses or controls adequately, as operational risk is the risk of loss resulting from inadequate or failed internal processes, people, and systems. Accepted risk is higher than risk tolerance means that the organization has not aligned its risk appetite and risk tolerance, as accepted risk is the risk that the organization chooses to retain or take without any further action. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.1, page 2-23.

The most reliable evidence of a control’s effectiveness is a system-generated testing report. A system-generated testing report is a document that shows the results of automated tests performed by the system to verify that the control is functioning as intended and producing the expected outcomes. A system-generated testing report is reliable, because it is objective, consistent, accurate, and timely, and because it can provide a high level of assurance and confidence in the control’s effectiveness. The other options are not as reliable as a system-generated testing report, although they may provide some evidence of the control’s effectiveness. A risk and control self-assessment, senior management’s attestation, and a detailed process walk-through are all examples of manual or subjective evidence, which may be prone to errors, biases, or inconsistencies, and which may provide a lower level of assurance and confidence in the control’s effectiveness. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.1, page 3-32.

The next step to determine the risk exposure after a vulnerability assessment of a web-facing application is to perform a penetration test. A penetration test is a simulated attack on the application to exploit the identified vulnerabilities and measure the potential impact and likelihood of a successful breach. A penetration test can help to quantify and prioritize the risks associated with the web-facing application. Code review, gap assessment, and business impact analysis (BIA) are other possible steps, but they are not as effective as a penetration test. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 7; CRISC Review Manual, 6th Edition, page 202.

The best approach for selecting controls to minimize risk is to perform a risk assessment. A risk assessment is a process that identifies, analyzes, and evaluates the risks that could affect the organization’s objectives or operations. A risk assessment helps to determine the likelihood and impact of the risks, and to prioritize them based on their severity and relevance. A risk assessment also helps to select the most appropriate and effective controls to minimize the risks, such as avoiding, reducing, transferring, or accepting the risks. A risk assessment is the best approach for selecting controls, because it helps to align the controls with the organization’s risk profile, risk appetite, and risk objectives, and to ensure that the controls are adequate, suitable, and cost-effective. The other options are not the best approach for selecting controls, although they may be part of or derived from the risk assessment. Industry best practice review, cost-benefit analysis, and control-effectiveness evaluation are all activities that can help to support or improve the control selection, but they are not the best approach for selecting controls. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

The greatest challenge to assigning of the associated risk entries when an organization has used generic risk scenarios to populate its risk register is that the risk scenarios are not applicable. Generic risk scenarios are risk scenarios that are based on common or typical situations that may affect many organizations or industries. They are useful for providing a general overview or reference of the potential risks, but they may not be relevant, specific, or realistic for a particular organization or context. Therefore, using generic risk scenarios may result in inaccurate, incomplete, or misleading risk entries that do not reflect the actual risk profile or appetite of the organization. The other options are not as challenging as the risk scenarios being not applicable, as they are related to the quantity, quality, or aggregation of the risk scenarios, not the suitability or validity of the risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.

 Risk tolerance is the best term to describe the situation where an organization has agreed to a 99% availability for its online services and will not accept availability that falls below 98.5%. Risk tolerance is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk tolerance defines the acceptable variation in outcomes related to specific performance measures, such as availability, reliability, or security. Risk tolerance is usually expressed as a range, such as 99% +/- 0.5%. Risk mitigation, risk evaluation, and risk appetite are not the correct terms to describe this situation, because they refer to different aspects of risk management, such as reducing, assessing, or pursuing risk, respectively. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.1, page 1-8.

 Key risk indicators (KRIs) are metrics that provide an early warning of increasing risk exposure in various areas of the organization. They help to monitor changes in the level of risk and enable timely actions to mitigate the risk. The major advantage of using KRIs is that they identify when risk exceeds defined thresholds, which are the acceptable or tolerable levels of risk that the organization has established. By identifying when risk exceeds defined thresholds, the KRIs can alert the management and stakeholders of the need to take corrective or preventive measures, and avoid or reduce the potential losses or damages. References = 3

 The best way to provide information to management about emergency changes that may not be approved is to use key risk indicators (KRIs). KRIs are metrics that measure the likelihood and impact of risks, and help monitor and prioritize the most critical risks. KRIs help to provide information to management about emergency changes, because they help to alert and inform management about the potential risks and consequences of the changes, and to support the risk decision-making and reporting processes. KRIs also help to provide information to management about emergency changes, because they help to track and evaluate the effectiveness and performance of the changes, and to identify and address any issues or gaps that may arise from the changes. The other options are not the best way to provide information to management about emergency changes, although they may be part of or derived from the KRIs. Change logs, change management meeting minutes, and key control indicators (KCIs) are all examples of documentation or communication tools, which may help to record or report the details and status of the changes, but they do not necessarily measure or monitor the risks and outcomes of the changes. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.5.1, page 4-38.

The first thing that should be done by IT governance to support the development of a new risk management plan to specifically address legal and regulatory risk scenarios is to establish IT-specific compliance objectives. Compliance objectives are the goals or targets that the organization sets to ensure that its IT activities and processes comply with the relevant laws, regulations, standards, and contracts. Compliance objectives help to define the scope, criteria, and expectations for the IT compliance program, and to align the IT compliance activities with the organization’s strategy, risk appetite, and performance measures. Compliance objectives also help to communicate and demonstrate the organization’s commitment and accountability for IT compliance to the internal and external stakeholders, such as the board, management, regulators, auditors, and customers. The other options are not the first thing that should be done, although they may be useful or necessary steps or components of the IT compliance program. Requesting a regulatory risk reporting methodology, requiring critical success factors (CSFs) for IT risks, and communicating IT key risk indicators (KRIs) and triggers are all activities that can help to implement and monitor the IT compliance program, but they require the prior definition and agreement of the IT compliance objectives. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.4.1, page 2-37.

 Business process re-engineering is the radical redesign of a business process to achieve significant improvements in performance, quality, cost, or customer satisfaction. Business process re-engineering can introduce new or modified risks to the organization, as well as affect the existing controls and responses. Therefore, the best way to help ensure risk will be managed properly after a business process has been re-engineered is to reassess the control effectiveness of the process, meaning that the organization should evaluate whether the controls are still adequate, appropriate, and functioning as intended to mitigate the risks. Reassessing the control effectiveness can help to identify any gaps or weaknesses in the control environment, as well as to implement any necessary changes or improvements to the controls. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.2.2, p. 229-230

The most important factors to consider when evaluating a number of potential controls for treating risk are the residual risk and the cost of control. Residual risk is the risk that remains after the implementation of the controls. Cost of control is the amount of resources and efforts required to implement and maintain the controls. By considering the residual risk and the cost of control, the organization can optimize the balance between the risk exposure and the control investment, and choose the most effective and efficient controls. Risk appetite and control efficiency, inherent risk and control effectiveness, and risk tolerance and control complexity are other possible factors, but they are not as important as residual risk and cost of control. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.

A risk register is a tool that records and tracks the information about the identified risks, such as the risk description, category, owner, probability, impact, response strategy, status, and action plan. The most important consideration for effectively maintaining a risk register is to update it frequently, as the risk environment is dynamic and subject to change. By updating the risk register regularly, an organization can ensure that the risk information is current, accurate, and relevant, and that the risk responses are timely, appropriate, and effective. References = CRISC Review Manual, 7th Edition, page 99.

 Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite can be expressed in qualitative or quantitative terms, and can vary depending on the context and the stakeholder. Risk appetite should be defined and communicated by the senior management or the board of directors, and should guide the risk management decisions and actions throughout the organization. When a project team has accepted a risk outside the established risk appetite, the risk practitioner’s best course of action is to escalate the risk decision to the project sponsor for review, meaning that the risk practitioner should report the risk acceptance and its rationale to the project sponsor, who is the person or group that provides the resources and support for the project, and is accountable for its success. The project sponsor should review the risk decision and determine whether it is aligned with the organization’s objectives and strategy, and whether it requires any further approval or action. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.1, p. 25-26

The most important objective from a cost perspective for considering aggregated risk responses in an organization is to address more than one risk response. Aggregated risk responses are risk responses that can affect multiple risks or objectives simultaneously. By addressing more than one risk response, the organization can achieve cost efficiency and effectiveness in risk management. Prioritizing risk response options, reducing likelihood, and reducing impact are other possible objectives, but they are not as important from a cost perspective as addressing more than one risk response. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 10; CRISC Review Manual, 6th Edition, page 140.

The best course of action when an organization wants to reduce likelihood in order to reduce a risk level is to implement preventive measures. Likelihood is the probability or chance of a risk occurring, and risk level is the combination of likelihood and impact of a risk. Preventive measures are controls that are designed to prevent or deter the occurrence of a risk, such as policies, standards, procedures, guidelines, etc. Implementing preventive measures is the best course of action, because it helps to reduce the likelihood of a risk, and consequently, the risk level. Implementing preventive measures also helps to protect and enhance the organization’s objectives, performance, and improvement. The other options are not the best course of action, although they may be related to the risk management process. Monitoring risk controls, implementing detective controls, and transferring the risk are all activities that can help to manage or mitigate the risks, but they do not necessarily reduce the likelihood or the risk level. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-21.

The best way to ensure key risk indicators (KRIs) provide value to risk owners is to provide timely notification of the changes in the risk exposure. KRIs are metrics that provide an early warning of increasing risk exposure in various areas of the organization. By providing timely notification of the KRI values, the risk owners can be alerted of the risk situation and take appropriate actions to manage the risk. Ongoing training, return on investment (ROI), and cost minimization are other possible ways to ensure KRIs provide value, but they are not as effective as timely notification. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 10; CRISC Review Manual, 6th Edition, page 140.

The most effective way for a large and diversified organization to minimize risk associated with unauthorized software on company devices is to scan end points for applications not included in the asset inventory. An asset inventory is a document that records and tracks all the hardware and software assets that are owned, used, or managed by the organization, such as laptops, tablets, smartphones, servers, applications, etc. An asset inventory helps to identify and classify the assets based on their type, model, location, owner, status, etc. An asset inventory also helps to monitor and control the assets, such as enforcing security policies, applying patches and updates, detecting and resolving issues, etc. Scanning end points for applications not included in the asset inventory helps to minimize the risk of unauthorized software, because it helps to discover and remove any software that is not approved, authorized, or licensed by the organization, and that may pose security, legal, or operational risks, such as malware, spyware, pirated software, etc. The other options are not as effective as scanning end points for applications not included in the asset inventory, although they may provide some protection or compliance for the software assets. Prohibiting the use of cloud-based virtual desktop software, conducting frequent reviews of software licenses, and performing frequent internal audits of enterprise IT infrastructure are all examples of preventive or detective controls, which may help to prevent or deter the installation or use of unauthorized software, or to verify or validate the software assets, but they do not necessarily discover or remove the unauthorized software. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.

 A vulnerability is a weakness or flaw in the IT system or environment that could be exploited by a threat. A threat event is an occurrence or action that exploits a vulnerability and causes harm or damage to the IT system or environment. The lack of data to measure threat events is the most important factor, because it may affect the accuracy and reliability of the risk assessment and evaluation, and consequently, the risk response and strategy. The lack of data to measure threat events may also create challenges or risks for the organization, such as compliance, legal, reputational, or operational risks, or conflicts or inconsistencies with the organization’s risk appetite, risk objectives, or risk policies. The other options are not as important as the lack of data to measure threat events, although they may also influence the risk response and strategy. The likelihood and impact of threat events, the cost to implement the risk response, and the monetary value of the asset are all factors that could affect the feasibility and sustainability of the risk response and strategy, but they do not necessarily affect the validity and quality of the risk assessment and evaluation

The internal auditor is the best suited to provide objective input when updating residual risk to reflect the results of control effectiveness. The internal auditor is an independent and impartial function that evaluates the adequacy and effectiveness of the internal controls and reports on the findings and recommendations. The internal auditor can provide an unbiased and reliable assessment of the residual risk, which is the risk that remains after the controls are applied. The other options are not as objective as the internal auditor, as they may have vested interests or conflicts of interest in the control environment. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.

The most concerning issue when reviewing the results of an independent control assessment to determine the effectiveness of a vendor’s control environment is that the controls had recurring noncompliance. This indicates that the vendor’s controls are not operating as intended or designed, and that the vendor is not taking corrective actions to address the control deficiencies. This can increase the risk exposure and liability for the organization that outsources the service or function to the vendor. The report being provided directly from the vendor, the risk associated with multiple control gaps being accepted, and the control owners disagreeing with the auditor’s recommendations are other possible issues, but they are not as critical as the recurring noncompliance. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

A risk profile is a summary of the nature and level of risk that an organization faces. It includes information such as the sources, causes, and consequences of the risks, their likelihood and impact, their interrelationships and dependencies, and their alignment with the risk appetite and tolerance. A risk profile is influenced by various factors, such as the organization’s objectives, strategies, activities, processes, resources, capabilities, culture, etc. When defining a risk profile during the selection process for a new third party application, the stakeholder that is most important to include is the business process owner, who is the person who has the authority and responsibility for the design, execution, and performance of a business process. The business process owner can provide valuable input and insight into the requirements, expectations, and dependencies of the business process that will use the new third party application, and the potential risks and opportunities that may arise from the selection of the application. The business process owner can also help to prioritize and address the risks, and ensure that the risk profile is aligned with the business objectives and strategies. References = 5

The most important activity when conducting a post-implementation review as part of the system development life cycle (SDLC) is to verify that the project objectives are met. The project objectives are the specific and measurable outcomes that the project aims to achieve. By verifying that the project objectives are met, the post-implementation review can evaluate the success and value of the project, and identify the lessons learned and best practices for future projects. Identifying project cost overruns, leveraging an independent review team, and reviewing the project initiation risk matrix are other possible activities, but they are not as important as verifying that the project objectives are met. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.

The most important element to update when an organization’s risk appetite changes is the key risk indicators (KRIs). KRIs are metrics that provide an early warning of increasing risk exposure in various areas of the organization. They help to monitor the level of risk and to trigger risk responses when the risk exceeds the risk appetite. The risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk reporting methodology, key performance indicators (KPIs), and risk taxonomy are other elements that may be updated, but they are not as important as the KRIs. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

 Risk appetite is the broad-based amount of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite reflects the level of risk that the organization is prepared to take to achieve its strategic goals, and provides guidance and boundaries for the risk management activities and decisions. To define the risk management strategy, which is the plan and approach for managing the risks that may affect the achievement of the organization’s objectives, the factor that must be set by the board of directors is the risk appetite. The board of directors is the highest governing body of the organization, and has the ultimate responsibility and authority for setting the direction and oversight of the organization. By setting the risk appetite, the board of directors can communicate its expectations and preferences for the risk exposure and performance of the organization, and ensure alignment with the business objectives and strategies. References = 3

The most useful information for a risk practitioner when planning response activities after risk identification is the risk priorities. Risk priorities are the order or ranking of the risks based on their level of importance or urgency. Risk priorities help the risk practitioner to focus on the most critical risks, and allocate the resources and efforts accordingly. Risk priorities are usually determined by using a combination of factors, such as the likelihood and impact of the risks, the risk appetite and tolerance of the organization, and the cost and benefit of the risk responses. The other options are not as useful as the risk priorities, although they may provide some input or context for the risk response planning. The risk register is the document that records the details of all identified risks, but it does not necessarily indicate the risk priorities. The risk appetite is the amount and type of risk that the organization is willing to pursue, retain, or take, but it does not specify the risk priorities. The risk heat maps are graphical tools that display the risk level of each risk based on the likelihood and impact, but they do not show the risk priorities. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.

A control is a measure or action that is implemented to reduce the likelihood or impact of a risk event, or to enhance the benefits or opportunities of a risk event. A control owner is a person who is assigned the responsibility and authority for the design, implementation, operation, and maintenance of a control. A risk register is a tool that records and tracks the information about the identified risks, such as the risk description, category, owner, probability, impact, response strategy, status, and action plan. When an information security audit identified a risk resulting from the failure of an automated control, the person who is responsible for ensuring the risk register is updated accordingly is the control owner. The control owner should update the risk register with the information about the failed control, such as the cause, consequence, status, and action plan. The control owner should also monitor the performance and compliance of the control, and recommend any improvements or adjustments as needed.

The lack of integrity of data is the greatest concern when replication of a critical database used by two business units failed. Data integrity means that the data is accurate, complete, consistent, and reliable. If the replication failed, it means that the data in the primary and secondary databases may not be synchronized and may have discrepancies or errors. This could affect the quality and reliability of the data and the business processes that depend on it. The other options are not as concerning as the lack of integrity of data, as they are related to the efficiency, cost, or confidentiality of the data, which are less critical than the accuracy and reliability of the data. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Key Performance Indicators, page 183.

 The best way to mitigate the ongoing risk associated with operating system (OS) vulnerabilities is to document and implement a patching process. A patching process is a set of procedures and guidelines that define how to identify, evaluate, test, apply, and monitor patches for the OS. Patches are updates or fixes that address the known vulnerabilities or bugs in the OS. By documenting and implementing a patching process, the organization can ensure that the OS is regularly updated and protected from the potential exploits or attacks that may exploit the vulnerabilities. The other options are not as effective as documenting and implementing a patching process, as they are related to the temporary, partial, or reactive measures to deal with the OS vulnerabilities, not the proactive and continuous measures to prevent or reduce the OS vulnerabilities. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

The most important concern when assigning multiple risk owners for an identified risk is that accountability may not be clearly defined. Accountability is the obligation of an individual or group to take responsibility for the risk and its associated actions and outcomes. If multiple risk owners are assigned for the same risk, there may be confusion, conflict, or overlap in their roles and responsibilities, and they may not be held accountable for the risk management performance. Risk ratings being inconsistently applied, different risk taxonomies being used, and mitigation efforts being duplicated are other possible concerns, but they are not as important as accountability not being clearly defined. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

The best way to facilitate the identification of appropriate key performance indicators (KPIs) for a risk management program is to evaluate KPIs in accordance with risk appetite. KPIs are metrics that measure the performance and effectiveness of the risk management program, and help monitor and report on the achievement of the risk objectives and outcomes. Risk appetite is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives. Evaluating KPIs in accordance with risk appetite helps to identify the appropriate KPIs, because it helps to align the KPIs with the organization’s mission, vision, values, and strategy, and to ensure that the KPIs reflect the organization’s risk tolerance and threshold. Evaluating KPIs in accordance with risk appetite also helps to communicate and coordinate the KPIs with the organization’s stakeholders, such as the board, management, and business units, and to facilitate the risk decision-making and reporting processes. The other options are not as effective as evaluating KPIs in accordance with risk appetite, although they may be part of or derived from the KPI identification process. Reviewing control objectives, aligning with industry best practices, and consulting risk owners are all activities that can help to define or refine the KPIs, but they are not the best way to facilitate the identification of appropriate KPIs. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.5.1, page 4-38.

A risk practitioner is a person who is responsible for performing risk management activities, such as identifying, analyzing, evaluating, treating, monitoring, and communicating risks. When an organization is implementing a project to automate the purchasing process, including the modification of approval controls, the task that is the responsibility of the risk practitioner is to verify that the existing controls continue to properly mitigate the defined risk. This means that the risk practitioner should ensure that the automation and modification of the approval controls do not introduce new risks or change the existing risk profile, and that the controls are still effective and adequate for the purchasing process. The risk practitioner should also monitor the performance and compliance of the controls, and recommend any improvements or adjustments as needed. References = CRISC Review Manual, 7th Edition, page 177.

The situation that presents the greatest challenge to creating a comprehensive IT risk profile of an organization is having inaccurate documentation of enterprise architecture (EA). EA is the blueprint that describes the structure and operation of an organization, including its business processes, information systems, technology infrastructure, and governance. EA helps to align the IT strategy and objectives with the business strategy and objectives, and to identify and manage the IT risks and opportunities. Having inaccurate documentation of EA could lead to incomplete, inconsistent, or misleading information about the organization’s IT environment, which could affect the quality and reliability of the IT risk profile. The other situations are not as challenging as having inaccurate documentation of EA, although they may also pose some difficulties or limitations for the IT risk profile. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 2-12.

 A source code review is the process of examining and analyzing the source code of an application to identify any vulnerabilities, errors, or flaws that may compromise the security, functionality, or performance of the application. A source code review is the most effective way to identify an application backdoor prior to implementation, as it can detect any hidden or unauthorized code that may allow unauthorized access, bypass security controls, or execute malicious commands. A source code review can also help to improve the quality and reliability of the application, and ensure compliance with the coding standards and best practices. References = CRISC Review Manual, 7th Edition, page 181.

 The most important step when developing risk scenarios using a list of generic scenarios based on industry best practices is to validate the generic risk scenarios for relevance. The generic risk scenarios may not be applicable or suitable for the specific context, objectives, and environment of the organization. Therefore, the risk practitioner should validate the relevance of the generic risk scenarios by comparing them with the organization’s risk profile, risk appetite, and risk criteria. Assessing generic risk scenarios with business users, selecting the maximum possible risk scenarios from the list, and identifying common threats causing generic risk scenarios are other steps that may be useful, but they are not as important as validating the relevance of the generic risk scenarios. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

The most important input into the assessment of the risk of shadow IT usage is the classification of the data that is being processed, stored, or transmitted by the unauthorized applications or devices. This determines the level of confidentiality, integrity, and availability that is required for the data and the potential impact of a breach or loss. Business benefits of shadow IT, application-related expenses, and volume of data are less important inputs that may affect the risk analysis, but not as much as the data classification. References = Risk IT Framework, 2nd Edition, page 28; CRISC Review Manual, 6th Edition, page 98.

Data anonymization is the most important control to ensure the privacy of customer information when participating in an industry benchmarking study that involves providing customer transaction records for analysis. Data anonymization is the process of removing or modifying personally identifiable information (PII) from data sets, such as names, addresses, phone numbers, email addresses, etc., so that the data cannot be traced back to specific individuals. Data anonymization protects the confidentiality and privacy of customers, while still allowing for meaningful analysis and comparison of data. Nondisclosure agreements (NDAs), data cleansing, and data encryption are also useful controls, but they do not eliminate the risk of data breaches or unauthorized access to PII. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, page 3-21.

The best way to ensure data is properly sanitized while in cloud storage is to cryptographically scramble the data. Cryptographic scrambling is the process of transforming data into an unreadable form using a secret key or algorithm. Cryptographic scrambling protects the data from unauthorized access, modification, or deletion, even if the cloud storage provider or a third party gains access to the data. Cryptographic scrambling also ensures that the data can be restored to its original form using the same key or algorithm, if needed. The other options are not as effective as cryptographic scrambling, because they either do not completely remove the data, or they make it impossible to recover the data. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, page 3-21.

The primary risk management responsibility of the first line of defense is to implement risk treatment plans. The first line of defense is the operational management and staff who are directly involved in the execution of the business activities and processes. They are responsible for identifying, assessing, and responding to the risks that affect their objectives and performance. Implementing risk treatment plans means applying the appropriate risk response strategies and actions to address the identified risks, and monitoring and reporting the results and outcomes of the risk treatment. The other options are not as primary as implementing risk treatment plans, as they are related to the validation, establishment, or review of the risk management process, not the execution of the risk management process. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Management Process, page 15.

The best way to ensure the implementation of corrective action plans is to assign accountability to risk owners. Corrective action plans are the plans that describe the actions and resources that are needed to correct or improve the performance or compliance of the processes or controls. Risk owners are the persons who have the authority and responsibility for managing the risks and their responses. By assigning accountability to risk owners, the implementation of corrective action plans can be monitored, evaluated, and enforced, and the results and outcomes can be reported and communicated. The other options are not as effective as assigning accountability to risk owners, as they are related to the training, scheduling, or outsourcing of the corrective action plans, not the oversight or governance of the corrective action plans. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.

The most important information to cover in a business continuity awareness training program for all employees of the organization is the communication plan. A communication plan is a document that defines the roles, responsibilities, procedures, and resources for communicating with the internal and external stakeholders before, during, and after a business continuity event. A communication plan helps to ensure that the relevant and accurate information is delivered to the appropriate parties in a timely and consistent manner, and that the feedback and responses are received and addressed accordingly. A communication plan also helps to maintain the trust, confidence, and reputation of the organization, and to comply with the legal or regulatory requirements. A communication plan is the most important information to cover in a business continuity awareness training program, because it helps to prepare and educate the employees on how to communicate effectively and efficiently in a business continuity event, and how to avoid or minimize the communication errors, gaps, or conflicts that could affect the business continuity performance and recovery. The other options are not as important as the communication plan, although they may also be covered in a business continuity awareness training program. Recovery time objectives (RTOs), segregation of duties, and critical asset inventory are all factors that could affect the business continuity planning and implementation, but they are not the most important information to cover in a business continuity awareness training program. References = 6

 A RACI chart is a matrix that defines the roles and responsibilities of different stakeholders in relation to the IT risk management process. RACI stands for Responsible, Accountable, Consulted, and Informed. A RACI chart would be most helpful when communicating roles associated with the IT risk management process, as it clarifies who is responsible for performing the tasks, who is accountable for the outcomes, who is consulted for input and feedback, and who is informed of the progress and results. A RACI chart can help to avoid confusion, duplication, and conflict among the stakeholders, and to ensure that the IT risk management process is executed effectively and efficiently. A skills matrix, job descriptions, and an organizational chart are not as helpful as a RACI chart, as they do not specify the roles and responsibilities of the stakeholders in relation to the IT risk management process, and may not reflect the actual involvement and contribution of the stakeholders. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 35.

The three lines of defense model is a framework that defines the roles and responsibilities of different functions in an organization for managing risks and ensuring effective internal control1. The three lines of defense are:

• The first line of defense: the operational management and staff who are responsible for implementing and maintaining the internal control system and managing the risks within their areas of activity
• The second line of defense: the oversight functions, such as risk management, compliance, and quality assurance, who provide guidance, support, and monitoring to the first line of defense and ensure that the internal control system is designed and operating effectively
• The third line of defense: the internal audit function, who provides independent and objective assurance to the board and senior management on the adequacy and effectiveness of the internal control system and the performance of the first and second lines of defense2

The three lines of defense model facilitates a completely independent review of test results for evaluating control effectiveness, because it ensures that the internal audit function, as the third line of defense, has the authority, independence, and competence to conduct objective and unbiased assessments of the internal control system and report its findings and recommendations to the board and senior management3. The internal audit function can also use the test results from the first and second lines of defense as inputs for its own audit planning and testing, and verify their validity and reliability4.

References = The Three Lines of Defense in Effective Risk Management and Control - IIA, The Three Lines Model - IIA, The Role of Internal Audit in the Three Lines of Defense - IIA, Evaluating and Improving Internal Control in Organizations - IFAC

Controls should be incorporated into system specifications in the design phase of the system development life cycle (SDLC), because this is the phase where the system requirements are translated into detailed specifications and architectures that define how the system will be built and operated. Incorporating controls in the design phase ensures that the system is secure, reliable, and compliant from the start, and reduces the cost and complexity of implementing controls later in the SDLC. The other options are not the correct answers, because they are not the phases where controls are incorporated into system specifications. The implementation phase is the phase where the system is installed, configured, and tested. The development phase is the phase where the system is coded, integrated, and tested. The feasibility phase is the phase where the system concept and scope are defined and evaluated. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

 The best way to assess the effectiveness of an access management process is to reconcile a list of accounts belonging to terminated employees. This will ensure that the access rights of the employees who have left the organization are revoked in a timely and accurate manner, and that there are no orphaned or unauthorized accounts that could pose a security risk. Comparing the actual process with the documented process, reviewing access logs for user activity, and reviewing for compliance with acceptable use policy are also useful methods, but they are not as direct and conclusive as reconciling a list of accounts belonging to terminated employees. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

Risk response strategy is the approach that an organization takes to address the risks that it faces across its various functions, processes, and activities. Risk response strategy involves selecting and implementing the appropriate risk response options, such as avoidance, mitigation, transfer, or acceptance, for each risk, based on the risk level, the risk appetite, and the cost-benefit analysis1.

The most important consideration for senior management when developing a risk response strategy is the risk appetite of the organization. Risk appetite is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk appetite reflects the organization’s risk attitude and its willingness to take on risk in specific scenarios. Risk appetite is usually expressed in a qualitative statement approved by the board of directors2.

Considering the risk appetite of the organization is essential for developing a risk response strategy, because it can help to:

• Align the risk response strategy with the overall business strategy and vision, and ensure that the risk response options support the achievement of the organizational objectives
• Balance the risk response strategy with the expected benefits and opportunities, and ensure that the risk response options do not eliminate or reduce the potential value or performance of the organization
• Enhance the risk response strategy with the stakeholder expectations and requirements, and ensure that the risk response options meet the needs and interests of the customers, suppliers, partners, regulators, and other parties
• Optimize the risk response strategy with the available resources and capabilities, and ensure that the risk response options are feasible and cost-effective for the organization34

The other options are not as important as the risk appetite of the organization for developing a risk response strategy, but rather some of the factors or outcomes of it. Cost of controls is the amount of resources and funds that are required to implement and maintain the risk response controls, such as policies, procedures, or technologies, that aim to prevent or reduce the negative effects of the risks. Cost of controls is a factor that can affect the selection and implementation of the risk response options, but it is not the primary consideration for developing the risk response strategy. Risk tolerance is the acceptable variation in the outcomes related to specific objectives or risks. Risk tolerance is a factor that can measure the risk analysis and guide the risk response, but it is not the primary consideration for developing the risk response strategy. Probability definition is the process of estimating the likelihood or frequency of the risk events, based on historical data, statistical analysis, expert judgment, or other methods. Probability definition is an outcome of the risk analysis that can inform the risk response, but it is not the primary consideration for developing the risk response strategy. References =

• Risk Response - ISACA
• Risk Appetite vs. Risk Tolerance: What is the Difference? - ISACA
• Risk Response Strategies: Types & Examples (+ Free Template)
• Risk Response Strategy - ISACA
• [CRISC Review Manual, 7th Edition]

 Process owners are the best suited to help a risk practitioner understand the impact of IT-related events on business objectives, as they have the responsibility and authority over the design, execution, and performance of business processes. Process owners are also accountable for the risks and controls associated with their processes, and they can provide valuable input and feedback on the likelihood and impact of IT-related events on the process outcomes and objectives.

The other options are not the best suited to help a risk practitioner understand the impact of IT-related events on business objectives. IT management is responsible for the delivery and support of IT services and solutions, but they may not have the full visibility or understanding of the business objectives and processes. Internal audit is responsible for providing independent and objective assurance and consulting services on the effectiveness and efficiency of governance, risk management, and control processes, but they may not have the direct involvement or influence on the business objectives and processes. Senior management is responsible for setting the strategic direction and objectives of the organization, but they may not have the detailed knowledge or experience of the business processes and their risks and controls. References = IT Risk Manager: Skills and Roles & Responsibilities, IT Risk Resources | ISACA, Managing information technology risk | Business Queensland

Lack of organizational policy regarding open source software should be the greatest concern for an organization that uses open source software applications, as it may expose the organization to legal, security, and operational risks. Open source software is software that is freely available and can be modified and distributed by anyone, subject to certain conditions and licenses. An organizational policy regarding open source software should define the criteria and procedures for selecting, acquiring, using, and maintaining open source software, as well as the roles and responsibilities of the stakeholders involved. Lack of reliability, lack of monitoring, and lack of professional support are not the greatest concerns, as they can be addressed by implementing quality assurance, configuration management, and community engagement practices for open source software. References = CRISC by Isaca Actual Free Exam Q&As, question 214; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 214.

 The most important consideration when performing a vendor risk assessment is the inherent risk of the business process supported by the vendor, which is the risk that exists before any controls or mitigating factors are applied. The inherent risk reflects the potential impact and likelihood of the vendor’s failure or disruption on the enterprise’s objectives, operations, and reputation. The higher the inherent risk, the more rigorous and frequent the vendor risk assessment should be. The results of the last risk assessment of the vendor, the risk tolerance of the vendor, and the length of time since the last risk assessment of the vendor are not the most important considerations, as they do not directly measure the level of exposure and dependency that the enterprise has on the vendor. References = CRISC Certified in Risk and Information Systems Control – Question204; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 204.

 A vulnerability is a weakness or flaw that can be exploited by a threat to cause harm or damage to an asset. Employees holding the door open for others, so that trailing employees do not have to stop and swipe their own ID badges, is a behavior that best represents a vulnerability, as it bypasses the security control of the ID badge system, and allows unauthorized or unauthenticated access to the premises. This behavior can increase the risk of physical or logical security breaches, such as theft, vandalism, sabotage, or espionage. References = CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 258. Most Asked CRISC Exam Questions and Answers, Question 10. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 258. CRISC by Isaca Actual Free Exam Q&As, Question 9.

Artificial intelligence (AI) solutions can offer significant benefits to an organization, such as improved efficiency, accuracy, and innovation. However, AI also poses new challenges and risks that need to be considered and addressed by senior management. Some of these risks include:

• Ethical and social risks: AI solutions may have unintended or undesirable impacts on human values, rights, and behaviors, such as privacy, fairness, accountability, and transparency. For example, AI systems may exhibit bias, discrimination, or manipulation, or may infringe on personal data or autonomy.
• Technical and operational risks: AI solutions may have vulnerabilities, errors, or failures that affect their performance, reliability, or security. For example, AI systems may be subject to hacking, tampering, or misuse, or may malfunction or produce inaccurate or harmful outcomes.
• Legal and regulatory risks: AI solutions may have unclear or conflicting legal or regulatory implications or obligations, such as liability, compliance, or governance. For example, AI systems may raise questions about ownership, responsibility, or accountability, or may violate existing laws or regulations, or create new ones.

Therefore, a risk practitioner should communicate to senior management that AI potentially introduces new types of risk that need to be identified, assessed, and managed in alignment with the organization’s objectives, values, and risk appetite. References = ISACA CRISC Review Manual, 7th Edition, Chapter 3, Section 3.2.2, page 113.

Integrating the results of top-down risk scenario analyses is the most helpful in aligning IT risk with business objectives, as it helps to identify and prioritize the IT-related risks that could affect the achievement of the business goals and strategies. A top-down risk scenario analysis is a method of risk assessment that starts from the business perspective and considers the potential impact and likelihood of various risk events on the business outcomes and performance. A top-down risk scenario analysis can help to align IT risk with business objectives by providing the following benefits:

• It ensures that the IT risk assessment is driven by the business needs and priorities, rather than by the IT technical details or assumptions.
• It enables a holistic and comprehensive view of the IT risk landscape and its interdependencies with the business processes and functions.
• It facilitates the communication and collaboration among the business and IT stakeholders and enhances their understanding and awareness of the IT risk exposure and control environment.
• It supports the development and implementation of effective and efficient IT risk response and mitigation strategies that are aligned with the business risk appetite and objectives.

The other options are not the most helpful in aligning IT risk with business objectives. Introducing an approved IT governance framework is a good practice to establish the principles, policies, and processes for the governance of IT, but it does not directly address the IT risk alignment with the business objectives. Performing a business impact analysis (BIA) is an important step to assess the potential consequences of IT disruptions on the business operations and continuity, but it does not provide information on the likelihood or sources of the IT risk events. Implementing a risk classification system is a useful tool to categorize and organize the IT risks based on their characteristics and attributes, but it does not link the IT risks with the business objectives or outcomes. References = Risk Scenarios Toolkit - ISACA, IT Risk Resources | ISACA, How to reduce risk by aligning business strategy and IT strategy - QuoStar

The most effective way to incorporate stakeholder concerns when developing risk scenarios is to evaluate the risk impact. Risk impact is the extent of the potential consequences or losses that may result from a risk event. Evaluating the risk impact involves considering the stakeholder concerns, expectations, and perspectives, as they may have different views on the value of the assets, the severity of the threats, and the acceptability of the outcomes. Evaluating the risk impact can help to ensure that the risk scenarios reflect the stakeholder interests and priorities, and that the risk responses are aligned with the stakeholder objectives. Establishing key performance indicators (KPIs), conducting internal audits, and creating quarterly risk reports are not as effective as evaluating the risk impact, as they are not directly related to the development of risk scenarios, and may not capture the stakeholder concerns adequately. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 50.

IT risk scenarios are hypothetical situations that describe how IT-related risks can affect the organization’s objectives, operations, or assets1. IT risk scenarios help to make IT risk more concrete and tangible, and to enable proper risk analysis and assessment2. IT risk scenarios are developed after IT risks are identified, and are used as inputs for risk analysis, where the frequency and impact of the scenarios are estimated3.

The most important factor to the successful development of IT risk scenarios is threat and vulnerability analysis. Threat and vulnerability analysis is the process of identifying and evaluating the potential sources and causes of IT risks, such as malicious actors, natural disasters, human errors, or technical failures4. Threat and vulnerability analysis can help to:

• Define the scope and boundaries of the IT risk scenarios, and ensure that they are relevant and realistic
• Identify the critical assets, processes, or functions that are exposed or affected by the IT risks, and assess their value and importance to the organization
• Determine the likelihood and methods of the threat events, and the existing or potential weaknesses or gaps in the IT control environment
• Estimate the potential consequences and impacts of the IT risks, such as financial losses, operational disruptions, reputational damages, or compliance violations5

References = IT Scenario Analysis in Enterprise Risk Management - ISACA, IT Risk Scenarios - Morland-Austin, Threat and Vulnerability Analysis - Wikipedia, Threat and Vulnerability Analysis - ISACA

 The risk practitioner’s best recommendation is to consider providing additional system resources to this job, as this would help to reduce the likelihood and impact of the risk of delaying financial reporting. Providing additional system resources, such as memory, CPU, disk space, or bandwidth, can improve the performance and efficiency of the application and the scheduled job. This can also help to avoid potential errors, failures, or interruptions that could affect the quality and timeliness of the financial data and reporting.

The other options are not the best recommendations for this situation. Implementing database activity and capacity monitoring is a good practice to identify and analyze the root causes of performance issues, but it does not directly address the risk of delaying financial reporting. Ensuring the business is aware of the risk is an important step to communicate and escalate the risk, but it does not provide a solution or mitigation strategy. Ensuring the enterprise has a process to detect such situations is a preventive measure to avoid or minimize the occurrence of the risk, but it does not eliminate or reduce the risk. References = Practical Recommendations for Better Enterprise Risk Management - ISACA, HR Risk Management: A Practitioner’s Guide - AIHR, Isaca CRISC today updated questions - Verified by Isaca Experts

 IT risk management is the process of identifying, assessing, and mitigating the risks related to the use of information technology (IT) in the organization. IT risk management aims to ensure the confidentiality, integrity, and availability of IT resources and information, and to support the IT governance and strategy of the organization1.

The best indicator of the effectiveness of IT risk management processes is the time between when IT risk scenarios are identified and the enterprise’s response. This indicator can help to measure how quickly and efficiently the organization can detect and respond to the IT risks, and how well the organization can prevent or minimize the negative impacts of the IT risks. The time between when IT risk scenarios are identified and the enterprise’s response can include:

• The time taken to identify and report the IT risk scenarios, using various methods and sources, such as risk assessments, audits, monitoring, alerts, or incidents
• The time taken to analyze and evaluate the IT risk scenarios, using various tools and techniques, such as risk matrices, risk registers, risk indicators, or risk models
• The time taken to select and implement the IT risk responses, using various strategies and controls, such as avoidance, mitigation, transfer, or acceptance
• The time taken to review and improve the IT risk management processes, using various feedback and learning mechanisms, such as lessons learned, best practices, or benchmarks23

The other options are not the best indicators of the effectiveness of IT risk management processes, but rather some of the inputs or outputs of IT risk management processes. Percentage of business users completing risk training is an indicator of the awareness and competence of the IT users and providers, which can affect the IT risk management performance, but it does not measure the IT risk management processes directly. Percentage of high-risk scenarios for which risk action plans have been developed is an indicator of the completeness and coverage of the IT risk management activities, which can affect the IT risk management outcomes, but it does not measure the IT risk management processes directly. Number of key risk indicators (KRIs) defined is an indicator of the scope and complexity of the IT risk management objectives, which can affect the IT risk management resources and capabilities, but it does not measure the IT risk management processes directly. References =

• IT Risk Management - ISACA
• Risk Management Process - ISACA
• Risk Response - ISACA
• [CRISC Review Manual, 7th Edition]

The risk management process is the systematic and continuous process of identifying, analyzing, evaluating, and treating the risks that may affect the organization’s objectives, operations, or assets1. The risk management process should be aligned with the organization’s overall risk management framework and strategy, and support the organization’s value creation and protection2.

Having the risk management process reviewed by a third party is a good practice that can provide various benefits for the organization, such as:

• Enhancing the credibility and reliability of the risk management process and outcomes
• Identifying and addressing any weaknesses, gaps, or errors in the risk management process and controls
• Providing independent and objective feedback and recommendations for improving the risk management process and performance
• Ensuring compliance with the relevant laws, regulations, and standards for risk management3

Among the four options given, the primary reason to have the risk management process reviewed by a third party is to obtain an objective view of process gaps and systemic errors. This means that the third party can help to:

• Assess the adequacy and effectiveness of the risk management process and its alignment with the organization’s risk appetite and tolerance
• Detect and report any inconsistencies, inefficiencies, or inaccuracies in the risk identification, analysis, evaluation, or treatment activities
• Identify and prioritize the root causes and consequences of the process gaps and systemic errors, and their impact on the organization’s risk exposure and acceptance
• Suggest and implement corrective or preventive actions that can resolve or mitigate the process gaps and systemic errors, and prevent their recurrence

References = Risk Management Process - ISO 31000, Enterprise Risk Management - Wikipedia, How to Select a Third-Party Risk Management Framework

 Discussing and managing risk as a team is the greatest benefit for an organization with a strong risk awareness culture, as it enables the organization to share and communicate the risk information and knowledge among all the stakeholders, and to collaborate and coordinate the risk management activities and responsibilities. Discussing and managing risk as a team can also help to foster a positive and proactive attitude toward risk, and to align the risk management process with the organization’s strategy and objectives. Discussing and managing risk as a team can also enhance the risk governance and accountability, and support the risk learning and improvement. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 252. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 252. CRISC by Isaca Actual Free Exam Q&As, Question 9.

 Customer behavior data is the information that reflects how customers interact with a brand, product, or service, such as their preferences, needs, motivations, and feedback1. Collecting customer behavior data through social media advertising can help an organization to understand its target market, improve its customer experience, and optimize its marketing strategies2.

However, collecting customer behavior data through social media advertising also poses significant business risks, especially for a global organization that operates in different countries. Among the four options given, the most important business risk to be considered is the regulatory requirements that may differ in each country. This means that the organization should:

• Be aware of the different laws and regulations that govern the collection, processing, storage, and transfer of personal data in each country, such as the GDPR in the EU, the CCPA in California, or the PDPA in Singapore3
• Ensure that the organization complies with the relevant data protection and privacy rules and standards in each country, such as obtaining consent, providing notice, ensuring security, and respecting rights4
• Avoid or mitigate the potential legal, financial, reputational, or operational consequences of violating the data protection and privacy laws and regulations in each country, such as fines, lawsuits, sanctions, or loss of trust5

References = What is Customer Behavior Data?, How to Collect Customer Behavior Data for Marketing, Data Protection Laws Around the World, Data Protection and Privacy: The Age of Intelligent Machines, The Risks of Non-Compliance with Data Protection Laws

 The first step when conducting a business impact analysis (BIA) is identifying critical information assets. A BIA is a process of analyzing the potential impacts of disruptive events on the business processes, functions, and resources. A BIA identifies the criticality, dependencies, recovery priorities, and recovery objectives of the business processes, and quantifies the financial and non-financial impacts of disruption. Information assets are the data, information, and knowledge that are essential for the operation and performance of the business processes. Identifying critical information assets is the first step of the BIA, as it helps to determine which information assets are vital for the continuity and recovery of the business processes, and which information assets are most vulnerable or exposed to the disruptive events. Identifying critical information assets also helps to scope and focus the BIA on the most important and relevant information assets, and to avoid unnecessary or redundant analysis. Identifying events impacting continuity of operations, creating a data classification scheme, and analyzing previous risk assessment results are not the first steps of the BIA, as they are either the inputs or the outputs of the BIA, and they depend on the identification of critical information assets. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 130.

An external audit is the most reliable input to evaluate residual risk in the vendor’s control environment, as it provides an independent and objective assessment of the vendor’s financial systems and processes. An external audit is conducted by a third party, such as a certified public accountant (CPA) or a professional auditing firm, that follows the generally accepted auditing standards (GAAS) and the generally accepted accounting principles (GAAP). An external audit can help to verify the accuracy and completeness of the vendor’s financial statements, identify any material misstatements or errors, and evaluate the effectiveness and efficiency of the vendor’s internal controls. An external audit can also provide assurance and confidence to the organization and other stakeholders that the vendor is complying with the relevant laws, regulations, and contractual obligations.

The other options are not the most reliable inputs to evaluate residual risk in the vendor’s control environment. An internal audit is conducted by the vendor itself, which may introduce bias or conflict of interest. An internal audit may also have a different scope, methodology, or quality than an external audit. A vendor performance scorecard is completed by the organization, which may not have the sufficient access, expertise, or authority to assess the vendor’s control environment. A vendor performance scorecard may also focus more on the service level agreement (SLA) compliance, rather than the financial systems and processes. A regulatory examination is conducted by a regulator, such as a government agency or a standard-setting body, which may have a different purpose, criteria, or perspective than the organization. A regulatory examination may also have a limited scope, frequency, or transparency. References = Guide to Vendor Risk Assessment | Smartsheet, Understanding Inherent Vs. Residual Risk Assessments - Resolver, Assessing Internal Controls over Compliance - HCCA Official Site

The best indicator that additional or improved controls are needed in the environment is when risk events and losses exceed risk tolerance. Risk tolerance is the acceptable level of variation in performance or outcomes relative to the achievement of objectives. Risk events and losses are the negative consequences of risk that have occurred or are expected to occur. When risk events and losses exceed risk tolerance, it means that the existing controls are not sufficient or effective to prevent or mitigate the risk, and that the organization is exposed to unacceptable levels of risk that could impair its ability to achieve its objectives. Therefore, additional or improved controls are needed to reduce the risk to an acceptable level. Management decreasing organizational risk appetite, the risk register and portfolio not including all risk scenarios, and emerging risk scenarios being identified are not as clear and direct indicators that additional or improved controls are needed in the environment, as they do not necessarily reflect the actual performance or outcomes of the risk management process. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 41.

When reviewing a report on the performance of control processes, it is most important to verify whether the residual risk objectives have been achieved, as this indicates the extent to which the control processes have reduced the risk to an acceptable level. Residual risk is the risk that remains after the implementation of controls, and it should be aligned with the risk appetite and tolerance of the enterprise. Business process objectives, regulatory standards, and control process design are not the most important factors to verify, as they do not directly measure the effectiveness and efficiency of the control processes in managing the risk. References = CRISC Practice Quiz and Exam Prep; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 209.

 Cost-benefit analysis is the most helpful tool to show risk reduction based on when developing risk treatment alternatives for a business case, because it compares the expected costs and benefits of each alternative and helps to select the most optimal and feasible one. Cost-benefit analysis also helps to justify the investment and resources required for the risk treatment plan and to demonstrate the value and return of the risk reduction. The other options are not the most helpful tools, although they may also be considered when developing risk treatment alternatives. Risk appetite, regulatory guidelines, and control efficiency are examples of factors or criteria that influence the selection of risk treatment alternatives, but they do not show the risk reduction based on the alternatives. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

Risk appetite is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk appetite reflects the organization’s risk attitude and its willingness to take on risk in specific scenarios. Risk appetite is usually expressed in a qualitative statement approved by the board of directors1.

Risk capacity is the maximum amount of risk that an organization can responsibly take on without jeopardizing its financial stability or other key objectives. Risk capacity is determined by objective factors like income, assets, liabilities, debts, insurance coverage, dependents, and time horizon. Risk capacity is usually expressed in a quantitative measure that sets the limit of how much risk the organization can handle2.

Prudent business practice requires that risk appetite not exceed risk capacity, because this would mean that the organization is taking on more risk than it can afford or sustain. If the risk appetite is higher than the risk capacity, the organization may face serious consequences such as insolvency, bankruptcy, reputational damage, legal liability, or regulatory sanctions. Therefore, the organization should align its risk appetite with its risk capacity, and ensure that its risk exposure is within its risk tolerance3.

The other options are not correct. Inherent risk is the level of risk that exists in the absence of controls or mitigations. It is the natural level of risk inherent in a process or activity. Residual risk is the level of risk that remains after the controls or mitigations have been applied. It is the remaining risk after the risk response has been implemented. Risk tolerance is the acceptable variation in the outcomes related to specific objectives or risks. It is the range of risk exposure that the organization is prepared to accept4. None of these concepts are directly comparable to risk appetite, and none of them represent the limit of how much risk the organization can take on. References =

• Risk Appetite vs. Risk Tolerance: What is the Difference? - ISACA
• What Is the Difference Between Risk Tolerance and Risk Capacity? - Investopedia
• Risk Management: Understanding Risk Capacity, Appetite, and Tolerance - Consulting Edge
• [CRISC Review Manual, 7th Edition]

Unavailability of critical IT systems poses the greatest risk to an organization’s operations during a major IT transformation, because it can disrupt the business continuity, productivity, and performance of the organization. Unavailability of critical IT systems can also cause financial, reputational, or legal damages to the organization, and affect the quality and delivery of products or services to the customers. The other options are not the greatest risks, although they may also pose some challenges or threats to the organization during a major IT transformation. Lack of robust awareness programs, infrequent risk assessments of key controls, and rapid changes in IT procedures are examples of management or process risks that can affect the planning, execution, or monitoring of the IT transformation, but they do not have the same impact or severity as the unavailability of critical IT systems. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

 The first course of action for a risk practitioner when an organization plans to adopt a cloud computing strategy is to perform a controls assessment. This means evaluating the existing controls in the organization and the cloud service provider, and identifying the gaps and weaknesses that need to be addressed. A controls assessment can help to determine the level of risk exposure and the suitability of the cloud service model and provider for the organization’s needs and objectives. It can also help to establish the baseline for monitoring and reporting on the cloud service performance and compliance. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2.2, p. 242-243

 A risk practitioner is preparing a report to communicate changes in the risk and control environment, such as new or emerging risks, changes in risk levels, risk responses, or control effectiveness. The best way to engage stakeholder attention is to include a summary linking information to stakeholder needs, meaning that the report should highlight the key points and findings that are relevant and important for the stakeholder’s role, responsibility, and interest. The summary should also explain how the information affects the stakeholder’s objectives, expectations, and decisions. The summary should be concise, clear, and compelling, and should capture the stakeholder’s attention and interest. The report can also include detailed deviations from industry benchmarks, a roadmap to achieve operational excellence, or an option to publish the report on-demand for stakeholders, but these are not the best ways to engage stakeholder attention, as they may not be directly related to the stakeholder’s needs or may overwhelm the stakeholder with too much information. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.1, p. 124-125

Qualitative measures are methods of expressing risk levels using descriptive terms, such as high, medium, or low, based on subjective criteria, such as likelihood, impact, or severity. Qualitative measures are often used to identify and prioritize risks, and to communicate risk information to stakeholders1.

Residual risk is the level of risk that remains after the risk response has been implemented. Residual risk reflects the effectiveness and efficiency of the risk response, and the need for further action or monitoring2.

Emerging threats are new or evolving sources or causes of risk that have the potential to adversely affect the organization’s objectives, assets, or operations. Emerging threats are often characterized by uncertainty, complexity, and ambiguity, and may require innovative or adaptive risk responses3.

The best reason to use qualitative measures to express residual risk levels related to emerging threats is that qualitative measures are better able to incorporate expert judgment. Expert judgment is the opinion or advice of a person or a group of people who have specialized knowledge, skills, or experience in a particular domain or field. Expert judgment can help to:

• Provide insights and perspectives on the nature and characteristics of the emerging threats, and their possible causes and consequences
• Assess the likelihood and impact of the emerging threats, and their interactions and dependencies with other risks
• Evaluate the suitability and effectiveness of the risk responses, and their alignment with the organization’s risk appetite and tolerance
• Identify and recommend the best practices and lessons learned for managing the emerging threats, and for improving the risk management process45

Qualitative measures are better able to incorporate expert judgment than quantitative measures, which are methods of expressing risk levels using numerical or measurable values, such as percentages, probabilities, or monetary amounts. Quantitative measures are often used to estimate and analyze risks, and to support risk decision making1. However, quantitative measures may not be suitable or feasible for expressing residual risk levels related to emerging threats, because:

• Quantitative measures require reliable and sufficient data and information, which may not be available or accessible for the emerging threats
• Quantitative measures rely on mathematical models and techniques, which may not be able to capture or reflect the complexity and uncertainty of the emerging threats
• Quantitative measures may create a false sense of precision or accuracy, which may not be justified or warranted for the emerging threats
• Quantitative measures may be influenced or manipulated by biases or assumptions, which may not be valid or appropriate for the emerging threats67

Therefore, qualitative measures are better able to incorporate expert judgment, which can enhance the understanding and management of the residual risk levels related to emerging threats.

The other options are not the best reasons to use qualitative measures to express residual risk levels related to emerging threats, but rather some of the advantages or disadvantages of qualitative measures. Qualitative measures require less ongoing monitoring than quantitative measures, because they are simpler and easier to apply and update. However, this does not mean that qualitative measures can eliminate or reduce the need for monitoring, which is an essential part of the risk management process. Qualitative measures are better aligned to regulatory requirements than quantitative measures, because they are more consistent and comparable across different domains and contexts. However, this does not mean that qualitative measures can satisfy or comply with all the regulatory requirements, which may vary depending on the industry or sector. Qualitative measures are easier to update than quantitative measures, because they do not depend on complex calculations or formulas. However, this does not mean that qualitative measures can always reflect the current or accurate risk levels, which may change over time or due to external factors. References =

• Qualitative Risk Analysis vs. Quantitative Risk Analysis - ISACA
• Residual Risk - ISACA
• Emerging Threats - ISACA
• Expert Judgment - ISACA
• Expert Judgment in Project Management: Narrowing the Theory-Practice Gap
• Quantitative Risk Analysis - ISACA
• Quantitative Risk Analysis: A Critical Review
• [CRISC Review Manual, 7th Edition]

IT governance is the process of ensuring that IT supports the organization’s objectives and strategies, and that IT risks are managed appropriately. IT governance involves defining the roles, responsibilities, and accountabilities of the IT stakeholders, establishing the IT policies, standards, and procedures, and monitoring and evaluating the IT performance and outcomes1.

An organization that automatically approves exceptions to security policies on a recurring basis is most likely the result of ineffective IT governance, because it indicates that the organization:

• Lacks a clear and consistent IT strategy and direction, and does not align IT with the business goals and needs
• Fails to implement and enforce the IT policies, standards, and procedures, and does not ensure the compliance and accountability of the IT users and providers
• Neglects to identify and assess the IT risks, and does not implement the appropriate risk responses and controls
• Does not monitor and measure the IT performance and outcomes, and does not review and improve the IT processes and practices23

The other options are not the most likely results of ineffective IT governance, but rather some of the possible causes or consequences of it. A lack of mitigating actions for identified risk is a possible consequence of ineffective IT governance, as it implies that the organization does not have a systematic and proactive approach to IT risk management, and does not address the IT risks in a timely and effective manner. Decreased threat levels is a possible cause of ineffective IT governance, as it may create a false sense of security and complacency, and reduce the motivation and urgency to implement and follow the IT policies, standards, and procedures. Ineffective service delivery is a possible consequence of ineffective IT governance, as it means that the organization does not deliver the IT services that meet the expectations and requirements of the customers and stakeholders, and does not ensure the quality and reliability of the IT services. References =

• IT Governance - ISACA
• IT Governance: What It Is and Why You Need It
• IT Governance: The Benefits of an Effective Enterprise IT Governance Framework
• [CRISC Review Manual, 7th Edition]

Administrative controls are the best controls to be strengthened by a clear organizational code of ethics, because they are the policies, procedures, standards, and guidelines that define the expected behavior and conduct of the employees and management. A code of ethics is an example of an administrative control that sets the ethical principles and values of the organization and helps to prevent or deter unethical or illegal actions. The other options are not the best controls to be strengthened by a clear organizational code of ethics, because they are not directly related to the ethical culture or governance of the organization. Detective controls are the controls that monitor and report the occurrence of unwanted events or incidents. Technical controls are the controls that use hardware, software, or network devices to protect the information systems and data. Preventive controls are the controls that prevent or avoid the occurrence of unwanted events or incidents. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers

The management’s primary consideration when approving risk response action plans should be the changes in residual risk after implementing the plans. Residual risk is the level of risk that remains after the implementation of risk responses1. It indicates the degree of exposure or uncertainty that the organization still faces, and the potential impact or consequences of the risk events. The management should evaluate the effectiveness and adequacy of the risk responses, and decide whether the residual risk is acceptable or not2. The management should also compare the residual risk with the risk appetite, which is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives3. The management should ensure that the residual risk is aligned with the risk appetite, and that the risk responses are consistent and proportional to the risk level4.

The other options are not the primary consideration when approving risk response action plans, because:

• Ability of the action plans to address multiple risk scenarios is a desirable but not essential criterion for approving risk response action plans. Risk scenarios are hypothetical situations that describe how a risk event could occur and what the consequences could be5. They can help to understand and communicate the nature and impact of the risks, and to design and evaluate the risk responses6. However, not all risk scenarios are equally likely or relevant, and some risk scenarios may be too complex or improbable to address. Therefore, the ability of the action plans to address multiple risk scenarios is not the primary consideration, but rather a secondary or supplementary one.
• Ease of implementing the risk treatment solution is a practical but not critical criterion for approving risk response action plans. Risk treatment is the process of selecting and applying appropriate measures to modify the risk7. It can involve different strategies, such as avoid, reduce, transfer, or accept the risk8. The ease of implementing the risk treatment solution depends on various factors, such as the availability of resources, the feasibility of the solution, or the cooperation of the stakeholders. However, the ease of implementation is not the primary consideration, but rather a supporting or facilitating one.
• Prioritization for implementing the action plans is a useful but not vital criterion for approving risk response action plans. Prioritization is the process of ranking the action plans according to their importance, urgency, or impact. It can help to allocate the resources, schedule the activities, and monitor the progress of the action plans. However, prioritization is not the primary consideration, but rather a subsequent or follow-up one.

References =

• Residual Risk - CIO Wiki
• What is Residual Risk? - Definition from Techopedia
• Risk Appetite - CIO Wiki
• Risk Appetite: What It Is and Why It Matters - Gartner
• Risk Scenarios Toolkit - ISACA
• Risk Scenarios Starter Pack - ISACA
• Risk Treatment - CIO Wiki
• Risk Treatment Plan - CIO Wiki
• [Prioritization - CIO Wiki]

According to the ISACA CRISC Review Manual, an enterprise risk management (ERM) process is a holistic approach to identifying, analyzing, responding to, and monitoring all types of risk that affect the achievement of the enterprise’s objectives. The ERM process should consider all types of risk, including strategic, operational, financial, compliance, and reputational risks. Among these, strategic risks are the most important, as they have the potential to affect the enterprise’s mission, vision, and goals. Therefore, risk with strategic impact should be included in the ERM process. References = ISACA CRISC Review Manual, 7th Edition, Chapter 1, Section 1.2.1, page 17.

The best approach to ensure the effectiveness of risk awareness training is to create modules for targeted audiences. This means that the risk awareness training should be customized and tailored to the specific needs, roles, and responsibilities of different groups of staff, such as business owners, process owners, IT staff, or external parties. Creating modules for targeted audiences helps to ensure that the risk awareness training is relevant, engaging, and applicable to the participants, and that it covers the appropriate level of detail and complexity. It also helps to enhance the learning outcomes and retention of the risk awareness training, and to foster a culture of risk awareness and responsibility within the enterprise. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.4.1, page 2491

The most important thing to include in a risk assessment of an emerging technology is the impact and likelihood ratings of the risks associated with the technology. Impact and likelihood ratings are the measures of the potential consequences and probabilities of the risk events that could affect the achievement of the enterprise’s objectives. Impact and likelihood ratings can help to evaluate the level and nature of the risk exposure, and to prioritize the risks for further analysis and response. Impact and likelihood ratings can also help to communicate the risk profile and appetite of the enterprise, and to support the risk-based decision making. Risk response plans, risk and control ownership, and key controls are not as important as impact and likelihood ratings, as they are the outputs or outcomes of the risk assessment process, and not the inputs or components of the risk assessment process. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 49.

Data inconsistency is the greatest concern associated with redundant data in an organization’s inventory system, as it can lead to inaccurate, unreliable, and conflicting information that can affect the decision-making and performance of the organization. Redundant data can occur when the same data is stored in multiple locations or formats, or when data is not updated or synchronized properly. Data inconsistency can cause errors, confusion, and inefficiency in the inventory management process, and can also increase the risk of fraud, theft, or loss of inventory. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 238. CRISC by Isaca Actual Free Exam Q&As, Question 9. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 238. CRISC Sample Questions 2024, Question 238.

A balanced scorecard is a strategic management tool that helps to measure and communicate the performance of an organization or a program against its goals and objectives. A balanced scorecard typically consists of four perspectives: financial, customer, internal process, and learning and growth. Each perspective has a set of key performance indicators (KPIs) that reflect the critical success factors and desired outcomes of the organization or the program1.

A balanced scorecard is most useful for reporting on the overall status and effectiveness of the IT risk management program, because it can provide a comprehensive and balanced view of the program’s performance across multiple dimensions. A balanced scorecard can help to align the IT risk management program with the business strategy and vision, and to demonstrate the value and impact of the program to the stakeholders. A balanced scorecard can also help to identify the strengths and weaknesses of the IT risk management program, and to monitor and improve the program’s processes and outcomes2.

The other options are not as useful as a balanced scorecard for reporting on the overall status and effectiveness of the IT risk management program. A capability maturity level is a measure of the maturity and quality of a process or a practice, based on a predefined set of criteria and standards. A capability maturity level can help to assess and benchmark the IT risk management program’s processes and practices, but it does not provide a holistic view of the program’s performance and results3. An internal audit plan is a document that outlines the scope, objectives, and methodology of an internal audit activity. An internal audit plan can help to evaluate and verify the IT risk management program’s controls and compliance, but it does not provide a strategic view of the program’s goals and outcomes4. A control self-assessment (CSA) is a technique that involves the participation of the process owners and the staff in assessing the effectiveness and efficiency of their own controls. A CSA can help to enhance the awareness and ownership of the IT risk management program’s controls, but it does not provide an objective and independent view of the program’s performance and impact. References =

• Balanced Scorecard Basics - Balanced Scorecard Institute
• Using the Balanced Scorecard to Measure and Manage IT Risk
• Capability Maturity Model Integration (CMMI) Overview
• Internal Audit Planning: The Basics - The IIA
• [Control Self-Assessment - ISACA]

 Risk culture is the system of values and behaviors present in an organization that shapes risk decisions of management and employees1. Risk culture influences how the organization perceives, responds to, and manages the risks that may affect its objectives, operations, or assets2.

The scenario described in the question best demonstrates an organization’s risk culture, because it shows how the management team’s attitude and actions towards risk are driven by the organization’s values and goals. In this case, the organization’s risk culture is characterized by:

• A high risk appetite and tolerance, which means that the organization is willing to take and accept significant risks in order to achieve its strategic objectives of launching a new product and penetrating new markets
• A low risk awareness and sensitivity, which means that the organization does not pay enough attention or consideration to the potential IT risk factors, threats, and vulnerabilities that may affect its product development and market entry
• A weak risk governance and control, which means that the organization does not have adequate or effective policies, procedures, or mechanisms to identify, assess, respond, or monitor the IT risks and their impacts

References = Risk Culture of Companies | ERM - Enterprise Risk Management Initiative …, Taking control of organizational risk culture | McKinsey

A risk treatment plan is a document that outlines the approach and actions to be taken to address the unacceptable risks identified in the risk assessment process1. A risk treatment plan should include the following components2:

• The risk identification number and description
• The risk treatment option chosen (e.g., avoid, reduce, share, or accept)
• The risk treatment owner, who is responsible for implementing and monitoring the risk treatment
• The risk treatment actions, which are the specific tasks or steps to be performed to execute the risk treatment
• The risk treatment resources, which are the human, financial, or technical resources required to support the risk treatment
• The risk treatment target date, which is the deadline for completing the risk treatment
• The risk treatment performance indicators, which are the measures to evaluate the effectiveness and efficiency of the risk treatment
• The risk treatment status, which is the current progress or outcome of the risk treatment

Among the four options given, the most important component in a risk treatment plan is the treatment plan ownership. This is because the treatment plan ownership defines the accountability and authority for the risk treatment, and ensures that the risk treatment actions are carried out as planned and reported as required3. The treatment plan ownership also facilitates the communication and coordination among the stakeholders involved in the risk treatment, and enables the escalation and resolution of any issues or challenges that may arise during the risk treatment process4.

References = Risk Treatment (With Examples), ISO 27001 Risk Assessment & Risk Treatment: The Complete Guide, Risk Management Framework - Treat Risks, Risk Management Plan Components

The first step when addressing the situation of moving the payroll system to a SaaS application and complying with the new data privacy regulation is to understand the data flows. This means identifying where the data is collected, stored, processed, and transferred, and who has access to it. Understanding the data flows can help to determine the scope and impact of the regulation, as well as the potential risks and gaps in the current state. It can also help to identify the roles and responsibilities of the organization and the SaaS provider regarding data protection and compliance. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.1.2, p. 237-238

Conducting a root cause analysis is the best course of action for an IT business owner following an unexpected increase in emergency changes, as it helps to identify and address the underlying cause(s) of the problem and prevent it from recurring in the future. A root cause analysis is a systematic process of finding and resolving the fundamental factors that contribute to a specific issue or event. A root cause analysis can help to improve the quality and reliability of the IT services and processes, reduce the costs and risks associated with emergency changes, and enhance the customer satisfaction and trust.

The other options are not the best courses of action for an IT business owner following an unexpected increase in emergency changes. Evaluating the impact to control objectives is an important step to assess the potential consequences of the emergency changes on the IT governance and risk management, but it does not provide a solution or mitigation strategy for the problem. Validating the adequacy of current processes is a good practice to ensure that the IT processes are aligned with the business needs and objectives, but it does not address the specific cause(s) of the emergency changes. Reconfiguring the IT infrastructure is a possible action to implement the emergency changes, but it does not prevent the occurrence or recurrence of the problem. References = IT Business Owner’s Best Course of Action Following Unexpected Increase …, ITIL Change Types: Standard vs Normal vs Emergency - Freshworks, Emergency Change Management: Please Stop The Drama

A cost-benefit analysis is a tool that compares the costs and benefits of different alternatives, such as implementing or not implementing a specific control. A cost-benefit analysis provides the most useful information when determining if a specific control should be implemented, as it can show the potential savings, benefits, and risks of each option, and help the decision-makers choose the best course of action. A cost-benefit analysis can also include qualitative factors, such as security, compliance, performance, and customer satisfaction, that may be affected by the control implementation. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 256. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 256. Most Asked CRISC Exam Questions and Answers, Question 10. CRISC by Isaca Actual Free Exam Q&As, Question 9.

The most helpful factor for an information security management team when allocating resources to mitigate exposures is the risk assessment results. The risk assessment results provide a comprehensive and objective analysis of the risks facing the enterprise, including their likelihood, impact, and root causes. The risk assessment results also help to identify the gaps and weaknesses in the existing controls, and to prioritize the risks based on their severity and urgency. The risk assessment results enable the information security management team to allocate the resources in a cost-effective and risk-based manner, and to implement the most appropriate risk responses to reduce the exposures to an acceptable level. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.1.1, page 1751

 Implementing controls to bring the risk to a level within appetite and accept the residual risk is the best recommendation to senior management when the results of a risk and control assessment indicate a risk scenario can only be partially mitigated, as it helps to balance the costs and benefits of the risk management and control processes, and to align them with the organizational strategy and objectives. A risk and control assessment is a process of identifying, analyzing, and evaluating the risks and controls associated with a specific activity, process, or objective. A risk scenario is a description of a possible event or situation that could cause harm or loss to the organization or its stakeholders. A risk scenario can only be partially mitigated when the existing or proposed controls are not sufficient or effective to reduce the risk to an acceptable level. A risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. A residual risk is the risk that remains after the implementation of controls or risk treatments.

Implementing controls to bring the risk to a level within appetite and accept the residual risk helps to provide the following benefits:

• It enables a data-driven and evidence-based approach to risk management and reporting, rather than relying on subjective or qualitative judgments.
• It facilitates a consistent and standardized way of measuring and communicating risk levels and exposure across the organization and to the external stakeholders.
• It supports the development and implementation of effective and efficient risk response and mitigation strategies and actions that are aligned with the business risk appetite and objectives.
• It provides feedback and learning opportunities for the risk management and control processes, and helps to foster a culture of continuous improvement and innovation.

The other options are not the best recommendations to senior management when the results of a risk and control assessment indicate a risk scenario can only be partially mitigated. Implementing a key performance indicator (KPI) to monitor the existing control performance is a useful method to measure and monitor the effectiveness and efficiency of the controls, but it does not address the residual risk or the risk appetite. Accepting the residual risk in its entirety and obtaining executive management approval is a possible option to deal with the risk scenario, but it may expose the organization to excessive or unacceptable risk, and it may not comply with the legal or regulatory obligations or requirements. Separating the risk into multiple components and avoiding the risk components that cannot be mitigated is a possible option to deal with the risk scenario, but it may not be feasible or practical, and it may create new or additional risks or challenges. References = Risk and Control Self-Assessment (RCSA) - Management Study Guide, IT Risk Resources | ISACA, Risk Mitigation: What It Is and How to Implement It (Free Templates …

A system availability risk scenario is a situation where a system or a service is not accessible or functional due to a failure or an attack. The likelihood of such a scenario depends on the vulnerabilities or weaknesses that exist in the system or the service, and the threats or attackers that could exploit them. Therefore, by scanning the critical systems or services for vulnerabilities and analyzing the results, one can estimate the probability or frequency of a system availability risk scenario1.

A vulnerability scan is a process of identifying and evaluating the potential security risks in a system or a service. A vulnerability scan report provides a list of vulnerabilities that have been detected, categorized by their severity levels, and accompanied by remediation recommendations. By reviewing the report, one can understand the current security posture of the system or the service, and the actions that need to be taken to address the vulnerabilities2.

The other options are not the best ways to determine the likelihood of a system availability risk scenario, but rather some of the factors or outcomes of it. Availability of fault tolerant software is a factor that can reduce the likelihood of a system availability risk scenario, as it means that the software can continue to operate without interruption even if some of its components fail. Fault tolerant software can achieve this by using backup or redundant components, or by implementing error detection and correction mechanisms3. Strategic plan for business growth is an outcome of a system availability risk scenario, as it can affect the organization’s objectives and strategies. A system availability risk scenario can have negative impacts on the organization’s performance, reputation, customer satisfaction, and competitive advantage, and thus hamper its growth potential4. Redundancy of technical infrastructure is a factor that can reduce the likelihood of a system availability risk scenario, as it means that the infrastructure has duplicate or alternative devices or paths that can take over in case of a failure or an attack. Redundancy of technical infrastructure can ensure network availability and prevent data loss5. References =

• Describe the risk scenarios | NZ Digital government
• How to Read a Vulnerability Scan Report | Evolve Security
• Learn about Fault Tolerant Servers | What is Fault Tolerance?-Stratus
• The Importance of Redundancies in Your Infrastructure - INAP
• What is Redundancy? - Your IT Department
• [CRISC Review Manual, 7th Edition]

 The number of projects going live without a security review is the best key control indicator (KCI) to indicate whether security requirements are identified and managed throughout a project life cycle, because it measures the compliance and effectiveness of the security review process. A security review is a process that ensures that the security requirements are defined, implemented, tested, and verified for each project, and that any security risks or issues are identified and resolved before the project is deployed. The number of projects going live without a security review should be minimized or eliminated, as it indicates a failure or weakness of the security review process. The other options are not the best KCIs, because they do not directly measure the identification and management of security requirements. The number of employees completing project-specific security training, the number of security projects started in core departments, and the number of security-related status reports submitted by project managers are examples of input or output indicators that measure the activities or results of the project, but not the security requirements. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

Key risk indicators (KRIs) are most useful during the monitoring phase of the risk management process, as they provide timely and relevant information on the current and future risk status and performance. KRIs are metrics that measure the level of risk exposure and the effectiveness of risk response strategies, and they have predefined thresholds that indicate the acceptable or unacceptable risk status. By monitoring the KRIs, the risk practitioner can identify and report any changes or deviations in the risk level, and take appropriate actions to manage the risk. KRIs are not most useful during the analysis, identification, or response selection phases, as they do not help to assess the likelihood or impact of the risk, to find the sources or causes of the risk, or to evaluate or choose the optimal risk response option. References = CRISC: Certified in Risk & Information Systems Control Sample Questions, question 222.

New regulatory requirements impacting IT are those that impose new obligations, restrictions, or standards on how an organization uses, manages, or secures its IT systems, data, or services1. Examples of such regulations include the GDPR, the CCPA, the HIPAA, or the PCI-DSS2. New regulatory requirements impacting IT can pose significant challenges and risks for an organization, such as:

• Compliance costs and efforts, such as updating policies, procedures, and systems, training staff, or hiring experts
• Noncompliance penalties and consequences, such as fines, lawsuits, sanctions, or reputational damages
• Operational disruptions or inefficiencies, such as system changes, data migrations, or service interruptions
• Competitive disadvantages or opportunities, such as losing or gaining customers, partners, or markets3

The first step that should be done when a company is made aware of new regulatory requirements impacting IT is to review the risk tolerance and appetite. Risk tolerance is the acceptable level of variation that an organization is willing to accept around its risk appetite. Risk appetite is the amount and type of risk that an organization is willing to take in order to meet its strategic objectives. By reviewing the risk tolerance and appetite, the company can:

• Establish a clear and consistent understanding of the organization’s goals, values, and expectations regarding the new regulatory requirements impacting IT
• Assess the current and potential impacts of the new regulatory requirements impacting IT on the organization’s performance, operations, or assets
• Determine the level of risk exposure and acceptance that the organization is comfortable with, and identify the risk thresholds or limits that should not be exceeded
• Align the risk management strategies and actions with the organization’s risk tolerance and appetite, and prioritize the most critical and urgent risks to be addressed
• Communicate and report the risk tolerance and appetite to the stakeholders and regulators, and ensure transparency and accountability

References = Regulating emerging technology | Deloitte Insights, Ten Key Regulatory Challenges of 2024 - kpmg.com, The Risks of Non-Compliance with Data Protection Laws, [Risk Tolerance - COSO], [Risk Appetite - COSO], [Risk Appetite and Tolerance - IRM]

Penetration testing is the best method for assessing control effectiveness against technical vulnerabilities that could be exploited to compromise an information system, as it simulates a real-world attack scenario and evaluates the security posture of the system. Penetration testing is a type of security testing that involves performing authorized and ethical hacking activities on a system to identify and exploit its vulnerabilities and weaknesses. Penetration testing can help to measure and improve the effectiveness and efficiency of the controls implemented to protect the system from unauthorized access, modification, or damage.

The other options are not the best methods for assessing control effectiveness against technical vulnerabilities that could be exploited to compromise an information system. Vulnerability scanning is an automated process that uncovers potential vulnerabilities in systems and software, but it does not provide information on the impact and severity of the vulnerability or how they can be exploited using different exploitation techniques1. Systems log correlation analysis is a process of examining and analyzing the records of system activities and events, but it does not directly test the controls or simulate the attack scenarios. Monitoring of intrusion detection system (IDS) alerts is a process of tracking and auditing the system or network for any signs of malicious or anomalous activities, but it does not evaluate the control performance or identify the root causes of the vulnerabilities. References = Vulnerability Assessment Principles | Tenable®, A Complete Guide on Vulnerability Assessment Methodology, Karen Scarfone Scarfone Cybersecurity - NIST Computer Security Resource …

 A cost-benefit analysis of the control versus probable legal action is the best way to inform decision-makers about the value of a notice and consent control for the collection of personal information, as it quantifies the potential benefits and costs of implementing the control and compares them with the potential consequences of not implementing the control. This helps the decision-makers to evaluate the trade-offs and the return on investment of the control.

A comparison of the costs of notice and consent control options is not sufficient to inform decision-makers about the value of the control, as it does not consider the benefits or the risks of the control.

Examples of regulatory fines incurred by industry peers for noncompliance are not the best way to inform decision-makers about the value of the control, as they are based on historical data and may not reflect the current or future situation of the enterprise.

A report of critical controls showing the importance of notice and consent is not the best way to inform decision-makers about the value of the control, as it does not provide any quantitative or comparative data to support the decision. References = CRISC Review Manual, 7th Edition, ISACA, 2020, page 140-1411

Classifying IT assets during a risk assessment is a process of assigning values to the IT assets based on their importance, sensitivity, and criticality to the enterprise. The best reason to classify IT assets is to determine the appropriate level of protection that each IT asset requires, based on its value and the potential impact of its loss or compromise. This helps the enterprise to allocate resources and implement controls that are proportional to the risk exposure of the IT assets, and to optimize the cost and benefit of risk mitigation. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 233. CRISC by Isaca Actual Free Exam Q&As, Question 9. CRISC Sample Questions 2024, Question 233. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 233.

The first step to ensure continuity of operations when performing a risk assessment of a new service to support a new business process is to identify the conditions that may cause disruptions to the service or the process. This is because identifying the potential sources, causes, and scenarios of disruptions helps to determine the impact and likelihood of the risks, and to select the appropriate risk responses and recovery strategies. The other options are not the first steps, although they may also be part of the risk assessment process. Reviewing incident response procedures, evaluating the probability of risk events, and defining metrics for restoring availability are examples of subsequent steps that depend on the identification of the conditions that may cause disruptions. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

 The best course of action for a newly hired risk practitioner who finds that the risk register has not been updated in the past year is to identify changes in risk factors and initiate risk reviews. This would help the risk practitioner to update the risk register with the current and relevant information on the risks facing the enterprise, such as their sources, drivers, indicators, likelihood, impact, and responses. It would also help the risk practitioner to evaluate the effectiveness of the existing controls, and to identify any new or emerging risks that need to be addressed. Identifying changes in risk factors and initiating risk reviews would enable the risk practitioner to maintain the accuracy and completeness of the risk register, and to provide valuable input for the risk management process. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.1.1, page 2271

A comparison of current risk levels with established tolerance is the most useful information for senior management when determining an appropriate risk response, as it shows the gap between the actual risk exposure and the desired risk exposure of the enterprise. This gap indicates the need and urgency for risk response actions, and helps senior management to prioritize and allocate resources for risk mitigation. A comparison of current risk levels with established tolerance also reflects the effectiveness of the existing risk management process and controls, and enables senior management to monitor and adjust the risk strategy and objectives accordingly. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 234. CRISC by Isaca Actual Free Exam Q&As, Question 9. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 234. CRISC Sample Questions 2024, Question 234.

Architecture is the design and structure of a system or a process, such as an IT system or a business process. Architecture documentation is the document that describes and explains the architecture, such as its components, functions, relationships, requirements, constraints, or standards. Architecture documentation can help to understand, communicate, and improve the system or the process1.

An environment that lacks documentation of the architecture faces a great risk of unknown vulnerabilities, which are the weaknesses or flaws in the system or the process that could be exploited by threats or attackers, but are not identified or addressed by the organization. Unknown vulnerabilities can pose a serious risk to the organization, because they can:

• Compromise the confidentiality, integrity, and availability of the system or the process, and the information or resources that it handles or supports
• Cause financial, operational, reputational, or legal damages or losses to the organization, such as data breaches, fraud, errors, delays, or fines
• Remain undetected or unresolved for a long time, and increase the exposure or impact of the risk over time
• Require more resources or efforts to mitigate or recover from the risk, and reduce the efficiency or effectiveness of the risk management process23

Lack of documentation of the architecture can increase the risk of unknown vulnerabilities, because it can:

• Prevent or hinder the identification and assessment of the vulnerabilities, and the evaluation and prioritization of the risks
• Impede or delay the implementation and enforcement of the controls or safeguards to prevent or reduce the vulnerabilities, and the monitoring and reporting of the risk status and progress
• Obstruct or limit the communication and coordination among the stakeholders, and the awareness and accountability of the risk owners and users
• Restrict or hamper the review and improvement of the system or the process, and the learning and feedback of the risk management4

The other options are not the greatest risks associated with an environment that lacks documentation of the architecture, but rather some of the possible causes or consequences of it. Legacy technology systems are outdated or obsolete systems that are still in use by the organization, but are no longer supported or maintained by the vendors or developers. Legacy technology systems can be a cause of lack of documentation of the architecture, as they may have been developed or acquired without proper documentation, or the documentation may have been lost or discarded over time. Network isolation is the separation or segregation of a network or a system from other networks or systems, either physically or logically, to prevent or limit the access or communication between them. Network isolation can be a consequence of lack of documentation of the architecture, as it may result from the inability or difficulty to integrate or connect the system or the process with other systems or processes. Overlapping threats are threats that affect more than one system or process, or have similar or related sources or causes, such as natural disasters, cyberattacks, or human errors. Overlapping threats can be a consequence of lack of documentation of the architecture, as they may arise from the lack of understanding or coordination of the system or the process with other systems or processes. References =

• Architecture Documentation - ISACA
• Vulnerability - ISACA
• The Risks of Not Having a Vulnerability Management Program
• The Importance of Architecture Documentation - ISACA
• [The Risk of Poor Document Control - ComplianceBridge]
• [CRISC Review Manual, 7th Edition]

The best way to ensure the effective decision-making of an IT risk management committee is to enroll key stakeholders as members. Key stakeholders are the individuals or groups who have an interest or influence in the IT risk management process, such as business owners, senior management, IT managers, auditors, regulators, customers, and suppliers. By involving key stakeholders in the IT risk management committee, the committee can benefit from their diverse perspectives, expertise, and experience, and ensure that the IT risk management decisions are aligned with the business objectives, priorities, and expectations. Key stakeholders can also provide valuable input, feedback, and support for the IT risk management activities, and help communicate and implement the IT risk management decisions across the organization. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 36.

The best way to facilitate the alignment of IT risk management with enterprise risk management (ERM) is to link IT risk scenarios to enterprise strategy, because this ensures that the IT risks are considered in the context of the enterprise’s mission, vision, and goals. Linking IT risk scenarios to enterprise strategy also helps to prioritize the IT risks based on their impact and relevance to the enterprise’s objectives, and to select the appropriate risk responses and resources. The other options are not the best ways to facilitate the alignment of IT risk management with ERM, because they do not address the integration or alignment of the IT and enterprise perspectives. Adopting qualitative or quantitative enterprise risk assessment methods, and linking IT risk scenarios to technology objectives are examples of techniques or tools that can be used to perform IT risk management or ERM, but they do not ensure the alignment or consistency of the two processes. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.3, p. 22.

The risk owner is the person or entity that has the accountability and authority to manage a risk. The risk owner should be accountable for monitoring the control environment to ensure controls are effective, as they are responsible for implementing, maintaining, and improving the risk controls, and for reporting and communicating the risk status and performance. The risk owner should also ensure that the controls are aligned with the risk appetite and tolerance of the enterprise, and that they support the achievement of the enterprise’s objectives and value creation. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 244.

 The best key performance indicator (KPI) to measure the effectiveness of a disaster recovery test of critical business processes is the percentage of processes recovered within the recovery time and point objectives. Recovery time objective (RTO) is the maximum acceptable time period within which a business process or an IT service must be restored after a disruption. Recovery point objective (RPO) is the maximum acceptable amount of data loss measured in time before the disruption. The percentage of processes recovered within the RTO and RPO indicates how well the disaster recovery test meets the business continuity and recovery requirements and expectations, and how effectively the disaster recovery plan and procedures are executed. The percentage of processes recovered within the RTO and RPO can also help to identify the gaps, weaknesses, and opportunities for improvement in the disaster recovery capabilities. Percentage of job failures identified and resolved during the recovery process, number of current test plans and procedures, and number of issues and action items resolved during the recovery test are not as good as the percentage of processes recovered within the RTO and RPO, as they do not directly measure the achievement of the recovery objectives, and may not reflect the actual impact and performance of the disaster recovery test. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 130.

Ensuring that database changes are correctly applied is the primary reason for monitoring activities performed in a production database environment, as it helps to maintain the integrity, availability, and performance of the database and the applications that depend on it. Database changes are any modifications made to the database structure, configuration, data, or code, such as adding or deleting tables, columns, indexes, or triggers, updating or inserting data, or altering stored procedures or functions. Database changes can have significant impacts on the database functionality and behavior, and may introduce errors, inconsistencies, or vulnerabilities if not applied correctly. Therefore, monitoring database changes is essential to verify that the changes are implemented as intended, comply with the design specifications and standards, and do not cause any adverse effects or conflicts with the existing database or application components.

The other options are not the primary reasons for monitoring activities performed in a production database environment. Enforcing that changes are authorized is an important aspect of database change management, but it is not the main purpose of database monitoring. Database change management is the process of planning, reviewing, approving, and implementing database changes in a controlled and consistent manner. Database change management helps to ensure that the changes are authorized by the appropriate stakeholders, aligned with the business requirements and objectives, and documented and communicated to the relevant parties. Database monitoring can support database change management by providing information and feedback on the change implementation and performance, but it does not enforce the change authorization. Deterring illicit actions of database administrators is a possible benefit of database monitoring, but it is not the primary reason for it. Database administrators are the users who have the highest level of access and privilege to the database, and they are responsible for managing and maintaining the database operations and security. Database monitoring can help to deter illicit actions of database administrators by tracking and auditing their activities and actions on the database, and alerting or escalating any suspicious or malicious behavior. However, database monitoring is not the only or the most effective way to prevent or detect illicit actions of database administrators. Other measures, such as implementing the principle of least privilege, segregating duties, enforcing password policies, and encrypting data, are also necessary to protect the database from unauthorized or improper access or manipulation by database administrators or other users. Preventing system developers from accessing production data is a possible benefit of database monitoring, but it is not the primary reason for it. System developers are the users who design, develop, and test the applications that interact with the database. System developers should not have access to the production data, as it may contain sensitive or confidential information that could be compromised or misused by the developers. System developers should only use test or dummy data for their development and testing purposes. Database monitoring can help to prevent system developers from accessing production data by controlling and restricting their access and privilege to the database, and logging and reporting any unauthorized or inappropriate access attempts. However, database monitoring is not the only or the most effective way to prevent system developers from accessing production data. Other measures, such as implementing access control policies, masking or anonymizing data, and isolating development and production environments, are also necessary to safeguard the production data from system developers or other users. References = Database Monitoring: Basics & Introduction | Splunk, IT Risk Resources | ISACA, Best Practices for Database Performance Monitoring

Using an entry in the risk register to track the aggregate risk associated with server failure provides a comprehensive view of the impact should the servers simultaneously fail, as it considers the combined effect of the server failure on the enterprise’s objectives and operations. The risk register is a document that records and tracks the identified risks, their likelihood, impact, and mitigation strategies. By aggregating the risk associated with server failure, the risk register can help to estimate the worst-case scenario and to prioritize the risk response accordingly. It provides a cost-benefit analysis on control options available for implementation, it provides a view on where controls should be applied to maximize the uptime of servers, and it provides historical information about the impact of individual servers malfunctioning are not the primary benefits of using an entry in the risk register to track the aggregate risk associated with server failure, but rather the possible outcomes or actions of using the risk register. References = CRISC Certified in Risk and Information Systems Control – Question220; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 220.

Validating the risk scenarios is the most important time to involve business stakeholders, as they can provide feedback on the relevance, completeness, and accuracy of the scenarios. They can also help to ensure that the scenarios are aligned with the business objectives, context, and risk appetite. By involving business stakeholders in the validation process, the risk practitioner can increase the credibility and acceptance of the risk scenarios.

Updating the risk register, documenting the risk scenarios, and identifying risk mitigation controls are all important steps in the risk scenario development process, but they are not the most important time to involve business stakeholders. These steps can be performed by the risk practitioner with input from other sources, such as subject matter experts, historical data, industry standards, etc. References = CRISC Review Manual, 7th Edition, ISACA, 2020, page 47-481

Measurability and consistency are the most essential attributes of an effective key control indicator (KCI), because they ensure that the KCI can be quantified, compared, and reported over time. A KCI should be able to measure the performance or effectiveness of a control in mitigating a risk and provide consistent results across different periods, sources, and methods. The other options are not the most essential attributes, although they may also be desirable for a KCI. Flexibility and adaptability are not the most essential attributes, because they may compromise the reliability and comparability of the KCI. Robustness and resilience are not the most essential attributes, because they are more relevant for the control itself, not the KCI. Optimal cost and benefit are not the most essential attributes, because they are more related to the value and feasibility of the KCI, not the quality and accuracy of the KCI. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers

According to the CRISC Review Manual, the primary purpose of periodically reviewing an organization’s risk profile is to enable risk-based decision making, because it helps to ensure that the risk information is current, relevant, and accurate. The risk profile is a snapshot of the organization’s risk exposure at a given point in time, based on the risk identification, analysis, and evaluation processes. Periodically reviewing the risk profile allows the organization to monitor the changes in the risk environment, the effectiveness of the risk responses, and the impact of the risk events. This enables the organization to make informed decisions about the risk management strategies and priorities. The other options are not the primary purpose of periodically reviewing the risk profile, as they are related to other aspects of the risk management process. Aligning business objectives with risk appetite is the purpose of establishing the risk context, which defines the scope and boundaries of the risk management activities. Designing and implementing risk response action plans is the purpose of the risk response process, which involves selecting and executing the appropriate risk responses. Updating risk responses in the risk register is the outcome of the risk monitoring and reporting process, which involves tracking the risk performance and communicating the risk information to the stakeholders. References = CRISC Review Manual, 7th Edition, Chapter 2, Section 2.2.4, page 86.

Multi-factor authentication is the most effective way to mitigate the risk of unauthorized access to the system, as it requires the users to provide more than one piece of evidence to prove their identity, such as a password, a token, a biometric feature, etc. This reduces the likelihood of compromising the credentials and ensures that only authorized users can perform maintenance on the system.

Single sign-on is a convenience feature that allows users to access multiple systems with one set of credentials, but it does not address the risk of sharing credentials among multiple users.

Audit trail review is a detective control that can help identify and investigate unauthorized access to the system, but it does not prevent or mitigate the risk of credential compromise.

Data encryption at rest is a security measure that protects the data stored on the system from unauthorized access, but it does not prevent or mitigate the risk of credential compromise. References = CRISC Review Manual, 7th Edition, ISACA, 2020, page 107-108.

The most important factor to communicate to senior management during the initial implementation of a risk management program is the desired risk level, which is the level of risk that the organization aims to achieve in order to fulfill its objectives and strategy1. The desired risk level can help to:

• Define and communicate the risk appetite and tolerance, which are the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives2.
• Guide and align the risk identification, analysis, evaluation, and treatment processes, and ensure that the risks are consistent and proportional to the desired risk level3.
• Measure and monitor the risk performance and outcome, and ensure that the actual risk level is within the desired risk level, or take corrective actions if needed4.

The other factors are not the most important to communicate to senior management, because:

• Regulatory compliance is a necessary but not sufficient factor to communicate to senior management, as it ensures that the risk management program complies with the applicable laws, rules, or standards that govern the organization’s activities and operations5. However, regulatory compliance does not guarantee that the risk management program is relevant and useful for the organization’s specific objectives and strategy.
• Risk ownership is a desirable but not essential factor to communicate to senior management, as it assigns the roles and responsibilities for managing the risks and implementing the risk responses to the appropriate individuals or entities within the organization. However, risk ownership does not ensure that the risk management program is effective and efficient in achieving the desired risk level.
• Best practices are a useful but not critical factor to communicate to senior management, as they provide the guidelines and standards for designing and implementing the risk management program, based on the experience and knowledge of the industry or the profession. However, best practices do not ensure that the risk management program is suitable and feasible for the organization’s specific context and capabilities.

References =

• Desired Risk Level - CIO Wiki
• Risk Appetite and Tolerance - CIO Wiki
• Risk Management Process - CIO Wiki
• Risk Monitoring - CIO Wiki
• Regulatory Compliance - CIO Wiki
• [Risk Ownership - CIO Wiki]
• [Best Practice - CIO Wiki]
• [Risk Management - CIO Wiki]

The risk practitioner should explain to senior management that mitigation plans for threat events should be prepared in the current planning period, as this would demonstrate a proactive and responsible approach to risk management. Mitigation plans are documents that outline the actions and resources needed to reduce the likelihood and/or impact of a specific risk scenario. Mitigation plans should include the following elements:

• Risk scenario description and risk ID
• Risk owner and other stakeholders
• Risk response strategy and objectives
• Risk response actions and tasks
• Resources, costs, and benefits
• Roles and responsibilities
• Timeline and milestones
• Performance indicators and monitoring mechanisms
• Contingency plans and triggers

Mitigation plans help to address the gap between the current and desired risk levels and align the risk response with the organizational risk appetite and objectives. Mitigation plans also facilitate the communication, coordination, and collaboration among the risk owners and other stakeholders involved in the risk response process. Mitigation plans should be prepared in the current planning period, as this would allow the organization to act timely and effectively in the event of a low frequency threat event. Preparing mitigation plans in advance would also help to avoid or minimize the potential harm to the organization and its reputation.

The other options are not the best ways to communicate the associated risk to senior management. Explaining that this risk scenario is equivalent to more frequent but lower impact risk scenarios may not accurately reflect the true nature and severity of the risk. Explaining that the current level of risk is within tolerance may not convey the urgency and importance of addressing the risk. Explaining that an increase in threat events could cause a loss sooner than anticipated may not provide a clear and actionable solution for the risk. References = Four steps for managing risk at the CEO level, IT Risk Resources | ISACA, How to Communicate Risk to Stakeholders | Anitian

Risk appetite should be the primary driver for periodically reviewing and adjusting key risk indicators (KRIs), because it reflects the level of risk that the enterprise is willing to accept in pursuit of its objectives. KRIs should be aligned with the risk appetite and adjusted accordingly when the risk appetite changes due to internal or external factors. The other options are not the primary drivers, although they may also influence the review and adjustment of KRIs. Risk impact, risk likelihood, and control self-assessments (CSAs) are secondary drivers that depend on the risk appetite. References = Most Asked CRISC Exam Questions and Answers

An incident is an unplanned event that disrupts or degrades the normal operation or performance of an IT service, system, or network1. An incident can cause various negative impacts, such as service outages, data losses, security breaches, or customer dissatisfaction2. An incident can recur if the underlying cause or problem of the incident is not properly identified and resolved3.

The best course of action to help reduce the probability of an incident recurring is to perform root cause analysis. Root cause analysis is a systematic process of finding and eliminating the fundamental cause or problem that led to the incident4. Root cause analysis can help to:

• Prevent or minimize the recurrence of the incident by addressing the source of the problem, not just the symptoms or effects
• Identify and implement corrective or preventive actions that can effectively resolve or mitigate the problem
• Learn from the incident and improve the IT service, system, or network quality and reliability
• Enhance the incident management and problem management processes and capabilities5

References = What is an Incident?, Incident Management - Wikipedia, Problem Management - Wikipedia, Root Cause Analysis - Wikipedia, Root Cause Analysis: A Guide for Business Leaders

Residual risk is the risk that remains after the implementation of controls. It is important for a risk practitioner to verify that the residual risk is within the acceptable levels defined by the enterprise’s risk appetite and tolerance. This ensures that the controls are effective in reducing the risk exposure to an acceptable level and align with the enterprise’s objectives and strategy. References = CRISC Review Manual 27th Edition, page 131. Most Asked CRISC Exam Questions and Answers.

The most likely justification for risk acceptance of an exception to a security control is when the business benefits exceed the loss exposure. Risk acceptance is a risk response strategy that involves acknowledging and tolerating the risk, without taking any action to reduce or transfer the risk. An exception to a security control is a deviation or non-compliance from the established security policy or standard, due to a valid business reason or circumstance. Risk acceptance of an exception to a security control may be justified when the business benefits exceed the loss exposure, which means that the value or advantage of the exception outweighs the potential cost or harm of the risk. For example, an exception to a security control may enable faster or easier access to the system or data, which may improve the productivity, efficiency, or satisfaction of the users or customers, and generate more revenue or profit for the business. The business benefits of the exception may exceed the loss exposure of the risk, which may be low or negligible, or may be mitigated by other controls or factors. Therefore, risk acceptance of an exception to a security control may be a reasonable and rational decision, based on the cost-benefit analysis of the exception and the risk. Automation cannot be applied to the control, the end-user license agreement has expired, and the control is difficult to enforce in practice are not the most likely justifications for risk acceptance of an exception to a security control, as they are either irrelevant or insufficient reasons, and they do not consider the business benefits or the loss exposure of the exception and the risk. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 50.

 A cloud access security broker (CASB) solution is the best way to enforce access control for an organization that uses multiple cloud technologies, as it provides a centralized and consistent platform to manage and monitor the access to various cloud services and applications. A CASB solution can help to implement and enforce the enterprise’s access policies and standards, as well as to detect and prevent unauthorized or malicious access attempts. Senior management support of cloud adoption strategies, creation of a cloud access risk management policy, and expansion of security information and event management (SIEM) to cloud services are not the best ways to enforce access control for an organization that uses multiple cloud technologies, as they do not provide the technical capabilities or tools to manage and monitor the access to various cloud services and applications. References = CRISC by Isaca Actual Free Exam Q&As, question 210; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 210.

Organizational risk culture is the term describing the values, beliefs, knowledge, attitudes and understanding about risk shared by a group of people with a common purpose. Organizational risk culture influences how the organization identifies, assesses, and manages risks, and how it aligns its risk appetite and tolerance with its objectives and strategies1.

The best indication of a mature organizational risk culture is that risk owners understand and accept accountability for risk, because it means that the organization:

• Clearly defines and assigns the roles and responsibilities of the risk owners, who are the individuals or groups who have the authority and ability to manage the risks within their scope or domain
• Empowers and supports the risk owners to perform their risk management duties, such as identifying, assessing, responding, monitoring, and reporting the risks
• Holds the risk owners accountable for the outcomes and consequences of the risks, and evaluates their performance and compliance with the risk policies, standards, and procedures
• Encourages and rewards the risk owners for demonstrating risk awareness and competence, and for contributing to the risk management improvement and learning23

The other options are not the best indications of a mature organizational risk culture, but rather some of the elements or aspects of it. Corporate risk appetite is the amount and type of risk that the organization is willing to accept in order to achieve its objectives. Corporate risk appetite is communicated to staff members to guide their risk decision making and behavior, and to ensure the consistency and alignment of the risk taking and tolerance across the organization. Risk policy is the document that establishes the principles, framework, and process for managing the risks within the organization. Risk policy is published and acknowledged by employees to ensure their awareness and compliance with the risk management expectations and requirements. Management is the group of individuals who have the authority and responsibility to direct and control the organization’s activities and resources. Management encourages the reporting of policy breaches to ensure the transparency and accountability of the risk management performance and outcomes, and to identify and address the risk management issues and gaps4. References =

• Risk culture - Institute of Risk Management
• Risk Owner - ISACA
• Taking control of organizational risk culture | McKinsey
• [CRISC Review Manual, 7th Edition]

The greatest benefit to an organization when updates to the risk register are made promptly after the completion of a risk assessment is optimized risk treatment decisions. Risk treatment decisions are the choices made by the organization on how to respond to the identified risks, such as avoiding, transferring, mitigating, or accepting them. Optimized risk treatment decisions are those that align with the organizational risk appetite and objectives, and provide the best balance between the costs and benefits of the risk response actions.

Updating the risk register promptly after the completion of a risk assessment helps to optimize risk treatment decisions by providing the most current and accurate information on the risk exposure and control environment. By updating the risk register, the organization can ensure that the risk scenarios, risk levels, risk owners, risk responses, and risk indicators are consistent with the risk assessment results and reflect the changes in the internal and external environment. Updating the risk register also helps to prioritize the risks and allocate the resources more effectively and efficiently for risk treatment. Updating the risk register also facilitates the communication, collaboration, and accountability among the stakeholders involved in the risk management and control processes.

The other options are not the greatest benefits to an organization when updates to the risk register are made promptly after the completion of a risk assessment. Improved senior management communication is a benefit of updating the risk register, as it helps to inform and involve the senior management in the risk management and control processes, but it is not the greatest benefit. Enhanced awareness of risk management is a benefit of updating the risk register, as it helps to educate and engage the staff and other stakeholders in the risk management and control processes, but it is not the greatest benefit. Improved collaboration among risk professionals is a benefit of updating the risk register, as it helps to coordinate and integrate the efforts and expertise of the risk professionals, but it is not the greatest benefit. References = Risk Register: Examples, Benefits, and Best Practices, IT Risk Resources | ISACA, Discover 10 major benefits for keeping a risk register

The risk manager’s best course of action when discovering significant vulnerabilities in a commercial off-the-shelf software product is to review the risk of implementing versus postponing with stakeholders. This means that the risk manager should assess the potential impact and likelihood of the vulnerabilities being exploited, as well as the benefits and costs of using the software product. The risk manager should also consult with the relevant stakeholders, such as the business owners, the IT department, the security team, and the vendor, to understand their perspectives, expectations, and requirements. Based on this analysis, the risk manager should decide whether to proceed with the implementation, delay it until the next release, or look for alternative solutions. The risk manager should also document and communicate the decision and the rationale behind it, and monitor the situation for any changes or new developments.

The other options are not the best course of action, because:

• Running vulnerability testing tools to independently verify the vulnerabilities is a useful step to confirm the existence and severity of the vulnerabilities, but it is not sufficient to address the risk. The risk manager still needs to evaluate the trade-offs between implementing and postponing the software product, and involve the stakeholders in the decision-making process.
• Reviewing the software license to determine the vendor’s responsibility regarding vulnerabilities is an important step to understand the contractual obligations and liabilities of the vendor, but it is not enough to mitigate the risk. The risk manager still needs to consider the impact and likelihood of the vulnerabilities, and the benefits and costs of the software product, and consult with the stakeholders to decide the best course of action.
• Requiring the vendor to correct significant vulnerabilities prior to installation is an unrealistic and impractical option, as the vendor has already stated that the vulnerabilities will not be corrected until the next release. The risk manager cannot force the vendor to change their schedule or priorities, and may risk damaging the relationship with the vendor. The risk manager should instead work with the vendor to understand the nature and scope of the vulnerabilities, and the expected timeline and features of the next release, and use this information to inform the risk assessment and decision-making process.

Role-based access controls (RBAC) are a type of preventive control that limit the access and actions of users based on their roles and responsibilities within the organization. RBAC can help to address the risk of malicious outsiders modifying application data by restricting their access to the data and the functions they can perform on it. RBAC can also enforce the principle of least privilege, which means that users only have the minimum level of access required to perform their tasks. RBAC can be implemented through policies, procedures, and technical mechanisms such as access control lists, encryption, and authentication. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1.1, p. 178-179

Determining if organizational risk is tolerable requires understanding the organization’s risk appetite, which is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives1. Understanding the organization’s risk appetite can help to:

• Define and communicate the risk tolerance, which is the acceptable or unacceptable level of risk for each risk category or scenario2.
• Guide and align the risk identification, analysis, evaluation, and treatment processes, and ensure that the risks are consistent and proportional to the risk appetite3.
• Measure and monitor the risk performance and outcome, and ensure that the residual risk (the risk that remains after the risk responses) is within the risk appetite, or take corrective actions if needed4.

The other options are not the best ways to determine if organizational risk is tolerable, because:

• Mapping residual risk with cost of controls is a useful but not sufficient way to determine if organizational risk is tolerable, as it provides a quantitative analysis of the trade-off between the risk level and the risk response cost5. However, mapping residual risk with cost of controls does not consider the qualitative aspects of the risk, such as the impact on the organization’s strategy, culture, or reputation.
• Comparing against regulatory requirements is a necessary but not sufficient way to determine if organizational risk is tolerable, as it ensures that the organization complies with the applicable laws, rules, or standards that govern its activities and operations6. However, comparing against regulatory requirements does not guarantee that the organization meets its own objectives and expectations, which may be higher or lower than the regulatory requirements.
• Comparing industry risk appetite with the organization’s risk appetite is a helpful but not sufficient way to determine if organizational risk is tolerable, as it provides a reference or a standard for benchmarking the organization’s risk level and performance with its peers or competitors7. However, comparing industry risk appetite with the organization’s risk appetite does not ensure that the organization addresses its specific or unique risks, which may differ from the industry risks.

References =

• Risk Appetite - CIO Wiki
• Risk Tolerance - CIO Wiki
• Risk Management Process - CIO Wiki
• Risk Monitoring - CIO Wiki
• Residual Risk - CIO Wiki
• Regulatory Compliance - CIO Wiki
• Benchmarking - CIO Wiki
• Risk and Information Systems Control documents and learning resources by ISACA

Showing projected residual risk is the most helpful way to respond to the request of explaining how existing risk treatment plans would affect risk posture at the end of the year. Residual risk is the level of risk that remains after the implementation of risk responses1. Projected residual risk is the estimated level of risk that will remain at a future point in time, based on the assumptions and expectations of the risk responses2. By showing projected residual risk, the risk practitioner can:

• Demonstrate the effectiveness and efficiency of the risk treatment plans, and how they reduce the risk level from the inherent risk (the risk before the risk responses) to the residual risk3.
• Compare the projected residual risk with the risk appetite and tolerance, which are the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives4. This can help to determine whether the projected residual risk is acceptable or not, and whether the risk treatment plans are consistent and proportional to the risk level5.
• Identify and address any gaps, issues, or challenges that may affect the achievement of the projected residual risk, and recommend and implement appropriate improvement actions or contingency plans6.

The other options are not the most helpful ways to respond to the request, because:

• Assessing risk with no controls in place is not the most helpful way, as it does not reflect the current or future risk posture of the organization. Controls are the measures or actions that are implemented to modify the risk, such as prevent, detect, correct, or mitigate the risk7. Assessing risk with no controls in place can help to measure the inherent risk, but it does not show the impact or outcome of the risk treatment plans.
• Providing peer benchmarking results is not the most helpful way, as it does not reflect the specific or unique risk profile of the organization. Peer benchmarking is the process of comparing the organization’s risk level and performance with its peers or competitors, based on a common set of criteria or indicators8. Providing peer benchmarking results can help to provide a reference or a standard for the risk posture, but it does not show the effect or result of the risk treatment plans.
• Assessing risk with current controls in place is not the most helpful way, as it does not reflect the future or projected risk posture of the organization. Assessing risk with current controls in place can help to measure the current residual risk, but it does not show the expected or estimated residual risk at the end of the year.

References =

• Residual Risk - CIO Wiki
• Projected Residual Risk - CIO Wiki
• Risk Treatment Plan - CIO Wiki
• Risk Appetite and Tolerance - CIO Wiki
• Risk Appetite: What It Is and Why It Matters - Gartner
• Risk Monitoring and Review - The National Academies Press
• Control - CIO Wiki
• Benchmarking - CIO Wiki
• [Risk Treatment - CIO Wiki]

KRIs and KCIs are both metrics that measure and monitor the risk and control environment of an enterprise. KRIs are indicators that reflect the level and trend of risk exposure, and help to identify potential risk events or issues. KCIs are indicators that reflect the performance and effectiveness of the risk controls, and help to ensure that the controls are operating as intended and mitigating the risk. Both KRIs and KCIs provide insight to potential changes in the level of risk, as they can signal the need for risk response actions, such as enhancing, modifying, or implementing new controls, or adjusting the risk strategy and objectives. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 240.

The issue of greatest concern when evaluating existing controls during a risk assessment is the presence of successive assessments with the same recurring vulnerabilities. This indicates that the controls are ineffective or inadequate in addressing the identified risks, and that the risk management process is not functioning properly. Recurring vulnerabilities expose the enterprise to potential losses, breaches, or incidents that could harm its objectives, reputation, or compliance. Therefore, it is essential to identify the root causes of the recurring vulnerabilities, implement corrective actions, and monitor the effectiveness of the controls on a regular basis. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.2, page 183.

The most important consideration when sharing risk management updates with executive management is ensuring relevance to organizational goals. This means that the risk information presented should align with the strategic objectives and priorities of the organization, and demonstrate how risk management supports the achievement of those goals. Executive management is responsible for setting the direction and vision of the organization, and therefore needs to understand how risk management contributes to the value creation and protection of the organization. By ensuring relevance to organizational goals, risk management updates can help executive management make informed decisions, allocate resources, and communicate with stakeholders.

Some of the ways to ensure relevance to organizational goals are:

• Linking risk management updates to the organization’s mission, vision, values, and strategy
• Highlighting the key risks and opportunities that affect the organization’s performance and competitiveness
• Providing clear and concise risk reports that focus on the most critical and material risks
• Using a common risk language and framework that is understood by executive management
• Providing actionable recommendations and solutions to address the identified risks
• Aligning risk management updates with the organization’s reporting cycle and governance structure

References =

• The Importance of Integrating Risk Management with Strategy
• Four steps for managing risk at the CEO level
• 5 Key Principles of Successful Risk Management

User accounts provisioning is the process of creating, managing, and modifying user accounts within a system or an application, based on the user’s roles, responsibilities, and requirements. User accounts provisioning is an essential part of identity and access management (IAM), which aims to ensure the confidentiality, integrity, and availability of the system or the application, and the information or resources that it handles or supports1.

The best key performance indicator (KPI) for monitoring adherence to an organization’s user accounts provisioning practices is the percentage of accounts without documented approval, because it can help to measure how well the organization follows the policies, standards, and procedures for user accounts provisioning, and how effectively the organization controls and audits the user accounts provisioning activities. The percentage of accounts without documented approval can indicate:

• The level of compliance and accountability of the user accounts provisioning process, and the extent to which the user accounts provisioning requests and actions are authorized and verified by the appropriate parties, such as managers, IT staff, or security officers
• The level of risk and exposure of the user accounts provisioning process, and the likelihood and impact of unauthorized or inappropriate user accounts provisioning, such as granting excessive or unnecessary access privileges, creating duplicate or fraudulent accounts, or violating legal or regulatory requirements
• The level of quality and efficiency of the user accounts provisioning process, and the ability and capacity of the organization to manage and maintain the user accounts provisioning records and documents, such as forms, logs, or reports23

The other options are not the best KPIs for monitoring adherence to an organization’s user accounts provisioning practices, but rather some of the factors or outcomes of it. User accounts with default passwords are user accounts that have not changed their passwords from the initial or default values that are assigned by the system or the application. User accounts with default passwords are a factor that can increase the risk of unauthorized or malicious access to the system or the application, as the default passwords may be easily guessed or compromised by attackers. Active accounts belonging to former personnel are user accounts that have not been deactivated or deleted after the users have left the organization. Active accounts belonging to former personnel are an outcome of ineffective or inefficient user accounts deprovisioning, which is the process of revoking or removing the user accounts and access privileges when they are no longer needed or valid. Accounts with dormant activity are user accounts that have not been used or accessed for a long period of time. Accounts with dormant activity are an outcome of poor or inconsistent user accounts management, which is the process of updating or modifying the user accounts and access privileges according to the changes or needs of the users or the organization4. References =

• User Provisioning for SaaS Apps: Top 10 Best Practices | Resmo
• Top Identity and Access Management Metrics
• KPI-driven approach to Identity & Access Management - Elimity
• [CRISC Review Manual, 7th Edition]

The primary goal of conducting a business impact analysis (BIA) as part of an overall continuity planning process is to identify critical business processes and the degree of reliance on support services. A BIA is a process of assessing the potential impact and consequences of a disruption or interruption of the business activities, operations, or functions. A continuity planning process is a process of developing, implementing, and maintaining a plan to ensure the continuity and recovery of the business activities, operations, or functions in the event of a disruption or interruption. The primary goal of conducting a BIA is to identify critical business processes and the degree of reliance on support services, which are the business processes that are essential for the survival and success of the business, and the support services that are required to enable or facilitate the critical business processes, such as IT systems, human resources, facilities, or suppliers. Identifying critical business processes and the degree of reliance on support services helps to determine the priorities and requirements for the continuity and recovery of the business activities, operations, or functions, and to select and implement the appropriate continuity and recovery strategies and solutions. Obtaining the support of executive management, mapping the business processes to supporting IT and other corporate resources, and documenting the disaster recovery process are not the primary goals of conducting a BIA, as they are either the benefits or the outputs of the BIA process, and they do not address the primary need of assessing the impact and consequences of the business disruption or interruption. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 50.