CRISC Questions and Answers

According to the CRISC Review Manual, recovery time objectives (RTOs) are the maximum acceptable time that an IT system can be inoperable without causing significant damage to the business operations and objectives. RTOs are determined by the business impact analysis (BIA) and are used to define the recovery strategies and priorities. Therefore, if the RTOs do not meet the business requirements, it would be themost significant deficiency in the BCP, as it would imply that the recovery plan is not aligned with the business needs and expectations. The other options are not the most significant deficiencies, as they do not directly affect the recovery time and the business continuity. BCP testing is not necessarily done in conjunction with the DRP, as they have different scopes and objectives. BCP testing can use different methods, such as walk-through, simulation, or full interruption, depending on the purpose and scope of the test. Each business location can have separate BCPs, as long as they are consistent with the enterprise-wide BCP and the business requirements. References = CRISC Review Manual, 7th Edition, Chapter 5, Section 5.2.2, page 240.

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 controloptions 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.

 The primary purpose of a business impact analysis (BIA) is to evaluate the priority of business operations in case of disruption. A BIA is a process that identifies and analyzes the potential effects of various types of disruptions on the enterprise’s critical business functions and processes. A BIA helps to determine the recovery objectives, such as the recovery time objective (RTO) and the recovery point objective (RPO), for each business operation, based on the impact of disruption on the enterprise’s objectives, reputation, compliance, and stakeholders. A BIA also helps to identify the dependencies, resources, and interdependencies of the business operations, and to rank them according to their importance and urgency. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.2.1, page 671

Updating IT Policy Framework for Cloud Usage:

Gap Analysis: The first step in updating the IT policy framework is to conduct a gap analysis to identify discrepancies between the current state and the desired target framework for cloud usage.

Assessment of Current State: This involves reviewing existing policies, controls, and practices related to cloud usage to understand current capabilities and limitations.

Target Framework Definition: Define the desired state based on industry best practices, regulatory requirements, and organizational objectives.

Importance of Gap Analysis:

Focused Improvements: Identifying gaps allows the organization to focus on specific areas that need enhancement to align with best practices and compliance requirements.

Resource Allocation: Helps in allocating resources effectively to address the most critical gaps first.

Comparison with Other Options:

Consult with Industry Peers: Useful for gathering insights but should follow the gap analysis to ensure relevance to the organization’s specific context.

Evaluate Adherence to Existing Policies: Part of the gap analysis but not the initial step.

Adopt Industry-leading Framework: Important for long-term strategy but should be based on identified gaps.

Best Practices:

Comprehensive Review: Conduct a thorough review of existing policies and compare them with industry standards.

Stakeholder Involvement: Engage relevant stakeholders in the gap analysis to ensure all perspectives are considered.

References:

CRISC Review Manual: Emphasizes the importance of gap analysis in aligning IT policies with cloud computing frameworks and best practices .

ISACA Guidelines: Recommend conducting gap analysis as a foundational step in updating IT policy frameworks to ensure comprehensive and effective cloud governance .

 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 document the gap in the risk register and report to senior management. The risk register is the document that records the details of all identified risks, including their sources, causes, impacts, likelihood, and responses. The risk register should be updated regularly to reflect any changes in the risk environment or the risk status. Reporting to senior management is also important, because senior management is the highest level of authority and responsibility in the organization, and they are responsible for setting the strategic direction, objectives, and risk appetite of the organization. Senior management should also oversee the risk management process, and ensure that the risks are aligned with the organization’s goals and values. By documenting the gap in the risk register and reporting to senior management, the risk practitioner can communicate the issue clearly and effectively, and seek guidance and support for resolving the problem. Collaborating with the risk owner, including a right to audit clause, or advising the risk owner to accept the risk are not the best courses of action, because they may not be feasible, effective, or desirable in some situations, or they may require senior management approval or involvement. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

The most helpful action to ensure the effective implementation of a new cybersecurity program is assigning clear ownership of the program. Here's why:

Clear Ownership:

Assigning clear ownership ensures that there is accountability and responsibility for the implementation and success of the program.

The program owner will coordinate activities, allocate resources, and monitor progress to ensure that objectives are met.

Creating Metrics:

While metrics are important for monitoring and reporting, they do not directly ensure the effective implementation of the program.

Hiring Subject Matter Experts:

Subject matter experts are valuable for providing insights and guidance, but without clear ownership, their efforts may not be effectively coordinated or aligned with program goals.

Establishing a Budget:

A budget is necessary for securing resources, but it must be managed and directed by a responsible owner to ensure the effective use of those resources.

References:

The CRISC Review Manual discusses the importance of assigning roles and responsibilities, including ownership, to ensure the effective implementation of risk management programs (CRISC Review Manual, Chapter 1: Governance, Section 1.2.1 RACI).

The best way to test the operational effectiveness of a data backup procedure is to perform a complete restoration of every file to a clean system and verify that there has not been any data corruption or loss. This will ensure that the backup procedure can successfully recover the data in the event of a disaster or incident. The other options are not sufficient to test the operational effectiveness of a data backup procedure, as they do not involve actually restoring the data and verifying its integrity and usability. References = How to review and test backup procedures to ensure data restoration; HOW TO TEST DATA BACKUPS: A BRIEF GUIDE; How to Test a Database Backup

An IT risk register is a document that records and tracks the significant IT risks that an organization faces across its various functions, processes, and activities. An IT risk register can help to provide a comprehensive and consistent view of the organization’s IT risk profile, and to support the decision making and reporting of the IT risk management function1.

One of the data that must be updated to maintain an IT risk register is the expected frequency and potential impact of each IT risk. The expected frequency is the probability or likelihood of the IT risk occurring, based on historical data, statistical analysis, expert judgment, or other methods. The potential impact is the magnitude or severity of the consequences or outcomes of the IT risk, measured in terms of cost, time, quality, reputation, or other criteria2.

Updating the expected frequency and potential impact of each IT risk is essential for maintaining an IT risk register, because it can help to:

Evaluate and prioritize the IT risks based on their risk level, which is calculated by multiplying the frequency and impact

Monitor and track the changes or trends in the IT risk exposure and performance over time

Identify and implement the appropriate risk response strategies and controls, based on the risk level and the risk appetite and tolerance of the organization

Report and communicate the IT risk status and progress to the stakeholders, using risk indicators, dashboards, or matrices3

The other options are not the data that must be updated to maintain an IT risk register, but rather the data that are used as inputs or outputs of the IT risk management process. Risk tolerance is the acceptable variation in the outcomes related to specific objectives or risks. Risk tolerance is used to measure the IT risk analysis and to guide the IT risk response. Enterprise-wide IT risk assessment is a process that identifies, analyzes, and evaluates the IT risks across the organization. Enterprise-wide IT risk assessment is used topopulate the IT risk register and to inform the IT risk response. Risk appetite is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk appetite is used to guide the IT risk analysis and to align the IT risk response. References =

Risk Register - ISACA

Risk Analysis - ISACA

Risk Register 2021-2022 - UNECE

[How To Conduct Business Impact Analysis in 8 Easy Steps - G2]

[Risk Appetite and Risk Tolerance - ISACA]

[Enterprise Risk Assessment - ISACA]

[CRISC Review Manual, 7th Edition]

 The most important consideration when implementing ethical remote work monitoring is to inform the employees of how they are being monitored, because this respects their privacy rights and expectations, and ensures their consent and compliance with the monitoring policy. Informing the employees of how they are being monitored also helps to build trust and transparency between the employer and the employees, and reduces the potential legal or ethical issues that may arise from the monitoring activities. The other options are not the most important considerations, although they may also be relevant for ethical remote work monitoring. Monitoring only during official hours of business, reporting on nonproductive employees to management, and integrating multiple data monitoring sources into security incident response procedures are examples of operational or technical aspects of remote work monitoring, not ethical aspects. 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 riskthat 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]

Encryption is a technique that transforms data into an unreadable format using a secret key, so that only authorized parties can access and decrypt the data. Encryption can help to protect sensitive data from unauthorized access or disclosure, especially when the data is stored or transmitted in the cloud1.

Ensuring the vendor does not know the encryption key is a control that will best reduce the risk associated with a data breach, because it can help to:

Prevent the vendor from accessing or disclosing the sensitive data, intentionally or unintentionally

Limit the exposure or impact of the data breach, even if the vendor’s systems or networks are compromised by hackers or malicious insiders

Maintain the confidentiality and integrity of the sensitive data, regardless of the vendor’s liability or responsibility

Enhance the trust and confidence of the customers and stakeholders, who may be concerned about the vendor’s refusal to accept liability for a data breach23

The other options are not as effective as ensuring the vendor does not know the encryption key for reducing the risk associated with a data breach. Engaging a third party to validate operational controls is a control that can help to verify and improve the vendor’s security practices and processes, but it does not guarantee that the vendor will prevent or respond to a data breach adequately or timely. Using the same cloud vendor as a competitor is not a control, but rather a business decision that may increase the risk associated with a data breach, as the vendor may have access to or disclose the sensitive data of both parties, or may favor one party over the other. Using field-level encryption with a vendor supplied key is a control that can help to encrypt specific fields or columns of data, such as names, addresses, or credit card numbers, but it does not prevent the vendor from accessing or disclosing the data, as the vendor has the encryption key4. References =

Encryption - ISACA

Cloud Encryption: Using Data Encryption in The Cloud

Cloud Encryption: Why You Need It and How to Do It Right

Field-Level Encryption - ISACA

[CRISC Review Manual, 7th Edition]

Unauthorized data disclosure: The exposure of sensitive or confidential information to unauthorized parties, either intentionally or unintentionally1.

Proactive approach: An approach that anticipates and prevents potential problems or threats before they occur, rather than reacting to them after they happen2.

Incident response plan: A set of policies, procedures, and tools that guide an organization’s actions in the event of a data breach or security incident3.

A proactive approach to minimizing the potential impact of unauthorized data disclosure is to have an incident response plan. An incident response plan helps an organization to:

Detect and contain the incident as quickly as possible

Analyze the scope, cause, and impact of the incident

Eradicate the threat and restore normal operations

Communicate with internal and external stakeholders

Learn from the incident and improve security measures

An incident response plan enables an organization to reduce the damage and disruption caused by unauthorized data disclosure, as well as to comply with relevant laws and regulations that require timely notification and remediation of data breaches3.

The other options are not as effective as an incident response plan in minimizing the potential impact of unauthorized data disclosure, because they do not address the root cause or the response of the incident. Key risk indicators (KRIs), which are metrics that measure the level of risk exposure or the likelihood of a risk event, may help to monitor and manage the risk of unauthorized data disclosure, but they do not prevent or respond to the incident. Data backups, which are copies of data stored in a separate location or medium, may help to recover the data that was lost or corrupted due to unauthorized data disclosure, but they do not protect the data that was exposed or stolen. Cyber insurance, which is a type of insurance that covers the financial losses and liabilities arising from cyberattacks or data breaches, may help to mitigate some of the costs and risks associated with unauthorized data disclosure, but it does not prevent or resolve the incident.

References = What is Unauthorized Data Disclosure? | Egnyte, Proactive vs. Reactive: What’s the Difference?, Incident Response Planning: Best Practices for Businesses

 According to the 6 Best Practices to Ensure Software License Compliance article, the best way to determine software license compliance is to conduct regular internal compliance audits. These self-assessments can be done with the help of software license management companies. The goal is to see where compliance issues lie and to take corrective actions before they become serious problems. Periodic compliance reviews can help to avoid fines, penalties, lawsuits, and reputational damage that may result from software license violations. They can also help to optimize software spending and utilization, and to identify any gaps or opportunities for improvement in the software license management process. References = 6 Best Practices to Ensure Software License Compliance

 Risk is inefficiently controlled when the annual cost of the control exceeds the annual loss expectancy (ALE) of the risk, as this means that the organization is spending more on the control than the potential loss that the control is supposed to prevent or reduce. This indicates that the control is not cost-effective or optimal, and that the organization should consider alternative or complementary controls that can lower the cost or increase the benefit of the risk management. Control is ineffective and should be strengthened when the control does not reduce the likelihood or impact of the risk to an acceptable level, regardless of the cost. Risk is efficiently controlled when the annual cost of the control is equal to or less than the annual loss expectancy (ALE) of the risk, as this means that the organization is spending less or equal on the control than the potential loss that the control is supposed to prevent or reduce. Control is weak and should be removed when the control does not provide any benefit or value to the risk management, regardless of the cost. References = CRISC Certified in Risk and Information Systems Control – Question205; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 205.

According to the CRISC Review Manual, the primary objective of providing an aggregated view of IT risk to business management is to enable consistent data on risk to be obtained, because it helps to ensure that the risk information is comparable, reliable, and accurate across the organization. An aggregated view of IT risk is a consolidated and comprehensive representation of the IT risk exposure and impact at the enterprise level, based on the risk identification, analysis, and evaluation processes. Providing an aggregated view of IT risk to business management allows them to understand the overall IT risk profile and performance, and to make informed decisions about the risk management strategies and priorities. The other options are not the primary objective of providing an aggregated view of IT risk, as they are related to other benefits or outcomes of the risk aggregation process. Allowing for proper review of risk tolerance is the objective of establishing the risk context, which defines the scope and boundaries of the risk management activities. Identifying dependencies for reporting risk is the outcome of the risk aggregation process, as it provides a clear and consistent structure and format for the risk communication and reporting. Providing consistent and clear terminology is the objective of developing the risk taxonomy, which is the system of classification and categorization of risks based on common characteristics and attributes. References = CRISC Review Manual, 7th Edition, Chapter 2, Section 2.1.2, page 69.

A standardized risk taxonomy is a common language and structure for identifying, analyzing, and reporting risks across the enterprise. It enables consistent and comparable risk assessment and aggregation, as well as clear communication and coordination among different divisions. A list of control deficiencies, an enterprise risk ownership policy, and an updated risk tolerance metric are not sufficient to enable management of risk at the enterprise level, as they do not address the issue of risk alignment and integration among divisions. References = [CRISC Review Manual (Digital Version)], page 42; CRISC by Isaca Actual Free Exam Q&As, question 197.

Embedding risk management into processes that are aligned with business drivers is the most effective way to integrate risk and compliance management, as it ensures that the risk management objectives and activities are consistent and supportive of the enterprise’s strategic goals and values. It also enables the identification and management of risks and compliance requirements across the enterprise, and the optimization of risk and compliance resources and performance. Embedding risk management into compliance decision-making, designing corrective actions to improve risk response capabilities, and conducting regular self-assessments to verify compliance are not ways to integrate risk and compliance management, but rather components or outcomes of the risk and compliance management process. References = CRISC Practice Quiz and Exam Prep; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 202.

Risk appetite should be primarily driven by stakeholder requirements. Stakeholder requirements are the needs and expectations of the internal and external parties that have an interest or influence in the organization’s objectives or operations, such as the board, management, employees, customers, regulators, investors, etc. Risk appetite is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives. Risk appetite should be driven by stakeholder requirements, because they reflect the organization’s mission, vision, values, and strategy, and they provide the basis and direction for the organization’s risk management activities. Risk appetite should also be aligned and communicated with stakeholder requirements, because they affect the organization’s performance and reputation, and they require the organization’s accountability and transparency. The other options are not the primary drivers of risk appetite, although they may be considered or influenced by risk appetite. Enterprise security architecture roadmap, legal and regulatory requirements, and business impactanalysis (BIA) are all factors that could affect the organization’s risk profile, risk assessment, or risk response, but they do not necessarily determine or reflect the organization’s risk appetite. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.1, page 2-23.

The primary objective of promoting a risk-aware culture within an organization is enabling risk-based decision making, because this helps the organization to achieve its goals and objectives while managing its risks effectively and efficiently. A risk-aware culture is one where everyone understands the organization’s approach to risk, takes personal responsibility to manage risk in everything they do, and encourages others to follow their example. A risk-aware culture also fosters communication, collaboration, and learning about risk across the organization. By promoting a risk-aware culture, the organization can empower its employees to make informed and balanced decisions that consider both the potential benefits and the potential risks of their actions. This can enhance the organization’s performance, resilience, and competitiveness in a dynamic and uncertain environment. References = Risk IT Framework, ISACA, 2022, p. 17

The primary reason to establish the root cause of an IT security incident is to avoid recurrence of the incident. By identifying and addressing the underlying cause of the incident, the organization can prevent or reduce the likelihood of similar incidents in the future. This can also help to improve the security posture and resilience of the organization. The other options are not the primary reason, but they may be secondary or tertiary reasons. Preparing a report for senior management is an important step in communicating the incident and its impact, but it does not address the root cause. Assigning responsibility and accountability for the incident is a way to ensure that the appropriate actions are taken to remediate the incident and prevent recurrence, but it is not the reason to establish the root cause. Updating the risk register is a part of the risk management process, but it does not necessarily prevent recurrence of the incident. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4: Risk Response and Reporting, Section 4.3: Incident Management, p. 223-224.

 A risk register is a tool used to identify, assess, and prioritize risks in an organization. It typically includes a detailed description of each identified risk, an assessment of its likelihood and potential impact, and a plan for managing or mitigating the risk1. A risk register is usually created at the beginning of a project or a process, and is updated regularly throughout the risk management life cycle2.

The main reason for creating and maintaining a risk register is to account for identified key risk factors. This means that the risk register helps to:

Document and track all the relevant risks that may affect the project or the organization, and their sources, causes, and consequences

Provide a comprehensive and consistent view of the risk profile and exposure of the project or the organization

Support the decision-making and prioritization of the risk responses and controls, based on the risk appetite and tolerance of the project or the organization

Communicate and report the risk information and status to the stakeholders and regulators, and ensure transparency and accountability

Enable the continuous improvement and learning from the risk management process and outcomes3

References = What is a risk register and why is it important?, Purpose of a risk register: Here’s what a risk register is used for, Risk Register: A Project Manager’s Guide with Examples [2024], Risk Register - Wikipedia

The best way to protect company sensitive information from being exposed when an organization allows employee use of social media accounts for work purposes is to require employees to sign nondisclosure agreements. Nondisclosure agreements are legal contracts that prohibit the employees from disclosing or sharing the company sensitive information with unauthorized parties, such as competitors, media, or regulators. Nondisclosure agreements also specify the scope, duration, and conditions of the nondisclosure obligation, and the penalties or remedies for breaching the agreement. Requiring employees to sign nondisclosure agreements is the best way to protect company sensitive information, as it helps to prevent or deter the employees from exposing or leaking the company sensitive information on social media, and to hold the employees accountable and liable for their actions. Requiring employees to sign nondisclosure agreements also helps to comply with the legal and regulatory requirements for data protection and privacy. Educating employees on what needs to be kept confidential, implementing a data loss prevention (DLP) solution, and taking punitive action against employees who expose confidential data are also useful ways, but they are not as effective as requiring employees to sign nondisclosure agreements, as they are either dependent on the employees’ awareness or behavior, or reactive or corrective measures, rather than proactive or preventive measures. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

A risk register is a document that records and tracks the information about the risks that may affect the organization’s objectives, such as the risk description, category, source, cause, impact, probability, status, owner, response, etc.

When updating the risk register after a risk assessment, the most important information to include is the likelihood and impact of the risk scenario. This means that the risk register should reflect the current or updated estimates of the probability and consequence of the risk scenario, based on the risk analysis and evaluation methods and criteria.

The likelihood and impact of the risk scenario helps to determine the risk level and priority, select the most appropriate risk response, allocate the resources and budget for risk management, and monitor and report the risk performance and outcomes.

The other options are not the most important information to include when updating the risk register after a risk assessment. They are either secondary or not essential for risk management.

The references for this answer are:

Risk IT Framework, page 29

Information Technology & Security, page 23

Risk Scenarios Starter Pack, page 21

Residual risk is the remaining risk after the risk response has been implemented. Residual risk can be expressed as a combination of the probability and impact of the risk scenario, or as a single value such as loss expectancy. Residual risk can be compared with the inherent risk, which is the risk level before considering the existing controls or responses, to evaluate the risk reduction and value creation of the risk response. Senior management has asked the risk practitioner for the overall residual risk level for a process that contains numerous risk scenarios. The best way to provide this information is to calculate the average of anticipated residual risk levels for each risk scenario, and to present it as a single value or a range. This can help to provide a comprehensive and consistent view of the residual risk exposure and performance of the process, as well as to align it with the organization’s risk appetite and tolerance. The sum of residual risk levels for each scenario, the loss expectancy for aggregated risk scenarios, or the highest loss expectancy among the risk scenarios are not the best ways to provide the overall residual risk level, as they may overestimate or underestimate the risk exposure and performance of the process, and may not reflect the actual risk reduction and value creation of the risk response. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.2, p. 108-109

A virus transmitted on a USB thumb drive is a scenario that represents a threat, as it involves a malicious or harmful event that could compromise the confidentiality, integrity, or availability of an information system. A virus is a type of malware that can infect and damage files, programs, or devices by replicating itself and spreading to other systems or networks. A USB thumb drive is a portable storage device that can be used to transfer data between computers or devices. A virus transmitted on a USB thumb drive can occur when a user inserts an infected USB thumb drive into a computer or device, or when a user downloads or copies an infected file from a USB thumb drive to a computer or device. A virus transmitted on a USB thumb drive can pose a serious risk to the information system, as it can corrupt or delete data, disrupt or degrade performance, steal or leak information, or allow unauthorized access or control.

The other options are not scenarios that represent a threat, but rather vulnerabilities or weaknesses that could increase the likelihood or impact of a threat. Connecting a laptop to a free, open, wireless access point (hotspot) is a vulnerability, as it exposes the laptop to potential eavesdropping, interception, or manipulation by malicious actors on the same network. Visitors not signing in as per policy is a vulnerability, as it creates a gap in the physical security and access control of the premises, and could allow unauthorized or malicious visitors to enter or access sensitive areas or assets. Storing corporate data in unencrypted form on a laptop is a vulnerability, as it reduces the protection and security of the data, and could enable unauthorized or malicious access, disclosure, or modification of the data in case of loss, theft, or compromise of the laptop. References = What is a Computer Virus? | McAfee, What is a USB Flash Drive? | Kingston Technology, Threats, Vulnerabilities, and Exploits – oh my!

Risk treatment options are the actions or plans that are implemented to modify or reduce the risk exposure of the organization. Risk treatment options receive adequate funding when the organization allocatessufficient resources and budget to support the risk response actions, and to ensure that the risk controls are effective and efficient. This is the best evidence that risk management is driving business decisions in the organization, as it shows that the organization prioritizes and values the risk management process, and that it aligns its risk strategy and objectives with its business goals and value creation. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 245. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 245. CRISC Sample Questions 2024, Question 245.

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

As part of business continuity planning, the most important thing to include in a business impact analysis (BIA) is an industry standard framework. A BIA is a process of identifying and analyzing the potential effects of disruptions to the critical business functions and processes. An industry standard framework is a set of best practices, guidelines, and methodologies that provide a consistent and comprehensive approach to conducting a BIA. An industry standard framework can help to ensure that the BIA is complete, accurate, and reliable, and that it covers all the relevant aspects, such as the scope, objectives, criteria, methods, data sources, and reporting. An industry standard framework can also help to benchmark the BIA results against the industry norms and expectations, and to align the BIA with the business continuity strategy and plan. The other options are not as important as an industry standard framework, as they are related to the specific steps, activities, or outputs of the BIA, not the overall structure and quality of the BIA. 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 best indicator to senior management that IT processes are improving is the changes in the position in the maturity model. A maturity model is a framework that defines the levels of capability and performance of a process, such as IT processes, based on the criteria such as governance, management, control, measurement, and improvement. A maturity model can help to assess the current state and the desired state of the IT processes, and to identify the gaps, strengths, and opportunities for improvement. A maturity model can also help to communicate the progress and the value of the IT processes to the senior management, and to support the strategic alignment and integration of the IT processes with the business objectives. Changes in the position in the maturity model indicate that the IT processes are improving, as they show that the IT processes are moving from a lower level to a higher level of maturity, and that they are achieving higher standards of quality, efficiency, and effectiveness. Changes in the number of intrusions detected, changes in the number of security exceptions, and changes to the structure of the risk register are not as good as changes in the position in the maturity model, as they do not provide a comprehensive and consistent measure of the IT processes improvement, and they may not reflect the actual impact and performance of the IT processes. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 36.

The most important consideration when selecting a control to mitigate an identified risk is whether the cost of control exceeds the mitigation value, because this determines the cost-benefit ratio of the control. A control should not be implemented if the cost of implementing and maintaining it is higher than the expected benefit of reducing the risk exposure. The other options are not the most important considerations, although they may also influence the control selection process. The availability of internal resources, the potential compounding effects, and the possibility of eliminating the risk are secondary factors that depend on the cost and value of the control. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

The most important objective of information security controls is to provide measurable risk reduction. Information security controls are the policies, procedures, techniques, or technologies that are implemented to protect the confidentiality, integrity, and availability of information assets. The main purpose of information security controls is to reduce the risk of unauthorized access, use, disclosure,modification, or destruction of information assets, and to ensure that the information assets support the enterprise’s objectives and performance. Information security controls should be measurable, meaning that they should have clear and quantifiable criteria for evaluating their effectiveness and efficiency in reducing the risk exposure to an acceptable level. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.1.1, page 1151

Residual risk is the risk that remains after applying risk responses, such as avoidance, mitigation, transfer, or acceptance. It represents the level of exposure that the organisation is willing to tolerate or assume. Residual risk should be aligned with the organisation’s risk appetite and risk tolerance, which are determined by senior management. Therefore, the best way to obtain senior management support for investment in a control implementation would be to articulate the reduction in residual risk that the control would achieve. This would demonstrate how the control would help the organisation meet its riskobjectives and reduce the likelihood or impact of adverse events. References = ISACA CRISC Review Manual, 7th Edition, Chapter 1, Section 1.3.2, page 25.

According to the CRISC Review Manual, the primary reason to periodically review key performance indicators (KPIs) is to identify trends, because it helps to monitor the changes and patterns in the performance and effectiveness of the risk management processes and controls. KPIs are metrics that measure the achievement of the objectives and targets of the risk management activities. Periodically reviewing KPIs allows the organization to evaluate the progress and results of the risk management strategies and actions, and to identify any gaps, issues, or opportunities for improvement. The other options are not the primary reason to periodically review KPIs, as they are related to other aspects or outcomes of the risk management process. Ensuring compliance is the reason to review key risk indicators (KRIs), which are metrics that measure the level of risk exposure and the occurrence of risk events.Promoting a risk-aware culture is the reason to review key goal indicators (KGIs), which are metrics that measure the alignment of the risk management with the business goals and values. Optimizing resources needed for controls is the reason to review key control indicators (KCIs), which are metrics that measure the efficiency and adequacy of the risk controls. References = CRISC Review Manual, 7th Edition, Chapter 3, Section 3.3.2, page 143.

User recertification is the most effective control to ensure user access is maintained on a least-privilege basis, as it involves a periodic review and validation of user access rights and privileges by the appropriate authority. User recertification helps to identify and remove any unnecessary, excessive, or obsolete access rights and privileges that may pose a security risk or violate the principle of least privilege. User recertification also helps to ensure that user access rights and privileges are aligned with the current business needs, roles, and responsibilities of the users.

The other options are not the most effective controls to ensure user access is maintained on a least-privilege basis. User authorization is the process of granting or denying access rights and privileges to users based on their identity, role, and credentials, but it does not verify or update the existing access rights and privileges of the users. Change log review is the process of examining and analyzing the records of changes made to the system, configuration, or data, but it does not directly address the user access rights and privileges. Access log monitoring is the process of tracking and auditing the user activities and actions on the system or network, but it does not validate or modify the user access rights and privileges. References = What Is the Principle of Least Privilege and Why is it Important?, Principle of Least Privilege: Definition, Methods & Examples, IT Risk Resources | ISACA

A conflict of interest is a situation where a person’s personal or professional interests may interfere with their ability to act in the best interest of the organization or the project1. A conflict of interest can compromise the integrity, objectivity, and impartiality of the person, and create ethical or legal issues for the organization or the project2. In the context of due diligence, a conflict of interest can affect the quality and reliability of the information and analysis, and jeopardize the success and confidentiality of the acquisition3.

The best course of action for a member of the due diligence team who realizes a close acquaintance is a high-ranking IT professional at a subsidiary of the company about to be acquired is to disclose potential conflicts of interest. This means that the team member should inform the due diligence leader and the organization’s management about the relationship with the acquaintance, and explain how it may affect their role or responsibility in the due diligence process. By disclosing potential conflicts of interest, the team member can:

Demonstrate honesty and transparency, and uphold the ethical standards and values of the organization and the project4.

Enable the due diligence leader and the organization’s management to assess the situation and decide the appropriate course of action, such as reassigning the team member, implementing additional controls or safeguards, or obtaining consent or approval from the relevant parties5.

Avoid or minimize the negative consequences or risks that may arise from the conflict of interest, such as legal liability, reputational damage, or loss of trust and credibility6.

References =

Conflict of Interest - CIO Wiki

What is a Conflict of Interest? Give Me Some Examples - The Balance Careers

How to Avoid Conflicts of Interest in M&A Transactions - DealRoom

How to Handle Conflicts of Interest - Harvard Business Review

Conflict of Interest Policy - ISACA

Managing Conflicts of Interest in the Public Sector Toolkit - OECD

The best control to prevent the inappropriate disclosure of confidential information when print jobs containing confidential information are sent to a shared network printer located in a secure room is to require a printer access code for each user. A printer access code is a unique and secret code that the user needs to enter on the printer device to release and retrieve the print job. Requiring a printer access code for each user is the best control, as it helps to prevent or limit the unauthorized access, viewing, or copying ofthe confidential information on the print job, especially if the print job is left unattended or forgotten on the printer device. Requiring a printer access code for each user also helps to ensure the accountability and traceability of the user who sent the print job, and to support the audit and monitoring of the printer activity. Using physical controls to access the printer room, using video surveillance in the printer room, and ensuring printer parameters are properly configured are also useful controls, but they are not as effective as requiring a printer access code for each user, as they do not directly prevent or limit the inappropriate disclosure of confidential information on the print job, and they may not deter or detect the unauthorized access or misuse of the print job by the authorized users who have access to the printer room or device. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

 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 canalso 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.

Documented procedures are the best way to enable effective IT control implementation. Documented procedures are the specific actions or steps that are performed to achieve the IT control objectives and mitigate the IT risks. Documented procedures provide clear guidance, consistency, and accountability for the IT control activities. Documented procedures also help to monitor and evaluate the effectiveness and efficiency of the IT controls, and to identify and address any gaps or weaknesses. The other options are not as effective as documented procedures, although they may support or complement the IT control implementation. Key risk indicators (KRIs) are metrics that measure the likelihood and impact of IT risks, but they do not specify how to implement the IT controls. Information security policies and standards are high-level statements that define the IT security goals and requirements, but they do not detail how to implement the IT controls. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, page 1-15.

According to the CRISC Review Manual, centralized log management is the best way to assist in reconstructing the sequence of events following a security incident across multiple IT systems in the organization’s network, because it enables the collection, correlation, analysis, and retention of log data from various sources. Centralized log management can provide a comprehensive and consistent view of the activities and transactions that occurred before, during, and after the incident, and can facilitate the identification of the root cause, impact, and scope of the incident. The other options are not the best ways to assist in reconstructing the sequence of events, because they do not provide the same level of detail and accuracy as centralized log management. Network monitoring infrastructure is a tool that helps to monitor the performance and availability of the network, but it does not capture the log data from the IT systems. Centralized vulnerability management is a process that helps to identify and remediate the vulnerabilities in the IT systems, but it does not record the events and transactions that occurred on the systems. Incident management process is a process that helps to respond to and resolve the incidents, but it does not provide the log data from the IT systems. References = CRISC Review Manual, 7th Edition, Chapter 5, Section 5.3.2, page 263.

 The greatest risk to change control in business application development over the complete life cycle is the introduction of requirements that have not been approved. Requirements are the specifications or expectations of the business users or stakeholders for the application, such as the features, functions, or performance1. Change control is the process of identifying, evaluating, approving, and implementing changes to the application, such as the design, code, or configuration2. By introducing requirements that have not been approved, the organization can face significant risks, such as:

Scope creep, which is the uncontrolled or unauthorized expansion of the project scope, and can result in increased costs, delays, or errors3.

Quality issues, which can affect the reliability, usability, or security of the application, and can lead to defects, failures, or breaches4.

Stakeholder dissatisfaction, which can arise from the mismatch or inconsistency between the delivered application and the expected application, and can cause complaints, disputes, or litigation5.

The other options are not the greatest risk to change control, because:

Emphasis on multiple application testing cycles is not a risk, but rather a benefit or a best practice for change control, as it can help to ensure that the application meets the requirements and standards, and that the changes are effective and efficient.

Lack of an integrated development environment (IDE) tool is a challenge, but not a risk, for change control, as it can affect the productivity, collaboration, or integration of the developers, and can cause difficulties or inefficiencies in the development process. However, it does not directly affect the requirements or the quality of the application, and it can be overcome by using other tools or methods.

Bypassing quality requirements before go-live is a risk, but not the greatest risk, for change control, as it can compromise the quality or performance of the application, and can expose the organization to errors, failures, or breaches. However, it is less likely or frequent than introducing requirements that have not been approved, and it can be detected or prevented by using quality assurance or quality control techniques.

References =

Requirements - CIO Wiki

Change Control - CIO Wiki

Scope Creep - CIO Wiki

Quality - CIO Wiki

Stakeholder Management - CIO Wiki

[Software Testing - CIO Wiki]

[Integrated Development Environment (IDE) - CIO Wiki]

[Quality Requirements - CIO Wiki]

[Software Development Life Cycle - CIO Wiki]

Specifying cloud service provider liability for data privacy breaches in the contract is the most effective control to address the risk associated with compromising data privacy within the cloud, because it establishes the roles and responsibilities of the cloud service provider and the customer in case of a data breach, and defines the compensation or remediation measures that the cloud service provider should provide. This control also creates an incentive for the cloud service provider to implement adequate security measures to protect the customer’s data and comply with the relevant laws and regulations. The other options are not the most effective controls, although they may also be helpful in reducing the risk of data privacy breaches. Establishing baseline security configurations with the cloud service provider, requiring the cloud service provider to disclose past data privacy breaches, and ensuring the cloud service provider performs an annual risk assessment are examples of preventive or detective controls that aim to reduce the likelihood or impact of a data breach, but they do not address the accountability or liability of the cloud service provider in case of a data breach. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

A risk assessment is a process of measuring and comparing the likelihood and impact of various risk scenarios, and prioritizing them based on their significance and urgency. A risk assessment can help the organization to understand and document the risks that may affect its objectives and operations, and to support the decision making and planning for the risk management.

Performing a risk assessment would be the most helpful to understand the impact of a new technology system on an organization’s current risk profile, because it can help the organization to address the following questions:

What are the potential benefits and challenges of implementing the new technology system, and how do they align with the organization’s objectives and needs?

What are the existing or emerging risks that may affect the new technology system, and how do they relate to the organization’s current risk profile?

How likely and severe are the risks that may affect the new technology system, and what are the possible consequences or impacts for the organization and its stakeholders?

How can the risks that may affect the new technology system be mitigated or prevented, and what are the available or feasible options or solutions?

Performing a risk assessment can help the organization to understand the impact of the new technology system on its current risk profile by providing the following benefits:

It can enable the comparison and evaluation of the current and desired state and performance of the organization’s risk management function, and to identify and quantify the gaps or opportunities for improvement.

It can provide useful references and benchmarks for the alignment and integration of the new technology system with the organization’s risk management function, and for the compliance with the organization’s risk policies and standards.

It can support the implementation and monitoring of the new technology system, and for the allocation and optimization of the resources, time, and budget for the new technology system.

The other options are not the most helpful to understand the impact of a new technology system on an organization’s current risk profile, because they do not provide the same level of detail and insight that performing a risk assessment provides, and they may not be specific or applicable to the organization’s objectives and needs.

Hiring consultants specializing in the new technology means engaging or contracting external experts or professionals that have the skills and knowledge on the new technology system, and that can provide advice or guidance on the implementation and management of the new technology system. Hiring consultants specializing in the new technology can help the organization to enhance its competence and performance on the new technology system, but it is not the most helpful, because it does not measure and compare the likelihood and impact of the risks that may affect the new technology system, and it may not be relevant or appropriate for the organization’s current risk profile.

Reviewing existing risk mitigation controls means examining and evaluating the adequacy and effectiveness of the controls or countermeasures that are intended to reduce or eliminate the risks that may affect the organization’s objectives and operations. Reviewing existing risk mitigation controls can help the organization to improve and optimize its risk management function, but it is not the most helpful, because it does not identify and prioritize the risks that may affect the new technology system, and it may not cover all the relevant or significant risks that may affect the new technology system.

Conducting a gap analysis means comparing and contrasting the current and desired state and performance of the organization’s objectives and operations, and identifying and quantifying the gaps or differences that need to be addressed or corrected. Conducting a gap analysis can help the organization to identify and document its improvement needs and opportunities, but it is not the most helpful, because it does not measure and compare the likelihood and impact of the risks that may affect the new technology system, and it may not be aligned or integrated with the organization’s current risk profile. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 208

CRISC Practice Quiz and Exam Prep

According to the CRISC Review Manual1, the risk register is a tool that records the results of risk identification, analysis, evaluation, and treatment. It should be updated whenever there is a change in the risk profile, such as when a vulnerability is closed or a new threat is identified. Updating the risk register allows the organization to monitor the current status of risks and the effectiveness of risk responses. Therefore, the next course of action after implementing changes to close an identifiedvulnerability is to update the risk register with the new information. References = CRISC Review Manual1, page 191.

The risk practitioner’s primary focus when determining whether controls are adequate to mitigate risk should be the level of residual risk, because this indicates the amount and type of risk that remains after applying the controls, and whether it is acceptable or not. Residual risk is the risk that is left over after the risk responseactions have been taken, such as implementing or improving controls. Controls are the measures or actions that are designed and performed to reduce the likelihood and/or impact of a risk event, or to exploit the opportunities that a risk event may create. The adequacy of controls to mitigate risk depends on how well they address the root causes or sources of the risk, and how effectively and efficiently they reduce the risk exposure and value. The level of residual risk reflects the adequacy of controls to mitigate risk, as it shows the gap between the inherent risk and the actual risk, and whether it is within the organization’s risk appetite and tolerance. The risk practitioner should focus on the level of residual risk when determining whether controls are adequate to mitigate risk, as it helps to evaluate and compare the benefits and costs of the controls, and to decide on the best risk response strategy, such as accepting, avoiding, transferring, or further reducing the risk. The other options are less important or relevant to focus on when determining whether controls are adequate to mitigate risk. Sensitivity analysis is a technique that measures how the risk value changes when one or more input variables are changed, such as the probability, impact, or control effectiveness. Sensitivity analysis can help to identify and prioritize the most influential or critical variables that affect the risk value, and to test the robustness or reliability of the risk assessment. However, sensitivity analysis does not directly indicate the adequacy of controls to mitigate risk, as it does not measure the level of residual risk or the risk acceptance criteria. Cost-benefit analysis is a technique that compares the expected benefits and costs of a control or a risk response action, and determines whether it is worthwhile or not. Cost-benefit analysis can help to justify and optimize the investment or resource allocation for the control or the risk response action, and to ensure that it is aligned with the organization’s objectives and value. However, cost-benefit analysis does not directly indicate the adequacy of controls to mitigate risk, as it does not measure the level of residual risk or the risk acceptance criteria. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite can help to define and communicate the organization’s risk preferences and boundaries, and to guide the risk decision-making and behavior. However, risk appetite does not directly indicate the adequacy of controls to mitigate risk, as it does not measure the level of residual risk or the actual risk performance. References = Risk IT Framework, ISACA, 2022, p. 131

Data processing is the activity of collecting, organizing, transforming, and analyzing data to produce useful information for decision making or other purposes12.

The role of the internal IT team in this situation is data processors, which are the people or entities that process data on behalf of the data controllers, who are the people or entities that determine the purposes and means of the data processing34.

Data processors are the role of the internal IT team because they are responsible for managing information through the applications that are used by the organization, and they act under the instructions and authority of the organization, which is the data controller34.

Data processors are also the role of the internal IT team because they have to comply with the data protection laws and regulations that apply to the data processing, and they have to ensure the security and confidentiality of the data34.

The other options are not the role of the internal IT team, but rather possible roles or terms that are related to data processing. For example:

Data custodians are the people or entities that have physical or logical control over the data, and they are responsible for implementing and maintaining the technical and administrative safeguards to protect the data56. However, this role is not the role of theinternal IT team because it is a subset or function of the data processor role, and it does not reflect the full scope of the data processing activities that the internal IT team performs56.

Data owners are the people or entities that have legal rights or authority over the data, and they are responsible for defining and enforcing the policies and rules for the data access, use, and quality . However, this role is not the role of the internal IT team because it is a different or separate role from the data processor role, and it does not reflect the relationship or agreement between the organization and the internal IT team . References =

1: Data Processing - Wikipedia1

2: Data Processing: Definition, Steps, and Types2

3: Data Controller vs Data Processor: What’s the Difference?3

4: Data controller vs data processor: What are the differences and responsibilities?4

5: Data Custodian - Wikipedia5

6: Data Custodian: Definition, Role & Responsibilities6

Data Owner - Wikipedia

Data Owner: Definition, Role & Responsibilities

A risk heat map is a graphical tool that displays the results of a risk analysis in a matrix format, using colors and symbols to indicate the level and priority of the risks. A risk heat map can show the distribution and comparison of the risks based on various criteria, such as likelihood, impact, category, source, etc.

A risk heat map is most commonly used as part of an IT risk analysis to facilitate risk assessment, which is the process of determining the significance and urgency of the risks that may affect the organization’s objectives and operations. Risk assessment involves measuring and comparing the likelihood and impact of various risk scenarios, and prioritizing them based on their magnitude and importance.

A risk heat map can help to facilitate risk assessment by providing a visual and intuitive representation of the risk profile, and highlighting the most critical and relevant risks that need to be addressed or monitored. A risk heat map can also help to communicate and report the risk analysis results to different stakeholders, and to support the decision making and planning for the risk response and treatment.

The other options are not the most common uses of a risk heat map as part of an IT risk analysis, because they do not address the main purpose and benefit of a risk heat map, which is to facilitate risk assessment.

Risk identification is the process of finding and describing the risks that may affect the organization’s objectives and operations. Risk identification involves defining the risk sources, events, causes, and impacts, and documenting them in a risk register. A risk heat map is not commonly used to facilitate risk identification, because it does not provide the detailed and comprehensive information that is needed to identify and describe the risks, and it may not cover all the relevant or potential risks that may exist or emerge.

Risk treatment is the process of selecting and implementing the appropriate actions or plans to address the risks that have been identified, analyzed, and evaluated. Risk treatment involves choosing one of the following types of risk responses: mitigate, transfer, avoid, or accept. A risk heat map is not commonly used to facilitate risk treatment, because it does not provide the specific and feasible information that is needed to select and implement the risk responses, and it may not reflect the cost-benefit or feasibility analysis of the risk responses.

Risk communication is the process of exchanging and sharing the information and knowledge about the risks and their responses among the relevant stakeholders. Risk communication involves informing, consulting, and involving the stakeholders in the risk management process, and ensuring that they understand and agree on the risk objectives, criteria, and outcomes. A risk heat map is not commonly used to facilitate risk communication, because it does not provide the complete and accurate information that is needed to communicate and share the risks and their responses, and it may not address the different needs, expectations, and perspectives of the stakeholders. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 169

CRISC Practice Quiz and Exam Prep

Information systems control deficiencies are the weaknesses or flaws in the design or implementation of the controls that are intended to ensure the confidentiality, integrity, availability, and reliability of the information systems and resources. Information systems control deficiencies may reduce the effectiveness or efficiency of the controls, and expose the organization to various risks, such as unauthorized access, data loss, system failure, etc.

Reviewing results from control self-assessment (CSA) is the best way to identify information systems control deficiencies, because CSA is a process of evaluating and verifying the adequacy and effectiveness of the information systems controls, using the input and feedback from the individuals or groups that are involved or responsible for the information systems activities or functions. CSA can help the organization to identify and document the information systems control deficiencies, and to align them with the organization’s information systems objectives and requirements.

CSA can be performed using various techniques, such as questionnaires, surveys, interviews, workshops, etc. CSA can also be integrated with the organization’s governance, risk management, and compliance functions, and aligned with the organization’s policies and standards.

The other options are not the best ways to identify information systems control deficiencies, because they do not provide the same level of detail and insight that CSA provides, and they may not be relevant or actionable for the organization.

Vulnerability and threat analysis is a process of identifying and evaluating the weaknesses or flaws in the organization’s assets, processes, or systems that can be exploited or compromised by the potential threats or sources of harm that may affect the organization’s objectives or operations. Vulnerability and threat analysis can help the organization to assess and prioritize the risks, and to design and implement appropriate controls or countermeasures to mitigate or prevent the risks, but it is not the best way to identify information systems control deficiencies, because it does not indicate whether the existing information systems controls are adequate and effective, and whether they comply with the organization’s policies and standards.

Control remediation planning is a process of selecting and implementing the actions or plans to address or correct the information systems control deficiencies that have been identified, analyzed, and evaluated. Control remediation planning involves choosing one ofthe following types of control responses: mitigate, transfer, avoid, or accept. Control remediation planning can help the organization to improve and optimize the information systems controls, and to reduce or eliminate the information systems control deficiencies, but it is not the best way to identify information systems control deficiencies, because it is a subsequent or follow-up process that depends on the prior identification of the information systems control deficiencies.

User acceptance testing (UAT) is a process of verifying and validating the functionality and usability of the information systems and resources, using the input and feedback from the end users or customers that interact with the information systems and resources. UAT can help the organization to ensure that the information systems and resources meet the user or customer expectations and requirements, and to identify and resolve any issues or defects that may affect the user or customer satisfaction, but it is not the best way to identify information systems control deficiencies, because it does not focus on the information systems controls, and it may not cover all the relevant or significant information systems control deficiencies that may exist or arise. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 40-41, 47-48, 54-55, 58-59, 62-63

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 186

CRISC Practice Quiz and Exam Prep

Data privacy protection is the process of safeguarding the personal information of individuals from unauthorized access, use, disclosure, modification, or destruction. Personal information is any information that can be used to identify, locate, or contact an individual, such as name, address, phone number, email, social security number, etc. When there are plans for a business initiative to make use of personal information, the primary consideration related to data privacy protection is to do not collect or retain data that is not needed. This means that the organization should only collect the minimum amount of personal information that is necessary for the purpose of the business initiative, and should only retain the data for as long as it is required by law or business needs. By doing so, the organization can reduce the risk of data breaches, comply with the data protection regulations, respect the data subjects’ rights, and enhance the trust and reputation of the organization. References = CRISC Review Manual, 7th Edition, page 159.

The most important outcome of reviewing the risk management process is assuring that the risk profile supports the IT objectives, because this ensures that the organization is managing its IT-related risks in alignment with its business goals and priorities. The risk profile is a summary of the key risks that the organization faces, their likelihood, impact, and response strategies. The IT objectives are the specific and measurable outcomes that the organization expects to achieve from its IT investments and activities. Byreviewing the risk management process, the organization can evaluate whether the risk profile is accurate, complete, and up-to-date, and whether the risk responses are effective, efficient, and consistent with the IT objectives. The review can also identify any gaps, issues, or opportunities for improvement in the risk management process, and provide recommendations for enhancing the process and its outcomes. The review can also help to communicate and report the value and performance of the risk management process to the senior management, the board of directors, and other stakeholders. References = Risk IT Framework, ISACA, 2022, p. 17

The average time to provision user accounts is the most useful indicator to measure the efficiency of an identity and access management (IAM) process, because it reflects how quickly and smoothly the process can grant access to the appropriate users. The average time to provision user accounts can be calculated by dividing the total time spent on provisioning user accounts by the number of user accounts provisioned in a given period. A lower average time indicates a more efficient IAM process, as it means that users can access the resources they need without unnecessary delays or errors. A higher average time may indicate problems or bottlenecks in the IAM process, such as manual steps, complex workflows, lack of automation, or insufficient resources. The average time to provision user accounts can also be compared across different applications, systems, or business units to identify areas for improvement or best practices. The other options are less useful indicators to measure the efficiency of an IAM process. The number of tickets for provisioning new accounts shows the demand for the IAM process, but not how well the process meets the demand. The password reset volume per month shows the frequency of password-related issues, but not how effectively the IAM process handles them. The average account lockout time shows the impact of account lockouts on user productivity, but not how efficiently the IAM process prevents or resolves them. References = Top Identity and Access Management Metrics 

 The most important reason to revisit a previously accepted risk is to ensure that the risk levels have not changed. A previously accepted risk is a risk that the organization has decided to tolerate or retain without taking any further action, because the risk is either low or unavoidable, or the cost or effort of mitigation outweighs the potential benefit. However, risk acceptance is not a static or permanent decision, as the risk levels may change over time due to various factors, such as new threats, vulnerabilities, impacts, or opportunities. Therefore, it is essential to revisit a previously accepted risk periodically or when there is a significant change in the internal or external environment, to verify that the risk is still within the acceptable range and that the risk acceptance rationale is still valid. If the risk levels have increased or decreased, the organization may need to revise the risk acceptance decision and consider other risk response options, such as avoidance, reduction, sharing, or exploitation. The other options are not the most important reason to revisit a previously accepted risk, although they may be relevant or necessary depending on the context and nature of the risk. Updating risk ownership is a part of the risk governance process, which ensures that the roles and responsibilities for managing the risk are clearly defined and assigned, but it does not affect the risk levels or the risk acceptance decision. Reviewing the risk acceptance with new stakeholders is a part of the risk communication process, which ensures that the risk information and the risk acceptance rationale are shared and understood by the relevant parties, but it does not change the risk levels or the risk acceptance decision. Ensuring that the controls are still operating effectively is a part of the risk monitoring and review process, which ensures that the risk response actions are implemented and maintained properly, but it does not apply to the accepted risks, as they do not have any additionalcontrols. References = Understanding Accepted Risk - SC Dashboard | Tenable®, Risk Acceptance — ENISA, Accepting Risk - Overview, Advantages, Disadvantages, Alternatives

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 theappropriate risk responses to ensure the continuity of operations. References = CRISC Review Manual, 7th Edition, page 66.

An IT policy is a document that defines the rules, standards, and procedures for the use, management, and security of IT resources within an organization. An IT policy should be aligned to the business requirements, which are the needs, expectations, and objectives of the business stakeholders, such as customers, employees, managers, partners, regulators, etc. An IT policy that is aligned to the business requirements can help support the business strategy, improve the business performance, and enhance the business value. A key performance indicator (KPI) is a metric that measures the achievement of a specific goal or objective. A KPI should be relevant, measurable, achievable, realistic, and time-bound. The best KPI for determining how well an IT policy is aligned to the business requirements is the number of exceptions to the policy. An exception to the policy is a deviation or violation of the policy rules, standards, or procedures, which may be intentional or unintentional, authorized or unauthorized, justified or unjustified. The number of exceptions to the policy can indicate how well the policy is understood, communicated, implemented, and enforced within the organization. The number of exceptions to the policy can also indicate how well the policy reflects the current and future business needs and expectations, and how flexible and adaptable the policy is to the changing business environment. A low number of exceptions to the policy can suggest that the policy is well aligned to the business requirements, while a high number of exceptions to the policy can suggest that the policy is misaligned or outdated, and may need to be reviewed or revised. References = Key Performance Indicator (KPI): Definition, Types, andExamples, Business KPIs: 5 important characteristics to be effective, What is a KPI? How To Choose the Best KPIs for Your Business - HubSpot Blog.

The best course of action for the risk practitioner is to follow the incident reporting procedures established by the organization. This will ensure that the incident is properly documented, escalated, and resolved in a timely and consistent manner. Reporting the incident to the chief risk officer, advising the employee to forward the email to the phishing team, or advising the employee to permanently delete the email are not the best courses of action, as they may not comply with the organization’s policies and standards, and may not address the root cause and impact of the incident. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.2.1, page 193.

Corporate culture is the set of values, beliefs, and norms that shape the behavior and attitude of an organization and its people. Corporate culture alignment is the degree of consistency and compatibility between the corporate culture and the organization’s vision, mission, strategy, and objectives. Corporate culture misalignment is the situation where the corporate culture is not aligned with the organization’s goals and expectations, and may hinder or undermine the achievement of those goals. The acceptance of control costs that exceed risk exposure is most likely an example of corporate culture misalignment, as it indicates that the organization is not following a rational and optimal approach to risk management. The organization is spending more resources on controlling risks than the potential benefits or losses that the risks entail, which may result in inefficiency, waste, or opportunity cost. The organization may also be overemphasizing the importance of risk avoidance or mitigation, and neglecting the potential value creation or innovation that may arise from taking or accepting some risks. The other options are not the best answers, as they do not explain the situation of accepting control costs that exceed risk exposure. Low risk tolerance is the degree of variation from the risk appetite that the organization is not willing to accept. Low risk tolerance may lead to excessive or unnecessary controls, but it does not necessarily mean that the control costs exceed the riskexposure. High risk tolerance is the degree of variation from the risk appetite that the organization is willing to accept. High risk tolerance may lead to insufficient or ineffective controls, but it does not imply that the control costs exceed the risk exposure. Corporate culture alignment is the situation where the corporate culture is aligned with the organization’s goals and expectations, and supports and facilitates the achievement of those goals. Corporate culture alignment would not result inaccepting control costs thatexceed risk exposure, as it would imply a balanced and rational approach to risk management. References = CRISC Review Manual, pages 22-231; CRISC Review Questions, Answers & Explanations Manual, page 812

Ineffective control implementation can result in increased risk exposure, reduced compliance, and diminished performance for the organization. Therefore, the most relevant information for stakeholders is the impact of ineffective control implementation on the business objectives, processes, and outcomes. The impact on business can include financial losses, reputational damage, operational inefficiencies, customer dissatisfaction, and legal liabilities. The other options are not as relevant as the impact on business, because they do not directly link the control effectiveness to the business value. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 128.

A risk assessment is a process of identifying, analyzing, and evaluating the risks that may affect the enterprise’s objectives and operations. It involves determining the likelihood and impact of various risk scenarios, and prioritizing them based on their significance and urgency.

A WiFi access point is a device that allows wireless devices to connect to a wired network using radio signals. It can provide convenience and flexibility for users, but it can also introduce security risks, such as unauthorized access, data leakage, malware infection, or denial of service attacks.

If departments have installed their own WiFi access points on the enterprise network, without proper authorization, configuration, or monitoring, it means that they have bypassed the network security policy and controls, and created potential vulnerabilities and exposures for the enterprise.

The most important information to include in a report to senior management is the potential business impact of this risk, which is the estimated loss or damage that the enterprise may suffer if the risk materializes. The potential business impact can be expressed in terms of financial, operational, reputational, or legal consequences, and it can help senior management to understand the severity and urgency of the risk, and to decide on the appropriate risk response and allocation of resources.

The other options are not the most important information to include in a report to senior management, because they do not convey the magnitude and significance of the risk, and they may not be relevant or actionable for senior management.

The network security policy is the set of rules and guidelines that define the security objectives, requirements, and responsibilities for the enterprise network. It is important to have a clear and comprehensive network security policy, and to ensure that it is communicated, enforced, and monitored across the enterprise, but it is not the most important information to include in a report to senior management, because it does not indicate the actual or potential impact of the risk, and it may not reflect the current or desired state of the network security.

The WiFi access point configuration is the set of parameters and settings that define the functionality, performance, and security of the WiFi access point. It is important to have a secure and consistent WiFi access point configuration, and to follow the best practices and standards for wireless network security, but it is not the most important information to include in a report to senior management, because it does not indicate the actual or potential impact of the risk, and it may not be relevant or understandable for senior management.

The planned remediation actions are the steps and measures that are intended to mitigate, transfer, avoid, or accept the risk, and to restore the normal operation and security of the enterprise network. It is important to have a feasible and effective plan for remediation actions, and to implement and monitor them in a timely and efficient manner, but it is not the most important information to include in a report to senior management, because it does not indicate the actual or potential impact of the risk, and it may not be feasible or appropriate without senior management’s approval or support. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 146

According to the Gaining the competitive edge – measuring and assessing an organization’s risk culture article, risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite should be aligned with the organization’s strategy, goals, and values, and should reflect the organization’s risk culture and capabilities. One of the main considerations when validating an organization’s risk appetite is the capacity to withstand loss, which is the ability of the organization to absorb the impact of adverse events without jeopardizing its viability or reputation. The capacity to withstand loss depends on various factors, such as the financial strength, the operational resilience, the governance structure, and the stakeholder expectations of the organization. By assessing the capacity to withstand loss, the organization can determine if its risk appetite is realistic and appropriate, or if it needs to be adjusted to match its risk profile and environment. References = Gaining the competitive edge – measuring and assessing an organization’s risk culture

According to the CRISC Review Manual (Digital Version), the risk register is the most useful component of the review of the overall risk profile from the targeted organization, as it provides a comprehensive and up-to-date record of the identified risks, their likelihood and impact, their risk response actions, and their residual risk levels. The risk register helps to:

Understand the current and potential threats and vulnerabilities that may affect the targeted organization’s objectives and performance

Evaluate the effectiveness and efficiency of the risk management processes and controls implemented by the targeted organization

Identify the gaps or weaknesses in the risk management practices and capabilities of the targeted organization

Assess the compatibility and alignment of the risk appetite and risk tolerance of the targeted organization with the acquiring organization

Estimate the value and benefits of the acquisition and the potential risks and costs involved

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.5: IT Risk Identification Methods and Techniques, pp. 38-391

The most important risk consideration when the global company’s business continuity plan (BCP) requires the transfer of its customer information to a cloud computing environment in the event of a disaster is that the cloud computing environment is shared with another company. A cloud computing environment is a service model that provides on-demand access to a shared pool of computing resources, such as servers, storage, networks, and applications. A shared cloud computing environment means that the same computing resources are used by multiple customers or tenants, and that the data and activities of one customer may affect or be affected by the data and activities of another customer. This may pose a significant risk to the security, privacy, and availability of the customer information, as it may be exposed, accessed, modified, or deleted by unauthorized or malicious parties. The other options are not as important as the cloud computing environment being shared with another company, as they are related to the differences, agreements, or cultures of the company or the country, not the environment or the platform of the customer information transfer. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

The data custodian is the person who is responsible for implementing and maintaining security controls to protect the data entrusted to them by the data owner. The data custodian is typically a system administrator or a security systems administrator who has the technical skills and access rights to manage the security systems and processes that safeguard the data. The data custodian’s responsibilities include, but are not limited to: Installing, configuring, and updating security systems such as firewalls, anti-virus software, encryption tools, etc. Monitoring network traffic and system logs to detect and respond to security incidents. Conducting regular security assessments and audits to ensure compliance with security policies and standards. Implementing backup and recovery procedures to ensure data availability and integrity. The data custodian works under the direction and guidance of the data owner, who is the person who has the authority and accountability for the data and its use. The data owner defines the data classification, the data retention period, and the data access rights and privileges. The data owner also approves any changes to the security controls or the data itself. The data owner is typically a senior manager or a business unit leader who has the business knowledge and responsibility for the data. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: Data Classification, pp. 11-131

The primary objective for selecting risk response options is to reduce risk to an acceptable level. Risk response options are the possible actions that can be taken to address the risks that have been identified and analyzed in the risk management process. Risk response options can be classified into four categories: avoid, transfer, mitigate, and accept for negative risks (or threats), and exploit, share, enhance, and accept for positive risks (or opportunities). The selection of the risk response options depends on various factors, such as the risk level, the risk appetite and tolerance, the cost and benefit, and the feasibility and availability of the options. The main goal of selecting the risk response options is to reduce the risk to a level that is acceptable to the organization, which means that the risk exposure is within the boundaries of the risk criteria and the risk appetite. The other options are not the primary objective for selecting risk response options, although they may be related or beneficial. Identifying compensating controls is a technique to implement additional or alternative controls when the existing controls are not effective or sufficient to reduce the risk to an acceptable level. Minimizing residual risk is a result of selecting and implementing the risk response options, but it is not the main purpose. Residual risk is the risk that remains after the risk response, and it may or may not be acceptable depending on the risk appetite and tolerance. Reducing risk factors is a method to decrease the likelihood or impact of the risk by addressing the root causes or sources of the risk. However, reducing risk factors does not necessarily mean that the risk is reduced to an acceptable level,as there may be other factors or uncertainties that affect the risk. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 862

A key performance indicator (KPI) is a measurable value that demonstrates how effectively an organization is achieving its key objectives. A KPI should be relevant, specific, measurable, achievable, and time-bound. The number of identified system vulnerabilities is a KPI that measures the security posture and performance of the organization’s information systems. It also helps to identify the areas that need improvement or remediation. The number of identified system vulnerabilities is relevant to the organization’s objective of protecting its information assets, specific to the system level, measurable by using tools or methods, achievable by implementing security controls or practices, and time-bound by setting a target or threshold. Aggregate risk of the organization, number of exception requests processed in the past 90 days, and number of attacks against the organization’s website are not KPIs, as they are either too broad, not relevant, or not measurable. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.1.1.1, page 1741

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 647.

A risk register is a document that records and tracks the information and status of the identified risks and their responses. It includes the risk description, category, source, cause, impact, probability, priority, response, owner, action plan, status, etc.

A risk scenario is a description or representation of a possible or hypothetical situation or event that may cause or result in a risk for the organization. A risk scenario usually consists of three elements: a threat or source of harm, a vulnerability or weakness, and an impact or consequence.

Multiple risk practitioners are the individuals or groups that are involved or responsible for the identification, analysis, evaluation, and communication of the risks and their responses. They may include the risk owners, risk managers, risk analysts, risk consultants, risk auditors, etc.

A single risk register is a risk register that is shared or used by multiple risk practitioners across the organization, and that contains the information and status of all the risks and their responses that are relevant or applicable to the organization.

The most important consideration when multiple risk practitioners capture risk scenarios in a single risk register is using a consistent method for risk assessment, which is the process of determining the significance and urgency of the risks that may affect the organization’s objectives and operations. Risk assessment involves measuring and comparing the likelihood and impact of various risk scenarios, and prioritizing them based on their magnitude and importance.

Using a consistent method for risk assessment when multiple risk practitioners capture risk scenarios in a single risk register ensures that the risk scenarios are captured and recorded in a uniform and standardized way, and that they are comparable and compatible with each other. It alsohelps to avoid or reduce the inconsistencies, discrepancies, or conflicts that may arise from the different perspectives, assumptions, or judgments of the multiple risk practitioners, and to ensure the accuracy, reliability, and validity of the risk register.

The other options are not the most important considerations when multiple risk practitioners capture risk scenarios in a single risk register, because they do not address the main challenge or issue that may arise from the multiple risk practitioners capturing risk scenarios in a single risk register, which is the lack of consistency or standardization in the risk assessment method.

Aligning risk ownership and control ownership means ensuring that the individuals or groups that are accountable and responsible for the risks and their responses are clearly defined and assigned, and that they have the authority and resources to perform their roles and duties. Aligning risk ownership and control ownership is important when multiple risk practitioners capture risk scenarios in a single risk register, but it is not the most important consideration, because it does not ensure that the risk scenarios are captured and recorded in a uniform and standardized way, and that they are comparable and compatible with each other.

Developing risk escalation and reporting procedures means establishing and implementing the processes and guidelines for communicating and sharing the information and status of the risks and their responses among the relevant stakeholders, and for escalating or transferring the risks and their responses to the appropriate levels or parties when necessary or required. Developing risk escalation and reporting procedures is important when multiple risk practitioners capture risk scenarios in a single risk register, but it is not the most important consideration, because it does not ensure that the risk scenarios are captured and recorded in a uniform and standardized way, and that they are comparable and compatible with each other.

Maintaining up-to-date risk treatment plans means updating and revising the actions or plans that are selected and implemented to address or correct the risks and their responses, based on the changes or developments that may occur in the risk environment or performance. Maintaining up-to-date risk treatment plans is important when multiple risk practitioners capture risk scenarios in a single risk register, but it is not the most important consideration, because it does not ensure that the risk scenarios are captured and recorded in a uniform and standardized way, and that they are comparable and compatible with each other. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 178

CRISC Practice Quiz and Exam Prep

 According to the CRISC Review Manual1, lessons learned from materialized risk scenarios are the insights and knowledge gained from analyzing the causes, impacts, and responses of actual risk events that occurred in the past. Lessons learned from materialized risk scenarios are the most helpful resource when creating a manageable set of IT risk scenarios, as they help to identify and prioritize the most relevant and realistic risks that could affect the organization’s objectives, processes, and resources. Lessons learned from materialized risk scenarios also help to improve the risk management practices and capabilities, and to avoid repeating the same mistakes or gaps in the future. References = CRISC Review Manual1, page 206.

IT control self-assessments are techniques that involve identifying and evaluating the effectiveness and efficiency of the IT controls that are designed and implemented to mitigate the IT risks, by the managers and staff within the organization12.

An ineffective control is a control that does not achieve its intended objective or purpose, or does not operate as designed or expected34.

A low residual risk scenario is a situation or occurrence that has a low likelihood and impact of affecting the organization’s objectives, performance, or value creation, after considering the existing controls and their effectiveness56.

The next course of action when reviewing management’s IT control self-assessments and noting an ineffective control that links to several low residual risk scenarios is to recommend management accept the low-risk scenarios, which is a risk response strategy that involves acknowledging and tolerating the level of risk exposure, and not taking any further action to reduce or eliminate it78.

Recommending management accept the low-risk scenarios is the next course of action because it is the most cost-effective and reasonable option, given that the level of risk exposure is low and acceptable, and the cost and effort of implementing or improving the control may outweigh the potential benefits or value78.

Recommending management accept the low-risk scenarios is also the next course of action because it is consistent with the risk management process and objectives, which are to identify and address the risks that may affect the achievement of the organization’s goals and the delivery of value to the stakeholders, and to optimize the balance between risk and reward78.

The other options are not the next course of action, but rather possible alternatives or steps that may be considered or followed in different circumstances or scenarios. For example:

Assessing management’s risk tolerance is a step that involves determining and communicating the acceptable or tolerable level of risk exposure for the organization or its business units, based on the organization’s risk appetite, criteria, and objectives78. However, this stepis not the next course of action because it is usually done before or during the risk assessment process, and not after noting an ineffective control that links to several low residual risk scenarios78.

Proposing mitigating controls is a course of action that involves suggesting or recommending additional or alternative controls that can reduce or eliminate the level of risk exposure, and improve the effectiveness and efficiency of the risk management process78. However, this course of action is not the next course of action because it is not necessary or appropriate for low residual risk scenarios, as the cost and effort of implementing or improving the controls may outweigh the potential benefits or value78.

Re-evaluating the risk scenarios associated with the control is a course of action that involves revising and updating the likelihood and impact of the risk scenarios, and the level of risk exposure or tolerance for the organization, based on the current or changed conditions or factors that influence the risk landscape78. However, this course of action is not the next course of action because it is not required or relevant for low residual risk scenarios, as the level of risk exposure is already low and acceptable, and the ineffective control does not significantly affect the risk assessment78. References =

1: Control Self Assessments - PwC1

2: Control self-assessment - Wikipedia2

3: Ineffective Controls: What They Are and How to Identify Them3

4: Ineffective Controls: What They Are and How to Identify Them4

5: Residual Risk - Definition and Examples5

6: Residual Risk: Definition, Formula & Management6

7: Risk IT Framework, ISACA, 2009

8: IT Risk Management Framework, University of Toronto, 2017

 An IT risk appetite statement is a document that expresses the amount and type of IT risk that an organization is willing to accept or pursue in order to achieve its objectives. An IT risk appetite statement can help guide the IT risk management process, by setting the boundaries, criteria, and targets for IT risk identification, assessment, response, and reporting. An IT risk appetite statement should be aligned with the organization’s overall risk appetite and strategy, and should be reviewed and updated periodically to reflect the changes in the internal and external environment. One of the factors that would most likely result in updates to an IT risk appetite statement is changes in senior management. Senior management is the group of executives who have the authority and responsibility for the strategic direction and performance of the organization. Changes in senior management can affect the IT risk appetite statement, as they may introduce new perspectives, priorities, expectations, or preferences for IT risk taking or avoidance. Changes in senior management can also affect the IT risk appetite statement, as they may require new or revised IT objectives, goals, or initiatives, which may entail different levels or types of IT risk. Therefore, changes in senior management should trigger a review and update of the IT risk appetite statement, to ensure that it is consistent and compatible with the new leadership and direction of the organization. References = Organisations must define their IT risk appetite and tolerance, Risk Appetite Statements - Institute of Risk Management, Develop Your Technology Risk Appetite - Gartner.

Detailed Explanation:Real-time monitoring is adetective control, as it is designed to identify and report suspicious or unauthorized activities as they occur. Detective controls provide feedback to mitigate ongoing risks and serve as an integral part of incident response plans.

Detailed Explanation:SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is used in the riskidentification phase to comprehensively analyze the organization's internal and external environments. By understanding strengths and weaknesses, internal risks can be identified, while opportunities and threats help to identify external risks. This method provides a foundation for proactive risk management.

Detailed Explanation:Data biasin machine learning algorithms can lead to inaccurate predictions or decisions, as biases in training data are amplified in the output. Addressing bias is essential for ethical and reliable algorithm performance.

When determining an appropriate risk assessment approach, the most important factor to understand is the value of information assets. This is because the value of information assets determines the potential impact of risks and the level of protection required. The value of information assets can be assessed based on their confidentiality, integrity, availability, and relevance to the business objectives and processes. A risk assessment approach should be aligned with the value of information assets and the risk appetite of the organization. The other options are not the most important factors to understand when determining a risk assessment approach, although they may influence the choice of methods and tools. The complexity of the IT infrastructure may affect the scope and depth of the risk assessment, but it does not indicate the level of risk or the priority of risk management. The management culture may affect the risk tolerance and the risk communication, but it does not reflect the value of information assets or the risk exposure. The threats and vulnerabilities may affect the likelihood and severity of risks, but they do not measure the value of information assets or the risk acceptance. References = CRISC Review Manual, pages 38-391; CRISC Review Questions, Answers & Explanations Manual, page 582

The primary input when designing IT controls should be internal and external risk reports. IT controls are specific activities performed by persons or systems to ensure that business objectives are met, and thatthe confidentiality, integrity, and availability of data and the overall management of the IT function are ensured1. Designing IT controls means creating and implementing the appropriate measures or actions to reduce the likelihood or impact of the IT risks that may affect the organization2. Internal and external risk reports are documents that provide information and analysis on the current and potential IT risks that the organization faces, as well as their sources, drivers, consequences, and responses3. Internal risk reports are generated by the organization itself, such as by the IT risk management function, the internal audit function, or the business units. External risk reports are obtained from external sources, such as regulators, industry associations, or third-party service providers. Internal and external risk reports are the primary input when designing IT controls, because they help to:

Identify and prioritize the IT risks that need to be addressed by the IT controls;

Evaluate the likelihood and impact of the IT risks, and compare them against the organization’s risk appetite and tolerance;

Determine the most suitable and effective IT control objectives and activities to mitigate the IT risks;

Align the IT control design and implementation with the organization’s objectives, strategies, and values;

Monitor and measure the performance and effectiveness of the IT controls in reducing the IT risks. The other options are not the primary input when designing IT controls, as they are either less relevant or less specific than internal and external risk reports. Benchmark of industry standards is a comparison of the organization’s IT control practices and performance with those of other organizations in the same industry or sector4. Benchmark of industry standards can help to improve the quality and consistency of the IT control design and implementation, as well as to identify the best practices and gaps. However, benchmark of industry standards is not the primary input when designing IT controls, as it does not address the specific IT risks that the organization faces, or the IT control objectives and activities that are appropriate and effective for the organization. Recommendations from IT risk experts are the suggestions or advice from the professionals or specialists who have the knowledge and experience in IT risk management and IT control design and implementation5. Recommendations from IT risk experts can help to enhance the IT control design and implementation, as well as to provide guidance and support to the organization. However, recommendations from IT risk experts are not the primary input when designing IT controls, as they are based on the opinions and perceptions of the experts, and may not reflect the actual or objective level and nature of the IT risks, or the IT control objectives and activities that are suitable and efficient for the organization. Outcome of control self-assessments is the result or conclusion of the evaluation and testing of the design and operation of the existing IT controls by the organization itself, such as by the IT control owners, the IT risk management function, or the business units6. Outcome of control self-assessments can help to improve the IT control design and implementation, as well as to detect and correct any issues or deficiencies. However, outcome of control self-assessments is not the primary input when designing IT controls, as it does not cover the new or emerging IT risks that the organization may face, or the IT control objectives and activities that are relevant and necessary for the organization. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1, Page 189.

According to the CRISC Review Manual (Digital Version), risk management strategies are primarily adopted to achieve acceptable residual risk levels, which are the remaining risk levels after implementing risk response actions. Residual risk levels should be aligned with the organization’s risk appetite and risk tolerance, which are the amount and type of risk that the organization is willing to accept in pursuit of its objectives and the acceptable variation in outcomes related to specific performance measures linked to objectives. Risk management strategies are the approaches or methods used to address risks, such as avoidance, mitigation, transfer, sharing, or acceptance. Risk management strategies should be based on a cost-benefit analysis of the alternatives available and the value of the assets at risk.

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 166-1691

The primary focus of a risk practitioner when validating a risk response action plan should be that the risk response reduces risk to an acceptable level. A risk response action plan is a document that describes the actions or measures that are taken or planned to modify the risk, such as reducing, avoiding, transferring, or accepting the risk1. Validating a risk response action plan means verifying whether the plan is feasible, effective, and efficient in addressing the risk2. The main objective of validating a risk response action plan is to ensure that the risk response reduces risk to an acceptable level, which is the level of risk that the organization is willing to tolerate or bear, based on its risk appetite and risk criteria3. Reducing risk to an acceptable level means that the risk response actions can lower the likelihood or impact of the risk to a point where the risk does not pose a significant threat or challenge to the organization’s objectives, operations, or performance. Reducing risk to an acceptable level also means that the risk response actions can balance the benefits and costs of the risk response, and that they can provide a reasonable assurance of the risk management effectiveness and efficiency4. The other options are not the primary focus of a risk practitioner when validating a risk response action plan, as they are either less relevant or less specific than reducing risk to an acceptable level. Quantifying risk impact is a component or element of validating a risk response action plan, not a focus of it. Quantifying risk impact means measuring or estimating the potential effects or consequences of the risk on the organization5. Quantifying risk impact can help to evaluate the severity and priority of the risk, as well as to compare the risk against the risk criteria and the risk appetite. However, quantifying risk impact is not the primary focus of a risk practitioner when validating a risk response action plan, as it does not address the feasibility, effectiveness, or efficiency of the risk response actions, or the level of risk reduction that they can achieve. Aligning with business strategy is a secondary or incidental benefit of validating a risk response action plan, not a primary or essential focus of it. Aligning with business strategy means ensuring that the risk response actions are consistent and coherent with the organization’s goals and values6. Aligning with business strategy can help to integrate the risk response actions with the organization’s culture and governance, as well as to support and enable the achievement of the organization’s mission and vision. However, aligning with business strategy is not the main focus of a risk practitioner when validating a risk response action plan, as it does not indicate the feasibility, effectiveness, or efficiency of the risk response actions, or the level of risk reduction that they can achieve. Advancing business objectives is a tertiary or indirect outcome of validating a risk response action plan, not a primary or direct focus of it. Advancing business objectives means contributing to the improvement and enhancement of the organization’s performance and results7. Advancing business objectives can help to create value and deliver benefits for the organization and its stakeholders, as well as to optimize the use of the organization’s resources and capabilities. However, advancing business objectives is not the main focus of a risk practitioner when validating a risk response action plan, as it does not address the feasibility, effectiveness, or efficiency of the risk response actions, or the level of risk reduction that they can achieve. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.8, Page 61.

A risk assessment of a production system is a process of identifying, analyzing, evaluating, and treating the risks that may affect the performance, quality, or safety of the production system, which is a system that transforms inputs into outputs using various resources, processes, and technologies12.

The most appropriate action for the risk manager to take after undertaking a risk assessment of a production system is to inform the process owner of the concerns and propose measures to reduce them, which is a process of communicating and consulting with the person who is responsible for the design, operation, and improvement of the production system, and suggesting possible risk responses that can prevent, mitigate, transfer, or accept the risks34.

This action is the most appropriate because it ensures the involvement and collaboration of the process owner, who has the authority and accountability to implement and monitor the risk responses, and who can provide feedback and input on the feasibility and effectiveness of the proposed measures34.

This action is also the most appropriate because it supports the risk management process and objectives, which are to identify and address the risks that may affect the achievement of the organization’s goals and the delivery of value to the stakeholders34.

The other options are not the most appropriate actions, but rather possible alternatives or supplements that may have some limitations or drawbacks. For example:

Recommending a program that minimizes the concerns of the production system is an action that involves designing and planning a set of coordinated and interrelated activities and tasks that aim to reduce the likelihood or impact of the risks34. However, this action is notthe most appropriate because it does not involve the process owner, who is the key stakeholder and decision maker for the production system, and who may have different views or preferences on the risk responses34.

Informing the development team of the concerns, and together formulating risk reduction measures is an action that involves communicating and consulting with the group of people who are responsible for creating, testing, and deploying the products or services that are produced by the production system, and jointly developing possible risk responses34. However, this action is not the most appropriate because it does not involvethe process owner, who is the primary owner and user of the production system, and who may have different needs or expectations on the risk responses34.

Informing the IT manager of the concerns and proposing measures to reduce them is an action that involves communicating and consulting with the person who is responsible for managing and overseeing the IT resources, processes, and systems that support the production system, and suggesting possible risk responses34. However, this action is not the most appropriate because it does not involve the process owner, who is the main stakeholder and beneficiary of the production system, and who may have different requirements or constraints on the risk responses34. References =

1: Risk Assessment for the Production Process1

2: Risk Assessment for Industrial Equipment2

3: Risk IT Framework, ISACA, 2009

4: IT Risk Management Framework, University of Toronto, 2017

The best way for a risk practitioner to help management prioritize risk response is to assess risk against business objectives. This means comparing the level and nature of the risks with the goals and strategies of the organization, and determining which risks pose the most significant threat or opportunity to the achievement of those objectives. By assessing risk against business objectives, the risk practitioner can help management identify the most critical and relevant risks, and prioritize the risk response actions accordingly. The risk response actions should be aligned with the organization’s risk appetite, which is the amount and type of risk that the organization is willing to take in order to meet its strategic goals1. The other options are not the best ways for a risk practitioner to help management prioritize risk response, as they are either less effective or less specific than assessing risk against business objectives. Aligning business objectives to the risk profile is a way of ensuring that the organization’s objectives are realistic and achievable, given the current and potential risks that the organization faces. However, this is not the same as prioritizing risk response, as it does not indicate which risks should be addressed first or how theyshould be managed. Implementing an organization-specific risk taxonomy is a way of creating a common language and classification system for describing and categorizing risks. This can help improve the consistency and clarity of risk communication and reporting across the organization. However, this is not the same as prioritizing risk response, as it does not measure the likelihood and impact of the risks, or their relation to the organization’s objectives. Explaining risk details to management is a way of providing information and insight on the sources, drivers, consequences, and responses of the risks. This can help increase the awareness and understanding of the risks among the decision makers and stakeholders. However, this is not the same as prioritizing risk response, as it does not suggest or recommend the best course of action for managing the risks. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.6, Page 57.

According to the CRISC Review Manual (Digital Version), key risk indicator (KRI) thresholds are the most likely elements of a risk register to change as a result of change in management’s risk appetite, as they reflect the acceptable levels of risk exposure for the organization. KRI thresholds are the values or ranges that trigger an alert or a response when the actual KRI values deviate from the expected or desired values. KRI thresholds help to:

Monitor and measure the current risk levels and performance of the IT assets and processes

Identify and report any risk issues or incidents that may require attention or action

Evaluate the effectiveness and efficiency of the risk response actions and controls

Align the risk management activities and decisions with the organization’s risk appetite and risk tolerance

If the management’s risk appetite changes, the KRI thresholds may need to be adjusted accordingly to ensure that the risk register reflects the current risk preferences and expectations of the organization.

References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.1: IT Risk Monitoring, pp. 217-2181

 The analysis of logs and system events will best help validate whether suspicious network activity is malicious, because they provide detailed and timely information about the source, destination, content, and context of the network traffic. Logs and system events can be collected from various sources, such as firewalls, routers, switches, servers, applications, and endpoints, and can be correlated and analyzed using tools such as security information and event management (SIEM) systems. By analyzing logs and system events, an organization can identify anomalies, patterns, trends, and indicators of compromise (IOCs) that may signal malicious network activity, such as unauthorized access, data exfiltration, malware infection, denial-of-service attack, or lateral movement. Logs and system events can also help determine the scope, impact, and root cause of the malicious network activity, and support the incident response and remediation process. References = Risk IT Framework, ISACA, 2022, p. 221

A web-based service provider is an organization that offers online services or applications to its customers or users, such as e-commerce, social media, cloud computing, etc. A web-based service provider depends on the availability, reliability, and security of its web servers, networks, and systems to deliver its services or applications.

A low risk appetite for system outages means that the organization is not willing to accept a high level or frequency of system outages, which are interruptions or disruptions in the normal operation or functionality of the web servers, networks, or systems. System outages can cause customer dissatisfaction, revenue loss, reputation damage, or legal liability for the web-based service provider.

A current risk profile for online security is the current state or condition of the online security risks that may affect the web-based service provider’s objectives and operations. It includes the identification, analysis, and evaluation of the online security risks, and the prioritization and response to them based on their significance and urgency.

The most relevant observation to escalate to senior management is an increase in attempted distributed denial of service (DDoS) attacks, which are malicious attacks that aim to overwhelm or overload the web servers, networks, or systems with a large volume or frequency of requests or traffic, and prevent them from responding to legitimate requests or traffic. An increase in attempted DDoS attacks indicates a high likelihood and impact of system outages, and a high level of threat or vulnerability for the web-based service provider’s online security. Escalating this observation to senior management can help them to understand the severity and urgency of the risk, and to decide on the appropriate risk response and allocation of resources.

The other options are not the most relevant observations to escalate to senior management, because they do not indicate a high likelihood or impact of system outages, and they may not be relevant or actionable for senior management.

An increase in attempted website phishing attacks means an increase in malicious attempts to deceive or trick the web-based service provider’s customers or users into providing their personal or financial information, such as usernames, passwords, credit card numbers, etc., by impersonating the web-based service provider’s website or email. An increase in attempted website phishing attacks indicates a high level of threat or vulnerability for the web-based service provider’s online security, but it may not directly cause system outages, unless the phishing attacks are used to compromise the web servers, networks, or systems. Escalating this observation to senior management may not be the most relevant, because it may not reflect the web-based service provider’s risk appetite for system outages, and it may not require senior management’s involvement or approval.

A decrease in achievement of service level agreements (SLAs) means a decrease in the extent or degree to which the web-based service provider meets or exceeds the agreed or expected standards or criteria for the quality, performance, or availability of its services or applications, as specified in the contracts or agreements with its customers or users. A decrease in achievement of SLAs indicates a low level of customer satisfaction, retention, or loyalty, and a low level of competitiveness or profitability for the web-based service provider. Escalating this observation to senior management may not be the most relevant, because it may not reflect the web-based service provider’s risk appetite for system outages, and it may not require senior management’s involvement or approval.

A decrease in remediated web security vulnerabilities means a decrease in the number or percentage of web security vulnerabilities that have been identified and resolved or mitigated by the web-based service provider. Web security vulnerabilities are weaknesses or flaws in the web servers, networks, or systems that can be exploited by malicious attackers to compromise or damage the web-based service provider’s online security. A decrease in remediated web security vulnerabilities indicates a low level of effectiveness or efficiency for the web-based service provider’s web security controls or processes. Escalating this observation to senior management may not be the most relevant, because it may not reflect the web-based service provider’s risk appetite for system outages, and it may not require senior management’s involvement or approval. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 161

CRISC Practice Quiz and Exam Prep

Detailed Explanation:Thelatest security assessmentprovides a detailed evaluation of the control’s performance and identifies gaps or weaknesses. This is critical for determining the effectiveness of a system security control in mitigating threats.

 A rule-based data loss prevention (DLP) tool is a software solution that identifies and helps prevent unsafe or inappropriate sharing, transfer, or use of sensitive data. It can help an organization monitor and protect sensitive information across on-premises systems, cloud-based locations, and endpoint devices. It can also help an organization comply with regulations such as the Health Insurance Portability and Accountability Act (HIPAA) and General Data Protection Regulation (GDPR). A rule-based DLP tool works by comparing content to the organization’s DLP policy, which defines how the organization labels, shares, and protects data without exposing it to unauthorized users. The tool can then apply protective actions such as encryption, access restrictions, and alerts. As a result of implementing a rule-based DLP tool, the most likely change is the reduction of risk likelihood, which is the probability of a risk event occurring. By detecting and preventing data breaches, exfiltration, or unwanted destruction of sensitive data, a rule-based DLP tool can lower the chance of such incidents happening and thus decrease the risk likelihood. The other options are less likely to change as a result of implementing a rule-based DLP tool. Risk velocity is the speed at which a risk event impacts an organization, which depends on factors such as the nature of the threat, the response time, and the recovery process. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives, which depends on factors such as the organization’s culture, strategy, and stakeholder expectations. Risk impact is the potential loss or damage that a risk event can cause to an organization, which depends on factors such as the severity of the incident, the extent of the exposure, andthe resilience of the organization. While a rule-based DLP tool may have some influence on these factors, it is not the primary driver of change for them. References = Risk IT Framework, ISACA, 2022, p. 13

Detailed Explanation:Key Risk Indicators (KRIs)are metrics used to monitor changes in risk exposure, enabling proactive adjustments to keep risks within appetite. They provide early warnings of potential breaches in risk thresholds.

A control deficiency is a weakness or flaw in the design or implementation of a control that reduces its effectiveness or efficiency in achieving its intended objective or mitigating the risk that it is designed to address. A control deficiency may be caused by various factors, such as human error, system failure, process inefficiency, resource limitation, etc.

When determining which control deficiencies are most significant, the most useful information would be the risk analysis results, which are the outcomes or outputs of the risk analysis process that measures and compares the likelihood and impact of various risk scenarios, and prioritizes them based on their significance and urgency. The risk analysis results can help to determine which control deficiencies are most significant by providing the following information:

The level and priority of the risks that are associated with the control deficiencies, and the potential consequences or impacts that they may cause for the organization if they materialize.

The gap or difference between the current and desired level of risk, and the extent or degree to which the control deficiencies contribute to or affect the gap or difference.

The cost-benefit or feasibility analysis of the possible actions or plans to address or correct the control deficiencies, and the expected or desired outcomes or benefits that they may provide for the organization.

The other options are not the most useful information when determining which control deficiencies are most significant, because they do not provide the same level of detail and insight that the risk analysis results provide, and they may not be relevant or actionable for the organization.

An exception handling policy is a policy that defines and describes the procedures and guidelines for dealing with the situations or circumstances that deviate from the normal or expected operation or functionality of a control, and that may require special or alternative actions or measures to address or resolve them. An exception handling policy can provide useful information on how to handle or manage the control deficiencies, but it is not the most useful information when determining which control deficiencies are most significant, because it does not indicate the level and priority of the risks that are associated with the control deficiencies, and the potential consequences or impacts that they may cause for the organization.

A vulnerability assessment is an assessment that identifies and evaluates the weaknesses or flaws in the organization’s assets, processes, or systems that can be exploited or compromised by the threats or sources of harm that may affect the organization’s objectives or operations. A vulnerability assessment can provide useful information on the existence and severity of the control deficiencies, but it is not the most useful information when determining which control deficiencies are most significant, because it does not indicate the likelihood and impact of the risk scenarios that are associated with the control deficiencies, and the potential consequences or impacts that they may cause for the organization.

A benchmarking assessment is an assessment that compares and contrasts the organization’s performance, practices, or processes with those of other organizations or industry standards, and identifies the strengths, weaknesses, opportunities, or threats that may affect the organization’s objectives or operations. A benchmarking assessment can provide useful information on the best practices or improvement areas for the organization, but it is not the most useful information when determining which control deficiencies are most significant, because it does not indicate the level and priority of the risks that are associatedwith the control deficiencies, and the potential consequences or impacts that they may cause for the organization. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 176

CRISC Practice Quiz and Exam Prep

The main reason for documenting the performance of controls is to provide accurate risk reporting. Risk reporting is a process that communicates and discloses the relevant and reliable information about the risks and their management to the stakeholders and decision makers. Risk reporting is an essential component of the risk management process, as it helps to monitor and evaluate the effectiveness and efficiency of the risk identification, assessment, response, and monitoring activities, as well as to support and inform the risk governance and oversight functions. Documenting the performance of controls is a technique that records and tracks the results and outcomes of the controls that are implemented to address the risks, such as the control objectives,

An IT risk management framework is a set of principles, processes, and practices that guide and support the identification, analysis, evaluation, treatment, monitoring, and communication of IT-related risks within an organization12.

The primary advantage of implementing an IT risk management framework is the establishment of a reliable basis for risk-aware decision making, which enables the organization to balance the potential benefits and adverse effects of using IT, and to allocate resources and prioritize actions accordingly12.

A reliable basis for risk-aware decision making consists of the following elements12:

A common language and understanding of IT risk, its sources, impacts, and responses

A consistent and structured approach to IT risk identification, analysis, evaluation, and treatment

A clear and transparent governance structure and accountability for IT risk management

A comprehensive and up-to-date IT risk register and profile that reflects the organization’s risk appetite and tolerance

A regular and effective IT risk monitoring and reporting process that provides relevant and timely information to stakeholders

A continuous and proactive IT risk improvement process that incorporates feedback and lessons learned

The other options are not the primary advantage, but rather possible outcomes or benefits of implementing an IT risk management framework. For example:

Compliance with relevant legal and regulatory requirements is an outcome of implementing an IT risk management framework that ensures the organization meets its obligations and avoids penalties or sanctions12.

Improvement of controls within the organization and minimized losses is a benefit of implementing an IT risk management framework that reduces the likelihood and impact of IT-related incidents and events12.

Alignment of business goals with IT objectives is a benefit of implementing an IT risk management framework that ensures the IT strategy and activities support the organization’s mission and vision12. References =

1: Risk IT Framework, ISACA, 2009

2: IT Risk Management Framework, University of Toronto, 2017

Detailed Explanation:When likelihood is unknown, range-based estimates from subject-matter experts provideinformed and realistic insights into potential risk exposure. This approach helps approximate the inherent risk based on experience and expertise, supporting effective decision-making.

A security incident handling process is a set of procedures and activities that aim to identify, analyze, contain, eradicate, recover from, and learn from security incidents that affect the confidentiality, integrity, or availability of information assets12.

The maturity of a security incident handling process is the degree to which the process is defined, managed, measured, controlled, and improved, and the extent to which it meets the organization’s objectives and expectations34.

The best key performance indicator (KPI) to measure the maturity of a security incident handling process is the number of recurring security incidents, which is the frequency or rate of security incidents that are repeated or reoccur after being resolved or closed56.

The number of recurring security incidents is the best KPI because it reflects the effectiveness and efficiency of the security incident handling process, and the ability of the process to prevent or reduce the recurrence of security incidents through root cause analysis, corrective actions, and continuous improvement56.

The number of recurring security incidents is also the best KPI because it is directly related to the organization’s objectives and expectations, such as minimizing the impact and cost of security incidents, enhancing the security posture and resilience of the organization, and complying with the relevant standards and regulations56.

The other options are not the best KPIs, but rather possible metrics that may support or complement the measurement of the maturity of the security incident handling process. For example:

The number of security incidents escalated to senior management is a metric that indicates the severity or complexity of security incidents, and the involvement or awareness of the senior management in the security incident handling process56. However, this metric doesnot measure the effectiveness or efficiency of the process, or the ability of the process to prevent or reduce security incidents56.

The number of resolved security incidents is a metric that indicates the output or outcome of the security incident handling process, and the performance or productivity of the security incident handling team56. However, this metric does not measure the quality or sustainability of the resolution, or the ability of the process to prevent or reduce security incidents56.

The number of newly identified security incidents is a metric that indicates the input or demand of the security incident handling process, and the capability or capacity of the security incident detection and identification mechanisms56. However, this metric does not measure the effectiveness or efficiency of the process, or the ability of the process to prevent or reduce security incidents56. References =

1: Computer Security Incident Handling Guide, NIST Special Publication 800-61, Revision 2, August 2012

2: ISO/IEC 27035:2016 Information technology — Security techniques — Information security incident management

3: Capability Maturity Model Integration (CMMI) for Services, Version 1.3, November 2010

4: COBIT 2019 Framework: Introduction and Methodology, ISACA, 2018

5: KPIs for Security Operations & Incident Response, SecurityScorecard Blog, June 7, 2021

6: Key Performance Indicators (KPIs) for Security Operations and Incident Response, DFLabs White Paper, 2018

A systems interruption caused by a personal USB device plugged into the corporate network by an IT employee who bypassed internal control procedures is a serious breach of information security and IT risk management. The person who should be accountable for this incident is the chief information officer (CIO), who is responsible for overseeing the IT function and ensuring compliance with IT policies and standards. The CIO should also ensure that appropriate corrective and preventive actions are taken to prevent such incidents from recurring and to mitigate the impact of the systems interruption on the business operations and objectives. The CIO should also report the incident to the senior management and the board of directors, and communicate with the relevant stakeholders about the incident and the actions taken. References = Risk IT Framework, ISACA, 2022, p. 181

A risk heat map is a kind of risk matrix where risks are ranked based on their potential impact and their likelihood of occurring, which allows you to prioritize the risks that pose the greatest threat. The severity of each risk is indicated by color, usually green for low risk, red for high risk, and yellow for medium risk. Therefore, from a single data point on a risk heat map, one can interpret the risk magnitude, which is the product of impact and likelihood. The other options are not directly related to a single data point on a risk heat map, but rather to the overall risk management strategy and context. References = Risk Assessment and Analysis Methods: Qualitative and Quantitative; What Is a Risk Heat Map, and How Can It Help Your Risk Management Strategy; CRISC Certified in Risk and Information Systems Control – Question599

 A benchmark analysis is a process of comparing the organization’s performance, practices, and processes with those of other organizations in the same industry or sector. A benchmark analysis can provide the most useful information when determining the frequency of risk assessments, because it can help the organization to identify the best practices, standards, and expectations for security risk management in its industry. A benchmark analysis can also help the organization to assess its current level of maturity, capability, and compliance in relation to security risk management, and to determine the gaps and areas for improvement. By conducting a benchmark analysis, the organization can establish a realistic and appropriate frequency of risk assessments that aligns with its industry norms and its own risk profile. The other options are not as useful as a benchmark analysis, because they do not provide a comprehensive and relevant view of the security risk management landscape, but rather focus on specific or partial aspects of the organization’s situation. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, page 18.

Business impact analysis (BIA) is a process that involves analyzing the potential consequences of an IT risk event on the organization’s critical business functions and processes. BIA can help to understand the severity and duration of the disruption, the financial and operational losses, the recovery time objectives, and the recovery point objectives. BIA can also help to prioritize the recovery activities and resources, as well as to determine the acceptable level of risk and the risk mitigation strategies. BIA is the most helpful tool to understand the consequences of an IT risk event, as it provides a comprehensive and quantitative assessment of the impact and the recovery requirements. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.2, p. 206-207

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.

A root cause analysis is a systematic process of identifying the underlying factors that caused the noncompliant conditions during the review of a control procedure. A root cause analysis can help to prevent the recurrence of the noncompliance, improve the effectiveness of the control procedure, and enhance the risk management process. A root cause analysis can be performed using various tools and techniques, such as the 5 whys, fishbone diagram, Pareto chart, or fault tree analysis. The other options are not as appropriate as a root cause analysis, because they do not address the source of the problem, but rather the symptoms or consequences of the noncompliance. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.3, page 130.

Risk scenarios: Narratives that describe potential risk events, their causes, consequences, and likelihood1.

Internet of Things (IoT): A network of interconnected devices, software, sensors, and other things that communicate and exchange data without human intervention2.

IoT threat landscape: The range and types of threats and attacks that target IoT devices, systems, and networks3.

The most helpful thing to review when identifying risk scenarios associated with the adoption of IoT technology in an organization is the IoT threat landscape. The IoT threat landscape provides a comprehensive and current overview of the potential sources, methods, and impacts of cyberattacks on IoT devices, systems, and networks. Reviewing the IoT threat landscape can help an organization to:

Identify the most relevant and prevalent threats and vulnerabilities that affect IoT technology, such as weak passwords, insecure interfaces, insufficient data protection, poor device management, or lack of encryption4.

Assess the likelihood and impact of different types of attacks, such as malware infections, denial-of-service attacks, data breaches, unauthorized access, or sabotage4.

Prioritize the most critical and urgent risks that need to be addressed and mitigated.

Develop realistic and plausible risk scenarios that reflect the actual IoT threat environment and the organization’s specific context and objectives.

The other options are not as helpful as the IoT threat landscape when identifying risk scenarios associated with the adoption of IoT technology in an organization, because they do not provide a comprehensive and current view of the potential threats and attacks that target IoT technology. The business case for the use of IoT, which is the justification and rationale for adopting IoT technology based on the expected benefits, costs, and risks, may help to understand the value and purpose of IoT technology for the organization, but it does not provide detailed information on the specific threats and vulnerabilities that affect IoT technology. Policy development for IoT, which is the process of creating and implementing rules and guidelines for the governance, management, and security of IoT technology, may help to establish the standards and expectations for IoT technology within the organization, but it does not provide an overview of the external threats and attacks that target IoT technology. The network that IoT devices can access, which is the infrastructure and system that enables the connectivity and communication of IoT devices, may help to identify the potential entry points and attack vectors for IoT threats, but it does not provide a complete picture of the types and impacts of IoT threats.

References = Risk Scenarios Toolkit, What is the Internet of Things (IoT)? With Examples | Coursera, Top IoT security issues and challenges (2022) – Thales, 8 Internet of Things Threats and Security Risks - SecurityScorecard

The business owner should own the risk if the ERP and payroll system fail to operate as expected, because the business owner is ultimately responsible for the business processes and objectives that depend on the systems. The other options are not the risk owners, because:

Option B: The ERP administrator is responsible for the technical aspects of the ERP system, but not the payroll system or the business outcomes.

Option C: The project steering committee is responsible for overseeing the project of replacing the ERP system, but not the ongoing operation and maintenance of the systems or the business risks.

Option D: The IT project manager is responsible for managing the project of replacing the ERP system, but not the payroll system or the business risks. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 90.

A preventive control is a type of control that aims to avoid or reduce the occurrence of an undesirable event or risk. A preventive control can be implemented through technical, administrative, or physical means. A new policy that forbids copying of data onto removable media is an example of a preventive control, because it prevents unauthorized data exfiltration or leakage through removable devices, such as flash drives or external hard disk drives. A preventive control is different from the other types of controls, as explained below:

A detective control is a type of control that aims to discover or identify the occurrence of an undesirable event or risk. A detective control can be implemented through monitoring, auditing, or reporting activities. An example of a detective control is a log analysis tool that detects any unauthorized access or modification of data on a system.

A directive control is a type of control that aims to guide or instruct the behavior or actions of individuals or groups. A directive control can be implemented through policies, procedures, standards, or rules. An example of a directive control is a training program that teaches employees how to handle sensitive data securely and appropriately.

A deterrent control is a type of control that aims to discourage or dissuade individuals or groups from performing an undesirable event or risk. A deterrent control can be implemented through sanctions, penalties, or consequences. An example of a deterrent control is a warning message that informs users of the legal implications of copying data onto removable media without authorization. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 38.

 Risk acceptance is a risk response strategy that involves acknowledging the existence and potential impact of a risk, but deciding not to take any action to reduce or eliminate it. Risk acceptance can be appropriate when the cost or effort of implementing a risk response outweighs the benefit, or when there are no feasible or effective risk responses available. An organization has identified that terminated employee accounts are not disabled or deleted within the time required by corporate policy, which poses a security risk to the organization. The organization is unsure of the reason for this issue, and has decided to monitor the situation for three months to obtain more information, rather than taking any immediate action to resolve the issue. As a result of this decision, the risk has been accepted, as the organization has chosen to tolerate the risk exposure for a certain period of time, and has not implemented any controls or measures to prevent or reduce the risk occurrence or impact. References = Risk Response Strategies: Avoid, Transfer, Mitigate, Accept, Risk Response Strategies: What They Are and How to Use Them, Risk Response Strategy: Definition, Types, and Examples.

 The chief information officer (CIO) is the most likely person to be responsible for the coordination between the IT risk strategy and the business risk strategy, because the CIO is the senior executive who oversees the information technology (IT) function and aligns it with the organization’s strategy, objectives, and operations. The CIO is also responsible for ensuring that the IT function delivers value, supports innovation, and manages IT risks effectively and efficiently. The CIO can coordinate the IT risk strategy and the business risk strategy by communicating and collaborating with other business leaders, establishing and implementing IT governance frameworks and policies, and monitoring and reporting on IT performance and risk indicators. The other options are not as likely as the CIO to be responsible for the coordination between the IT risk strategy and the business risk strategy, because they have different or limited roles and responsibilities in relation to IT and business risk management, as explained below:

A. Chief financial officer (CFO) is the senior executive who oversees the financial function and manages the financial risks of the organization. The CFO may be involved in the coordination between the IT risk strategy and the business risk strategy, especially when it comes to budgeting, funding, or reporting on IT-related projects and initiatives, but the CFO is not the primary person who oversees the IT function and aligns it with the organization’s strategy and objectives.

B. Information security director is the senior manager who oversees the information security function and manages the information security risks of the organization. The information security director may be involved in the coordination between the IT risk strategy and the business risk strategy, especially when it comes to protecting the confidentiality, integrity, and availability of the information assets and systems, but the information security director is not the primary person who oversees the IT function and aligns it with the organization’s strategy and objectives.

C. Internal audit director is the senior manager who oversees the internal audit function and provides independent assurance on the effectiveness and efficiency of the organization’s governance, risk management, and control processes. The internal audit director may be involved in the coordination between the IT risk strategy and the business risk strategy, especially when it comes to auditing, reviewing, or testing the IT-related processes and controls, but the internal audit director is not the primary person who oversees the IT function and aligns it with the organization’s strategy and objectives. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.1.1, page 7. The Strategic CIO: Balancing Business and IT Priorities, Technology’s Role in Enterprise Risk Management, Aligning Enterprise Cyber Risk and Business Strategy

According to the CRISC Review Manual1, senior management support is the commitment and involvement of the top-level executives and leaders in the risk management process. Senior management support is the most important enabler of effective risk management, as it helps to establish and communicate the risk vision, strategy, and culture of the organization. Senior management support also helps to allocate the necessary resources, authority, and accountability for risk management, and to ensure the alignment of the risk management objectives and activities with the organization’s strategy, goals, and values. References = CRISC Review Manual1, page 198.

According to the CRISC Review Manual1, risk scenarios are hypothetical situations that describe the potential causes, impacts, and responses of a risk event. Risk scenarios are useful tools for identifying, analyzing, and communicating risks in a clear and understandable way. The most important factor when developing risk scenarios is to ensure that they are relevant to the organization, as this helps to capture the specific context, objectives, processes, and resources of the organization, and to reflect the actual risk exposure and appetite of the organization. Relevant risk scenarios also help to engage and involve the stakeholders, and to facilitate risk-based decision making and action planning. References = CRISC Review Manual1, page 206.

Code review could BEST detect an in-house developer inserting malicious functions into a web-based application, because it is a process that involves examining and verifying the source code of the application for any errors, vulnerabilities, or malicious functions. Code review can help to identify and remove any unauthorized or harmful code that the developer may have inserted, either intentionally or unintentionally, and to ensure that the application meets the quality and security standards and requirements. The other options are not as effective as code review, because:

Option A: Segregation of duties is a control that involves separating the roles and responsibilities of the developer from those of the tester, the approver, and the deployer, to prevent any conflict of interest or misuse of authority. Segregation of duties can help to reduce the risk of the developer inserting malicious functions into the web-based application, but it does not detect them.

Option C: Change management is a process that involves controlling and documenting any changes to the web-based application, such as new features, enhancements, or bug fixes, to ensure that they are authorized, tested, and approved. Change management can help to track and monitor the changes that the developer may have made to the web-based application, but it does not detect the malicious functions.

Option D: Audit modules are components that are embedded in the web-based application to record and report the activities and transactions that occur within the application, such as user login, data input, or data output. Audit modules can help to audit and review the performance and functionality of the web-based application, but they do not detect the malicious functions. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 214.

According to the CRISC Review Manual1, peer reviews are the process of evaluating the quality and validity of risk analysis by independent experts or colleagues. Peer reviews are conducted to ensure that the risk analysis is consistent, objective, and reliable, and that it follows the established standards and methods. The primary reason for conducting peer reviews of risk analysis is to minimize subjectivity of assessments, as peer reviews can help to reduce personal biases, preferences, and assumptions that may affect the risk analysis outcomes. Peer reviews can also help to identify and correct any errors, gaps, or inconsistencies in the risk analysis, and to improve the risk analysis skills and knowledge of the reviewers and the reviewees. References = CRISC Review Manual1, page 209.

Conducting regular independent reviews will provide the best measure of compliance with IT policies, as this ensures that the policies are implemented and followed consistently and effectively across the organization. Independent reviews can also identify any gaps, weaknesses, or violations in the compliance process, and recommend corrective actions or improvements. Independent reviews can be performed by internal or external auditors, regulators, or consultants, depending on the scope and purpose of the review. Evaluating past policy review reports, performing penetration testing, and testing staff on their complianceresponsibilities are not the best measures of compliance with IT policies, although they may be useful or complementary methods. Evaluating past policy review reports can provide some historical and comparative data, but it may not reflect the current or accurate situation of the compliance status. Performing penetration testing can assess the security and vulnerability of the IT systems and networks, but it does not measure the compliance with all the IT policies, such as those related to governance, operations, or quality. Testing staff on their compliance responsibilities can evaluate the awareness and knowledge of the staff, but it does not measure the actual behaviour or performance of the staff in complying with the IT policies. References = Risk and Information Systems Control Study Manual, Chapter 5: Risk and Control Monitoring and Reporting, page 187.

 Understanding the Question:

The question asks what best enables the integration of IT risk management across an organization.

 Analyzing the Options:

A. Enterprise risk management (ERM) framework:Provides a comprehensive approach to integrating risk management across the entire organization.

B. Enterprise-wide risk awareness training:Important for education but doesn't ensure integration.

C. Robust risk reporting practices:Crucial for communication but not integration.

D. Risk management policies:Necessary but need to be part of an overall framework for effective integration.

 Detailed Explanation:

ERM Framework:An ERM framework ensures that risk management practices are standardized and integrated throughout the organization. It aligns risk management with business objectives, ensuring that IT risk is considered within the broader context of enterprise risk.

Comprehensive Approach:ERM covers all aspects of risk, including IT, and facilitates a unified approach to managing risk across all departments and levels.

References:

CRISC Review Manual, Chapter 1: Governance, details the role of an ERM framework in integrating risk management practices across an organization​​.

The most important factor when determining risk appetite is gaining management consensus, as it involves obtaining the agreement and support of the senior management and the board of directors on the amount and type of risk that the organization is willing to accept in pursuit of its objectives, and ensuring the alignment and consistency of the risk appetite across the organization. The other options are not the most important factors, as they are more related to the assessment, benchmarking, or identification of the risk, respectively, rather than the determination of the risk appetite. References = CRISC Review Manual, 7th Edition, page 109.

According to the CRISC Review Manual1, risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite is the most influential factor when management makes risk response decisions, as it helps to define the boundaries and thresholds for acceptable risk levels, and to align the risk responses with the organization’s strategy, goals, and culture. Risk appetite alsohelps to balance the potential benefits and costs of risk responses, and to communicate the risk expectations and preferences to the stakeholders. References = CRISC Review Manual1, page 192.

 A risk profile is a summary of the key risks that affect an organization, a business unit, a process, or a project. A risk profile can help stakeholders understand the current and potential exposure to various sources of uncertainty, and prioritize the risk response accordingly. Classification of risk profiles is the process of grouping and categorizing risks based on common characteristics, such as source, impact, likelihood, or response strategy. Classification of risk profiles can help communicate risk assessment results to stakeholders by providing a clear and consistent way of presenting and comparing risks across different domains, levels, or perspectives. Classification of risk profiles can also help identify patterns, trends, and interrelationships among risks, and facilitate the allocation of resources and responsibilities for risk management. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.1: Risk Profile, p. 193-195.

 A risk practitioner’s best course of action when a business manager wants to leverage an existing approved vendor solution from another area within the organization is to assess the risk associated with the new use case. This is because the new use case may introduce different or additional risks that were not considered or addressed in the original approval. For example, the new use case may involve different data types, volumes, or sensitivities; different business processes, functions, or objectives; different regulatory or contractual requirements; or different technical or operational dependencies. Therefore, the risk practitioner should perform a vendor risk assessment (VRA) to identify, evaluate, and mitigate the potential risks of the new use case and ensure that the vendor solution meets the organization’s riskappetite and tolerance12. Recommending allowing the new usage based on prior approval is not the best course of action, as it may overlook or underestimate the risks of the new use case and expose the organization to unacceptable levels of risk. Requesting a new third-party review is not the best course of action, as it may be unnecessary or redundant if the vendor solution has already been reviewed and approved for another use case within the organization. Requesting revalidation of the original use case is not the best course of action, as it may not address the specific risks of the new use case and may also delay or disrupt the existing use case. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.

Risk tolerance defines the boundaries for acceptable risk levels and directly impacts decision-making for mitigation strategies. A well-defined tolerance helps prioritize actions and allocate resources effectively, emphasizing its central role in theRisk Responsedomain.

A recovery time objective (RTO) is the maximum acceptable time or duration that a business process or function can be disrupted or unavailable due to a disaster or incident, before it causes unacceptable or intolerable consequences for the organization. It is usually expressed in hours, days, or weeks, and it is aligned with the organization’s business continuity and disaster recovery objectives and requirements.

The primary factor in determining a RTO is the cost of downtime due to a disaster, which is the estimated loss or damage that the organization may suffer if a business process or function is disrupted or unavailable for a certain period of time. The cost of downtime can be expressed in terms of financial, operational, reputational, or legal consequences, and it can help the organization to assess the impact and urgency of the disaster, and to decide on the appropriate recovery strategy and resources.

The other options are not the primary factors in determining a RTO, because they do not address the fundamental question of how long the organization can tolerate the disruption or unavailability of a business process or function.

The cost of offsite backup premises is the cost of acquiring, maintaining, or using an alternative or secondary location or facility that can be used to resume or continue the business process or function in case of a disaster or incident. The cost of offsite backup premises is important to consider when selecting or implementing a recovery strategy, but it is not the primary factor in determining a RTO, because it does not indicate the impact or urgency of the disaster, and it may not reflect the organization’s business continuity and disaster recovery objectives and requirements.

The cost of testing the business continuity plan is the cost of conducting, evaluating, or improving the tests or exercises that are performed to verify or validate the effectiveness and efficiency of the business continuity plan, which is the document that describes the actions and procedures that the organization will take to recover or restore the business process or function in case of a disaster or incident. The cost of testing the business continuity plan is important to consider when developing or updating the business continuity plan, but it is not the primary factor in determining a RTO, because it does not indicate the impact or urgency of the disaster, and it may not reflect the organization’s business continuity and disaster recovery objectives and requirements.

The response time of the emergency action plan is the time or duration that it takes for the organization to initiate or execute the emergency action plan, which is the document that describes the immediate actions and procedures that the organization will take to protect the life, health, and safety of the people, and to minimize the damage or loss of the assets,in case of a disaster or incident. The response time of the emergency action plan is important to consider when preparing or reviewing the emergency action plan, but it is not the primary factor in determining a RTO, because it does not indicate the impact or urgency of the disaster, and it may not reflect the organization’s business continuity and disaster recovery objectives and requirements. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 62-63, 66-67, 70-71, 74-75, 78-79

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 165

CRISC Practice Quiz and Exam Prep

A primary benefit of engaging the risk owner during the risk assessment process is prioritization of risk action plans across departments, because this helps to ensure that the most critical and relevant risks are addressed first, and that the resources and efforts are allocated and coordinated efficiently and effectively. A risk owner is the person or group who is responsible for the day-to-day management and mitigation of a specific risk, and who has the authority and accountability to make risk-related decisions. A risk assessment is the process of identifying, analyzing, and evaluating the risks that may affect the organization’s objectives, performance, or value. A risk action plan is the set of actions and tasks that are designed and implemented to reduce the likelihood and impact of a risk, or to exploit the opportunities that a risk may create. By engaging the risk owner during the risk assessment process, the organization can benefit from the following advantages:

The risk owner can provide valuable input and feedback on the risk identification, analysis, and evaluation, based on their knowledge, experience, and perspective of the risk and its context.

The risk owner can help to develop and implement the risk action plan, based on their understanding of the risk objectives, expectations, and outcomes, and their ability to influence and control the risk factors and sources.

The risk owner can help to prioritize the risk action plan, based on their assessment of the risk severity, urgency, and importance, and their consideration of the costs, benefits, and feasibility of the risk actions.

The risk owner can help to coordinate the risk action plan across departments, by communicating and collaborating with other risk owners, stakeholders, and resources, and by aligning and integrating the risk actions with the organization’s strategy, processes, and culture. References = Risk Owners — What Do They Do1

Cyber risk insurance is a type of insurance policy that provides coverage against losses and damages caused by cyber incidents such as data breaches, hacking, and other cyber attacks. When an organization decides to purchase cyber risk insurance, it transfers the risk of financial loss due to a cyber incident to the insurance company. In the scenario described in the question, the organization allowed its cyber risk insurance to lapse while seeking a new insurance provider. This means that the organization is currently not covered by any cyber risk insurance policy and is therefore exposed to financial losses due to cyber incidents. The risk practitioner should report to management that the risk has been accepted. Accepting risk means that the organization is aware of the potential consequences of the risk and has decided not to take any action to mitigate, transfer, or avoid it. The other options are not correct because they do not reflect the current situation of the organization. The organization has not transferred the risk to another party, as it has no cyber risk insurance policy in place. The organization has not mitigated the risk, as it has not implemented anycontrols or measures to reduce the likelihood or impact of the risk. The organization has not avoided the risk, as it has not eliminated the source or cause of the risk or changed its activities to prevent the risk from occurring. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 752

A consolidated view into the organization’s risk profile is a comprehensive and integrated representation of the risks that may affect the organization’s objectives, performance, and value creation12.

The most helpful material to provide a consolidated view into the organization’s risk profile is the IT risk register, which is a document that records and tracks the IT-related risks, their sources, impacts, likelihoods, responses, owners, and statuses within the organization34.

The IT risk register is the most helpful material because it provides a complete and consistent overview of the IT risk landscape, and enables the identification, analysis, evaluation, treatment, monitoring, and communication of IT risks across the organization34.

The IT risk register is also the most helpful material because it supports the project prioritization and resource allocation decisions, by highlighting the most significant and relevant IT risks, and by showing the alignment of the IT risk responses with the organization’s risk appetite, strategy, and objectives34.

The other options are not the most helpful materials, but rather possible inputs or outputs of the IT risk register. For example:

A list of key risk indicators (KRIs) is a set of metrics that measure the occurrence or status of IT risks, and provide timely and relevant information and feedback to the organization56. However, a list of KRIs is not the most helpful material because it does not provide a comprehensive and integrated view of the IT risk profile, but rather a snapshot or a trend of selected IT risks56.

Internal audit reports are documents that present the findings and recommendations of the internal audit function, which evaluates the adequacy and effectiveness of the IT risk management and control processes within the organization78. However, internal audit reports are not the most helpful material because they do not provide a comprehensive and integrated view of the IT risk profile, but rather a periodic and independent assessment of specific IT risk areas78.

A list of approved projects is a document that records and tracks the IT projects that have been authorized and funded by the organization, and their objectives, scope, schedule, budget, and status . However, a list of approved projects is not the most helpful material because it does not provide a comprehensive and integrated view of the IT risk profile, but rather a summary of the IT project portfolio . References =

1: Risk IT Framework, ISACA, 2009

2: IT Risk Management Framework, University of Toronto, 2017

3: IT Risk Register Template, ISACA, 2019

4: IT Risk Register Toolkit, ISACA, 2019

5: KPIs for Security Operations & Incident Response, SecurityScorecard Blog, June 7, 2021

6: Key Performance Indicators (KPIs) for Security Operations and Incident Response, DFLabs White Paper, 2018

7: IT Audit and Assurance Standards, ISACA, 2014

8: IT Audit and Assurance Guidelines, ISACA, 2014

IT Project Management Framework, University of Toronto, 2017

IT Project Management Best Practices, ISACA Journal, Volume 1, 2018

The best method to ensure a terminated employee’s access to IT systems is revoked upon departure from the organization is to have the human resources (HR) system automatically revoke system access, which is a process that involves integrating the HR system with the IT system, and triggering the removal of access rights for the employee as soon as the termination is recorded in the HR system12.

This method is the best because it provides the most timely, accurate, and consistent way of revoking access, and reduces the risk of human error, oversight, or delay that may occur in manual or semi-automated processes12.

This method is also the best because it enhances the security and compliance of the organization, and prevents the terminated employee from accessing or compromising the IT systems or data after departure12.

The other options are not the best methods, but rather alternative or supplementary methods that may have some limitations or drawbacks. For example:

Login attempts are reconciled to a list of terminated employees is a method that involves monitoring and verifying the login activities of the IT systems, and comparing them with a list of terminated employees to identify and block any unauthorized access attempts34. However, this method is not the best because it is reactive rather than proactive, and may not prevent the terminated employee from accessing the IT systems before the reconciliation is done34.

A list of terminated employees is generated for reconciliation against current IT access is a method that involves creating and maintaining a list of terminated employees, and checking it against the current IT access rights to identify and remove any access that is no longer needed34. However, this method is not the best because it is manual and labor-intensive, and may introduce errors or inconsistencies in the list or the access rights34.

A process to remove employee access during the exit interview is implemented is a method that involves conducting an exit interview with the terminated employee, and revoking the employee’s access to the IT systems during or immediately after the interview34. However, this method is not the best because it depends on the availability and cooperation of the terminated employee, and may not cover all the IT systems or access rights that the employee had34. References =

1: IT Involvement in Employee Termination, A Checklist3

2: Best Practices to Ensure Departing Employees Retain No Access5

3: User Termination Best Practices - IT Security - Spiceworks2

4: IT Security for Employee Termination - Policies, Checklists, Templates - Endsight1

 The primary consideration when implementing controls for monitoring user activity logs is ensuring that the control is proportional to the risk, because this helps to optimize the balance between the benefits and costs of the control, and to avoid over- or under-controlling the risk. User activity logs are records of the actions or events performed by users on IT systems, networks, or resources, such as accessing, modifying, or transferring data or files. Monitoring user activity logs can help to detect and prevent potential threats, such as unauthorized access, data leakage, or malicious activity, and to support the investigation and remediation of incidents. However, monitoring user activity logs also involves certain costs and challenges, such as collecting, storing, analyzing, and reporting large amounts of log data, ensuring the accuracy, completeness, and timeliness of the log data, protecting the privacy and security of the log data, and complying with the relevant laws and regulations. Therefore, when implementing controls for monitoring user activity logs, the organization should consider the level and impact of the risk that the control is intended to address, and the value and effectiveness of the control in reducing the risk exposure and impact. The organization should also consider the costs and feasibility of implementing and maintaining the control, and the potential negative consequences or side effects of the control, such as performance degradation, user dissatisfaction, or legal liability. By ensuring that the control is proportional to the risk, the organization can achieve the optimal level of risk management, and avoid wasting resources or creating new risks. References = Risk IT Framework, ISACA, 2022, p. 151

According to the CRISC Review Manual (Digital Version), the most important consideration when sharing risk management updates with executive management is ensuring relevance to organizational goals, as this helps to align risk management with business strategy and performance. The risk management updates should:

Highlight the key risks that may affect the achievement of the organizational goals and objectives

Demonstrate the value and benefits of risk management in supporting decision making and enhancing business resilience

Provide clear and concise information on the current risk profile, risk appetite, risk tolerance and risk exposure of the organization

Recommend appropriate risk response actions and resource allocation to address the identified risks

Communicate the roles and responsibilities of executive management in overseeing and governing risk management

References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.2: IT Risk Reporting, pp. 221-2221

The risk owner is the person who has the authority and accountability to manage a specific risk and its associated controls. The risk owner is also responsible for ensuring that the risk is within the acceptable level and that the risk response is effective and efficient. In this case, the risk owner is also the owner of the business service that depends on the managed hosting service. Therefore, the risk owner should be notified of the new information about the flood risk first, as they have the most interest and influence on the risk and its impact on the business objectives. The risk owner can then decide on the appropriate actions to take, such as reviewing the contract terms, requesting additional controls, or changing the service provider. The other options are not the correct answers because they are not the primary stakeholders of the risk and its consequences. The data center manager is an employee of the managed hosting service provider, not the organization that procured the service. The data center manager may not have the authority or the incentive to address the flood risk or inform the organization. The site manager is also an employee of the managed hosting service provider, and their role is to conduct annual risk assessments under the contract. The site manager may not be aware of the new information or have the responsibility to communicate it to the organization. The CIO is the senior executive who oversees the IT strategy and operations of the organization. The CIO may have a general interest in the managed hosting service and its risks, but they are not the direct owner or manager of the specific risk or the business service that relies on the service. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 702

The percentage of projects introduced into production without high-risk issues is the most important measure of the effectiveness of risk management in project implementation, as it reflects the ability of risk management to ensure that the project deliverables meet the quality, functionality, and security requirements, and do not introduce unacceptable risks to the organization. The percentage of projects having the risk register updated regularly, having key risk indicators (KRIs) established to measure risk, or having an action plan to remediate overdue issues are not the most important measures, as they are more related to the process, performance, or compliance of risk management, rather than the outcome or value of risk management. References = CRISC Review Manual, 7th Edition, page 110.

The greatest benefit of having a mature enterprise architecture (EA) in place is efficient operations, as EA provides a holistic view of the organization’s business processes, information systems, and technology infrastructure, and enables alignment, integration, and optimization of these components. Standards-based policies, audit readiness, and regulatory compliance are also benefits of EA, but they are not the greatest benefit. References = CRISC Review Manual, 7th Edition, page 145.

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 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 nothave 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

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

 Residual risk is the risk that remains after applying controls to mitigate the inherent risk. Inherent risk is the risk that exists before considering the controls. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk tolerance is the acceptable level of variation from the risk appetite. Improvements in the design and implementation of a control will most likely result in an update to the residual risk, because they will reduce the likelihood and impact of the risk event, and therefore lower the risk exposure and value. By improving the design and implementation of a control, the organization can enhance the effectiveness and efficiency of the control, and ensure that it is aligned with the risk objectives, expectations, and outcomes. The improvement can also address any gaps, overlaps, redundancies, or conflicts among the controls, and any changes or enhancements that are needed to optimize the controls. The other options are less likely to be updated due to improvements in the design and implementation of a control. The inherent risk will not change, as it is based on the nature and value of the asset and the threats and vulnerabilities that exist. The risk appetite and the risk tolerance will also not change, as they are based on the organization’s culture, strategy, and stakeholder expectations. Therefore, the most likely factor to be updated is the residual risk, as it reflects the actual risk level that the organization faces after applying the controls. References = Risk IT Framework, ISACA, 2022, p. 131

 Computer-enabled fraud is the use of information technology (IT) to commit or conceal fraudulent activities, such as theft, manipulation, or unauthorized access of data, systems, or networks. Computer-enabled fraud can pose significant risks to an organization, such as financial loss, reputational damage, legal liability, or regulatory sanctions. Therefore, an organization should establish a comprehensive and effective framework to prevent, detect, and respond to computer-enabled fraud. The framework should involve three lines of defense, which are the roles and responsibilities of different functions within theorganization to manage and control risks. The first line of defense consists of the business owners, whose role is to identify, assess, and manage risks, including computer-enabled fraud risks. The primary responsibility of the first line of defense related to computer-enabled fraud is to implement processes to detect and deter fraud. This means designing and executing controls that can prevent or reduce the occurrence of computer-enabled fraud, such as authentication, authorization, encryption, logging, or segregation of duties. This also means monitoring and reporting any suspicious or anomalous activities or transactions that may indicate computer-enabled fraud, such as unusual patterns, volumes, or frequencies of data or system access or usage. Implementing processes to detect and deter fraud can help the first line of defense to protect the organization’s assets, data, and reputation from computer-enabled fraud, and to comply with the organization’s policies and regulations. References = Three Lines of Defence, Roles of Three Lines of Defense for Information Security and Governance, THE THREE LINES OF DEFENSE IN EFFECTIVE RISK MANAGEMENT AND CONTROL, The Three Lines of Defense.

An IT license audit is a process that verifies the compliance of the IT software and hardware assets with the licensing agreements and regulations. An IT license audit can reveal the existence of unlicensed copies of software, which can expose the enterprise to legal, financial, and reputational risks. The best course of action in such a situation is to report the issue to management so that appropriate action can be taken. Management can then decide on the most suitable risk response strategy, such as procuring the necessary licenses, uninstalling the unlicensed software, or negotiating with the software vendor. Reporting the issue to management can also help to prevent further violations, identify the root causes, and implement corrective and preventive measures. The other options are not the best course of action, as they may not address the issue effectively, efficiently, or ethically. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1.1, pp. 156-157.

 The best recommendation to the control owner when an existing control has deteriorated over time is to discuss risk mitigation options with the risk owner. This is because the risk owner is the person or entity who has the authority and accountability to make decisions and take actions regarding the risk, including the selection and implementation of the risk response strategies. The control owner is the person or entity who is responsible for the design, operation, and maintenance of the control, but not for the overall risk management. By discussing risk mitigation options with the risk owner, the control owner can communicate the current status and performance of the control, and collaborate on finding the most appropriate and effective solution to address the risk and the control deterioration. The other options are not the best recommendation to the control owner, because they do not involve the risk owner, who is the key stakeholder in the risk management process, as explained below:

A. Implement compensating controls to reduce residual risk is not the best recommendation, because it may not be feasible, efficient, or sufficient to address the risk and the control deterioration. Compensating controls are additional or alternative controls that are implemented to mitigate the risk when the primary control is not available, adequate, or effective. However, implementing compensating controls without discussing with the risk owner may result in wasting resources, duplicating efforts, or conflicting objectives, and may not align with the risk appetite or strategy of the organization.

B. Escalate the issue to senior management is not the best recommendation, because it may not be necessary, timely, or appropriate to involve senior management in the risk and control deterioration issue. Senior management is the highest level of authority and oversight in the organization, and may not have the detailed or operational knowledge or involvement in the risk and control management. Escalating the issue to senior management without discussing with the risk owner may create confusion, delay, or misunderstanding, and may not result in the optimal risk mitigation solution.

D. Certify the control after documenting the concern is not the best recommendation, because it may not be accurate, honest, or compliant to certify the control when it has deteriorated over time. Certifying the control is the process of attesting that the control is designed and operating effectively and efficiently, and meets the established criteria and standards. Certifying the control after documenting the concern may not reflect the true status and performance of the control, and may not comply with the internal or external audit or regulatory requirements. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 115. Roles and Responsibilities in Risk Management, Risk Owner vs. Control Owner: What’s the Difference?, Control Deterioration: How to Avoid It and What to Do About It

A payroll manager discovers that fields in certain payroll reports have been modified without authorization. This indicates that there is a risk of unauthorized access, use, disclosure, modification, or destruction of sensitive data, such as employee information, payroll records, tax returns, etc.

A control weakness that could have contributed most to this problem is that the programmer had access to the production programs. This means that the programmer could potentially alter the source code or configuration of the payroll software without proper authorization or approval.

The other options are not control weaknesses that could have contributed most to this problem. They are either irrelevant or less likely to cause unauthorized changes in the payroll software.

The references for this answer are:

Risk IT Framework, page 12

Information Technology & Security, page 6

Risk Scenarios Starter Pack, page 4

According to the CRISC Review Manual1, risk nomenclature and taxonomy is the set of terms and definitions that are used to describe and classify risks and their attributes. Risk nomenclature and taxonomy is the most important consideration when aligning IT risk management with the enterprise risk management (ERM) framework, as it helps to ensure a common and consistent understanding and communication of risks across the organization. Risk nomenclature and taxonomy also helps to integrate and harmonize the IT risk management processes and activities with the ERM framework, and to facilitatethe aggregation and reporting of risks at different levels of the organization. References = CRISC Review Manual1, page 197.

Residual risk is the risk that remains after the implementation of risk responses. An effective risk management program should aim to reduce the residual risk to a level that is acceptable by the enterprise, in alignment with its risk appetite and tolerance. The reduction of residual risk indicates that the risk responses are appropriate and effective, and that the enterprise is achieving its objectives while managing its risks. The other options are not necessarily indicative of an effective risk management program, as they may depend on other factors, such as the reporting culture, the audit scope and methodology, and the nature and source of the inherent risk. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.3.1, pp. 24-25.

A risk response action plan is a document that specifies the actions to be taken to address the identified risks, the resources required, the timelines, the owners, and the expected outcomes. The risk response action plan should be aligned with the enterprise’s risk appetite and tolerance, and should be approved by the relevant stakeholders. The best way to ensure the implementation of an effective risk response action plan is to assign clear roles and responsibilities to the individuals or groups who will execute the actions, monitor the progress, and report the results. This will help to avoid confusion, ambiguity, duplication, or omission of tasks, and will ensure accountability and ownership of the risk responses. The other options are not as directly related to the implementation of the risk response action plan, although they may be involved in some aspects of it. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.4.1.1, pp. 121-122.

Detailed Explanation:Customizing the risk profile presentation ensures that stakeholders receive information in a format and context relevant to their roles. Tailored communication improves understanding, aligns risk discussions with decision-making needs, and ensures the stakeholders are equipped to act on the information effectively.

Applying risk appetite is the most important topic to cover in a training session to communicate risk assessment methodologies. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. It is a key element of the risk management framework and influences the risk assessment process. Applying risk appetite helps to ensure a consistent risk view within the organization by providing a common basis for evaluating and prioritizing risks, aligning risk responses with business goals, and communicating risk information to stakeholders. The other options are not the most important topics to cover in a training session to communicate risk assessment methodologies, although they may be relevant and useful. Applying risk factors is a technique to quantify or qualify the likelihood and impact of risks based on predefined criteria or scales. Referencing risk event data is a source of information to identify and analyze risks based on historical or current incidents. Understanding risk culture is a factor that affectsthe risk behavior and attitude of the organization and its people. References = CRISC Review Manual, pages 40-411; CRISC Review Questions, Answers & Explanations Manual, page 612

A key risk indicator (KRI) is a metric that provides information on the level of exposure to a given risk or the potential impact of a risk. KRIs are used to monitor changes in risk levels and alert management when a risk exceeds a predefined threshold or tolerance. KRIs can help provide early warning of a high-risk condition and enable timely response and mitigation actions. A risk register is a tool that records and tracks the identified risks, their likelihood, impact, and status. A risk assessment is a process that identifies, analyzes, andevaluates risks. A key performance indicator (KPI) is a metric that measures the achievement of a specific goal or objective. References = Risk IT Framework, pages 22-231; CRISC Review Manual, pages 44-452

The most critical factor when designing controls is the involvement of the process owner, who is the person responsible for the performance and outcomes of a business process. The process owner has the best knowledge and understanding of the process objectives, activities, inputs, outputs, resources, and risks. The process owner can provide valuable input and feedback on the design of controls that are relevant, effective, efficient, and aligned with the process goals. The process owner can also ensure that the controls are implemented, monitored, and improved as needed. The involvement of the process owner can also increase the acceptance and ownership of the controls by the process participants and stakeholders. The other options are less critical when designing controls. The involvement of internal audit can provide assurance and advice on the adequacy and effectiveness of the controls, but internal audit is not responsible for the design or implementation of the controls. The quantitative impact of the risk can help to prioritize and justify the controls, but it is not sufficient to determine the appropriate type and level of controls. The identification of key risk indicators can help to monitor and measure the risk and the performance of the controls, but it is not the main driver of the control design. References = Risk IT Framework, ISACA, 2022, p. 181

According to the CRISC Review Manual, the risk owner is the person who has the authority and accountability to manage a specific risk and its associated controls1. The risk owner is also responsible for ensuring that the risk is within the acceptable level and that the risk response is effective and efficient2. Therefore, the most appropriate owner for a newly identified IT risk is the individual who has the authority to commit organizational resources to mitigate the risk, as they have the most interest and influence on the risk and its impact on the business objectives. The other options are not the most appropriate owners for a newly identified IT risk, as they may not have the authority or the accountability to manage the risk. The manager responsible for IT operations that will support the risk mitigation efforts may have the operational responsibility or the oversight of the risk management activities, but they may not have the authority to allocate the resources or approve the risk response. A project manager capable of prioritizing the risk remediation efforts may have the project management skills or the knowledge of the risk management process, but they may not have the accountability or the ownership of the risk or its outcomes. The individual with the most IT risk-related subject matter knowledge may have the technical expertise or the understanding of the risk and its causes, but they may not have the decision-making power or the responsibility to manage the risk or its controls. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 822

Key performance indicators (KPIs) are quantifiable measures of progress toward an intended result, such as a strategic objective or a desired outcome12.

The most important factor when developing KPIs is the alignment to risk responses, which are the actions taken to address the risks that may affect the achievement of the intended result12.

Alignment to risk responses means that the KPIs should reflect the effectiveness and efficiency of the risk responses, and provide feedback and guidance for improving the risk responses12.

Alignment to risk responses also means that the KPIs should be consistent and compatible with the risk responses, and support the risk management process and objectives12.

The other options are not the most important factor, but rather possible aspects or features of KPIs that may vary depending on the context and purpose of the KPIs. For example:

Alignment to management reports is an aspect of KPIs that relates to the communication and presentation of the KPIs to the relevant stakeholders, such as senior management,board members, or external parties12. However, this aspect does not determine the quality or validity of the KPIs, or the alignment to the intended result12.

Alerts when risk thresholds are reached is a feature of KPIs that relates to the monitoring and control of the KPIs, and the triggering of actions or decisions when the KPIs exceed or fall below a certain level or range12. However, this feature does not define the content or scope of the KPIs, or the alignment to the intended result12.

Identification of trends is a feature of KPIs that relates to the analysis and interpretation of the KPIs, and the identification of patterns or changes in the KPIs over time or across different dimensions12. However, this feature does not specify the criteria or methodology of the KPIs, or the alignment to the intended result12. References =

1: What is a Key Performance Indicator (KPI)? Guide & Examples - Qlik3

2: What is a Key Performance Indicator (KPI)? - KPI.org4

The level of risk in the IT risk profile is the aggregate measure of the likelihood and impact of IT-related risks that may affect the enterprise’s objectives and operations.

The risk appetite is the amount and type of risk that the enterprise is willing to accept in pursuit of its goals. It is usually expressed as a range or a threshold, and it is aligned with the enterprise’s strategy and culture.

If the level of risk in the IT risk profile has decreased and is now below management’s risk appetite, it means that the enterprise has more capacity and opportunity to take on additional risks that may offer higher rewards or benefits.

The best recommendation in this situation is to optimize the control environment, which is the set of policies, procedures, standards, and practices that provide the foundation for managing IT risks and controls. Optimizing the control environment means enhancing the efficiency and effectiveness of the controls, reducing the costs and complexity of compliance, and aligning the controls with the enterprise’s objectives and values.

Optimizing the control environment can help the enterprise to achieve the optimal balance between risk and return, and to leverage its risk management capabilities to create and protect value.

The other options are not the best recommendations, because they do not address the opportunity to improve the enterprise’s performance and resilience.

Realigning risk appetite to the current risk level may result in missing out on potential gains or advantages that could be obtained by taking more risks within the acceptable range.

Decreasing the number of related risk scenarios may reduce the scope and depth of risk analysis and reporting, and impair the enterprise’s ability to identify and respond to emerging or changing risks.

Reducing the risk management budget may compromise the quality and reliability of the risk management process and activities, and weaken the enterprise’s risk culture and governance. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 29-30, 34-35, 38-39, 44-45

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 145

The best information to present to business control owners when justifying costs related to controls is the return on IT security-related investments, because this shows the value and benefits of the controls in relation to their costs. Return on IT security-related investments is a metric that measures the effectiveness and efficiency of IT security controls by comparing the amount of money saved or gained from preventing or mitigating IT-related risks with the amount of money spent on implementing and maintaining the controls. By presenting this information, business control owners can see how the controls contribute to the achievement of the business objectives, such as reducing losses, increasing revenues, enhancing customer satisfaction, or improving compliance. This information can also help business control owners to prioritize and allocate resources for the most critical and beneficial controls, and to optimize the balance between risk and return. References = Cost Control: How Businesses Use It to Increase Profits

A new risk scenario without controls means that there is a potential threat or event that could adversely affect the organization’s objectives, and there are no existing measures to prevent or reduce the impact or likelihood of the risk. Therefore, the most appropriate action is to include the new risk scenario in the current risk assessment, so that the risk practitioner can analyze the risk, evaluate its severity and priority, and recommend suitable controls to mitigate the risk. By including the new risk scenario in the current riskassessment, the risk practitioner can ensure that the risk register is updated and reflects the current risk profile of the organization. The other options are not appropriate because they either ignore the new risk scenario, delay the risk assessment process, or remove valuable information from the risk register. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.1, page 95.

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.

 Asset management is the process of identifying, tracking, and maintaining the physical and information assets of an organization. Asset management helps to optimize the value, performance, and security of the assets, and support the business objectives and strategies. The factor that would be of greatest concern regarding an organization’s asset management is an incomplete asset inventory, which is a list of all the assets that the organization owns or uses. An incomplete asset inventory may indicate that the organization does not have a clear and accurate understanding of its assets, their location, ownership, value, dependencies, etc. This may lead to various risks, such as asset loss, theft, misuse, damage, underutilization, overutilization, etc. An incomplete asset inventory may also affect the asset classification, protection, recovery, and disposal processes. References = 6

 The business owner is the person who is responsible for approval when a change in an application system is ready for release to production. The business owner is the person who has the authority and accountability for the business process or function that is supported by the application system. The business owner should approve the change to ensure that it meets the business requirements, objectives, and expectations, and that it does not introduce any adverse impacts or risks to the business operations. The information security officer, the IT risk manager, and the chief risk officer (CRO) are not responsible for the approval of the change, although they may provide input, feedback, or oversight. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.1, page 3-32.

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 analysisor 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 person or entity who should be primarily responsible for performing user entitlement reviews is the data owner. A user entitlement review is a process that verifies and validates the access rights and privileges of the users to the data and resources in the IT environment. A user entitlement review helps to ensure that the users have the appropriate and necessary access to perform their roles and functions, and to prevent or detect any unauthorized or inappropriate access. A data owner is the person or entity that has the authority and responsibility to define, classify, and protect the data and resources in the IT environment. A data owner helps to perform user entitlement reviews, because they help to establish and enforce the access policies and standards for the data and resources, and to approve or revoke the access requests and changes for the users. A data owner also helps to monitor and report on the access performance and compliance for the data and resources, and to identify and address any issues or gaps in the access management activities. The other options are not the primary responsible party for performing user entitlement reviews, although they may be involved in the process. IT security manager, IT personnel, and data custodian are all examples of roles or functions that can help to support or implement the user entitlement reviews, but they do not necessarily have the authority or responsibility to define, classify, or protect the data and resources. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.2.1, page 5-14.

The most likely factor to change as a result of a zero-day vulnerability being discovered in a globally used brand of hardware server that allows hackers to gain access to affected IT systems is the risk likelihood. Risk likelihood is the probability or frequency of a risk event occurring, or the possibility of a risk event occurring within a given time period. Risk likelihood is one of the key dimensions of risk analysis, along with the risk impact. Risk likelihood helps to determine the severity and priority of the risk, and to select the most appropriate and effective risk response. Risk likelihood 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 risk likelihood is likely to change as a result of a zero-day vulnerability, because a zero-day vulnerability is a security flaw that has been discovered but not yet patched by the vendor, which means that it can be exploited by hackers before the affected systems can be updated or protected. A zero-day vulnerability increases the risk likelihood, because it creates a window of opportunity for hackers to launch attacks that could compromise the affected systems, and because it may not be detected or prevented by the existing security controls or measures. The other options are not as likely to change as the risk likelihood, although they may also be affected or influenced by the zero-day vulnerability. Control effectiveness, risk appetite, and key risk indicator (KRI) are all factors that could change as a result of a zero-day vulnerability, but they are not the most likely factor to change. Control effectiveness is the extent to which the risk controls or responses achieve the intended risk objectives or outcomes. Control effectiveness could change as a result of a zero-day vulnerability, because the existing controls may not be able to detect or prevent the exploitation of the vulnerability, or because new or additional controls may be needed to address the vulnerability. However, control effectiveness is not the most likely factor to change, because it depends on the type and level of the controls that are already in place or that can be implemented, and because it may not change until the vulnerability is actually exploited or the risk response is executed. Risk appetite is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives. Risk appetite could change as a result of a zero-day vulnerability, because the vulnerability could affect the organization’s objectives or operations, and because the organization may need to adjust its risk tolerance or threshold to cope with the vulnerability. However, risk appetite is not the most likely factor to change, because it is a strategic and long-term decision that is driven by the organization’s mission, vision, values, and strategy, and because it may not change until the vulnerability is resolved or the risk impact is realized. Key risk indicator (KRI) is a metric that measures the likelihood and impact of risks, and helps monitor and prioritize the most critical risks. KRI could change as a result of a zero-day vulnerability, because the vulnerability could increase the likelihood and impact of the risks, and because the organization may need to update or revise its KRI to reflect the current risk situation. However, KRI is not the most likely factor to change, because it is a monitoring and reporting tool that is derived from the risk analysis and response, and because it may not change until the vulnerability is exploited or the risk response is implemented. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-25.

 The most important outcome of a business impact analysis (BIA) is understanding and prioritization of critical processes. A BIA is a process that identifies and evaluates the potential effects of disruptions or disasters on the organization’s business functions and processes. A BIA helps to understand the dependencies, interrelationships, and impacts of the business processes, and to prioritize them based on their importance and urgency. A BIA also helps to determine the recovery objectives, strategies, and resources for the business processes, such as the recovery time objective (RTO), the recovery point objective (RPO), and the minimum operating requirements (MOR). The other options are not as important as understanding and prioritization of critical processes, although they may be part of or derived from the BIA. Completion of the business continuity plan (BCP), identification of regulatory consequences, and reduction of security and business continuity threats are all activities or outcomes that can be supported or facilitated by the BIA, but they are not the primary purpose or result of the BIA. References = CISA Review Manual, 27th Edition, Chapter 5, Section 5.2.1, page 5-9.

 The most concerning issue for a risk practitioner reviewing an organization risk register is that several risk action plans have missed target completion dates. This indicates that the risk responses are not being implemented effectively or timely, and that the risk exposure may not be reduced as expected. Senior management accepting more risk than usual, risk associated with many assets being expressed in qualitative terms, and many risk scenarios being owned by the same senior manager are not as concerning as the missed deadlines, as they may reflect the risk appetite, tolerance, and culture of the organization. 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 way to ensure adequate resources will be allocated to manage identified risk is to assign risk ownership to appropriate roles. Risk ownership is the process of assigning the authority and responsibility to manage a specific risk or a group of related risks to a person or entity. Risk ownership helps to ensure adequate resources for managing risk, because it helps to define and clarify the roles and responsibilities of the risk owners, and to establish and enforce the expectations and standards for the risk owners. Risk ownership also helps to measure and evaluate the effectiveness and efficiency of the risk owners, and to identify and address any issues or gaps in the risk management activities. The other options are not as effective as assigning risk ownership to appropriate roles, although they may be related to the risk management process. Prioritizing risk within each business unit, reviewing risk ranking methodology, and promoting an organizational culture of risk awareness are all activities that can help to support or improve the risk management process, but they do not necessarily ensure adequate resources for managing risk. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 2-11.

 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 improvethe quality and reliability of the application, and ensure compliance with the coding standards and best practices. References = CRISC Review Manual, 7th Edition, page 181.

Appropriate resources contribute most to the effective implementation of risk responses. Resources include people, time, money, equipment, and materials that are needed to execute the risk responses. Without appropriate resources, the risk responses may not be implemented properly, timely, or efficiently, and may not achieve the desired outcomes. The other options are not as important as appropriate resources, as they are related to the understanding, comparison, or documentation of the risk responses, which are less critical than the execution of the risk responses. 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 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 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 most important requirement for monitoring key risk indicators (KRIs) using log analysis is providing accurate logs in a timely manner, because this ensures that the risk data is reliable, relevant, and up-to-date. Logs are records of events or activities that occur in IT systems, such as network traffic, user actions, system errors, or security incidents. Log analysis is the process of reviewing and interpreting logs to identify and assess risks, such as performance issues, operational failures, compliance violations, or cyberattacks. By providing accurate logs in a timely manner, an organization can monitor the current status and trends of its KRIs, which are metrics that measure the level and impact of risks. Accurate logs mean that the logs are complete, consistent, and free of errors or anomalies that may distort the risk data. Timely logs mean that the logs are available as soon as possible after the events or activities occur, and that they are updated frequently to reflect the latest changes. Providing accurate logs in a timely manner can help an organization to detect and respond to risks promptly, and to support risk-based decision making and reporting. References = Risk IT Framework, ISACA, 2022, p. 22

 A risk register is a tool that records and tracks the risks that may affect a project, as well as the actions that are taken or planned to manage them1. A risk register should include information such as the risk description, category, source, impact, likelihood, severity, owner, status, and response2. Among these, the most important information to capture in the risk register is the action plans to address risk scenarios requiring treatment. This is because the action plans are the specific steps that are taken to reduce, avoid, transfer, or accept the risks, depending on the chosen risk treatment option3. The action plans should beclear, realistic, measurable, and aligned with the project objectives and constraints4. The action plans should also be monitored and updated regularly to ensure that they are effective and appropriate for the changing risk environment5. The action plans are essential for managing the risks and ensuring the successful delivery of the project. The other options are not the most important information to capture in the risk register, as they are either less relevant or less actionable than the action plans. The team that performed the risk assessment is the group of people who identified, analyzed, and evaluated the risks, using various tools and techniques6. While this information may be useful for accountability and communication purposes, it is not as important as the action plans, as it does not indicate how the risks are treated or resolved. The assigned risk manager to provide oversight is the person who has the responsibility and authority to oversee the risk management process and ensure that the risks are properly identified, assessed, treated, and reported. While this information may be useful for governance and coordination purposes, it is not as important as the action plans, as it does not specify what actions are taken or planned to manage the risks. The methodology used to perform the risk assessment is the approach or framework that is used to identify, analyze, and evaluate the risks, based on the project context, scope, and objectives. While this information may be useful for consistency and transparency purposes, it is not as important as the action plans, as it does not describe how the risks are addressed or mitigated. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.5, Page 55.

According to the CRISC Review Manual (Digital Version), establishing an organizational code of conduct is an example of a directive control, which is a type of control that guides or steers the behavior of individuals or processes to achieve desired outcomes. A directive control aims to influence or encourage compliance with the organization’s policies, standards, procedures, and guidelines. A directive control can also communicate the organization’s values, ethics, and expectations to its stakeholders. A directive control can take various forms, such as:

Codes of conduct or ethics

Policies or manuals

Training or awareness programs

Job descriptions or roles and responsibilities

Performance appraisals or incentives

Supervision or oversight

References = CRISC Review Manual (Digital Version), Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Scenarios, pp. 105-1061

The business manager is best suited to assess the impact of potential data loss when outsourcing a key database to an external service provider.

Role of the Business Manager:

Understanding Business Impact:The business manager has a comprehensive understanding of the business processes, the criticality of the data, and the potential impact of data loss on business operations.

Decision Making:They are responsible for making decisions regarding risk tolerance, business continuity, and aligning the risk management practices with business objectives.

Assessment of Data Loss Impact:

Operational Impact:The business manager can evaluate how data loss would affect day-to-day operations and overall business continuity.

Financial and Reputational Impact:They can also assess the financial repercussions and potential damage to the organization’s reputation, providing a holistic view of the impact.

References:

The CRISC Review Manual highlights the importance of involving business managers in assessing the impact of data loss due to their understanding of business operations and strategic objectives .

The acquisition phase of the system development life cycle (SDLC) is the phase where the organization decides to purchase a new IT system from an external vendor or develop it internally. During this phase, the identified risks will most likely lead to architecture and design trade-offs, as the organization will have to balance the cost, quality, functionality, security, and performance of the new IT system. The organization will have to evaluate the different options and alternatives available, and select the one that best meets the business needs and the risk appetite. The other phases of the SDLC are not as likely to involve architecture and design trade-offs, as they are more focused on implementing, testing, deploying, and maintaining the new IT system. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.2: IT Risk Response Options, page 133.

 Business process owners would provide the most important input when identifying IT risk scenarios. IT risk scenarios are the situations or events that may affect the organization’s objectives, operations, or performance due to the use of information and technology1. Identifying IT risk scenarios means finding,recognizing, and describing the IT risks that the organization faces, as well as their sources, drivers, consequences, and responses2. Business process owners are the persons or entities who are responsible for the design, implementation, and operation of the business processes that support the organization’s goals and values3. Business process owners would provide the most important input when identifying IT risk scenarios, because they can:

Provide the context and perspective of the business objectives, strategies, and requirements that are affected or supported by the IT risks and controls;

Identify and prioritize the IT risks that are relevant and significant to their business processes, as well as the IT assets and resources that are involved or impacted by the IT risks;

Evaluate and communicate the likelihood and impact of the IT risks on their business processes, as well as the risk appetite and tolerance of their business units;

Suggest and implement the most suitable and effective IT risk response actions or measures to mitigate the IT risks, as well as monitor and report on the IT risk and control performance;

Align and integrate the IT risk management activities and outcomes with the business risk management framework, policies, and standards. The other options are not the most important roles for providing input when identifying IT risk scenarios, as they are either less relevant or less specific than business process owners. Information security managers are the persons or entities who are responsible for the planning, implementation, and maintenance of the information security measures and controls that protect the confidentiality, integrity, and availability of the organization’s data and systems4. Information security managers can provide input when identifying IT risk scenarios, because they can:

Provide the expertise and guidance on the information security risks and controls that are related to the use of information and technology;

Identify and assess the information security vulnerabilities and threats that may affect the organization’s data and systems, as well as the information security assets and resources that are involved or impacted by the information security risks;

Recommend and implement the most appropriate and effective information security risk response actions or measures to reduce or eliminate the information security risks, as well as monitor and report on the information security risk and control performance;

Align and integrate the information security risk management activities and outcomes with the information security framework, policies, and standards. However, information security managers are not the most important roles for providing input when identifying IT risk scenarios, because they may not have the full understanding or visibility of the business objectives, strategies, and requirements that are affected or supported by the IT risks and controls, or the risk appetite and tolerance of the business units. Internal auditors are the persons or entities who are responsible for theindependent and objective assurance and consulting on the effectiveness and efficiency of the organization’s governance, risk management, and internal control system5. Internal auditors can provide input when identifying IT risk scenarios, because they can:

Provide the assurance and validation on the design and operation of the IT risks and controls that are related to the use of information and technology;

Identify and evaluate the IT risk and control gaps or deficiencies that may affect the organization’s objectives, operations, or performance, as well as the IT risk and control objectives and activities that are involved or impacted by the IT risk and control gaps or deficiencies;

Report and recommend improvements or enhancements to the IT risks and controls, as well as follow up and verify the implementation and effectiveness of the IT risk and control improvements or enhancements;

Align and integrate the IT risk and control assurance and consulting activities and outcomes with the internal audit framework, policies, and standards. However, internal auditors are not the most important roles for providing input when identifying IT risk scenarios, because they may not have the authority or responsibility to implement or operate the IT risks and controls, or to decide or prioritize the IT risk response actions or measures. Operational risk managers are the persons or entities who are responsible for the identification, analysis, evaluation, and treatment of the risks that arise from the failures or inadequacies of the organization’s people, processes, systems, or external events6. Operational risk managers can provide input when identifying IT risk scenarios, because they can:

Provide the oversight and coordination of the operational risk management activities and performance across the organization, including the IT risks and controls that are related to the use of information and technology;

Identify and prioritize the operational risks that are relevant and significant to the organization, as well as the operational assets and resources that are involved or impacted by the operational risks;

Evaluate and communicate the likelihood and impact of the operational risks on the organization, as well as the risk appetite and tolerance of the organization;

Suggest and implement the most suitable and effective operational risk response actions or measures to mitigate the operational risks, as well as monitor and report on the operational risk and control performance;

Align and integrate the operational risk management activities and outcomes with the operational risk management framework, policies, and standards. However, operational risk managers are not the most important roles for providing input when identifying IT risk scenarios, because they may not have the specific knowledge or expertise on the IT risks and controls that are related to the use of information and technology, or the context and perspective of the business processes that are affected or supported by the IT risks and controls. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.1.1, Page 85.

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 currentand 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 organizational role that should be accountable for ensuring information assets are appropriately classified is the information asset owner, as they have the authority and responsibility to define the classification, retention, and disposal requirements for the information assets they own, and to manage the risk and controls related to the information assets. The other options are not the correct roles, as they have different roles and responsibilities related to the protection, governance, or maintenance of the information assets, respectively, rather than the classification of the information assets. References = CRISC Review Manual, 7th Edition, page 154.

Detailed Explanation:The next step is toidentify risk response optionsto address the noncompliance and mitigate its impact. This may include corrective actions, implementing controls, or negotiating terms to reduce exposure.

An IT risk and control self-assessment (RCSA) is a process that helps organizations identify and evaluate operational risks and assess the effectiveness of their control measures12. It is a structured approach that involves identifying, assessing, mitigating, and monitoring risks across all levels of an organization12.

A report to senior management is a document that summarizes and communicates the results and findings of the RCSA, and provides recommendations and action plans for improving the risk management and control processes34.

The most important aspect of an IT risk and control self-assessment to include in a report to senior management is an increase in residual risk, which is the risk remaining after risk treatment, and represents the exposure or potential impact of the risk on the organization’s objectives56.

An increase in residual risk is the most important aspect because it indicates the level of risk that the organization is willing to accept or tolerate, and the gap between the current and desired risk profile56.

An increase in residual risk is also the most important aspect because it requires the attention and decision of the senior management, who are responsible for defining the organization’s risk appetite, strategy, and criteria, and for ensuring that the residual risk is within the acceptable range56.

The other options are not the most important aspects, but rather possible components or outcomes of an IT risk and control self-assessment that may support or complement the report to senior management. For example:

Changes in control design are components of an IT risk and control self-assessment that involve modifying or updating the control measures to address the changes in the risk environment or the organization’s objectives56. However, changes in control design are not the most important aspect because they do not measure or reflect the residual risk, which is the ultimate goal of the risk treatment56.

A decrease in the number of key controls is an outcome of an IT risk and control self-assessment that indicates the improvement or optimization of the control processes, and the reduction of the complexity or redundancy of the control measures56. However, a decrease in the number of key controls is not the most important aspect because it does not indicate or imply the residual risk, which may depend on other factors such as the effectiveness or efficiency of the controls56.

Changes in control ownership are components of an IT risk and control self-assessment that involve assigning or reassigning the responsibility and accountability for the control processes to the appropriate individuals or groups within the organization56. However,changes in control ownership are not the most important aspect because they do not affect or determine the residual risk, which is independent of the control owners56. References =

1: Risk and control self-assessment - KPMG Global1

2: Control Self Assessments - PwC2

3: How-To Guide: Implementing Risk Control Self-Assessment Steps4

4: RISK MANAGEMENT SELF-ASSESSMENT TEMPLATE - Smartsheet5

5: Risk IT Framework, ISACA, 2009

6: IT Risk Management Framework, University of Toronto, 2017

When collecting information to identify IT-related risk, a risk practitioner should first focus on IT risk appetite, which is the amount of risk that the organization is willing to accept in pursuit of its IT objectives, before action is deemed necessary to reduce the risk1. IT risk appetite reflects the organization’s IT risk attitude and its willingness to accept risk in specific scenarios, with a governance model in place for IT risk oversight. IT risk appetite helps to guide the organization’s approach to IT risk and IT risk management, and to align its IT risk decisions with its business objectives and context. The other options are not the best answers, as they are either derived from or dependent on the IT risk appetite. IT security policies are the rules and guidelines that define the organization’s IT security objectives, requirements, and responsibilities, and they are based on the IT risk appetite. IT process maps are the graphical representations of the IT processes, activities, and tasks that support the organization’s IT objectives, and they are influenced by the IT risk appetite. IT risk tolerance level is the acceptable variation between the IT risk thresholds and the IT objectives, and it is determined by the IT risk appetite. References = IT Risk Resources | ISACA; RiskAppetite vs. Risk Tolerance: What is the Difference?; IT Risk Management - an overview | ScienceDirect Topics; IT Risk Management Framework - an overview | ScienceDirect Topics

The most critical factor to consider when determining an organization’s risk appetite is the management culture. The management culture reflects the values, beliefs, and attitudes of the senior management and the board of directors toward risk management. The management culture influences how the organization defines, communicates, and implements its risk appetite and tolerance. Fiscal management practices, business maturity, and budget for implementing security are other factors that may affect the risk appetite, but they are not as critical as the management culture. References = ISACA Certified in Risk andInformation Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.

The risk practitioner’s primary role during the change is to manage the third-party risk, as this involves identifying, assessing, and mitigating the risks associated with outsourcing the business operations for the emerging technology. The risk practitioner should ensure that the third-party provider has the necessary capabilities, security, and compliance to deliver the expected outcomes and meet the contractual obligations. The risk practitioner should also monitor the performance and service levels of the third-party provider and report any issues or incidents. Developing risk scenarios, managing the threat landscape, and updating risk appetite are all important activities for the risk practitioner, but they are not the primary role during the change. Developing risk scenarios is a technique for identifying and analyzing potential risk events and their impacts. Managing the threat landscape is a process of identifying and responding to the external and internal threats that may affect the organization. Updating risk appetite is a decision that reflects the organization’s willingness to accept or avoid risk in pursuit of its objectives. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Identification, page 48.

The risk practitioner’s BEST course of action is to validate the transfer of risk and update the register to reflect the change, because outsourcing the backup and recovery procedures to a third-party cloud provider does not eliminate the risk, but rather transfers it to the service provider. The risk practitioner should verify that the service provider has adequate controls and capabilities to handle the backup and recovery procedures, and that the contractual agreement specifies the roles and responsibilities of both parties. The risk practitioner should also update the risk register to reflect the new risk owner and the residual risk level. The other options are not the best course of action, because:

Option A: Accepting the risk and documenting contingency plans for data disruption is not the best course of action, because it implies that the risk practitioner is still responsible for the risk, even though it has been transferred to the service provider. Contingency plans are also reactive measures, rather than proactive ones.

Option B: Removing the associated risk scenario from the risk register due to avoidance is not the best course of action, because it implies that the risk has been eliminated, which is not the case. The risk still exists, but it has been transferred to the service provider. The risk register should reflect the current risk status and ownership.

Option C: Mitigating the risk with compensating controls enforced by the third-party cloud provider is not the best course of action, because it implies that the risk practitioner is still involved in the risk management process, even though the risk has been transferred to the service provider. The risk practitioner should rely on the service provider’s controls and capabilities, and monitor their performance and compliance. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 196.

The primary reason to update a risk register with risk assessment results is to communicate the level and priority of assessed risk to management, as this enables them to make informed decisions about risk response and allocation of resources. The risk register is a tool for documenting and reporting the current status of risks, their causes, impacts, likelihood, and responses. Updating the risk register with risk assessment results ensures that the information is accurate, relevant, and timely. The risk register also helps to monitor and track the progress and effectiveness of risk management activities. The other options are not the primary reasons to update the risk register, although they may be secondary benefits or outcomes of doing so. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Assessment, page 109.

According to the What To Look For When Assessing Your Organization’s Security Risk Posture article, risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite should be aligned with the organization’s strategy, goals, and values, and should reflect the organization’s risk culture and capabilities. When reviewing a risk response strategy, senior management’s primary focus should be placed on the alignment with risk appetite, as this indicates how well the risk response strategy supports the organization’s objectives and expectations, and how consistent it is with the organization’s risk tolerance and risk profile. By ensuring the alignment with risk appetite, senior management can evaluate the effectiveness and efficiency of the risk response strategy, and determine if any adjustments or improvements are needed. References = What To Look For When Assessing Your Organization’s Security Risk Posture

When updating a risk register with the results of an IT risk assessment, the risk practitioner should log the known risk scenarios, because they are the risk scenarios that have been identified and assessed in the IT risk assessment process. The risk register should document and track the known risk scenarios, their characteristics, their status, and their responses. The other options are not the ones that should be logged, because:

Option A: High impact scenarios are the risk scenarios that have a high potential impact on the business objectives and processes, but they are not the only ones that should be logged. The risk register should include all the known risk scenarios, regardless of their impact level.

Option B: High likelihood scenarios are the risk scenarios that have a high probability of occurrence, but they are not the only ones that should be logged. The risk register should include all the known risk scenarios, regardless of their likelihood level.

Option C: Treated risk scenarios are the risk scenarios that have been addressed by the risk response actions, but they are not the only ones that should be logged. The risk register should include all the known risk scenarios, regardless of their treatment status. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 108.

The most comprehensive resource for prioritizing the implementation of information systems controls is the risk register. The risk register is a document that records the identified risks, their analysis, and their responses. The risk register provides a holistic and systematic view of the risk profile and the risk treatment of the organization. The risk register can help to prioritize the implementation of information systems controls by providing the information on the likelihood, impact, and exposure of the risks, the effectiveness and efficiency of the controls, and the gaps or issues of the control environment. The other options are not as comprehensive as the risk register, as they are related to the specific aspects or components of the information systems controls, not the overall assessment and evaluation of the information systems controls. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.

Identifying specific risk events provides the foundational input for creating relevant and actionable risk scenarios. These scenarios form the basis of assessing potential impacts and determining effective controls. This is a key step in theRisk Identification and Assessmentprocess.

A risk heat map is the best tool to enable senior management to compare the ratings of risk scenarios, as it provides a visual representation of the risk level and priority of each risk scenario, based on the combination of the likelihood and impact ratings, and the risk tolerance and appetite of the organization. Key risk indicators (KRIs), key performance indicators (KPIs), and control self-assessment (CSA) are not the best tools, as they are more related to the measurement, monitoring, or testing of the risk scenarios, respectively, rather than the comparison of the risk scenarios. References = CRISC Review Manual, 7th Edition, page 110.

According to the CRISC Review Manual (Digital Version), the primary reason a risk practitioner would be interested in an internal audit report is to evaluate the maturity of the risk management process, as it provides an independent and objective assessment of the effectiveness and efficiency of the risk management activities and controls. An internal audit report helps to:

Identify and evaluate the strengths and weaknesses of the risk management process and its alignment with the organization’s objectives and strategy

Detect and report any gaps, errors, or deficiencies in the risk identification, assessment, response, and monitoring processes and controls

Recommend and implement corrective actions or improvement measures to address the issues or findings in the risk management process

Communicate and coordinate the audit results and recommendations with the relevant stakeholders, such as the risk owners, the senior management, and the board

Enhance the accountability and transparency of the risk management process and its outcomes

References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.2: IT Risk Reporting, pp. 223-2241

Updating a risk register with assessment results for a key project must primarily capture action plans to address risk scenarios requiring treatment.

Risk Register Purpose:

Documentation of Risks:The risk register is a central repository for all identified risks and their respective treatment plans. It ensures that all risks are documented, tracked, and managed throughout the project lifecycle.

Action Plans:It is crucial to document action plans for risks that require treatment. This ensures that there are clear strategies in place to mitigate or manage these risks.

Importance of Action Plans:

Mitigation and Management:Action plans detail the steps necessary to mitigate identified risks, providing a clear path for risk management. This is vital for ensuring that risks do not negatively impact the project.

Accountability and Tracking:Including action plans in the risk register assigns responsibility and timelines for risk treatment, which is essential for accountability and tracking progress.

References:

According to ISACA's guidelines, a comprehensive risk register should include action plans for addressing risk scenarios. This ensures that all identified risks are managed effectively and that appropriate actions are taken in a timely manner​​.

The risk profile is the most important thing to reassess when an organization implements new technologies that enable the use of robotic process automation (RPA). The risk profile is a comprehensive and dynamic view of the organization’s risks, their ratings, responses, and status. RPA can introduce new risks or change the existing risks related to the organization’s objectives, operations, and performance. For example, RPA can create risks such as system failures, data breaches, compliance violations, human errors, or ethical dilemmas. Therefore, the organization should reassess its risk profile to identify, assess, treat, monitor, and review the risks associated with RPA, and to ensure that the risk management strategy is aligned with the business needs and expectations.

References:

•ISACA, Robotic Process Automation for Internal Audit1

•ISACA, Key Considerations for Robotic Process Automation2

The second line of defense is responsible for monitoring risk responses to ensure they align with organizational risk strategies. This role supports governance and compliance as defined in theThree Lines of Defense Model.

Communicating the new risk profile is the best recommendation for a risk practitioner for an organization that recently changed its organizational structure, because it helps to inform and align the stakeholders on the current state of risks and their implications for the organization’s objectives and strategy. A risk profile is a summary of the key risks that an organization faces, along with their likelihood, impact, and response strategies. An organizational structure is the way that an organization arranges its people, roles, and responsibilities to achieve its goals and deliver its value proposition. A change in the organizational structure may affect the risk profile, as it may introduce new sources or types of risk, or alter the existing risk levels orresponses. Therefore, communicating the new risk profile is the best recommendation, as it helps to ensure that the stakeholders are aware of and prepared for the changes and challenges that the new organizational structure may bring. Implementing a new risk assessment process, revalidating the corporate risk appetite, and reviewing and adjusting key risk indicators (KRIs) are all important tasks to perform after communicating the new risk profile, but they are not the best recommendation, as they depend on the communication and understanding of the new risk profile. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.3, page 91

 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.

 A change in the risk profile would be the most important information to communicate to stakeholders after an annual risk assessment is completed, as it indicates how the risk landscape of the organization has changed over time, and how it affects the achievement of the business goals and objectives. A decrease in threats, an increase in reported vulnerabilities, and an increase in identified risk scenarios are also important information, but they are not the most important, as they are specific aspects of the risk profile, and do not provide a holistic view of the risk exposure and appetite of the organization. References = CRISC Review Manual, 7th Edition, page 109.

The control environment is the set of internal and external factors and conditions that influence and shape the organization’s governance, risk management, and control functions. It includes the organization’s culture, values, ethics, structure, roles, responsibilities, policies, standards, etc.

Uncontrolled changes are changes or modifications to the control environment that are not planned, authorized, documented, or monitored, and that may have unintended or adverse consequences for the organization. Uncontrolled changes may be caused by various drivers or events, such as technological innovations, market trends, regulatory changes, customer preferences, competitor actions, environmental issues, etc.

The greatest concern when uncontrolled changes are made to the control environment is an increase in the level of residual risk, which is the amount and type of risk that remains after the implementation and execution of the risk responses or controls. An increase in the level of residual risk means that the risk responses or controls are not effective or sufficient to mitigate or prevent the risks, and that the organization may face unacceptable or intolerable consequences if the risks materialize.

An increase in the level of residual risk is the greatest concern when uncontrolled changes are made to the control environment, because it indicates that the organization’s risk profile and performance have deteriorated, and that the organization may not be able to achieve its objectives or protect its value. It also indicates that the organization’s risk appetite and tolerance have been violated, and that the organization may need to take corrective or compensating actions to restore the balance between risk and return.

The other options are not the greatest concerns when uncontrolled changes are made to the control environment, because they do not indicate the actual or potential impact or outcome of the risks, and they may not be relevant or actionable for the organization.

A decrease in control layering effectiveness means a decrease in the extent or degree to which the organization uses multiple or overlapping controls to address the same or related risks, and to provide redundancy or backup in case of failure or compromise of one or more controls. A decrease in control layering effectiveness may indicate a weakness or gap in the organization’s control design or implementation, but it does not indicate the actual or potential impact or outcome of the risks, and it may not be relevant or actionable for the organization, unless the control layering is required or recommended by the organization’s policies or standards.

An increase in inherent risk means an increase in the amount and type of risk that exists in the absence of any risk responses or controls, and that is inherent to the nature or characteristics of the risk source, event, cause, or impact. An increase in inherent risk may indicate a change or variation in the organization’s risk exposure or level, but it does not indicate the actual or potential impact or outcome of the risks, and it may not be relevant or actionable for the organization, unless the inherent risk exceeds the organization’s risk appetite or tolerance.

An increase in control vulnerabilities means an increase in the number or severity of the weaknesses or flaws in the organization’s risk responses or controls that can be exploited or compromised by the threats or sources of harm that may affect the organization’s objectives or operations. An increase in control vulnerabilities may indicate a weakness or gap in the organization’s control design or implementation, but it does not indicate the actual or potential impact or outcome of the risks, and it may not be relevant or actionable for the organization, unless the control vulnerabilities are exploited or compromised by the threats or sources of harm. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 174

CRISC Practice Quiz and Exam Prep

According to the CRISC Review Manual (Digital Version), the best way to validate the results of a vulnerability assessment is to perform a penetration test, which is a type of security testing that simulates an attack on the IT assets and processes to exploit the identified vulnerabilities and evaluate the potential impact and severity of the attack. Performing a penetration test helps to:

Confirm the existence and exploitability of the vulnerabilities detected by the vulnerability assessment

Measure the effectiveness and efficiency of the existing security controls and countermeasures

Identify and prioritize the risks and gaps in the security posture of the IT assets and processes

Recommend and implement appropriate remediation and mitigation actions to address the vulnerabilities and risks

Enhance the security awareness and resilience of the organization

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.5: IT Risk Identification Methods and Techniques, pp. 36-371

Detailed Explanation:A data classification program helpsidentify appropriate controlsby categorizing data based on sensitivity and criticality. This ensures that data protection measures are aligned with its value and risk level, improving overall security posture.

An intrusion detection system (IDS) is a network security tool that monitors and analyzes network traffic for signs of malicious or suspicious activity, such as unauthorized access, data exfiltration, malware infection, or denial-of-service attack. An IDS can detect and alert the organization to potential threats based on predefined rules or signatures, or based on anomalies or deviations from normal network behavior. An IDS can also generate logs that record the details of the network events and incidents, such as the source, destination, content, and context of the network traffic. By analyzing the IDS logs, the organization can identify and validate the suspicious network activity, and determine its scope, impact, and root cause. The organization can also use the IDS logs to support the incident response and remediation process, and to improve the network security and resilience. The other options are less effective ways to ensure that suspicious network activity is identified. Analyzing server logs can provide some information about the network activity, but it may not be sufficient or timely to detect and validate the suspicious or malicious activity, as server logs only capture the events or activities that occur on the server, and not on the entire network. Using a third-party monitoring provider can help to outsource the network monitoring and analysis function, but it may not be the best option, as it may introduce additional risks, such as data privacy, vendor reliability, or service quality issues. Coordinating events with appropriate agencies can help to share information and resources with other organizations or authorities, such as law enforcement, regulators, or industry peers, but it may not be the best option, as it may depend on the availability and cooperation of theagencies, and it may not be feasible or desirable to disclose the network activity to external parties. References = Monitoring for Suspicious Network Activity: Key Tips to Secure Your Network 1

According to the CRISC Review Manual (Digital Version), periodically reviewing controls per the risk treatment plan would best help to ensure that identified risk is efficiently managed, as it involves verifying the effectiveness and efficiency of the implemented risk response actions and identifying any gaps or changes in the risk profile. Periodically reviewing controls per the risk treatment plan helps to:

Confirm that the controls are operating as intended and producing the desired outcomes

Detect any deviations, errors, or weaknesses in the controls and their performance

Evaluate the adequacy and appropriateness of the controls in relation to the current risk environment and the organization’s risk appetite and risk tolerance

Recommend and implement corrective actions or improvement measures to address any issues or deficiencies in the controls

Update the risk register and the risk treatment plan to reflect the current risk status and the residual risk levels

References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.1: IT Risk Monitoring, pp. 215-2161

 A heat map is a graphical tool that displays the level of risk severity for various risk scenarios or categories using different colors, shapes, or sizes. A heat map is most helpful in providing a high-level overview of current IT risk severity, as it can show the relative importance and urgency of the risks, and highlight the areas that require attention or action. A heat map can also help to communicate the risk information to the stakeholders, and facilitate the risk prioritization and decision making. References = 5

Scanning the Internet for unauthorized usage of the enterprise's brand proactively identifies fraudulent activities and enables timely response. This aligns withBrand Protection and Risk Mitigationstrategies.

 The ratio of emergency fixes to total changes is the best metric to determine if the change management program is performing as expected, because it reflects the quality and stability of the changes that are implemented in the production environment. A high ratio of emergency fixes to total changes indicates that the change management program is not effective, as it means that many changes are causing problems or failures that require urgent correction. A low ratio of emergency fixes to total changes indicates that the change management program is effective, as it means that most changes are well-planned, tested, and approved, and do not cause significant disruptions or defects. The ratio of emergency fixes to total changes can also help identify the root causes of the problems, the gaps in the change management process, and the areas for improvement. For example, if the ratio of emergency fixes to total changes is high, it may indicate that the change management program has issues with the following aspects: - Change request and approval: The change management program may not have a clear and consistent process for requesting, reviewing, and approving changes, or the process may not be followed by all stakeholders. - Change impact analysis: The change management program may not have a comprehensive and systematic method for assessing the potential impact of the changes on the business processes, the IT systems, the users, and the customers. - Change testing and validation: The change management program may not have adequate testing and validation procedures to ensure that the changes meet the requirements and specifications, and do not introduce errors or vulnerabilities. - Change communication and training: The change management program may not have effective communication and training strategies to inform and educate the affected parties about the changes and their implications. - Change implementation and monitoring: The change management program may not have proper implementation and monitoring plans or tools to ensure that the changes are executed smoothly and successfully, and that any issues or incidents are detected and resolved promptly. Therefore, the ratio of emergency fixes to total changes is the best metric to determine if the change management program is performing as expected, as it can provide valuable feedback and insights for the change management program and its improvement. References = How to Measure Change Management Effectiveness: Metrics, Tools & Processes1, Metrics for Measuring Change Management2, Driving Value with Change Management Metrics3, Must-Know Organizational Change Management Metrics

 Following a significant change to a business process, the risk practitioner should advise the risk owner to first conduct a risk analysis to evaluate the current level of risk exposure and compare it with the previous level. This will help to verify whether the change has indeed reduced the risk, and by how much. The risk analysis will also help to identify any new or residual risks that may have emerged as a result of the change. The other options are not the first actions to take, but rather the subsequent steps after conducting a risk analysis. Reviewing the key risk indicators, updating the risk register, and reallocating risk response resources are all important activities, but they depend on the outcome of the risk analysis. References = CRISC EXAM TOPIC 2 LONG; CRISC Q&A Domain 1; Managing Change Risk - Oliver Wyman

According to the CRISC EXAM TOPIC 2 LONG Flashcards, the first thing that a risk practitioner should do when an organization decides to use a cloud service is to review the vendor selection process and vetting criteria. This is because the vendor selection process and vetting criteria are essential steps to ensure that the cloud service provider meets the organization’s requirements and expectations, and that the risks associated with the cloud service are identified and managed. By reviewing the vendor selection process and vetting criteria, the risk practitioner can evaluate the quality, reliability, security, and compliance of the cloud service provider, and determine if the cloud service is suitable and beneficial for the organization. The risk practitioner can also identify any gaps or weaknesses in the vendor selection process and vetting criteria, and recommend improvements or alternatives accordingly. References = CRISC EXAM TOPIC 2 LONG Flashcards

 The best answer is D. Organizational policy. An organizational policy is a set of rules and guidelines that defines how the organization operates and conducts its activities. An organizational policy should direct how the employee monitoring system is used, because it can specify the purpose, scope, methods, and limitations of the monitoring, as well as the roles and responsibilities of the parties involved, the data protection and privacy measures, and the consequences of non-compliance. An organizational policy can also help to ensure that the employee monitoring system is aligned with the organization’s objectives, values, and culture, and that it complies with the relevant laws and regulations. The other options are not the best answer, although they may be related or influential to the organizational policy. Organizational strategy is a plan of action that outlines the organization’s vision, mission, goals, and initiatives, but it does not provide the details or the rules of how the employee monitoring system is used. Employee code of conduct is a document that describes the expected behavior and ethics of the employees, but it does not address the specific aspects or the procedures of the employee monitoring system. Industry best practices are the proven methods and standards that are adopted by the leading organizations in a specific field or sector, but they may not be applicable or suitable for every organization or situation. References = Workplace Monitoring Policy Template - CurrentWare, The All-In-One Guide to Employee Monitoring - G2

 Performing a gap analysis is the best recommendation for a risk practitioner upon learning of an updated cybersecurity regulation that could impact the organization. A gap analysis can help identify the current state of compliance, the desired state of compliance, and the actions needed to achieve compliance. Conducting system testing, implementing compensating controls, and updating security policies are possible actions that may result from the gap analysis, but they are not the best initial recommendation. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 1; CRISC Review Manual, 6th Edition, page 143.

Robotic process automation (RPA) is the use of software robots or artificial intelligence (AI) agents to automate repetitive, rule-based tasks that are normally performed by humans. RPA can improve efficiency, accuracy, and scalability of business processes, but it can also introduce new risks or change the existing risk profile. Therefore, the risk practitioner’s best course of action is to reassess whether the mitigating controls that were designed for the human-performed processes are still effective and adequate for the RPA-enabled processes. This may involve reviewing the control objectives, testing the control performance, identifying the control gaps, and recommending the control enhancements or modifications. References = CRISC Review Manual, 7th Edition, page 177.

The primary purpose of creating and documenting control procedures is to help manage risk to acceptable tolerance levels. Control procedures are the specific actions or steps that are performed to achieve the control objectives and mitigate the risks. Control procedures should be documented to provide clear guidance, consistency, and accountability for the control activities. Documenting control procedures also helps to monitor and evaluate the effectiveness and efficiency of the controls, and to identify and address any gaps or weaknesses. The other options are not the primary purpose of creating and documenting control procedures, although they may be secondary benefits or outcomes. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, page 1-15.

The result of a significant increase in the motivation of a malicious threat actor would be an increase in risk event likelihood. The likelihood of a risk event is influenced by the factors of threat, vulnerability, and exposure. The motivation of a threat actor is a key component of the threat factor, as it reflects the intent and capability of the actor to exploit a vulnerability. Therefore, a higher motivation would imply a higher probability of an attack. An increase in mitigating control costs, risk event impact, or cybersecurity premium are possible consequences of a risk event, but they are not directly affected by the motivation of the threat actor. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 6; CRISC Review Manual, 6th Edition, page 67.

Recovery time objectives (RTOs) are the acceptable timeframes within which business processes must be restored after a disruption. RTOs should be based on the maximum tolerable downtime (MTD), which is the longest time that a business process can be inoperable without causing irreparable harm to the organization. The other options are not directly related to RTOs, as they refer to the amount of data loss or corruption that can be tolerated, not the time to restore the business processes. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.3: Key Risk Indicators, page 197.

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.

Shutting down operations to prevent exposure to risk exemplifies risk avoidance, which eliminates the activity causing the risk. This aligns withRisk Treatment Strategies.

 Understanding the Question:

The question is about mitigating the impact of social engineering attacks that use AI technology to impersonate senior management personnel.

 Analyzing the Options:

A. Training and awareness of employees for increased vigilance:This is the most proactive approach. Educating employees about the risks and signs of social engineering attacks enhances their ability to recognize and respond appropriately to such threats.

B. Increased monitoring of executive accounts:Useful but reactive; it doesn't prevent initial attempts.

C. Subscription to data breach monitoring sites:Helps detect breaches but doesn’t directly mitigate impersonation attacks.

D. Suspension and takedown of malicious domains or accounts:Reactive measure and might not be immediate or comprehensive.

 Detailed Explanation:

Importance of Training:Employees are often the first line of defense against social engineering attacks. Regular training ensures they are aware of the tactics used in such attacks, including those leveraging AI, and how to respond effectively.

Proactive Measure:Training increases vigilance and the likelihood of early detection, reducing the potential impact of the attack.

References:

CRISC Review Manual, Chapter 3: Risk Response and Reporting, discusses the importance of training and awareness programs in mitigating social engineering risks​​.

IT risk scenarios are hypothetical situations that describe the sources, causes, and consequences of IT-related risks, and the potential impacts on the organization’s objectives, performance, and value creation12.

A corporate risk register is a document that records and tracks the significant risks that the organization faces, and the responses and actions that are taken to address them34.

The greatest benefit of incorporating IT risk scenarios into the corporate risk register is that exposure is integrated into the organization’s risk profile, which is a comprehensive and integrated representation of the risks that may affect the organization’s objectives, performance, and value creation56.

Exposure is integrated into the organization’s risk profile means that the organization has a complete and consistent view of the IT risk landscape, and the potential impacts andinterdependencies of IT risks on other types of risks, such as financial, operational, strategic, or reputational risks56.

Exposure is integrated into the organization’s risk profile also means that the organization can make informed and balanced decisions on the risk responses and actions, and allocate the appropriate resources and priorities to the IT risk management and control processes56.

The other options are not the greatest benefit, but rather possible outcomes or consequences of incorporating IT risk scenarios into the corporate risk register. For example:

Corporate incident escalation protocols are established is an outcome of incorporating IT risk scenarios into the corporate risk register that indicates the organization has defined and implemented the procedures and mechanisms for reporting and resolving IT-related incidents, and for escalating them to the appropriate authorities or levels when necessary78. However, this outcome does not measure or reflect the exposure or the risk profile of the organization, which may depend on other factors such as the frequency, severity, or complexity of the incidents78.

Risk appetite cascades to business unit management is a consequence of incorporating IT risk scenarios into the corporate risk register that indicates the organization has communicated and aligned the risk appetite, which is the amount and type of risk that the organization is willing to accept or pursue, to the business unit management, who are responsible for executing the risk strategy and objectives at the operational level . However, this consequence does not indicate or imply the exposure or the risk profile of the organization, which may vary depending on the context, environment, or stakeholder expectations .

The organization-wide control budget is expanded is an outcome of incorporating IT risk scenarios into the corporate risk register that indicates the organization has increased the amount of resources and funds that are allocated to the control processes, which are the procedures and activities that aim to ensure the effectiveness and efficiency of the organization’s operations, the reliability of its information, and the compliance with its policies and regulations . However, this outcome does not affect or determine the exposure or the risk profile of the organization, which is independent of the control budget . References =

1: IT Risk Scenarios - Morland-Austin3

2: Risk Scenarios Toolkit, ISACA, 2019

3: Risk Register Template and Examples | Prioritize and Manage Risk1

4: Risk Register Examples for Cybersecurity Leaders4

5: Risk IT Framework, ISACA, 2009

6: IT Risk Management Framework, University of Toronto, 2017

7: Security Incident Reporting and Response, University of Toronto, 2017

8: Security Incident Reporting and Response, ISACA, 2019

Risk Appetite: Linking Strategy, Risk and Performance, ISACA, 2012

Risk Appetite and Tolerance, ISACA Journal, Volume 4, 2013

The Control Process | Principles of Management2

Control Management: What it is + Why It’s Essential | Adobe Workfront5

The most important factor when identifying an organization’s risk exposure associated with IoT devices is visibility into all networked devices. This means having a comprehensive inventory of all the IoT devices connected to the organization’s network, as well as their configurations, functions, and security status. Visibility enables the organization to identify the potential threats and vulnerabilities that IoT devices pose, as well as the impact and likelihood of those risks. Visibility also helps the organization to monitor the behavior and performance of IoT devices, detect any anomalies or incidents, and respond accordingly. Without visibility, the organization may be unaware of the existence, location, or condition of some IoT devices, which could lead to undetected breaches, data loss, or operational disruptions. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.4: IT Risk Identification Methods and Techniques, Page 28; 8 Internet of Things Threats and Risks to Be Aware of - SecurityScorecard Blog.

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

 Risk appetite is the most important factor to consider first when creating a comprehensive IT risk register, as it defines the amount and type of risk that the organization is willing to accept in pursuit of its objectives, and guides the identification, assessment, response, and monitoring of the IT risks. The other options are not the most important factors, as they are more related to the resources, actions, or methods of the IT risk management, respectively, rather than the strategy or direction of the IT risk management. References = CRISC Review Manual, 7th Edition, page 109.

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.

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 theorganization 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.

Completing a gap analysis identifies discrepancies between current controls and the requirements of the IT control framework, ensuring a focused approach to compliance. This supportsRisk Assessment for Compliance Requirements.

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

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.

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

The result of a control working as desired, but having an annual cost of maintenance that exceeds the expected annual loss exposure, is that the control is inefficient, as it implies that the control is not cost-effective or optimal, and may require a review or adjustment. The other options are not the correct results, as they do not reflect the performance or adequacy of the control, but rather the maturity, effectiveness, or optimization of the control, respectively. References = CRISC Review Manual, 7th Edition, page 154.

 Maturity Models:

Maturity models provide a framework for assessing the development and optimization of processes within an organization.

They typically range from ad hoc and immature processes to well-defined and continuously improving processes.

 Assessing IT Process Improvement:

Changes in the organization’s position within a maturity model indicate that processes are becoming more mature, standardized, and optimized.

Improvements in maturity levels reflect enhancements in process efficiency, effectiveness, and consistency.

 Importance of Maturity Models:

Provides a clear and structured approach to evaluate and benchmark process improvements.

Helps senior management understand the progress and development of IT processes over time.

 Comparing Other Indicators:

Number of Security Exceptions:Useful for identifying issues but not a comprehensive measure of process improvement.

Risk Register Changes:Reflects risk management activities but not overall process maturity.

Number of Intrusions Detected:Indicates security effectiveness but not broader process improvements.

 References:

The CRISC Review Manual discusses the use of maturity models to assess and improve risk management capabilities and IT processes (CRISC Review Manual, Chapter 3: Risk Response and Mitigation, Section 3.6 Capability Maturity Models)​​.