CRISC Questions and Answers

 The average time to identify critical information security incidents is the best indicator of effective information security incident management, as it measures how quickly the organization can detect and respond to the most severe threats to its information assets. The faster the organization can identify critical incidents, the lower the potential impact and damage they can cause. The average time to identify critical incidents also reflects the efficiency and accuracy of the monitoring and reporting mechanisms, as well as the awareness and training of the staff and stakeholders. The other options are not the best indicators of effective information security incident management, as they do not directly measure the performance or quality of the incident response process. The monthly trend of information security-related incidents may show the frequency or severity of the incidents, but not how well they are managed. The frequency of information security incident response plan testing may show the preparedness or maturity of the organization, but not the actual effectiveness of the plan. The percentage of high-risk security incidents may show the risk exposure or appetite of the organization, but not the risk mitigationor treatment. References = 7 Types of Information Security Incidents and How to Respond; Annex A.16: Information Security Incident Management - ISMS.online; CISM Isaca Exam Questions and Answers - CertLibrary.com

Avoidancemeans the risk is no longer relevant because the activity is not pursued. As a result, there isno residual riskto manage or control. ISACA’s risk response options include avoidance, which eliminates the need for further risk treatment.

===========

The most useful input to the parent company’s risk practitioner when developing risk scenarios for the post-acquisition phase is the risk registers of both companies. The risk register is a document that records the details of the risks, such as their sources, causes, consequences, likelihood, impact, and responses. By reviewing the risk registers of both companies, the risk practitioner can identify the existing and potential risks that may affect the post-acquisition integration, performance, and value. The risk management framework, the IT balancedscorecard, and the most recent internal audit findings are other possible inputs, but they are not as useful as the risk registers. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

 The best way to facilitate the development of effective IT risk scenarios is to utilize a cross-functional team. A cross-functional team is a group of people with different skills, expertise, and perspectives who work together to achieve a common goal. A cross-functional team can help to create realistic, comprehensive, and relevant IT risk scenarios by bringing diverse knowledge, experience, and insights from various domains and functions. A cross-functional team can alsohelp to identify and address the interdependencies, interactions, and impacts of IT risks across the organization. The other options are not the best ways to facilitate the development of effective IT risk scenarios, although they may be useful or necessary depending on the context and nature of the IT risks. Participation by IT subject matter experts is important, but it is notsufficient, as IT risks may affect or be affected by non-IT factors and stakeholders. Integration of contingency planning is a part of the risk response process, which follows the risk scenario development process, but it is not the same as creating the risk scenarios. Validation by senior management is a quality assurance step that ensures the accuracy and completeness of the risk scenarios, but it is not the same as facilitating the development of the risk scenarios. References = Six Steps to Using Risk Scenarios for Improved Risk Management, IT Risk Scenarios - Morland-Austin, IT Risk Resources | ISACA

Reviewing historical risk events is most useful for the risk assessment process within the risk management life cycle. Risk assessment is the process of identifying, analyzing, and evaluating the risks that may affect the project or the organization1. Reviewing historical risk events can help to:

Identify the sources, causes, and consequences of past risks and learn from the successes and failures of previous projects or organizations

Analyze the likelihood and impact of potential risks based on historical data and trends, and use statistical methods or models to estimate the probability and severity of risk scenarios

Evaluate the level of risk exposure and compare it with the risk appetite and tolerance of the project or the organization, and prioritize the risks that need further attention or action

Use historical risk events as inputs or examples for risk identification and analysis techniques, such as brainstorming, checklists, interviews, surveys, SWOT analysis, root cause analysis, or Monte Carlo simulation2

References = Risk and Information Systems Control Study Manual, Chapter 5: Risk Assessment Process3

 According to the CRISC Review Manual (Digital Version), the business significance of the information is the most important criterion when developing a response to an attack that would compromise data, as it determines the impact and severity of the attack on the organization’s objectives and performance. The business significance of the information helps to:

Assess the value and sensitivity of the data that is compromised or at risk of compromise

Evaluate the potential losses or damages that the organization may incur due to the data compromise

Prioritize the data recovery and restoration activities based on the criticality and urgency of the data

Communicate and coordinate the data breach response and notification with the relevant stakeholders, such as the data owners, the customers, the regulators, and the media

Enhance the data protection and security measures to prevent or mitigate future data compromise incidents

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 174-1751

A risk response action plan is a document that outlines the specific tasks, resources, timelines, and deliverables for the risk responses, which are the actions or strategies that are taken to address the risks that may affect the organization’s objectives, performance, or value creation12.

The most useful tool when measuring the progress of a risk response action plan is an up-to-date risk register, which 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.

An up-to-date risk register is the most useful tool because it provides a comprehensive and consistent view of the risk landscape, and the status and performance of the risk responses and actions34.

An up-to-date risk register is also the most useful tool because it enables the monitoring and evaluation of the risk response action plan, and the identification and communication of any issues or gaps that need to be resolved or improved34.

The other options are not the most useful tools, but rather possible metrics or indicators that may be used to measure the progress of a risk response action plan. For example:

Percentage of mitigated risk scenarios is a metric that measures the proportion of risk scenarios that have been reduced or eliminated by the risk responses and actions56. However, this metric is not the most useful tool because it does not provide a comprehensive and consistent view of the risk landscape, and it may not capture the residual or emerging risks that may arise after the risk responses and actions56.

Annual loss expectancy (ALE) changes is a metric that measures the difference between the expected annual losses before and after the risk responses and actions78. However, this metric is not the most useful tool because it does not provide a comprehensive and consistent view of the risk landscape, and it may not reflect the qualitative or intangible impacts of the risks or the risk responses and actions78.

Resource expenditure against budget is a metric that measures the amount of resources and funds that have been spent or allocated for the risk responses and actions, compared to the planned or estimated budget . However, this metric is not the most useful tool because it does not provide acomprehensive and consistent view of the risk landscape, and it may not indicate the effectiveness or efficiency of the risk responses and actions . References =

1: Risk Response Plan in Project Management: Key Strategies & Tips1

2: How to Create the Ultimate Risk Response Plan | Wrike2

3: Risk Register Template and Examples | Prioritize and Manage Risk3

4: Risk Register Examples for Cybersecurity Leaders4

5: Risk Scenarios Toolkit, ISACA, 2019

6: Risk Scenarios Starter Pack, ISACA, 2019

7: Annualized Loss Expectancy (ALE) - Definition and Examples5

8: Annualized Loss Expectancy (ALE) Calculator6

Project Budgeting: How to Estimate Costs and Manage Budgets7

Project Budget Template - Download Free Excel Template8

Shadow systems are IT systems, solutions, devices, or technologies used within an organization without the knowledge and approval of the corporate IT department1. They are often the result ofemployees trying to address specific functionality gaps in the organization’s official systems, such as the ERP system. However, shadow systems can pose significant risks to the organization, such as:

Data security and privacy breaches, as shadow systems may not comply with the organization’s security policies and standards, or may expose sensitive data to unauthorized parties2.

Data quality and integrity issues, as shadow systems may not synchronize or integrate with the organization’s official systems, or may create data inconsistencies or redundancies3.

Compliance and regulatory violations, as shadow systems may not adhere to the organization’s legal or contractual obligations, or may create audit or reporting challenges4.

Cost and resource inefficiencies, as shadow systems may duplicate or conflict with the organization’s official systems, or may consume more IT resources than necessary5.

The best way to reduce the risk associated with shadow systems is to implement an enterprise architecture (EA), which is a comprehensive framework that defines the structure, processes, principles, and standards of the organization’s IT environment6. By implementing an EA, the organization can:

Align the IT systems with the organization’s goals and strategy, and ensure that they support the business needs and requirements6.

Establish a governance structure and process for IT decision making, and ensure that all IT systems are approved, monitored, and controlled by the IT department7.

Enhance the communication and collaboration between the IT department and the business units, and ensure that the IT systems meet the expectations and preferences of the end users5.

Optimize the performance and efficiency of the IT systems, and ensure that they are scalable, flexible, and interoperable6.

References =

Shadow IT: What Are the Risks and How Can You Mitigate Them? - Ekran System

How to Reduce Risks of Shadow IT by Applying Governance to Public Clouds – BMC Software | Blogs

What is shadow IT? - Article | SailPoint

The Risks of Shadow IT and How to Avoid Them | SiteSpect

Start reducing your organization’s Shadow IT risk in 3 steps

What is enterprise architecture (EA)? - Definition from WhatIs.com

Enterprise Architecture Governance - CIO Wiki

 The most important requirement to include in an outsourcing contract to help ensure sensitive data stored with a service provider is secure is a third-party assessment report of control environment effectiveness. This will help to verify that the service provider has implemented adequate security controls and practices to protect the data, and that they comply with the enterprise’s security policies and standards. A third-party assessment report also provides an independent and objective assurance of the service provider’s security posture and performance. Incidents related to data loss, risk assessment results, and cyber insurance policy are also important requirements to include in an outsourcing contract, but they are not as important as a third-party assessment report. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.2.1.2, page 2461

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 643.

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

Risk assessments are most effective when performed at each stage of the system development life cycle (SDLC). The SDLC is a framework that defines the phases and activities of developing, implementing, and maintaining a system. The SDLC typically consists of the following stages: initiation, planning, analysis, design, development, testing, implementation, and maintenance. Performing risk assessments at each stage of the SDLC helps to identify, analyze, and evaluate the risks that could affect the system objectives, requirements, functionality, quality, or performance. Performing risk assessments at each stage of the SDLC also helps to select and implement the appropriate risk responses, such as avoiding, transferring, mitigating, or accepting the risks. Performing risk assessments at each stage of the SDLC also helps to monitor and report the risk status and performance, and to update and adjust the risk assessment and response as the system changes or evolves. Performing risk assessments before system development begins, at system development, or during the development of the business case are not as effective as performing risk assessments at each stage of the SDLC, as they are either too early or too late, and they do not capture the full scope and complexity of the system risks. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 49.

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

The most important information to review from the acquired company to facilitate the task of updating the organization’s IT risk profile is the risk assessment and risk register. The risk assessment is a process of identifying, analyzing, and evaluating the IT risks of the acquiredcompany. The risk register is a document that records the details of the IT risks, such as their sources, causes, consequences, likelihood, impact, and responses. By reviewing the risk assessment and risk register, the risk practitioner can gain a comprehensive and accurate understanding of the IT risk profile of the acquired company, and integrate it with the IT risk profile of the acquiring organization. Internal and external audit reports, risk disclosures in financial statements, and business objectives and strategies are other possible sources of information, but they are not as important as the risk assessment and risk register. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

A reciprocal agreement is an agreement made by two or more organizations to use each other’s resources during a disaster1. For example, two organizations with similar IT infrastructure may agree to provide backup servers or data centers for each other in case of a major disruption. By doing so, they transfer the risk of losing their IT capabilities to the other party, who agrees to share the responsibility and cost of recovery.

A reciprocal agreement is a form of risk transfer, which is one of the four risk treatment options according to ISO 270012. Risk transfer means that the organization shifts the potential negative consequences of a risk to another party, such as an insurance company, a vendor, or a partner. This reduces the organization’s exposure and liability to the risk, but it does not eliminate the risk completely, as the other party may fail to fulfill their obligations or charge a high price for their services.

References = Reciprocal Agreement - Risky Thinking, ISO 27001 Risk Assessment & Risk Treatment: The Complete Guide - Advisera

The most important objective of embedding risk management practices into the initiation phase of the project management life cycle is to assess inherent risk. Inherent risk is the risk that exists before any controls or mitigations are applied. By assessing inherent risk in the initiation phase, the project team can identify the potential sources, causes, and impacts of risk that may affect the project objectives, scope, and deliverables. Assessing inherent risk in the initiation phase also helps to prioritize the risks, determine the risk appetite and tolerance, and plan the risk responses. Delivering projects on time and on budget, including project risk in the enterprise-wide IT risk profile, and assessing risk throughout the project are important objectives of risk management,but they are not the most important objective of embedding risk management practices into the initiation phase. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.1.1, page 511

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 658.

An internal data access policy is a set of rules and guidelines that define who, how, when, and why the users can access, use, share, or modify the data stored in a business application system, based on the data classification, sensitivity, and ownership.

Enforcing an internal data access policy is the most appropriate way to prevent unauthorized retrieval of confidential information stored in a business application system. This means that the organization implements and maintains effective controls to ensure that only the authorized users can access the confidential information, and that the access is logged and monitored for compliance and security purposes.

The other options are not the most appropriate ways to prevent unauthorized retrieval of confidential information stored in a business application system. They are either secondary or not essential for data access control.

The references for this answer are:

Risk IT Framework, page 28

Information Technology & Security, page 22

Risk Scenarios Starter Pack, page 20

 According to the CRISC Review Manual, a list of unencrypted databases which contain sensitive data would be the most important information for assessing the risk impact, because it would help to determine the extent and severity of the potential data breach or loss. The risk impact is the effect or consequence of the risk occurrence on the business objectives and operations. A list of unencrypted databases which contain sensitive data would indicate the scope and magnitude of the risk exposure and the potential damage to the confidentiality, integrity, and availability of the data. The other options are not the most important information for assessing the risk impact, as they are less relevant or less specific than a list of unencrypted databases which contain sensitive data. The number of users who can access sensitive data would indicate the level of access control and the likelihood of unauthorized access, but it would not indicate thetype and value of the data. The reason some databases have not been encrypted would indicate the cause and rationale of the risk, but it would not indicate the effect or consequence of the risk. The cost required to enforce encryption would indicate the feasibility and affordability of the risk response, but it would not indicate the potential loss or harm of the risk. References = CRISC Review Manual, 7th Edition, Chapter 2, Section 2.2.2, page 78.

 The most important foundational element of an effective three lines of defense model for an organization is clearly defined roles and responsibilities. The three lines of defense model is a framework that outlinesthe roles and responsibilities of different functions or groups within the organization in relation to risk management and internal control1. The three lines of defense are:

The first line of defense, which consists of the operational management and staff who own and manage the risks associated with their activities and processes. They are responsible for identifying, assessing, and mitigating the risks, as well as designing, implementing, and operating the controls.

The second line of defense, which consists of the specialized functions or units that provide oversight, guidance, and support to the first line of defense in managing the risks and controls. They are responsible for developing and maintaining the risk management framework, policies, and standards, as well as monitoring and reporting on the risk and control performance.

The third line of defense, which consists of the internal audit function that provides independent and objective assurance on the effectiveness and efficiency of the risk management and internal control system. They are responsible for evaluating and testing the design and operation of the risks and controls, as well as reporting and recommending improvements to the seniormanagement and the board. Clearly defined roles and responsibilities are essential for ensuring that the three lines of defense model works effectively and efficiently. They help to avoid confusion, duplication, or gaps in the risk management and internal control activities, as well as to ensure accountability, coordination, and communication among the different functions or groups. They also help to establish the appropriate level of independence, authority, and competence for each line of defense, as well as to align the risk management and internal control objectives and strategies with the organization’s goals and values2. The other options are not the most important foundational element of an effective three lines of defense model for an organization, as they are either less relevant or less specific than clearly defined roles and responsibilities. A robust risk aggregation tool set is a set of methods or techniques that enable the organization to collect, consolidate, and analyze the risk data and information from different sources, levels, or perspectives. A robust risk aggregation tool set can help to enhance the risk identification, assessment, and reporting processes, as well as to support the risk decision making and prioritization. However, a robust risk aggregationtool set is not the most important foundational element of an effective three lines of defense model for an organization, as it does not address the roles and responsibilities of the different functions or groups in relation to risk management and internal control. A well-established risk management committee is a group of senior executives or managers who are responsible for overseeing and directing the risk management activities and performance of the organization. A well-established risk management committee can help to ensure the alignment and integration of the risk management objectives and strategies with the organization’s goals and values, as well as to provide guidance and support to the different functions or groups involved in risk management and internal control. However, a well-established risk management committee is not the most important foundational element of an effective three lines of defense model for an organization, as it does not cover theroles and responsibilities of the operational management and staff, the specialized functions or units, or the internal audit function. Well-documented and communicated escalation procedures are the steps or actions that are taken to report and resolve any issues or incidents that may affect the risk management and internal control activities or performance of the organization. Well-documented and communicated escalation procedures can help to ensure the timely and appropriate response and resolution of the issues or incidents, as well as to inform and involve the relevant stakeholders and authorities. However, well-documented and communicated escalation procedures are not the most important foundational element of an effective three lines of defense model for an organization, as they do not define the roles and responsibilities of the different functions or groups in relation to risk management and internal control. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.1.1, Page 85.

The primary focus of an ongoing risk awareness program should be to enable better risk-based decisions, as this can help the organization to achieve its objectives, optimize its performance, and manage its risks effectively. An ongoing risk awareness program is a process of educating, communicating, and engaging the stakeholders about the organization’s risk management framework, methodology, and practices. An ongoing risk awareness program can help the stakeholders to understand the risk context, criteria, appetite, and profile of the organization, and to identify, assess, treat, monitor, and review the risks that may affect their roles and responsibilities. By doing so, an ongoing risk awareness program can empower the stakeholders to make informed and rational decisions that balance the benefits and costs of risk-taking, and that align with the organization’s strategy and goals.

Independent third-party audits provide an objective review of a vendor’s control environment. They are often formalized in reports such as SOC 2 or ISO audits, giving the organization the highest level of assurance about the effectiveness of vendor controls.

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

Risk strategies are the plans and actions that an organization adopts to manage its risks and to achieve its objectives. Risk strategies should be aligned with the organization’s vision, mission, values, and culture, as well as its internal and external environment. The most important consideration when developing risk strategies is the long-term organizational goals, meaning that the risk strategies should support and enable the organization to pursue and attain its desired future state and outcomes. The long-term organizational goals should guide the risk identification, assessment, response, and monitoring processes, as well as the risk appetite and tolerance levels. The long-term organizational goals should also be communicated and cascaded throughout the organization to ensure the risk awareness and engagement of all stakeholders. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, p. 27-28

When selecting a risk response, the following should be considered:

B. Risk response costs

It’s important to evaluate the costs associated with implementing a risk response to ensure that they are justified by the benefits of mitigating the risk. This helps in making cost-effective decisions that align with the organization’s risk management objectives.

Evaluating risk scenarios and assessing current controls is the most helpful in identifying gaps between the current and desired state of the IT risk environment, because it allows the risk practitioner to compare the actual and expected outcomes of the IT processes and activities under different situations. A risk scenario is a hypothetical situation that describes a possible event or sequence of events that may affect the IT objectives and performance. A risk scenario can be based on various factors, such as the sources of risk, the risk drivers, the risk events, the risk impacts, and the risk responses. A risk scenario can also include the likelihood and severity of the risk, as well as the assumptions and uncertainties involved. Evaluating risk scenarios helps the risk practitioner to understand the nature and extent of the IT risks, as well as the potential consequences and opportunities that may arise from them. Assessing current controls is the process of examining and testing the existing controls that are implemented to manage the IT risks. A control is a measure or action that reduces the likelihood or impact of a risk, or enhances the benefits or opportunities of a risk. Assessing current controls helps the risk practitioner to determine the effectiveness and efficiency of the controls, as well as their alignment with the IT objectives and requirements. By evaluating risk scenarios and assessing current controls, the risk practitioner can identify the gaps between the current and desired state of the IT risk environment. The gaps can be related to the following aspects: - The IT objectives and performance: The gaps can indicate the difference between the actual and expected results of theIT processes and activities, as well as the deviation from the IT goals and targets. - The IT risk exposure and appetite: The gaps can indicate the difference between the actualand acceptable level of risk that the organization faces or is willing to take in pursuit of the IT objectives. - The IT risk management process and practices: The gaps can indicate the difference between the actual and expected performance of the IT risk management process, as well as the compliance with the IT risk management policies and standards. - The IT risk culture and awareness: The gaps can indicate the difference between the actual and desired level of risk awareness,understanding, and communication among the IT stakeholders, as well as the alignment with the organizational values and culture. Identifying the gaps between the current and desired state of the IT risk environment is important for the risk practitioner, as it can help to prioritize and address the IT risks, as well as to improve and optimize the IT risk management process and practices. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: Risk Scenarios, pp. 63-681

 The main benefit of involving stakeholders in the selection of key risk indicators (KRIs) is improving risk awareness, as it helps to communicate the risk exposure, appetite, and tolerance of the organization to the relevant parties. KRIs are metrics that provide information on the level of exposure to a given operational risk1. By involving stakeholders in the selection of KRIs, the risk practitioner can ensure that the KRIs are aligned with the stakeholder expectations, needs, and objectives, and that they reflect the most significant risks that affect the organization. This also helps to foster a risk culture and a shared understanding of risk among the stakeholders, which can enhance the risk management process and performance. The other options are not the main benefit of involving stakeholders in the selection of KRIs, although they may be some of the outcomes or advantages of doing so. Obtaining buy-in from risk owners, leveraging existing metrics, and optimizing risk treatment decisions are all important aspects of risk management, but they are not the primary reason for involving stakeholders in the selection of KRIs. References = Key Risk Indicators; Key Risk Indicators: A Practical Guide; The 10 Types of Stakeholders That You Meet in Business; What are Stakeholders? Stakeholder Definition | ASQ

The data privacy manager is the best person to an application system used to process employee personal data, because they are responsible for ensuring that the organization complies with the applicable data protection laws and regulations, and that the personal data of employees are collected, stored, processed, and disposed of in a secure and ethical manner. The data privacy manager is also responsible for establishing and maintaining the data privacy policies, procedures, and controls, and for conducting data privacy impact assessments and audits. The compliance manager, the system administrator, and the human resources (HR) manager are all involved in the of the application system, but they are not the best person to it, as they do not have the primary accountability and expertise for data privacy. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158

According to the CRISC Review Manual1, stakeholders are the individuals or groups that have an interest or stake in the outcome of the IT system and its risks. Stakeholders include the system owners, users, operators, developers, managers, auditors, regulators, and customers. It is most important to ensure that agreement is obtained from stakeholders when testing the security of an IT system, as this helps to define the scope, objectives, and expectations of the test, and to obtain the necessary authorization, support, and resources for the test. Agreement from stakeholders also helps to avoid any conflicts, disruptions, or misunderstandings that may arise during or after the test, and to ensure the validity and acceptance of the test results and recommendations. References = CRISC Review Manual1, page 198, 224.

Project risk register: A document that records the identified risks, their likelihood, impact, and mitigation strategies for a project1.

Project steering committee: A group of senior stakeholders and experts who oversee and support a project from a higher level2.

Risk mitigation actions: The measures taken to prevent, reduce, or transfer the risks that may affect a project3.

The most important objective of regularly presenting the project risk register to the project steering committee is to track the status of risk mitigation actions. Tracking the status of risk mitigation actions can help the project steering committee to:

Monitor and measure the performance and effectiveness of the risk management process and controls

Evaluate the progress and outcomes of the risk mitigation actions against the project goals and objectives

Identify and resolve any issues, challenges, or gaps in the risk mitigation actions

Provide guidance, feedback, and support to the project manager and the project team

Adjust or revise the risk mitigation actions as needed to reflect the changes in the project scope, schedule, budget, or environment

The other options are not the most important objective of regularly presenting the project risk register to the project steering committee, although they may be relevant or beneficial. Allocating budget for resolution of risk issues, which means assigning financial resources to address and resolve the risks that may affect a project, may be a part of the risk management process, but it is not the primary purpose of presenting the project risk register, which is more focused on tracking and reporting the risk status and actions. Determining if new risk scenarios have been identified, which means finding out if there are any additional or emerging risks that may impact a project, may be a useful outcome of presenting the project risk register, but it is not the main objective, which is more concerned with tracking and reporting the existing risk status and actions. Ensuring the project timeline is on target, which means verifying that the project is progressing according to the planned schedule and milestones, may be a benefit of presenting the project risk register, but it is not the key objective, which is more related to tracking and reporting the risk status and actions.

References = Risk Register: A Project Manager’s Guide with Examples [2023] • Asana, Project Steering Committee: Roles, Best Practices, Challenges, Risk Mitigation: Definition, Strategies, and Examples

Risk appetite and tolerance reflect strategic priorities. As business and external environments evolve, regular updates ensure that risk responses and decisions remain aligned with organizational goals and acceptable boundaries.

The most important factor when developing risk scenarios is obtaining input from key stakeholders. A risk scenario is a description of a possible event or situation that could affect the enterprise’s objectives, processes, or resources. Obtaining input from key stakeholders, such as business owners, process owners, subject matter experts, or external parties, helps to ensure that the risk scenarios are realistic, relevant, and comprehensive. It also helps to identify the sources,drivers, indicators, likelihood, impact, and responses of the risk scenarios, and to align them with the enterprise’s risk appetite and tolerance. Obtaining input from key stakeholders also fosters a collaborative and participatory approach to risk management, and enhances the risk awareness and ownership among the stakeholders. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.3, page 621

Emphasizing individual responsibility ensures that every employee understands their role in managing risk, which is fundamental to cultivating a risk-aware culture.

Residual risk exceeds acceptable limits, because it indicates that the risk level is higher than the organization’s risk appetite or tolerance, and that the risk responses and controls are insufficient or ineffective. Residual risk is the level of risk remaining in a process or procedure following the implementation of risk controls to limit or remove it. Escalation is a process that increases theawareness and involvement of higher-level stakeholders or authorities in a risk issue or situation. Escalation is appropriate when the risk issue or situation is outside the scope or authority of the current risk owner or manager, and requires the attention or action of the senior management or the board of directors. Residual risk exceeding acceptable limits is the best situation to justify escalation, as it implies that the current risk owner or manager cannot manage the risk within the predefined boundaries or expectations, and that the senior management or the board of directors need to intervene or approve the risk acceptance or transfer.

Residual risk being inadequately recorded, residual risk remaining after controls have been applied, and residual risk equaling current risk are all possible situations that may require escalation, but they are not the best situations, as they do not necessarily indicate that the risk level is higher than the acceptable limits, and that the senior management or the board of directors need to be involved.

A risk register is a document that contains information about potential cybersecurity risks that could threaten a project’s success, or even the business itself2. Therefore, it is important to protect the confidentiality and integrity of the risk register from unauthorized or inappropriate access, modification, or disclosure. One way to do this is to implement role-based access, which is a method of restricting access to the risk register based on the roles or responsibilities of the users1. This way, only authorized users who need to view or edit the risk register for legitimate purposes can do so, and the access rights can be revoked or modified as needed. This would most effectively reduce the potential for inappropriate exposure of vulnerabilities documented in the risk register. The other options are not as effective or feasible as option C, as they do not address the need to balance the security and availability of the risk register. Option A, limiting access to senior management only, would compromise the availability and usefulness of the risk register, as other stakeholders such as project managers, risk owners, or auditors may need to access therisk register for risk identification, analysis, response, or monitoring purposes3. Option B, encrypting the risk register, would enhance the security of the risk register, but it would not prevent authorized users from exposing the vulnerabilities to unauthorized parties, either intentionally or unintentionally. Encryption also adds complexity and cost to the risk register management process, and may affect the performance or usability of the risk register4. Option D, requiring users to sign a confidentiality agreement, would rely on the compliance and ethics of the users, but it would not prevent or detect any breaches of the agreement. A confidentiality agreement also does not specify the access rights or roles of the users, and may not be legally enforceable in some cases5.

The risk practitioner’s best course of action after identifying risk scenarios related to noncompliance with new industry regulations is to escalate to senior management, as they have the authority and responsibility to decide on the appropriate risk response and allocate the necessary resources. Transferring the risk, implementing monitoring controls, and recalculating the risk are possible risk responses, but they require senior management approval and direction. References = Risk Scenarios Toolkit, page 19; CRISC Review Manual, 7th Edition, page 107.

A mature program is indicated by employees recognizing phishing and actively reporting it—not just deleting it. ISACA guidance states that awareness programs should foster “threat identification and escalation actions,” not just passive compliance.

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

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.

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

 IT risk assessments can best be used by management as input for decision-making, because they provide valuable information about the current and potential risks facing the organization’s IT systems, networks, and data, and their impact on the organization’s objectives and performance. IT risk assessments can help management to identify and prioritize the most critical and relevant risks, and to evaluate and select the most appropriate and effective risk responses. IT risk assessments can also help management to allocate and optimize the resources and budget for IT risk management, and to communicate and report the risk status and performance to the senior management, the board of directors, and other stakeholders. IT risk assessments can support management in making informed and balanced decisions that consider both the opportunities and the threats of IT-related activities and investments. References = Complete Guide to IT Risk Management 1

Centralizing IT systems is a process of consolidating and integrating the IT systems or resources in the organization into a single or unified platform or location. Centralizing IT systems helps to improve risk reporting, because it helps to simplify and standardize the risk management process and activities, and to enhance the visibility and transparency of the IT risks and controls. Centralizing IT systems also helps to improve risk reporting, because it helps to facilitate and automate the risk data collection, analysis, and evaluation, and to provide consistent and comprehensive risk information and insights to the organization’s stakeholders, such as the board, management, business units, and IT functions. The other options are not the greatest benefit of centralizing IT systems, although they may be related to the risk management process. Risk classification, risk monitoring, and risk identification are all activities that can help to support or improve the risk management process, but they do not necessarily benefit from centralizing IT systems

The primary concern for an organization planning to transfer and store its customer data with an offshore cloud service provider is data privacy. Data privacy is the protection of personal information fromunauthorized or unlawful access, use, disclosure, or transfer. Data privacy is governed by various laws, regulations, and standards that vary across different jurisdictions and sectors. An organization that transfers and stores its customer data with an offshore cloud service provider should ensure that the data privacy rights and obligations of the customers, the organization, and the cloud service provider are clearly defined and agreed upon, and that the data is protected according to the applicable data privacy requirements. An organization should also conduct due diligence and risk assessment on the offshore cloud service provider, and monitor and audit its performance and compliance on a regular basis. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.1, page 127123

 According to the Risk Assessment and Management: A Complete Guide, risk magnitude is the product of the likelihood and impact of a risk scenario. Risk magnitude is an important factor to consider before choosing risk treatment options, as it indicates the level of exposure andpotential harm that the organization faces from the risk scenario. Risk treatment options should be selected based on the risk magnitude, as well as the risk appetite and tolerance of the organization. For a scenario with significant impact, the risk magnitude is likely to be high, and therefore the risk treatment options should aim to reduce the likelihood and/or impact of the risk scenario as much as possible, or to transfer or avoid the risk altogether. References = Risk Assessment and Management: A Complete Guide, ISO 27001 Risk Assessment & Risk Treatment: The Complete Guide

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

The best course of action for a risk practitioner who finds that the approved risk action plan has not been completed but other risk mitigation actions have been implemented is to verify the sufficiency of mitigating controls with the risk owner. This is because the risk owner is the person who is accountable for the risk and the risk response strategy, and therefore should be consulted to ensure that the alternative actions are adequate and effective in reducing the risk to an acceptable level. The other options are not the best course of action, although they may also be performed after verifying the sufficiency of mitigating controls with the risk owner. Reviewing the cost-benefit of mitigating controls, marking the risk status as unresolved within the risk register, and updating the risk register with implemented mitigating actions are secondary actions that depend on the outcome of the verification process. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.3.2, p. 193.

 A business impact analysis (BIA) is a process that identifies and evaluates the potential effects of a disaster on the critical functions and processes of an organization1. A BIA helps to forecast the operational, financial, legal, and reputational impacts of a disaster, as well as the recovery priorities and resources needed to resume normal operations2. A BIA also helps to determine the recovery time objectives (RTO), which are the maximum acceptable time frames for restoring the critical functions and processes after a disaster3. Therefore, developing a BIA is the most important step for an organization to forecast the effects of a disaster and plan for its recovery. Defining RTOs is a part of the BIA process, not a separate activity. Analyzing capability maturity model gaps is a method to assess the effectiveness and efficiency of the organization’s processes and practices, but it does not directly forecast the effects of adisaster4. Simulating a disaster recovery is a way to test and validate the recovery plans and procedures, but it does not forecast the effects of a disaster either5. References = Risk and Information Systems Control Study Manual, Chapter 5: Risk Response and Mitigation, Section 5.3: Business Continuity Planning, pp. 227-238.

To ensure IT asset protection, having procedures for risk assessments on IT assets is the most important. These procedures enable an organization to systematically identify, evaluate, and mitigate risks associated with its IT assets. This process is crucial for understanding thevulnerabilities and threats that could potentially harm the assets and for implementing the necessary controls to protect them.

Procedures for Risk Assessments on IT Assets (Answer A):

Importance: Regular risk assessments help in identifying vulnerabilities and threats to IT assets, allowing the organization to prioritize and implement appropriate risk mitigation strategies.

Implementation: These procedures should be well-documented and regularly updated to reflect the changing threat landscape and the organization's evolving IT infrastructure.

Outcome: Effective risk assessments ensure that IT assets are protected from potential risks, thereby safeguarding the organization's data, systems, and overall IT environment.

Comparison with Other Options:

B. An IT asset management checklist:

Purpose: This helps in tracking and managing IT assets.

Limitation: It does not address risk assessment and mitigation directly.

C. An IT asset inventory populated by an automated scanning tool:

Purpose: Provides a detailed list of IT assets.

Limitation: While it helps in knowing what assets exist, it does not assess the risks associated with those assets.

D. A plan that includes processes for the recovery of IT assets:

Purpose: Focuses on recovery after an incident.

Limitation: It is reactive rather than proactive in protecting assets.

A risk register is a tool that records and tracks the risks that may affect the organization, as well as the actions that are taken or planned to manage them1. A risk register provides the best evidence that the IT risk profile is up to date, because it reflects the current and potential IT risks that the organization faces, as well as their likelihood, impact, severity, owner, status, and response2. An IT risk profile is a document that describes the types, amounts, and priority of ITrisk that the organization finds acceptable and unacceptable3. An IT risk profile is developed collaboratively with various stakeholders within the organization, including business leaders, data and process owners, enterprise risk management, internal and external audit, legal, compliance, privacy, and IT risk management and security4. By maintaining and updating the risk register regularly, the organization can ensure that the IT risk profile is aligned with the changing IT risk environment, and that the IT risk management activities and performance are consistent and effective. The other options are not the best evidence that the IT risk profile is up to date, as they are either less comprehensive or less relevant than the risk register. A risk questionnaire is a tool that collects and analyzes the opinions and perceptions of the stakeholders about the risks that may affect the organization5. A risk questionnaire can help to identify and assess the risks, as well as to communicate and report on the risk status and issues. However, a risk questionnaire is not the best evidence that the IT risk profile is up to date, as it may not capture all the IT risks that the organization faces, or reflect the actual or objective level and nature of the IT risks. A management assertion is a statement or declaration made by the management about the accuracy and completeness of the information or data that they provide or report. A management assertion can help to increase the confidence and trust of the stakeholders and auditors in the information or data, as well as to demonstrate the accountability and responsibility of the management. However, a management assertion is not the best evidence that the IT risk profile is up to date, as it does not provide the details or outcomes of the IT risk management activities or performance, or verify the validity and reliability of the IT risk information or data. A compliance manual is a document that contains the policies, procedures, and standards that the organization must follow to meet the legal, regulatory, or contractual requirements that apply to its activities or operations. A compliance manual can help to ensure the quality and consistency of the organization’s compliance activities or performance, as well as to avoid or reduce the penalties or sanctions for non-compliance. However, a compliance manual is not the best evidence that the IT risk profile is up to date, as it does not address the IT risks that the organization faces, or the IT risk management activities or performance. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.5, Page 55.

The maturity of an IT risk management program is most influenced by the organization’s risk culture, as this reflects the shared values, beliefs, and attitudes that shape how the organization perceives and responds to risk. The risk culture determines the level of awareness, commitment, and involvement of the stakeholders in the IT risk management process, as well as the degree of integration and alignment with the enterprise’s objectives and strategy. A mature IT risk management program requires a strong and positive risk culture that fosters trust, collaboration, and accountability among the stakeholders, and supports continuous improvement and learning. The other options are not the most influential factors for the maturity of an IT risk management program, although they may have some impact or relevance. Benchmarking results against similar organizations can provide useful insights and comparisons, but they do not necessarily reflect the organization’s own risk culture or context. Industry-specific regulatory requirements can impose certain standards and expectations, but they do not guarantee the effectiveness or efficiency of the IT risk management program. Expertise available within the IT department can enhance the technical and operational aspects of the IT risk management program, but it does not ensure the strategic and cultural alignment with the enterprise. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, page 23.

While responsibility and accountability generally remain with the enterprise, financial impact (e.g., via insurance or outsourcing) can be transferred to a third party.

Local laws and regulations should be the primary consideration when assessing the risk of using IoT devices to collect and process PII, because they define the legal obligations and liabilities of the organization and the individuals involved. Non-compliance with local laws and regulations can result in fines, lawsuits, reputational damage, and loss of trust. Therefore, it is essential to understand and adhere to the applicable laws and regulations in the jurisdictions where the IoT devices operate and where the PII is stored, processed, and transferred.

References

•Considerations for Managing Internet of Things (IoT) Cybersecurity and Privacy Risks

•The Internet of Things (IoT) and Digitally Stored PII: Avoidable or Inevitable?

•Security Issues in IoT: Challenges and Countermeasures

Risk Appetite:

Risk appetite defines the level of risk that an organization is willing to accept in pursuit of its objectives. It serves as a benchmark for evaluating and prioritizing risk responses.

Prioritizing Risk Responses:

When determining how to address risks, the primary consideration should be whether the residual risk falls within the organization’s risk appetite.

If a risk exceeds the appetite, it needs to be mitigated, transferred, or avoided. If it is within the appetite, it might be accepted.

Influence of Other Factors:

Residual Risk:Important but must be evaluated against the risk appetite to determine if it is acceptable.

Mitigation Cost:Relevant for decision-making but secondary to aligning with risk appetite.

Inherent Risk:Initial risk assessment before controls are applied, but prioritization is based on residual risk and risk appetite.

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 vulnerability is a weakness or gap in a system, application, or network that can be exploited by a threat to cause harm or gain unauthorized access1. A vulnerability can be caused by various factors, such as design flaws, coding errors, configuration errors, or outdated software2.

Among the four options given, only option C (a standard procedure for applying software patches two weeks after release) represents a vulnerability. This is because software patches are updates or fixes that address security weaknesses or bugs in software applications or systems3. By applying software patches two weeks after release, the organization is exposing itself to the risk of being attacked or compromised by malicious actors who may exploit the known vulnerabilities in the software before they are patched. This risk is especially high if the software is internet-facing or critical to the organization’s operations4.

References = What is a Vulnerability?, Vulnerability Definition & Meaning - Merriam-Webster, Vulnerability Patching: A Resource Guide - Rezilion, Why is Software Vulnerability Patching Crucial for Your Software and …

Residual risk is the risk that remains after the risk mitigation plans have been implemented. Residual risk reflects the effectiveness of the risk response in reducing the likelihood or impact of the risk. The best evidence that risk mitigation plans have been implemented effectively is the change in the level of residual risk. A change in the level of residual risk can be measured by comparing the risk level before and after the risk mitigation plans have been executed. A change in the level of residual risk can also be evaluated by comparing the actual residual risk with the target or acceptable residual risk. A change in the level of residual risk can demonstrate how well the risk mitigation plans have achieved the risk objectives and met the risk criteria. A change in the level of residual risk can also provide feedback and lessons learned for future risk management activities. References = Residual Risk: Definition, Formula & Management, Residual Risk: What It Is and How to Manage It, Residual Risk: How to Calculate and Manage It.

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

The risk identification number and description

The risk treatment option chosen (e.g., avoid, reduce, share, or accept)

The risk treatment owner, who is responsible for implementing and monitoring the risk treatment

The risk treatment actions, which are the specific tasks or steps to be performed to execute the risk treatment

The risk treatment resources, which are the human, financial, or technical resources required to support the risk treatment

The risk treatment target date, which is the deadline for completing the risk treatment

The risk treatment performance indicators, which are the measures to evaluate the effectiveness and efficiency of the risk treatment

The risk treatment status, which is the current progress or outcome of the risk treatment

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

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

Reporting to the Risk Committee:

Role of Risk Committee: The risk committee is responsible for overseeing the organization’s risk management practices, including identifying, assessing, and mitigating risks.

Emerging IT Risks: Reporting emerging IT risk scenarios to the committee ensures that new and evolving threats are identified and addressed proactively.

Importance of Emerging IT Risk Scenarios:

Proactive Risk Management: By staying informed about emerging risks, the committee can implement preventive measures and avoid potential impacts.

Strategic Planning: Understanding emerging risks allows for better strategic planning and resource allocation to address these risks.

Comparison with Other Options:

System Risk and Control Matrix: Useful for ongoing monitoring but may not capture new and emerging risks.

Changes to Risk Assessment Methodology: Important for refining risk management processes but not as critical as identifying new risks.

Audit Committee Charter: Relevant for governance but not directly related to proactive risk management.

Best Practices:

Regular Updates: Provide the risk committee with regular updates on emerging IT risk scenarios.

Collaborative Approach: Engage various stakeholders in identifying and reporting emerging risks.

Using cloud-based backup tominimize the impactof a potential data loss event is a classic example ofrisk mitigation, which involves reducing risk to an acceptable level through proactive controls.

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 best time to identify the risk associated with a major project to determine a mitigation plan is the project initiation phase. The project initiation phase is the first phase of the project management process, where the project is defined, authorized, and planned. The project initiation phase includes the activities of developing the project charter, identifying the stakeholders, and defining the scope and objectives of the project. The project initiation phase is the best time to identify the risk associated with the project, as it provides the opportunity to understand the project context, requirements, and expectations, and to establish the risk management framework, process, and plan. By identifying the risk early in the project, the mitigation plan can be integrated with the project plan, and the resources, budget, and schedule can be allocated accordingly. The other options are not as optimal as the project initiation phase, as they are related to the execution, closing, or planning of the project, not the definition or authorization of the project. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Management Process, page 15.

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

The MOST effective way to help ensure an organization’s current risk scenarios are relevant is to involve the stakeholders in the risk assessment process, because they are the ones who have the knowledge, experience, and interest in the risk scenarios that affect their domains and objectives. The involvement of stakeholders can help to identify and validate the risk scenarios, to provide input and feedback on the risk analysis and evaluation, and to ensure the alignment andintegration of the risk scenarios with the business processes and goals. The other options are not as effective as the involvement of stakeholders, because:

Option A: Adoption of industry best practices is a good way to improve the quality and consistency of the risk scenarios, but it does not ensure their relevance to the organization’s specific context and environment. Industry best practices are general and standardized guidelines that may not reflect the organization’s unique risks and needs.

Option C: Review of risk scenarios by independent parties is a useful way to verify and enhance the accuracy and reliability of the risk scenarios, but it does not ensure their relevance to the organization’s internal and external stakeholders. Independent parties are objective and impartial reviewers who may not have the same knowledge, experience, and interest as the stakeholders.

Option D: Documentation of potential risk in business cases is a helpful way to communicate and justify the importance and value of the risk scenarios, but it does not ensure their relevance to the organization’s current and future state. Business cases are concise and persuasive documents that may not capture all the aspects and dimensions of the risk scenarios. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 104.

Regulatory requirements should be the primary basis for deciding whether to disclose information related to risk events that impact external stakeholders, because they define the rules or standards that the organization must comply with to meet the expectations of the regulators, such as government agencies or industry bodies, and to avoid legal or reputational consequences. A risk event is an occurrence or incident that may cause harm or damage to the organization or its objectives, such as a natural disaster, a cyberattack, or a human error. An external stakeholder is a person or group that has an interest or influence in the organization or its activities, but is not part of the organization, such as customers, suppliers, partners, investors, or regulators. Disclosing information related to risk events that impact external stakeholders is a process of communicating or reporting the relevant facts or details of the risk events to the affected or interested parties. Disclosing information related to risk events may have benefits, such as maintaining trust, transparency, and accountability, but it may also have drawbacks, such as exposing vulnerabilities, losing competitive advantage, or inviting litigation. Therefore, regulatory requirements should be the primary basis for deciding whether to disclose information, as they provide the legal and ethical obligations and boundaries for the disclosure process. Stakeholder preferences, contractual requirements, and management assertions are all possible factors for deciding whether to disclose information related to risk events, but they are not the primary basis, as they may vary or conflict depending on the situation or context, and may not override the regulatory requirements. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158

 A key outcome of risk ownership is that risk responsibilities are addressed, as this means that the risk owner has the authority and accountability to manage the risk, and that the roles and expectations of the other stakeholders are clearly defined and agreed upon. Risk ownership is the process of assigning a person or entity with the responsibility to manage a particular risk. Risk ownership helps to ensure that the risk is properly identified, assessed, and treated, and that the risk status and performance are monitored and reported. The other options are not key outcomes of risk ownership, although they may be related or beneficial aspects of it. Risk-related information is communicated is an outcome of risk reporting, which is a part of risk monitoring and control. Risk-oriented tasks are defined is an outcome of risk response planning, which is a part of risk treatment. Business process risk is analyzed is an outcome of risk assessment, which is a part of risk identification and analysis. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Identification, page 47.

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

Interviewing managementis key because risk tolerance reflects leadership’s perspective on acceptable risk levels. ISACA stresses that understanding risk tolerance requires direct input from those responsible for risk decisions and strategic direction.

 Penetration test results are the most helpful resource to a risk practitioner when updating the likelihood rating in the risk register. Penetration testing is a method of simulating real-world attacks on an IT system or network to identify and exploit vulnerabilities and measure the potential impact. Penetration test results provide empirical evidence of the existence and severity of vulnerabilities, as well as the ease and probability of exploitation. These results can help the risk practitioner to update the likelihood rating of the risks associated with the vulnerabilities, and to prioritize the risk response actions. Risk control assessment, audit reports with risk ratings, and business impact analysis (BIA) are also useful resources for risk management, but they are not as directly related to the likelihood rating as penetration test results. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.3, page 2-28.

The greatest concern associated with the transmission of healthcare data across the internet is unencrypted data, as this exposes the data to unauthorized access, interception, modification, or disclosure, which may compromise the confidentiality, integrity, and availability of the data. Healthcare data is sensitive and personal information that may include medical records, diagnoses, treatments, prescriptions, insurance claims, and biometric data. Healthcare data is subject to various legal and regulatory requirements, such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States, that mandate the protection and privacy of the data. Encryption is a method of transforming the data into an unreadable format that can only be accessed or restored by authorized parties who have the decryption key. Encryption helps to prevent or reduce the risk of data breaches, identity theft, fraud, or other malicious attacks. The other options are not the greatest concerns associated with the transmission of healthcare dataacross the internet, although they may pose some challenges or issues. Lack of redundant circuits is a concern for the reliability and continuity of the data transmission, but it does notaffect the security or privacy of the data. Low bandwidth connections is a concern for the speed andefficiency of the data transmission, but it does not affect the security or privacy of the data. Data integrity is a concern for the accuracy and completeness of the data, but it does not necessarily depend on the encryption of the data. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk Response, page 156.

Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. One of the elements of risk appetite is the enterprise’s capacity to absorb loss, which is the maximum amount of loss that an organization can withstand without jeopardizing its existence or strategic objectives. The effectiveness of compensating controls, the residual risk affected by preventive controls, and the amount of inherent risk considered appropriate are not elements of risk appetite, but rather factors that influence the risk assessment and responseprocesses. References = [CRISC Review Manual (Digital Version)], page 41; CRISC Review Questions, Answers & Explanations Database, question 196.

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

Penetration test resultsprovide direct evidence of the vendor’s technical security posture and ability to defend against real-world attacks. This is more effective than reviewing contracts or benchmarking, which are indirect measures.

A risk mitigation 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 owner is the person who has the authority and accountability to manage the risk and its response. The risk practitioner is the person who supports the risk owner in the risk management process. The best course of action for the risk practitioner when the manager of a risk mitigation action plan is replaced and a new control is implemented is to communicate the decision to the risk owner for approval. This will ensure that the risk owner is aware of the change, agrees with the new control, and approves the modification of the action plan. The other options are not the best course of action, as they may not involve the risk owner, who is ultimately responsible for the risk and its response. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.1.1.1, pp. 95-96.

The primary reason to have risk owners assigned to entries in the risk register is to ensure that risk is treated appropriately, as risk owners are responsible for implementing the risk response strategies and monitoring the risk status and outcomes. Risk owners are also accountable for the risk and its impact on the enterprise’s objectives and operations. Having risk owners assigned to entries in the risk register helps to clarify the roles and responsibilities, improve the communication and coordination, and enhance the effectiveness and efficiency of the risk management process. Mitigating actions are prioritized, risk entries are regularly updated, and risk exposure is minimized are not the primary reasons to have risk owners assigned to entries in the risk register, but rather the results or benefits of having risk owners assigned to entries in the risk register. References = CRISC by Isaca Actual Free Exam Q&As, question 206; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 206.

When a risk practitioner identifies an increasing trend of employees copying company information unrelated to their job functions to USB drives, the element of the risk register that should be updated is the risk likelihood. Here’s why:

Risk Likelihood:

Risk likelihood refers to the probability that a risk event will occur.

Observing an increasing trend of inappropriate behavior (such as copying sensitive information) indicates a higher probability of occurrence, thus increasing the risk likelihood.

Risk Impact:

While the impact of such actions could be significant, the increasing trend specifically affects the likelihood rather than the immediate impact.

The risk impact remains constant unless there is a change in the potential damage caused by the action.

Key Risk Indicator (KRI):

This observation might serve as a KRI, but the immediate action is to update the likelihood in the risk register, reflecting the increased probability.

Risk Appetite:

Risk appetite defines the level of risk an organization is willing to accept. This observation suggests a deviation but does not directly affect the risk appetite itself.

 Enterprise Risk Management (ERM):

ERM involves a comprehensive approach to identifying, assessing, managing, and monitoring risks across an organization. Effective governance of organizational assets is a key component.

 Importance of a Risk Profile:

Developing a detailed risk profile is the first step in supporting ERM implementation. It provides a clear understanding of the organization's risk landscape, including the types of risks, their potential impact, and likelihood.

A risk profile helps in prioritizing risks, allocating resources, and establishing appropriate risk management strategies.

 Steps to Develop a Risk Profile:

Identify all organizational assets and their importance to business operations.

Assess the vulnerabilities and threats associated with each asset.

Determine the potential impact and likelihood of risk events.

Document the findings to create a comprehensive risk profile.

 Supporting Implementation:

A detailed risk profile informs decision-makers and supports the development of policies, controls, and procedures to mitigate identified risks.

It serves as a foundation for continuous monitoring and improvement of the risk management program.

 Other Options:

Hiring experienced resources, scheduling internal audits, and conducting risk assessments are essential actions but come after establishing a detailed risk profile. The risk profile provides the necessary information to guide these activities effectively.

 References:

The CRISC Review Manual emphasizes the importance of developing a detailed risk profile as a foundational step in the ERM process (CRISC Review Manual, Chapter 1: Governance, Section 1.6.5 Asset Valuation)​​.

A risk-aware culture is a culture that recognizes, understands, and values the importance of risk management in achieving the organization’s objectives and goals. A risk-aware culture is also a culture that supports and encourages the identification, assessment, response, and monitoring of risks across the organization, as well as the sharing and learning of risk information and best practices. One of the activities that would best contribute to promoting an organization-wide risk-aware culture is communicating components of risk and their acceptable levels. This is a technique to inform and educate the stakeholders and decision makers about the nature and scope of the risks that the organization faces, as well as the criteria and standards that the organization uses to measure and manage the risks. Communicating components of risk and their acceptable levels can help to increase the awareness and understanding of the risks and their impact on the organization’s performance and value, as well as to align the expectations and behaviors of the stakeholders and decision makers with the organization’s risk appetite and tolerance. Communicating components of risk and their acceptable levels can also help to foster a transparent and collaborative environment for risk management, where the stakeholders and decision makers can openly discuss and address the risks and their implications, as well as to provide and receive feedback and support. The other options are not the best activities to promote an organization-wide risk-aware culture, although they may be relevant and useful. Performing a benchmark analysis and evaluating gaps is a technique to compare and improve the organization’s risk management process and performance with the industry standards or best practices, as well as to identify and close the gaps or weaknesses in the organization’s risk management capabilities or maturity. However, this technique does not necessarily promote a risk-aware culture, as it focuses on the process and performance of risk management, not the attitude and behavior of risk management. Conducting risk assessments and implementing controls is a technique to identify and analyze the risks that the organization faces, as well as to select and execute the appropriate actions to address the risks, such as avoiding, transferring, mitigating, or accepting the risks. However, this technique does not directly promote a risk-aware culture, as it focuses on the actions and outcomes of risk management, not the values and beliefs of risk management. Participating in peer reviews and implementing best practices is a technique to evaluate and enhance the quality and effectiveness of the organization’s risk management activities anddeliverables, as well as to adopt and apply the proven and successful methods or solutions for risk management. However, this technique does not effectively promote a risk-aware culture, as it focuses on the improvement and optimization of risk management, not the communication and collaboration of risk management. References = CRISC Review Manual, pages 22-231; CRISC Review Questions, Answers & Explanations Manual, page 982; The 6 keyelements to creating and maintaining a good risk culture3; How to increase risk awareness - Project Management Institute4

 Understanding the Question:

The question focuses on the primary reason for communicating risk assessment results to data owners.

 Analyzing the Options:

A. Design of appropriate controls:This is important but not the primary reason for communication.

B. Industry benchmarking of controls:This is secondary to the main goal of communicating risk.

C. Prioritization of response efforts:This enables data owners to allocate resources and address the most critical risks first.

D. Classification of information assets:This is typically part of the initial risk assessment process, not the main communication goal.



Communication of Risk Assessment Results:Ensuring data owners understand the results of risk assessments allows them to make informed decisions on where to focus their efforts.

Prioritization:Data owners can prioritize their actions based on the assessed risk levels, ensuring that resources are allocated efficiently to mitigate the most significant risks.

According to the CRISC Review Manual, one of the key objectives of risk identification is to assess the potential impact of risk events on the achievement of business objectives2. In this case, the business objective of the system is to process insurance claim payments for customers, which depends on the accuracy of claim calculation. Therefore, the impact to the accuracy ofclaim calculation should be the most important consideration for a risk-based review of the user requirements. The other options are less relevant or less critical for the business objective.

 Business Impact Assessment (BIA):

BIA identifies and evaluates the potential effects of interruptions to critical business operations. It helps determine the priority of risk mitigation efforts based on the potential impact on business functions.

BIA provides detailed information on which processes and systems are most critical to the organization's operations and their respective impact levels.

 Prioritizing Risk Mitigation:

The results of a BIA guide decision-makers in prioritizing which risks to address first based on their potential to disrupt critical business operations.

Risks that could cause significant operational, financial, or reputational damage are prioritized higher.

 Comparing Other Factors:

Cost of Risk Mitigation:Important but secondary to understanding the impact on business operations.

Asset Criticality:Relevant but typically part of the BIA process.

Acceptable Risk Level:Defines the threshold but does not prioritize specific risks.

 References:

The CRISC Review Manual discusses how BIA facilitates risk prioritization by identifying critical processes and their impacts (CRISC Review Manual, Chapter 2: IT Risk Assessment, Section 2.7 Business Impact Analysis)​​.

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

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

The best way to mitigate the risk of reputational damage from inappropriate use of social media sites by employees is to implement training and awareness programs that educate them on the acceptable andunacceptable use of social media, the potential consequences of violating the policy, and the best practices for protecting the organization’s reputation and information. Training and awareness programs can also help to foster a culture of risk awareness and responsibility among employees, and encourage them to report any incidents or issues related to social media use. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.4, page 131.

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

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

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

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 orless 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 howtheyshould 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.

A control assessment is the process of evaluating the design and effectiveness of controls that are implemented to mitigate risks. A control assessment can help identify the root causes of data loss, thegaps in the existing controls, and the potential solutions to improve the control environment. A control assessment should be conducted after identifying a high probability of data loss in a system, as it can provide valuable information for risk response and reporting. References = Risk and Information Systems Control Study Manual, Chapter 3: Risk Response and Mitigation, Section 3.2: Control Assessment, p. 147-149.

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

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

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.

Continuous risk management process improvement is the practice of evaluating and enhancing the risk management process on a regular basis, to ensure that it is effective, efficient, and aligned with the business objectives and strategy. Continuous risk management processimprovement can help identify and address the gaps, weaknesses, or opportunities for improvement in the risk management process, and ensure that the process is responsive and adaptable to the changing risk environment. The most effective method for continuous risk management process improvement is periodic assessments, which are systematic and objective evaluations of the risk management process, performed at predefined intervals or after significant events. Periodic assessments can help measure and monitor the performance and maturity of the risk management process, using criteria such as the risk management framework, standards, policies, procedures, methods, tools, roles, responsibilities, and results. Periodic assessments can also help identify and analyze the strengths, weaknesses, threats, and opportunities of the risk management process, and provide feedback and recommendations for improvement. Periodic assessments can also help communicate and report the status and progress of the risk management process to the stakeholders, and obtain their input and support for improvement actions. References = Continuous Risk Management Guidebook, p. 7-8, ISO 31000: riskmanagement and its continuous improvement, How Continuous Monitoring Drives Risk Management.

Key risk indicator (KRI): A metric that measures the level of risk exposure or the likelihood of a risk event1.

KRI threshold: A predefined value or range that triggers an alert or action when the KRI reaches or exceeds it2.

Loss expectancy: The estimated amount of loss that an organization may incur due to a risk event3.

The most helpful thing in developing KRI thresholds is loss expectancy information. Loss expectancy information provides an estimate of the potential or expected impact of a risk event on the organization’s operations, reputation, or objectives. Loss expectancy information can help an organization to:

Quantify and prioritize the risks that pose the greatest threat to the organization

Determine the acceptable level of risk exposure or tolerance for each risk

Set the appropriate value or range for the KRI threshold that reflects the risk appetite and the risk mitigation strategy

Monitor and measure the performance and effectiveness of the risk management process and controls

Loss expectancy information can be derived from various sources, such as historical data, statistical analysis, expert judgment, or simulation models3.

The other options are not as helpful as loss expectancy information in developing KRI thresholds, because they do not directly address the potential or expected impact of a risk event.Control performance predictions, which are the forecasts or estimates of how well the risk management controls will perform in preventing, detecting, or mitigating risks, may help to evaluate the adequacy and efficiency of the risk management process and controls, but they do not provide a clear and quantifiable measure of the risk impact. IT service level agreements (SLAs), which are the contracts or agreements that define the quality and availability of IT services, may help to establish the standards and expectations for IT service delivery and performance, but they do not provide a comprehensive and current view of the risk exposure or likelihood. Remediation activity progress, which is the status or outcome of the actions taken to address and resolve a risk event, may help to monitor and report the effectiveness and compliance of the risk management process and controls, but it is usually done after the risk event has occurred and resolved, not before.

References = Key Risk Indicators: Definition, Examples, and Best Practices, KRI Framework for Operational Risk Management | Workiva, Loss Expectancy: Definition, Calculation, and Examples

 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 seriousproblems. 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

“Percentage of mitigated risk scenarios is a metric that measures the proportion of risk scenarios that have been reduced or eliminated by the risk responses and actions. However, this metric is not the most useful tool because it does not provide a comprehensive and consistent view of the risk landscape…”

To truly measure progress,an up‑to‑date risk registerprovides the full context and current status of risk treatments—capturing what’s been done and what remains.

===========

KRI thresholds are the levels or points that trigger an action or a response when a KRI reaches or exceeds them. They reflect the risk appetite of the organization, which is the amount and type of risk that it is willing to accept in pursuit of its objectives. A new privacy regulation may reduce the risk appetite of the organization, as it may impose stricter requirements and penalties for non-compliance. Therefore, the organization may need to adjust its KRI thresholds to lower levels, to ensure that it can identify and manage privacy risks more effectively and proactively

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

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

Compliance costs and efforts, such as updating policies, procedures, and systems, training staff, or hiring experts

Noncompliance penalties and consequences, such as fines, lawsuits, sanctions, or reputational damages

Operational disruptions or inefficiencies, such as system changes, data migrations, or service interruptions

Competitive disadvantages or opportunities, such as losing or gaining customers, partners, or markets3

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

Establish a clear and consistent understanding of the organization’s goals, values, and expectations regarding the new regulatory requirements impacting IT

Assess the current and potential impacts of the new regulatory requirements impacting IT on the organization’s performance, operations, or assets

Determine the level of risk exposure and acceptance that the organization is comfortable with, and identify the risk thresholds or limits that should not be exceeded

Align the risk management strategies and actions with the organization’s risk tolerance and appetite, and prioritize the most critical and urgent risks to be addressed

Communicate and report the risk tolerance and appetite to the stakeholders and regulators, and ensure transparency and accountability

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

•External sources of emerging threats are sources that provide information about the latest cyberattacks, hacking techniques, malware, and vulnerabilities that can affect an organization’s IT systems and data. Examples of external sources are security blogs, forums, newsletters, reports, and alerts from reputable organizations such as ISACA, Imperva, Aura, and BitSight123.

•The most useful information an organization can obtain from external sources is the indicators for detecting the presence of threats. Indicators are observable signs or patterns that can help identify, prevent, or mitigate cyberattacks. Examples of indicators are IP addresses, domain names, file hashes, network traffic, system logs, and user behavior4.

•Indicators for detecting the presence of threats are more useful than the other options because they can help an organization to:

oMonitor and analyze its IT environment for any suspicious or malicious activity

oRespond quickly and effectively to any potential or actual incidents

oReduce the impact and damage of cyberattacks

oImprove its security posture and resilience

•Solutions for eradicating emerging threats are not the most useful information because they may not be applicable or effective for every organization, depending on its specific context, needs,and resources. Moreover, solutions may not be available or known for some new or sophisticated threats.

•Cost to mitigate the risk resulting from threats is not the most useful information because it does not help an organization to identify or prevent cyberattacks. Cost is only one factor to consider when deciding how to manage IT risk, and it may not reflect the true value or impact of the threats.

•Source and identity of attackers are not the most useful information because they may not be relevant or accurate for every organization. Source and identity of attackers are often difficult to trace or verify, and they may not affect the organization’s risk level or response strategy.

References =

•Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, Chapter 2: IT Risk Assessment, Section 2.3: Risk Identification, pp. 83-84

•Risk and Information Systems Control Review Questions, Answers & Explanations Database, 12 Month Subscription, ISACA, 2020, Question ID: 100000

The primary objective of a risk awareness training program is to enable risk-based decision making, which means making decisions that take into account the potential risks and opportunities associated with each option. A risk awareness training program should aim to develop a common understanding of risk across multiple functions and business units, achieve a better understanding of risk for competitive advantage, and build safeguards against earnings-related surprises1. A risk awareness training program should also cover the basics of risk management, such as the risk management process, the roles and responsibilities of different stakeholders, the risk appetite and tolerance of the organization, and the tools and techniques for identifying, analyzing, evaluating, and treating risks234. A risk awareness training program should also include practical examples and case studies to illustrate how risk management can beapplied in different scenarios and contexts5. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.11: Risk Awareness, pp. 34-354

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

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

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 riskanalysis 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

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

 The best indication that risk management is effective is when risk has been reduced to meet the risk appetite of the enterprise. Risk appetite is the amount and type of risk that an enterprise is willing to accept in pursuit of its objectives. Risk appetite reflects the enterprise’s risk culture, strategy, and values, and provides a basis for setting risk tolerance levels and risk response strategies. Risk management is effective when it enables the enterprise to align its risk exposure with its risk appetite, and to optimize the risk-return trade-off. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.1, page 181

The type of risk that is most likely to materialize as a result of allowing several employees to retire early in order to avoid layoffs is institutional knowledge loss, as it represents the loss of valuable information, experience, and expertise that the employees have accumulated over time, and that may not be easily transferred or replaced. Confidentiality breach, intellectual property loss, and unauthorized access are not the most likely types of risk, as they are more related to the security, ownership, or access of information, respectively, rather than the retention or transfer of knowledge. References = CRISC Review Manual, 7th Edition, page 100.

A retention policy is a set of rules and guidelines that define how long and under what conditions the information should be kept or disposed of by the organization, based on its value, sensitivity, and legal or regulatory requirements.

When information is no longer required to support business objectives, the first thing that should be done is to assess the information against the retention policy. This means that the information should be reviewed and evaluated to determine if it should be retained or deleted, and for how long and by whom.

Assessing the information against the retention policy helps to ensure that the information is managed and disposed of in a consistent and compliant manner, that the information is protected from unauthorized access, use, disclosure, modification, or destruction, and that the information is available for future reference or audit purposes if needed.

The other options are not the first things that should be done when information is no longer required to support business objectives. They are either secondary or not essential for information management.

The references for this answer are:

Risk IT Framework, page 28

Information Technology & Security, page 22

Risk Scenarios Starter Pack, page 20

 A bring your own device (BYOD) initiative allows employees to use their personal devices, such as smartphones, tablets, or laptops, for work purposes. This can provide benefits such as increased productivity, flexibility, and employee satisfaction. However, it also introducessignificant risks, such as data loss, data leakage, malware infection, unauthorized access, and compliance violations. Among these risks, data loss is of greatest concern for an organization, as it can have severe consequences, such as reputational damage, legal liability, financial loss, and competitive disadvantage. Data loss can occur due to various reasons, such as device theft, loss, damage, or disposal, accidental deletion, unauthorized transfer, or malicious attack. Therefore, an organization considering the adoption of a BYOD initiative should implement appropriate controls, such as encryption, authentication, remote wipe, backup, and data classification, to protect the data stored or accessed on the personal devices. References = Bring Your Own Device (BYOD) Policy: What You Need to Know, BYOD Risks: What You Need to Know, BYOD Security: 8 Risks and How to Mitigate Them

Comprehensive and Detailed Explanation From Exact Extract:

The average time to contain security incidents directly reflects how quickly and effectively an organization can respond to cybersecurity threats, which is a critical measure of the program’s effectiveness. Other options like percentage of systems monitored or number of personnel indicate resources or scope but do not measure outcome or effectiveness. False positives may indicate detection issues but are less tied to program effectiveness than incident containment time.

Changes deployed to production are those that affect the functionality, performance, or security of the system in a way that is visible or accessible to the end users1. These changes can introduce new risks or vulnerabilities, such as errors, bugs, compatibility issues, or unauthorized access2. Therefore, it is important to monitor the risk associated with these changes and measure how often they cause incidents in production.

One metric that can be used to monitor this risk is the percentage of changes that cause incidents in production. This metric indicates how effective the change management process is and how well the organization can prevent or mitigate potential problems caused by changes3. A high percentage of incidents indicates a high level of risk and a need for improvement in the change management process.

References = IT Change Management for SOC: Process and Best Practices, Determining and Managing Risk when Deploying Code, 6 Deployment Risks and How To Mitigate Them

Ensuring Timely Recovery of Critical Business Operations:

Primary Focus: The primary focus of a Disaster Recovery Management (DRM) framework is to ensure that critical business operations can be recovered and resumed in a timely manner after a disruption.

Business Continuity: Timely recovery of operations is essential for maintaining business continuity and minimizing the impact of disruptions on the organization’s ability to deliver products and services.

Recovery Objectives: Establishing clear recovery time objectives (RTOs) and recovery point objectives (RPOs) ensures that critical operations are prioritized and recovery efforts are aligned with business needs.

Comparison with Other Options:

Restoring IT and Cybersecurity Operations: While important, this is part of the broader goal of recovering critical business operations.

Assessing Impact and Probability of Disaster Scenarios: This is a preparatory step that informs the DRM framework but is not the primary focus.

Determining Capacity for Alternate Sites: This is a component of the DRM strategy but supports the primary focus of ensuring timely recovery.

Best Practices:

Comprehensive Planning: Develop comprehensive disaster recovery plans that prioritize the recovery of critical business operations.

Regular Testing: Regularly test and update disaster recovery plans to ensure they remain effective and aligned with business objectives.

Cross-Functional Collaboration: Involve all relevant business units in disaster recovery planning to ensure a coordinated and effective response.

Comprehensive and Detailed Explanation From Exact Extract:

Senior management’s primary consideration in selecting risk response strategies is alignment with the organization’s risk appetite, ensuring that responses are consistent with the levels of risk the organization is willing to accept. While BIA results, KRIs, and investment portfolios inform decisions, risk appetite provides the guiding framework for prioritization and decision-making

Once a risk owner has decided to implement a control to mitigate risk, it is most important to develop a process for measuring and reporting control performance. This process helps to monitor and evaluate the actual results and outcomes of the control, compare them with the expected or desired objectives and standards, identify any gaps or issues that may affect the control’s effectiveness or efficiency, and report them to the relevant stakeholders for decision making or improvement actions.

An alternate control design in case of failure of the identified control is a contingency plan that can be used to reduce the impact of a control failure or breakdown. It is not the most important thing to develop after implementing a control, but rather a backup option that can be activated when needed.

A process for bypassing control procedures in case of exceptions is a mechanism that allows authorized users to override or circumvent a control in certain situations, such as emergencies,errors, or special requests. It is not the most important thing to develop after implementing a control, but rather a risk response that can be applied when necessary.

Procedures to ensure the effectiveness of the control are the steps or actions that are required to implement, operate, and maintain the control in accordance with the risk owner’s expectations and requirements. They are not the most important thing to develop after implementing a control, but rather a part of the control design and implementation process.

The references for this answer are:

Risk IT Framework, page 13

Information Technology & Security, page 7

Risk Scenarios Starter Pack, page 5

The best recommendation for a risk practitioner upon learning that an employee inadvertently disclosed sensitive data to a vendor is to invoke the incident response plan. An incident responseplan is a document that defines the roles, responsibilities, procedures, and resources fordetecting, analyzing, containing, eradicating, recovering, and reporting on security incidents that could affect the organization’s IT systems or data. An incident response plan helps to protect and restore the confidentiality, integrity, and availability of the organization’s information assets, and to comply with the relevant laws, regulations, standards, and contracts. Invoking the incident response plan is the best recommendation, because it helps to respond to and mitigate the security incident, and to minimize the damage and impact of the data disclosure. Invoking the incident response plan also helps to communicate and coordinate the incident response actions and strategies with the internal and external stakeholders, such as the data owners, users, custodians, and regulators, and to report and disclose the incident as required. The other options are not as effective as invoking the incident response plan, although they may be part of or derived from the incident response plan. Enrolling the employee in additional security training, conducting an internal audit, and instructing the vendor to delete the data are all examples of corrective or preventive actions, which may help to prevent or deter the recurrence of the data disclosure, or to verify or validate the data security, but they do not necessarily address or resolve the current security incident. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.4.1, page 5-32.

This KPI measures how well the server patch management process meets the agreed-upon standards and expectations for timeliness, quality, and security. It reflects the efficiency and effectiveness of the patch deployment and the compliance with the patch policy. It also helps to identify and address any issues or delays that may affect the patching performance.

References

•Patch Management KPI Metrics - Motadata

•KPI Examples for Patch and Vulnerability Management - Heimdal Security

•Measuring the Effectiveness of Your Patch Management Strategy - Automox

Without monitoring, ineffective or failing controls may go unnoticed, leading to ahigher likelihood of risk eventsmaterializing, potentially with severe impact. This outweighs audit or KPI concerns.

The best key performance indicator (KPI) to measure the effectiveness of the security patching process is the percentage of patches installed successfully within the expected time frame. This KPI can help to evaluate how well the security patching process meets the predefined objectives and standards, and how timely the patches are applied to reduce the risk exposure. The percentage of patches installed by the security administration team, successfully during the first attempt, or without causing an unplanned system outage are other possible KPIs, but they are not as relevant as the percentage of patches installed successfully within the expected time frame. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 7; CRISC Review Manual, 6th Edition, page 202.

Employee activity monitoring is the process of tracking and recording the actions and behaviors of employees on company owned IT systems, such as email, internet, applications, etc. Thepurpose of employee activity monitoring is to ensure compliance with the company’s policies and regulations, prevent data leakage and misuse, detect and deter inappropriate or malicious activities, and improve productivity and performance. The most likely way to deter an employee from engaging in inappropriate use of company owned IT systems is to communicate the employee activity monitoring policy and practice to the employees, and make them aware of the consequences of violating the policy. By doing so, the company can create a deterrent effect and discourage the employees from misusing the IT systems, as they know that their actions are being monitored and recorded, and that they will be held accountable for any misconduct. References = CRISC Review Manual, 7th Edition, page 181.

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 importantaspect 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

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

To reduce risk impact, the best course of action is to implement corrective measures, which are actions taken to eliminate or minimize the negative effects of a risk event after it has occurred12.

Corrective measures can include restoring normal operations, repairing or replacing damaged assets, recovering lost data, compensating affected stakeholders, and implementing lessons learned12.

Corrective measures can reduce risk impact by minimizing the duration, severity, and scope of the consequences of a risk event, as well as preventing recurrence or escalation of similar risks in the future12.

The other options are not the best course of action to reduce risk impact, but rather different types of risk responses that may have different objectives and effects. For example:

Creating an IT security policy is an example of a preventive measure, which is an action taken to avoid or reduce the likelihood of a risk event before it occurs12. A preventive measure can reduce risk exposure, but not risk impact.

Implementing detective controls is an example of a monitoring measure, which is an action taken to identify and measure the occurrence or status of a risk event during or after it occurs12. A monitoring measure can provide timely information and feedback, but not reduce risk impact.

Leveraging existing technology is an example of a mitigation measure, which is an action taken to reduce the likelihood or impact of a risk event before it occurs12. A mitigation measure can reduce risk exposure, but not necessarily risk impact. References =

1: Risk Management Guide for Information Technology Systems, NIST Special Publication 800-30, July 2002

2: Project Risk Management Handbook, California Department of Transportation, June 2011

A third-party security assessment report is the most helpful to ensure effective security controls for a cloud service provider, because it provides an independent and objective evaluation of the cloud provider’s security posture, policies, and practices. A third-party security assessment report can help to verify and validate the cloud provider’s compliance with the relevant standards, regulations, and best practices, such as ISO 27001, PCI DSS, NIST, or CSA. A third-party security assessment report can also help to identify and address any gaps, weaknesses, or vulnerabilities in the cloud provider’s security controls, and to provide recommendations and guidance for improvement. A third-party security assessment report can also help to increase the trust and confidence of the cloud customers, and to facilitate the due diligence and risk management processes. The other options are less helpful to ensure effective security controls for a cloud service provider. A control self-assessment is a process that enables the cloud provider to assess its own security controls, using a predefined framework or questionnaire. However, a control self-assessment may not be as reliable or comprehensive as a third-party security assessment report, as it may be biased, incomplete, or inaccurate, and it may not cover all the aspects or dimensions of security. Internal audit reports from the vendor are documents that provide the results and findings of the internal audits conducted by the cloud provider’s ownauditors, to verify and validate the effectiveness and efficiency of the securitycontrols. However, internal audit reports from the vendor may not be as credible or trustworthy as a third-party security assessment report, as they may be influenced by the cloud provider’s interests, objectives, or agenda, and they may not follow the same standards or criteria as the external auditors. Service level agreement monitoring is a process that measures and evaluates the performance and availability of the cloud services, based on the predefined metrics and targets agreed between the cloud provider and the cloud customer. However, service level agreement monitoring may not be sufficient or relevant to ensure effective security controls for a cloud service provider, as it may not address the security aspects or requirements of the cloud services, such as confidentiality, integrity, or accountability, and it may not reflect the actual security risks or incidents that may occur in the cloud environment. References = Cloud Security Controls: Key Elements and 4 Control Frameworks 1

The main goal of the risk analysis process is to determine the frequency and magnitude of loss, because this will help to measure the level of risk exposure and the need for risk mitigation controls. Frequency refers to how often a risk event may occur, while magnitude refers to how much harm or damage a risk event may cause. By determining the frequency and magnitude of loss, the risk analysis process can quantify the impact and likelihood of the risks, and assign a risk rating and priority. The other options are not the main goal of the risk analysis process, because they are either inputs or outputs of the process, as explained below:

A. Potential severity of impact is an output of the risk analysis process, as it is the result of estimating the consequences of a risk event on the organization’s objectives, assets, or processes. The potential severity of impact is influenced by the magnitude of loss, but also by other factors, such as the timing, duration, and scope of the risk event.

C. Control deficiencies are an input of the risk analysis process, as they are the gaps or weaknesses in the existing controls that may increase the risk exposure or reduce the risk mitigation effectiveness. Control deficiencies are identified by comparing the current control environment with the desired control environment, and by evaluating the design and operation of the controls.

D. Threats and vulnerabilities are inputs of the risk analysis process, as they are the sources and causes of the risks that may affect the organization’s objectives, assets, or processes. Threats are external or internal factors that have the potential to exploit the vulnerabilities, while vulnerabilitiesare internal or external weaknesses that increase the susceptibility to the threats. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.1, page 45. What is Risk Analysis? Process, Types, Examples & Methods, Risk Analysis Tutorial - The Process | solver, What is the goal of a risk assessment? - Creative Safety Supply

The first activity that should be performed when the time required to complete daily processing for a legacy application is approaching a risk threshold is to conduct a root-cause analysis. This will help to identify the source of the problem and the factors that are contributing to the increased processing time. By conducting a root-cause analysis, the enterprise can determine the most appropriate and effective solution to address the problem and prevent it from recurring. Temporarily increasing the risk threshold, suspending processing to investigate the problem, and initiating a feasibility study for a new application are not the first activities that should be performed, as they may not resolve the underlying issue and may introduce additional risks or costs. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1.2, page 193.

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.

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

The risk practitioner should verify the cost-benefit of the new controls being implemented to ensure that they are aligned with the enterprise’s risk appetite and strategy, and that they provide value to the business. The other options are not as important as verifying the cost-benefit of the new controls, because:

Option A: Updating the risk register is a good practice, but it does not provide assurance that the new controls are effective and efficient.

Option B: Ensuring risk monitoring for the project is initiated is also a good practice, but it is not as urgent as verifying the cost-benefit of the new controls, which should be done before the project is closed.

Option C: Conducting and documenting a BIA is not relevant to the scenario, as the project is already completed and the new controls are implemented. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 184.

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

 The most effective way to promote organization-wide awareness of data security in response to an increase in regulatory penalties for data leakage is to require training on the data handling policy, as it educates the employees on the importance, requirements, and procedures of data protection, and enhances their knowledge and skills to prevent, detect, and respond to data leakage incidents. Enforcingsanctions for noncompliance with security procedures, conducting organization-wide phishing simulations, and requiring regular testing of the data breach response plan are not the most effective ways, as they are more related to the enforcement, evaluation, or improvement of the data security, respectively, rather than the promotion of the data security awareness. References = CRISC Review Manual, 7th Edition, page 155.

Conducting User Acceptance Testing (UAT) is the best way for an organization to avoid situations where users voice concerns about missing functionality after a system implementation.

User Acceptance Testing (UAT):

Definition:UAT involves testing the system with actual users to ensure it meets their needs and requirements. It verifies that the system performs in real-world scenarios as expected by the users.

Involvement of Users:UAT includes the end-users in the testing process, ensuring that their feedback is incorporated and that the system functionalities align with their expectations.

Benefits:

Identifying Gaps:UAT helps in identifying gaps between the delivered system and user expectations. This early detection allows for adjustments before the system goes live.

Improved Satisfaction:By involving users in the testing process, the likelihood of the system meeting their needs increases, leading to higher user satisfaction and reduced post-implementation issues.

The result of a realized risk scenario is a loss event. A loss event is an occurrence that causes harm or damage to the organization’s assets, resources, or reputation. A loss event is also known as an incident or a breach. A loss event is the outcome of a risk scenario, which is a description of a possible situation or event that could affect the organization’s objectives or operations. A risk scenario consists of three elements: a threat, a vulnerability, and an impact. A threat is a potential source of harm or damage. A vulnerability is a weakness or flaw that could be exploited by a threat. An impact is the consequence or effect of a threat exploiting a vulnerability. A risk scenario is realized when a threat exploits a vulnerability and causes an impact, which results in a loss event. The other options are not the result of a realized risk scenario, although they may be part of a risk scenario. A technical event, a threat event, and a vulnerability event are all types of events that could occur in a risk scenario, but they are not the final outcome or result of a risk scenario. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

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 howefficiently the IAM process prevents or resolves them. References = Top Identity and Access Management Metrics 

Comprehensive and Detailed Explanation From Exact Extract:

Administrative controls complement technical controls to enhance the overall effectiveness of risk mitigation. While technical controls implement the specific security mechanisms, administrative controls such as policies, procedures, and training ensure consistent and correct use of these technical controls, increasing their effectiveness in mitigating risk. This layered approach ensures that control measures are reinforced and integrated within the enterprise’s risk management strategy.

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.

The MOST important stakeholders to include during the initial risk identification process for a business application are the business process owners, because they are the ones who have the authority and responsibility for the business processes that are supported or enabled by the business application. The business process owners can provide valuable input and feedback on the business objectives, requirements, and expectations of the business application, as well as thepotential risks, impacts, and opportunities that may affect the business processes and outcomes. The other options are not as important as the business process owners, because:

Option B: Business process consumers are the ones who use or benefit from the business processes that are supported or enabled by the business application, such as customers, employees, or partners. They can provide useful information and perspectives on the user needs, preferences, and satisfaction of the business application, but they are not as important as the business process owners, who have the ultimate accountability and authority for the business processes and outcomes.

Option C: Application architecture team is the one who designs and develops the technical architecture and components of the business application, such as the hardware, software, network, and data. They can provide technical expertise and guidance on the feasibility, functionality, and security of the business application, but they are not as important as the business process owners, who have the primary stake and interest in the business application and its alignment with the business processes and objectives.

Option D: Internal audit is the one who provides independent assurance and consulting services on the governance, risk management, and control processes of the organization, including the business application. They can provide objective and impartial evaluation and recommendation on the effectiveness and efficiency of the business application and its compliance with the internal and external standards and regulations, but they are not as important as the businessprocess owners, who have the direct involvement and influence on the business application and its performance and value. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 103.

The risk owner holds ultimate accountability for risk treatment, as they are responsible for decisions regarding the management and mitigation of the risk. This is a fundamental principle ofRisk Ownership and Accountabilitywithin the CRISC framework.

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

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.

Identifying stakeholders ensures that all perspectives are considered, contributing to a holistic view of risk and improving communication and response planning.

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.

Nonrepudiation is the ability to prevent or deny the parties involved in an electronic transaction from disputing or rejecting the validity or authenticity of the transaction. Nonrepudiation ensures that the parties cannot claim that they did not send or receive the transaction, or that the transaction was altered or tampered with.

The tool that helps ensure compliance with a nonrepudiation policy requirement for electronic transactions is digital signatures, which are the electronic equivalents of handwritten signatures that are used to verify the identity and integrity of the sender and the content of the transaction. Digital signatures are generated by applying a cryptographic algorithm to the transaction, using the sender’s private key, which is a secret and unique code that only the sender knows and possesses. The digital signature can be verified by the receiver or any third party, using the sender’s public key, which is a code that is publicly available and corresponds to the sender’s private key. The digital signature can prove that the transaction was sent by the sender, and that the transaction was not altered or tampered with during the transmission.

The other options are not the tools that help ensure compliance with a nonrepudiation policy requirement for electronic transactions, because they do not provide the same level ofverification and validation that digital signatures provide, and they may not be sufficient or effective to prevent or deny the parties from disputing or rejecting the transaction.

Encrypted passwords are the passwords that are converted into a secret or unreadable form, using a cryptographic algorithm, to protect them from unauthorized access or disclosure. Encrypted passwords can help to ensure the confidentiality and security of the passwords, but they are not the tools that help ensure compliance with a nonrepudiation policy requirement for electronic transactions, because they do not verify the identity and integrity of the sender and the content of the transaction, and they may not prevent or deny the parties from disputing or rejecting the transaction.

One-time passwords are the passwords that are valid or usable for only one session or transaction, and that are randomly generated or derived from a dynamic factor, such as time, location, or device. One-time passwords can help to enhance the security and authentication of the parties involved in the transaction, but they are not the tools that help ensure compliance with a nonrepudiation policy requirement for electronic transactions, because they do not verify the identity and integrity of the sender and the content of the transaction, and they may not prevent or deny the parties from disputing or rejecting the transaction.

Digital certificates are the electronic documents that contain the information and credentials of the parties involved in the transaction, such as their name, public key, expirationdate, etc., and that are issued and signed by a trusted authority or entity, such as a certificate authority or a digital signature provider. Digital certificates can help to establish and confirm the identity and trustworthiness of the parties involved in the transaction, but they are not the tools that help ensure compliance with a nonrepudiation policy requirement for electronic transactions, because they do not verify the identity and integrity of the sender and the content of the transaction, and they may not prevent or deny the parties from disputing or rejecting the transaction. 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 197

CRISC Practice Quiz and Exam Prep

Embedding Risk Management:

Integrated Approach: Embedding risk management in business activities ensures that risk considerations are part of everyday decision-making processes and operations.

Cultural Shift: Promotes a risk-aware culture where all employees understand their role in managing risk, leading to more proactive and effective risk management practices.

Comparison with Other Options:

Communicating Risk Awareness Materials: Important for education but less impactful than embedding risk management in daily activities.

Establishing KRIs: Useful for monitoring but does not ensure risk management practices are integrated into all business processes.

Minimizing Inherent Risk: This is an outcome of effective risk management rather than a method to ensure its effectiveness.

Best Practices:

Training and Awareness: Provide ongoing training to employees to embed risk management practices in their roles.

Policy and Procedures: Develop and enforce policies and procedures that integrate risk management into all business activities.

Leadership Support: Ensure strong support from leadership to promote and sustain a risk-aware culture.

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

Residual risk is the remaining risk after implementing risk responses, such as controls or mitigation strategies. With the deployment of an IAM solution, the organization has addressed certain access-related risks. Updating the risk register to reflect the new residual risk levels ensures accurate tracking and informs future risk management decisions.

Risk culture encompasses the values, beliefs, and attitudes towards risk within an organization. It significantly influences how risk appetite is defined and communicated. Understanding the organization's risk culture ensures that the established risk appetite aligns with stakeholder expectations and supports effective risk management practices.

Differences in regulatory requirements are the most important factor for a multinational organization to consider when developing its security policies and standards. This is because different countries or regions may have different laws, regulations, or standards that govern the protection of information and data, such as the General Data Protection Regulation (GDPR) in the European Union, the Health Insurance Portability and Accountability Act (HIPAA) in the United States, or the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada. A multinational organization must comply with the applicable regulatoryrequirements in each jurisdiction where it operates, or it may face legal, financial, or reputational risks. Therefore, the organization should develop its security policies and standards in a way that meets or exceeds the minimum regulatory requirements, and also aligns with its business objectives and risk appetite. According to the CRISC Review Manual 2022, one of the key elements of IT governance is to ensure compliance withexternal laws and regulations1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, differences in regulatory requirements is the correct answer to this question2.

Regional competitors’ policies and standards, ability to monitor and enforce compliance, and industry-standard templates are not the most important factors for a multinational organization to consider when developing its security policies and standards. These factors may be useful or relevant, but they are not as critical or mandatory as the differences in regulatory requirements. Regional competitors’ policies and standards may provide some insights or benchmarks, but theymay not reflect the organization’s specific needs or risks. Ability to monitor and enforce compliance is an important aspect of implementing and maintaining security policies and standards, but it does not determine the content or scope of the policies and standards. Industry-standard templates may offer some guidance or best practices, but they may not cover all the regulatory requirements or the organization’s unique circumstances.

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

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

Senior management involvement is foundational to an effective risk management framework. Lack of engagement signals inadequate oversight, strategic alignment, and resource commitment, impairing the program's success. This is supported by CRISC's focus on governance and leadership alignment to ensure enterprise risk management objectives are met.

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

 A recovery time objective (RTO) is the maximum acceptable time that a business process or function can be disrupted or unavailable before it causes significant damage or loss to the organization. A business continuity plan (BCP) is a document that describes how the organization will resume its critical business operations in the event of a disaster or disruption. A disaster recovery plan (DRP) is a document that describes how the organization will restore its IT systems and infrastructure in the event of a disaster or disruption. The RTO defined in the BCP and the DRP should be consistent and aligned, as they both support the continuity and recovery of the business. If the RTO defined in the BCP is shorter than the RTO defined in the DRP, it means that the BCP expects the business process or function to be restored faster than the DRP can provide. This can create a gap or a conflict between the BCP and the DRP, and can compromise the effectiveness and efficiency of the continuity and recovery efforts. Therefore, the best way for the risk practitioner to address this concern is to communicate the discrepancy to the DR manager for follow-up, meaning that the risk practitioner should report the issue and its implications to the DR manager, who is responsible for developing and maintaining the DRP. The DR manager should review the discrepancy and determine whether it is justified or not, and whether it requires any adjustment or alignment of the RTOs in the BCP and the DRP. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.2, p. 206-207

The best type of indicators to measure the effectiveness of an organization’s firewall rule set are key control indicators (KCIs). A firewall is a device or software that filters the network traffic based on a set of rules or policies. A firewall rule set is the configuration of the firewall that defines the criteria for allowing or blocking the traffic. A key control indicator is a metric that measures the performance and effectiveness of a control in achieving its objectives and mitigating the risks. A key control indicator can help to evaluate the adequacy and efficiency of the firewall rule set, and to identify any gaps, weaknesses, or issues that need to be addressed.Key risk indicators (KRIs), key management indicators (KMIs), and key performance indicators (KPIs) are not as suitable as key control indicators, as they measure different aspects of the risk management process, such as the level and nature of the risk exposure, the alignment and integration of the risk management activities, and the achievement of the risk management goals and targets. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 220.

A business continuity plan (BCP) is a system of prevention and recovery from potential threats to a company. The plan ensures that personnel and assets are protected and are able to function quickly in the event of a disaster1. The first task when developing a BCP should be to identify critical business functions and resources, because this will help to determine the scope, objectives, and priorities of the plan. Critical business functions and resources are those that are essential for the continuity of the company’s operations, and that would cause significant disruption or damage if they were interrupted or lost. By identifying critical business functions and resources, the company can focus its efforts and resources on protecting and restoring them, and minimizing the impact of a disaster. The other options are not the first task when developing a BCP, because they depend on the identification of critical business functions and resources, as explained below:

A. Determine data backup and recovery availability at an alternate site is a task that relates to the recovery strategy of the BCP, which aims to restore the data and information systems that support the critical business functions and resources. However, this task cannot be performed without first identifying which data and information systems are critical, and what level of availability and recovery they require.

C. Define roles and responsibilities for implementation is a task that relates to the organization and governance of the BCP, which aims to assign and communicate the duties and expectations of the personnel involved in the plan. However, this task cannot be performed without first identifying which personnel are critical, and what functions and resources they are responsible for.

D. Identify recovery time objectives (RTOs) for critical business applications is a task that relates to the analysis and evaluation of the BCP, which aims to measure the acceptable downtime and recovery speed of the critical business functions and resources. However, this task cannot be performed without first identifying which business applications are critical, and what impact and likelihood they have. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 115. What Is a Business Continuity Plan (BCP), and How Does It Work?, Business continuity plan (BCP) in 8 steps, with templates | BDC.ca, How Develop a Business Continuity Plan - Invenio IT, Business Continuity Planning | Ready.gov, Develop a Robust Business Continuity Plan | Wrike

Control Self-Assessments (CSAs)provide an efficient way for process owners and staff to assess control effectiveness continuously. ISACA recognizes CSAs as a proactive approach that encourages accountability and early detection of control weaknesses, reducing the need for frequent external testing.

===========

The key to controlling escalating costs when an organization is having new software implemented under contract is change management, which is the process of identifying, evaluating, approving, and implementing changes to the project scope, schedule, budget, or quality1. Change management can help to control escalating costs by:

Establishing a clear and agreed-upon baseline for the project deliverables, requirements, and expectations, and ensuring that they are aligned with the contract terms and conditions2.

Defining and enforcing a formal and consistent change control process, which includes the roles and responsibilities, the criteria and methods, and the documentation and communication of the changes3.

Assessing and prioritizing the proposed changes, and determining their impact and feasibility, and their alignment with the project objectives and constraints4.

Obtaining the approval and authorization of the relevant stakeholders, such as the project sponsor, the project manager, the contractor, or the customer, before implementing the changes5.

Monitoring and measuring the performance and outcome of the changes, and ensuring that they are delivered within the agreed scope, schedule, budget, and quality6.

References =

Change Management - CIO Wiki

Project Scope Management - CIO Wiki

Change Control - CIO Wiki

Change Impact Analysis - CIO Wiki

Change Approval - CIO Wiki

Change Evaluation - CIO Wiki

 A risk heat map is a graphical tool that displays the risk events in a matrix based on their likelihood and impact. Risk events that are coded with the same color will have a similar risk likelihood, which is the probability or frequency of occurrence of a risk event. Risk score, riskimpact, and risk response are other possible attributes of risk events, but they are not represented by the color coding in a risk heatmap. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 7; CRISC Review Manual, 6th Edition, page 202.

Formal acceptance of the risk is critical when the risk exposure exceeds the risk appetite, as it ensures accountability and acknowledges the decision at the appropriate level. Documenting acceptance involves communicating the potential impacts and obtaining agreement from senior stakeholders. This process aligns with theRisk Response and Reportingdomain in CRISC, emphasizing clear documentation and communication of risks for decision-making.

A risk profile consolidates information about risks across the enterprise, enhancing internal reporting and facilitating informed decision-making. This aligns withRisk Governanceobjectives by providing a comprehensive view of risk for management and stakeholders.

 A detective control is a type of internal control that seeks to uncover problems in a company’s processes once they have occurred. Examples of detective controls include physical inventory checks, reviews of account reports and reconciliations, as well as assessments of current controls1. A periodic access review is a detective control that involves verifying the access rightsand privileges of users to ensure that they are appropriate and authorized. A periodic access review can help to detect any unauthorized or inappropriate access, such as excessive or redundant permissions, segregation of duties violations, or dormant ororphaned accounts23. The other options are not detective controls, but rather preventive controls, which are designed to prevent errors or fraud from occurring in the first place. A limit check is a preventive control that validates the input data against a predefined range or limit, and rejects any data that falls outside the acceptable range4. Access control software is a preventive control that restricts the access to information systems or resources based on the identity, role, or credentials of the user5. Rerun procedures are preventive controls that ensure the accuracy and completeness of data processing by repeating the same process and comparing the results6. References = Detective Control: Definition, Examples, Vs. Preventive Control; Detective Control - What Is It, Examples, Vs Preventive Control; Limit Check - an overview |ScienceDirect Topics; Access Control Software - an overview | ScienceDirect Topics; Rerun Procedures - an overview | ScienceDirect Topics

Data leakage is the unauthorized or accidental disclosure of sensitive or confidential data to unauthorized parties. Data leakage can cause serious damages or losses to the organization, such as data breaches, fines, lawsuits, reputational harm, or loss of customer trust. Data leakage can occur due to various reasons, such as human errors, malicious attacks, or inadequate controls1.

An organization that uses a vendor to destroy hard drives faces a risk of data leakage, as the vendor may not properly or securely destroy the hard drives, or may access or misuse the data stored on them. The best way to reduce this risk is to use an accredited vendor to dispose of the hard drives, because it means that the vendor:

Has been certified or verified by a reputable or recognized authority or organization, such as ISACA, NAID, or R2, to provide hard drive destruction services

Follows the industry standards and best practices for hard drive destruction, such as NIST 800-88 or DoD 5220.22-M, and ensures the compliance with the legal and regulatory requirements, such as HIPAA, PCI DSS, or GDPR

Provides a secure and transparent process for hard drive destruction, such as using a specialized shredder, issuing a certificate of destruction, or allowing the customer to witness the destruction

Maintains a high level of professionalism and integrity, and does not compromise the confidentiality or security of the customer’s data234

The other options are not the best ways to reduce the risk of data leakage, but rather some of the steps or aspects of hard drive destruction. Require the vendor to degauss the hard drives is a step that can help to erase the data on the hard drives by using a strong magnetic field. However,degaussing may not be effective or reliable for some types of hard drives, such as solid state drives (SSDs), and it may not prevent the vendor from accessing or misusing the data before degaussing5. Implement an encryption policy for the hard drives is an aspect that can help to protect the data on the hard drives by using a cryptographic algorithm to make it unreadable without a key. However, encryption may not be sufficient or applicable for some types of data, such as metadata, and it may not prevent the vendor from accessing or misusing the key or the encrypted data6. Require confirmation of destruction from the IT manager is a step that can help to verify that the hard drives have been destroyed by the vendor, and to document the process and the outcome. However, confirmation of destruction may not be accurate or authentic, and it may not prevent the vendor from accessing or misusing the data before destruction7. References =

Data Leakage - ISACA

Hard Drive Shredding Services | Hard Drive Destruction & Disposal

Hard Drive Shredding and Destruction Service | CompuCycle

Electronic Destruction & Recycling | Shred Nations

Degaussing - ISACA

Encryption - ISACA

Certificate of Destruction - ISACA

[CRISC Review Manual, 7th Edition]

RTO defines the acceptable downtime for business processes. It helps determine the order in which services must be restored to minimize business impact.

The risk register element that is most likely to be updated if the attack surface or exposure of an asset is reduced is the likelihood rating, as this reflects the probability or frequency of a risk event occurring. The attack surface or exposure of an asset is the measure of the extent and accessibility of the asset to potential threats or attackers. If the attack surface or exposure of an asset is reduced, the likelihood of the asset being compromised or damaged by a risk event is also reduced. Therefore, the likelihood rating of the risk should be updated accordingly. Theother options are not the risk register elements that are most likely to be updated if the attack surface or exposure of an asset is reduced, although they may be affected or influenced by it. Control effectiveness is the measure of how well the risk controls reduce the risk level or achieve the control objectives. Assessment approach is the method or technique used to identify, analyze, and evaluate the risks. Impact rating is the measure of the magnitude or severity of the consequences of a risk event on the asset or the organization. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Identification, page 54.

 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

The risk practitioner should report that the associated risk has been deferred, as this means that the risk response has been postponed or delayed due to lack of resources or other constraints. Deferring a risk response implies that the risk owner acknowledges the risk and intends to implement the risk mitigation action plan at a later stage, when the resources or conditions are available. The other options are not correct, as they do not reflect the actual status of the risk response. Mitigating a risk means that the risk response has been implemented and the risk level has been reduced. Accepting a risk means that the risk response has been rejected or waived, and the risk level has been accepted as it is. Avoiding a risk means that the risk response has beenimplemented and the risk level has been eliminated or transferred. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk Response, page 146.

The most common concern associated with outsourcing to a service provider is unauthorized data usage, which means the misuse, disclosure, or theft of the organization’s data by the service provider or its employees, contractors, or subcontractors1. Unauthorized data usage can pose significant risks to the organization, such as:

Data security and privacy breaches, which can compromise the confidentiality, integrity, and availability of the data, and expose the organization to legal liability, regulatory penalties, reputational damage, or loss of trust and credibility2.

Data quality and accuracy issues, which can affect the reliability and validity of the data, and impair the decision-making, reporting, or performance of the organization3.

Data ownership and control issues, which can limit the access and rights of the organization to its own data, and create dependency or lock-in with the service provider4.

The other options are not the most common concern associated with outsourcing to a service provider, because:

Lack of technical expertise is a potential but not prevalent concern associated with outsourcing to a service provider, as it may affect the quality and efficiency of the services provided by the service provider, and the compatibility and integration of the services with the organization’s systems and processes5. However, most service providers have sufficient technical expertise in their domain or field, and they can offer specialized skills or resources that the organization may not have internally6.

Combining incompatible duties is a possible but not frequent concern associated with outsourcing to a service provider, as it may create conflicts of interest or segregation of duties issues for the service provider or the organization, and increase the risk of errors, fraud, or abuse7. However, most service providers have adequate governance and control mechanisms to prevent or mitigate such issues, and they can adhere to the organization’s policies and standards regarding the separation of duties8.

Denial of service attacks is a rare but not common concern associated with outsourcing to a service provider, as it may disrupt the availability or functionality of the services provided by the service provider, and affect the operations or continuity of the organization. However, most service providers have robust security measures and contingency plans to protect and recover from such attacks, and they can ensure the resilience and reliability of the services.

References =

Unauthorized Data Usage - CIO Wiki

What is outsourcing? Definitions, benefits, challenges, processes, advice | CIO

The Pros and Cons of Outsourcing in 2023 - GrowthForce

13 Common Problems of Outsourcing and How to Avoid Them - ENOU Labs

The Top 10 Problems with Outsourcing Implementation - SSON

10 problems with outsourcing (+ Solutions for each) - Time Doctor Blog

Segregation of Duties - CIO Wiki

Outsourcing Governance - CIO Wiki

[Denial-of-Service Attack - CIO Wiki]

[Business Continuity Planning - CIO Wiki]

A denial-of-service (DoS) attack is a type of cyberattack that aims to disrupt or disable the normal functioning of a system or network by overwhelming it with excessive traffic or requests.

The chief technology officer (CTO) has decided to accept the risk associated with the potential loss from a DoS attack. This means that the CTO has determined that the cost or effort of implementing or maintaining controls to prevent or reduce the impact of a DoS attack is not justified by the expected benefits or savings, and that the organization is willing to bear the consequences of a DoS attack if it occurs.

The best course of action for the risk practitioner in this situation is to identify key risk indicators (KRIs) for ongoing monitoring. This means that the risk practitioner should define and measure the metrics that provide information about the level of exposure to the DoS attack risk, such as the frequency, duration, or severity of the attacks, the availability, performance, or security of the systems or networks, the customer satisfaction, reputation, or revenue of the organization, etc.

Identifying KRIs for ongoing monitoring helps to track and evaluate the actual results and outcomes of the risk acceptance decision, compare them with the risk appetite and tolerance ofthe organization, identify any deviations or breaches that may require attention or action, and report them to the appropriate parties for decision making or improvement actions.

The references for this answer are:

Risk IT Framework, page 15

Information Technology & Security, page 9

Risk Scenarios Starter Pack, page 7

According to the Risk Appetite vs. Risk Tolerance: What is the Difference? article, risk tolerance is the acceptable level of variation that an organization is willing to accept around a specific objective. Risk tolerance is usually expressed as a range or a limit, and it helps to guide the decision making and risk taking of the organization. The best way to promote adherence to the risk tolerance level set by management is to define the expectations in the enterprise risk policy, which is a document that establishes the organization’s risk management framework, principles, and objectives. By defining the expectations in the enterprise risk policy, the organization can communicate the risk tolerance level to all the relevant stakeholders, and ensure that they understand and follow the risk management guidelines and standards. This can help to create aconsistent and coherent risk culture across the organization, and to avoid any deviations or violations of the risk tolerance level. References = Risk Appetite vs. Risk Tolerance: What is the Difference?