Which of the following is of GREATEST concern when uncontrolled changes are made to the control environment?
A decrease in control layering effectiveness
An increase in inherent risk
An increase in control vulnerabilities
An increase in the level of residual risk
The control environment is the set of internal and external factors and conditions that influence and shape the organization’s governance, risk management, and control functions. It includes the organization’s culture, values, ethics, structure, roles, responsibilities, policies, standards, etc.
Uncontrolled changes are changes or modifications to the control environment that are not planned, authorized, documented, or monitored, and that may have unintended or adverse consequences for the organization. Uncontrolled changes may be caused by various drivers or events, such as technological innovations, market trends, regulatory changes, customer preferences, competitor actions, environmental issues, etc.
The greatest concern when uncontrolled changes are made to the control environment is an increase in the level of residual risk, which is the amount and type of risk that remains after the implementation and execution of the risk responses or controls. An increase in the level of residual risk means that the risk responses or controls are not effective or sufficient to mitigate or prevent the risks, and that the organization may face unacceptable or intolerable consequences if the risks materialize.
An increase in the level of residual risk is the greatest concern when uncontrolled changes are made to the control environment, because it indicates that the organization’s risk profile and performance have deteriorated, and that the organization may not be able to achieve its objectives or protect its value. It also indicates that the organization’s risk appetite and tolerance have been violated, and that the organization may need to take corrective or compensating actions to restore the balance between risk and return.
The other options are not the greatest concerns when uncontrolled changes are made to the control environment, because they do not indicate the actual or potential impact or outcome of the risks, and they may not be relevant or actionable for the organization.
A decrease in control layering effectiveness means a decrease in the extent or degree to which the organization uses multiple or overlapping controls to address the same or related risks, and to provide redundancy or backup in case of failure or compromise of one or more controls. A decrease in control layering effectiveness may indicate a weakness or gap in the organization’s control design or implementation, but it does not indicate the actual or potential impact or outcome of the risks, and it may not be relevant or actionable for the organization, unless the control layering is required or recommended by the organization’s policies or standards.
An increase in inherent risk means an increase in the amount and type of risk that exists in the absence of any risk responses or controls, and that is inherent to the nature or characteristics of the risk source, event, cause, or impact. An increase in inherent risk may indicate a change or variation in the organization’s risk exposure or level, but it does not indicate the actual or potential impact or outcome of the risks, and it may not be relevant or actionable for the organization, unless the inherent risk exceeds the organization’s risk appetite or tolerance.
An increase in control vulnerabilities means an increase in the number or severity of the weaknesses or flaws in the organization’s risk responses or controls that can be exploited or compromised by the threats or sources of harm that may affect the organization’s objectives or operations. An increase in control vulnerabilities may indicate a weakness or gap in the organization’s control design or implementation, but it does not indicate the actual or potential impact or outcome of the risks, and it may not be relevant or actionable for the organization, unless the control vulnerabilities are exploited or compromised by the threats or sources of harm. References =
ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63
ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 174
CRISC Practice Quiz and Exam Prep
Which of the following provides the BEST evidence of the effectiveness of an organization's account provisioning process?
User provisioning
Role-based access controls
Security log monitoring
Entitlement reviews
An organization’s account provisioning process is the process of creating, modifying, or deleting user accounts and access rights for the organization’s information systems and resources. It involves defining the access requirements, policies, and standards, and implementing and enforcing them across the organization.
The best evidence of the effectiveness of an organization’s account provisioning process is entitlement reviews, which are the periodic or regular reviews and validations of the user accounts and access rights that are granted or assigned to the users or entities that interact with the organization’s information systems and resources. Entitlement reviews can provide assurance and verification that the account provisioning process is accurate, consistent, and compliant, and that it meets the organization’s security and business objectives and requirements.
Entitlement reviews can be performed using various techniques, such as automated tools, reports, audits, surveys, etc. Entitlement reviews can also be integrated with the organization’s governance, risk management, and compliance functions, and aligned with the organization’s policies and standards.
The other options are not the best evidence of the effectiveness of an organization’s account provisioning process, because they do not provide the same level of assurance and verification that the account provisioning process is accurate, consistent, and compliant, and that it meets the organization’s security and business objectives and requirements.
User provisioning is the process of creating, modifying, or deleting user accounts and access rights for a specific user or entity, based on their identity, role, or function in the organization. User provisioning is an important part of the account provisioning process, but it is not the best evidence of the effectiveness of the account provisioning process, because it does not indicate whether the user accounts and access rights are appropriate and authorized, and whether they comply with the organization’s policies and standards.
Role-based access controls are the controls that grant or restrict user accounts and access rights based on the predefined roles or functions that the users or entities perform or assume in the organization. Role-based access controls are an important part of the account provisioning process, but they are not the best evidence of the effectiveness of the account provisioning process, because they do not indicate whether the roles or functions are defined and assigned correctly and consistently, and whether they comply with the organization’s policies and standards.
Security log monitoring is the process of collecting, analyzing, and reporting on the security events or activities that are recorded or logged by the organization’s information systems and resources. Security log monitoring is an important part of the account provisioning process, but it is not the best evidence of the effectiveness of the account provisioning process, because it does not indicate whether the security events or activities are legitimate or authorized, and whether they comply with the organization’s policies and standards. 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 173
CRISC Practice Quiz and Exam Prep
Which of the following is MOST critical when designing controls?
Involvement of internal audit
Involvement of process owner
Quantitative impact of the risk
Identification of key risk indicators
The most critical factor when designing controls is the involvement of the process owner, who is the person responsible for the performance and outcomes of a business process. The process owner has the best knowledge and understanding of the process objectives, activities, inputs, outputs, resources, and risks. The process owner can provide valuable input and feedback on the design of controls that are relevant, effective, efficient, and aligned with the process goals. The process owner can also ensure that the controls are implemented, monitored, and improved as needed. The involvement of the process owner can also increase the acceptance and ownership of the controls by the process participants and stakeholders. The other options are less critical when designing controls. The involvement of internal audit can provide assurance and advice on the adequacy and effectiveness of the controls, but internal audit is not responsible for the design or implementation of the controls. The quantitative impact of the risk can help to prioritize and justify the controls, but it is not sufficient to determine the appropriate type and level of controls. The identification of key risk indicators can help to monitor and measure the risk and the performance of the controls, but it is not the main driver of the control design. References = Risk IT Framework, ISACA, 2022, p. 181
Which of the following is the GREATEST risk of relying on artificial intelligence (Al) within heuristic security systems?
Al may result in less reliance on human intervention.
Malicious activity may inadvertently be classified as normal during baselining.
Risk assessments of heuristic security systems are more difficult.
Predefined patterns of malicious activity may quickly become outdated.
AI in Heuristic Security Systems:
Heuristic security systems use artificial intelligence (AI) to identify and respond to potential threats by learning from data patterns and behaviors.
Risk of Misclassification:
During the baselining process, AI systems establish what is considered normal behavior. If malicious activity is present during this period, it may be incorrectly classified as normal.
This misclassification can lead to undetected security breaches, as the system will not recognize these activities as threats in the future.
Impact of Misclassification:
Misclassified malicious activities can lead to significant security risks, allowing attackers to operate undetected within the system.
It undermines the effectiveness of the heuristic system, reducing its ability to protect the organization from real threats.
Comparing Other Risks:
Less Reliance on Human Intervention: This is a general concern but does not directly impact the accuracy of threat detection.
Difficulty in Risk Assessments: While a challenge, it is not the greatest risk compared to misclassification of malicious activity.
Outdated Patterns: While a concern, the primary risk lies in initial misclassification during baselining.
References:
The CRISC Review Manual discusses the challenges of AI in security systems, particularly the risk of misclassification during the learning phase (CRISC Review Manual, Chapter 4: Information Technology and Security, Section 4.7.4 Artificial Intelligence) .
An organization delegates its data processing to the internal IT team to manage information through its applications. Which of the following is the role of the internal IT team in this situation?
Data controllers
Data processors
Data custodians
Data owners
Data processing is the activity of collecting, organizing, transforming, and analyzing data to produce useful information for decision making or other purposes12.
The role of the internal IT team in this situation is data processors, which are the people or entities that process data on behalf of the data controllers, who are the people or entities that determine the purposes and means of the data processing34.
Data processors are the role of the internal IT team because they are responsible for managing information through the applications that are used by the organization, and they act under the instructions and authority of the organization, which is the data controller34.
Data processors are also the role of the internal IT team because they have to comply with the data protection laws and regulations that apply to the data processing, and they have to ensure the security and confidentiality of the data34.
The other options are not the role of the internal IT team, but rather possible roles or terms that are related to data processing. For example:
Data custodians are the people or entities that have physical or logical control over the data, and they are responsible for implementing and maintaining the technical and administrative safeguards to protect the data56. However, this role is not the role of the internal IT team because it is a subset or function of the data processor role, and it does not reflect the full scope of the data processing activities that the internal IT team performs56.
Data owners are the people or entities that have legal rights or authority over the data, and they are responsible for defining and enforcing the policies and rules for the data access, use, and quality . However, this role is not the role of the internal IT team because it is a different or separate role from the data processor role, and it does not reflect the relationship or agreement between the organization and the internal IT team . References =
1: Data Processing - Wikipedia1
2: Data Processing: Definition, Steps, and Types2
3: Data Controller vs Data Processor: What’s the Difference?3
4: Data controller vs data processor: What are the differences and responsibilities?4
5: Data Custodian - Wikipedia5
6: Data Custodian: Definition, Role & Responsibilities6
: Data Owner - Wikipedia
: Data Owner: Definition, Role & Responsibilities
Who should be responsible for approving the cost of controls to be implemented for mitigating risk?
Risk practitioner
Risk owner
Control owner
Control implementer
Which of the following is the GREATEST benefit of using IT risk scenarios?
They support compliance with regulations.
They provide evidence of risk assessment.
They facilitate communication of risk.
They enable the use of key risk indicators (KRls)
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.
IT management has asked for a consolidated view into the organization's risk profile to enable project prioritization and resource allocation. Which of the following materials would
be MOST helpful?
IT risk register
List of key risk indicators
Internal audit reports
List of approved projects
A consolidated view into the organization’s risk profile is a comprehensive and integrated representation of the risks that may affect the organization’s objectives, performance, and value creation12.
The most helpful material to provide a consolidated view into the organization’s risk profile is the IT risk register, which is a document that records and tracks the IT-related risks, their sources, impacts, likelihoods, responses, owners, and statuses within the organization34.
The IT risk register is the most helpful material because it provides a complete and consistent overview of the IT risk landscape, and enables the identification, analysis, evaluation, treatment, monitoring, and communication of IT risks across the organization34.
The IT risk register is also the most helpful material because it supports the project prioritization and resource allocation decisions, by highlighting the most significant and relevant IT risks, and by showing the alignment of the IT risk responses with the organization’s risk appetite, strategy, and objectives34.
The other options are not the most helpful materials, but rather possible inputs or outputs of the IT risk register. For example:
A list of key risk indicators (KRIs) is a set of metrics that measure the occurrence or status of IT risks, and provide timely and relevant information and feedback to the organization56. However, a list of KRIs is not the most helpful material because it does not provide a comprehensive and integrated view of the IT risk profile, but rather a snapshot or a trend of selected IT risks56.
Internal audit reports are documents that present the findings and recommendations of the internal audit function, which evaluates the adequacy and effectiveness of the IT risk management and control processes within the organization78. However, internal audit reports are not the most helpful material because they do not provide a comprehensive and integrated view of the IT risk profile, but rather a periodic and independent assessment of specific IT risk areas78.
A list of approved projects is a document that records and tracks the IT projects that have been authorized and funded by the organization, and their objectives, scope, schedule, budget, and status . However, a list of approved projects is not the most helpful material because it does not provide a comprehensive and integrated view of the IT risk profile, but rather a summary of the IT project portfolio . References =
1: Risk IT Framework, ISACA, 2009
2: IT Risk Management Framework, University of Toronto, 2017
3: IT Risk Register Template, ISACA, 2019
4: IT Risk Register Toolkit, ISACA, 2019
5: KPIs for Security Operations & Incident Response, SecurityScorecard Blog, June 7, 2021
6: Key Performance Indicators (KPIs) for Security Operations and Incident Response, DFLabs White Paper, 2018
7: IT Audit and Assurance Standards, ISACA, 2014
8: IT Audit and Assurance Guidelines, ISACA, 2014
: IT Project Management Framework, University of Toronto, 2017
: IT Project Management Best Practices, ISACA Journal, Volume 1, 2018
Who should be accountable for ensuring effective cybersecurity controls are established?
Risk owner
Security management function
IT management
Enterprise risk function
According to the CRISC Review Manual (Digital Version), the security management function is responsible for ensuring that effective cybersecurity controls are established and maintained. The security management function should:
Define the cybersecurity strategy and objectives aligned with the enterprise’s risk appetite and business goals
Establish and maintain the cybersecurity policies, standards, procedures and guidelines
Implement and monitor the cybersecurity controls and processes
Coordinate and communicate with other stakeholders, such as risk owners, IT management, enterprise risk function, internal and external auditors, regulators and third parties
Report on the cybersecurity performance and risk posture to senior management and the board
Continuously improve the cybersecurity capabilities and maturity
References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.4: IT Risk Management Roles and Responsibilities, pp. 29-301
Which of the following BEST helps to mitigate risk associated with excessive access by authorized users?
Conducting periodic reviews of authorizations granted
Revoking access for users changing roles
Monitoring user activity using security logs
Granting access based on least privilege
Conducting periodic reviews of authorizations granted helps to mitigate risks associated with excessive access by authorized users. This practice ensures that users have only the necessary permissions required to perform their roles and that any outdated or unnecessary access rights are removed promptly. Here’s a detailed explanation:
Periodic Reviews of Authorizations Granted:
Regular Audits: Regularly scheduled reviews or audits help identify any discrepancies in user access levels. These audits ensure that users' access rights align with their current roles and responsibilities within the organization.
Detection of Excessive Privileges: During these reviews, any excessive or unnecessary access privileges that have been granted can be identified and revoked. This reduces the risk of unauthorized activities, either intentional or accidental, by users who have more access than required.
Compliance with Policies: Ensuring that user access rights are reviewed periodically aligns with best practices and regulatory requirements, supporting the overall governance framework of the organization.
Comparison with Other Options:
Revoking Access for Users Changing Roles: While revoking access for users changing roles is crucial, it is a reactive measure that only applies when roles change. Periodic reviews are proactive and continuous.
Monitoring User Activity Using Security Logs: Monitoring security logs is essential for detecting and responding to suspicious activities but does not prevent the initial granting of excessive access.
Granting Access Based on Least Privilege: Least privilege is a fundamental principle, but it needs to be continuously enforced and validated through periodic reviews to be effective.
Best Practices:
Automation: Implementing automated tools for access reviews can streamline the process and reduce human errors.
Documentation: Maintaining detailed records of the reviews and any changes made helps in compliance and provides an audit trail.
Segregation of Duties: Ensuring that the review process itself is subject to segregation of duties, preventing conflicts of interest and ensuring objectivity.
CRISC Review Manual: Discusses the importance of periodic reviews in ensuring the effectiveness of access controls and maintaining a secure environment.
ISACA Standards and Guidelines: Emphasize the need for continuous monitoring and review of user access to mitigate risks associated with excessive permissions.
References:
A risk practitioner discovers several key documents detailing the design of a product currently in development have been posted on the Internet. What should be the risk practitioner's FIRST course of action?
invoke the established incident response plan.
Inform internal audit.
Perform a root cause analysis
Conduct an immediate risk assessment
According to the CRISC Review Manual (Digital Version), the first course of action when a risk practitioner discovers several key documents detailing the design of a product currently in development have been posted on the Internet is to invoke the established incident response plan, which is a set of policies, procedures, and resources that enable the organization to respond to and recover from an incident that affects the confidentiality, integrity, or availability of its IT assets and processes. Invoking the incident response plan helps to:
Contain and isolate the incident and prevent further damage or loss
Identify and analyze the source, cause, and impact of the incident
Eradicate and eliminate the incident and restore normal operations
Communicate and coordinate the incident response activities and roles with the relevant stakeholders, such as the business owner, the risk owner, the senior management, and the external parties
Learn and improve from the incident and update the incident response plan and the risk register
References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.1: IT Risk Monitoring, pp. 219-2201
Which of the following IT controls is MOST useful in mitigating the risk associated with inaccurate data?
Encrypted storage of data
Links to source data
Audit trails for updates and deletions
Check totals on data records and data fields
Check totals are IT controls that verify the accuracy and completeness of data by comparing the sum or count of data records or data fields with a predetermined or expected value. Check totals can help detect and prevent errors, omissions, or alterations in data entry, processing, or transmission. Check totals can also help identify and correct data discrepancies or anomalies. Therefore, check totals are the most useful IT controls in mitigating the risk associated with inaccurate data. The other options are not the best answers because they do not directly address the risk of inaccurate data. Encrypted storage of data is an IT control that protects the confidentiality and integrity of data by preventing unauthorized access or modification. However, encryption does not ensure the accuracy or validity of the data itself. Links to source data are IT controls that provide traceability and transparency of data by allowing users to access or view the original data from which the derived or aggregated data is obtained. However, links to source data do not verify or correct the data quality or consistency. Audit trails for updates and deletions are IT controls that record the history and changes of data by capturing the date, time, user, and action performed on the data. Audit trails can help monitor and review the data activities and transactions, but they do not prevent or detect the data errors or inaccuracies. References = CRISC Review Manual, pages 164-1651; CRISC Review Questions, Answers & Explanations Manual, page 722
Which of the following is the BEST way for a risk practitioner to help management prioritize risk response?
Align business objectives to the risk profile.
Assess risk against business objectives
Implement an organization-specific risk taxonomy.
Explain risk details to management.
The best way for a risk practitioner to help management prioritize risk response is to assess risk against business objectives. This means comparing the level and nature of the risks with the goals and strategies of the organization, and determining which risks pose the most significant threat or opportunity to the achievement of those objectives. By assessing risk against business objectives, the risk practitioner can help management identify the most critical and relevant risks, and prioritize the risk response actions accordingly. The risk response actions should be aligned with the organization’s risk appetite, which is the amount and type of risk that the organization is willing to take in order to meet its strategic goals1. The other options are not the best ways for a risk practitioner to help management prioritize risk response, as they are either less effective or less specific than assessing risk against business objectives. Aligning business objectives to the risk profile is a way of ensuring that the organization’s objectives are realistic and achievable, given the current and potential risks that the organization faces. However, this is not the same as prioritizing risk response, as it does not indicate which risks should be addressed first or how they should 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.
Which of the following is the BEST method to identify unnecessary controls?
Evaluating the impact of removing existing controls
Evaluating existing controls against audit requirements
Reviewing system functionalities associated with business processes
Monitoring existing key risk indicators (KRIs)
The best method to identify unnecessary controls is reviewing system functionalities associated with business processes, because this can help to determine whether the controls are relevant, effective, and efficient for the current business needs and objectives. System functionalities are the capabilities and features of IT systems that support the execution and performance of business processes. Business processes are the set of interrelated activities that transform inputs into outputs to deliver value to customers or stakeholders. By reviewing system functionalities associated with business processes, an organization can assess whether the controls are aligned with the process requirements, expectations, and outcomes, and whether they add value or create waste. The review can also identify any gaps, overlaps, redundancies, or conflicts among the controls, and any changes or improvements that are needed to optimize the controls. The other options are less effective methods to identify unnecessary controls. Evaluating the impact of removing existing controls can help to measure the benefits and costs of the controls, but it does not address the root causes or sources of the unnecessary controls. Evaluating existing controls against audit requirements can help to ensure compliance and assurance, but it does not consider the business context or purpose of the controls. Monitoring existing key risk indicators (KRIs) can help to measure the level and impact of risks, but it does not evaluate the suitability or adequacy of the controls. References = Surveying Staff to Identify Unnecessary Internal Controls - Methodology and Results
Which of the following attributes of a key risk indicator (KRI) is MOST important?
Repeatable
Automated
Quantitative
Qualitative
A key risk indicator (KRI) is a metric that helps organizations monitor and assess potential risks that may impact their operations, objectives, or performance. A good KRI should have certain characteristics that make it effective for risk management. One of these characteristics is repeatability, which means that the KRI can be measured consistently over time and across different situations. A repeatable KRI ensures that the risk data is reliable, comparable, and meaningful, and that the risk trends and patterns can be identified and analyzed. A repeatable KRI also supports the decision-making process by providing timely and accurate information on the risk level and status. Therefore, repeatability is the most important attribute of a KRI. References = Risk IT Framework, ISACA, 2022, p. 441
The PRIMARY benefit of maintaining an up-to-date risk register is that it helps to:
implement uniform controls for common risk scenarios.
ensure business unit risk is uniformly distributed.
build a risk profile for management review.
quantify the organization's risk appetite.
A risk register is a document that records and tracks the information and status of the identified risks and their responses. It includes the risk description, category, source, cause, impact, probability, priority, response, owner, action plan, status, etc.
A risk profile is a summary or representation of the organization’s exposure or level of risk, based on the results of the risk assessment and evaluation. A risk profile can show the distribution and comparison of the risks based on various criteria, such as likelihood, impact, category, source, etc. A risk profile can also indicate the organization’s risk appetite and tolerance, and the gaps or opportunities for improvement.
The primary benefit of maintaining an up-to-date risk register is that it helps to build a risk profile for management review, because it provides the data and information that are necessary and relevant for creating and updating the risk profile, and for communicating and reporting the risk profile to the management. Maintaining an up-to-date risk register can help to build a risk profile for management review by providing the following benefits:
It can ensure that the risk profile reflects the current and accurate state and performance of the organization’s risk management function, and that it covers all the relevant and significant risks that may affect the organization’s objectives and operations.
It can provide useful references and benchmarks for the identification, analysis, evaluation, and communication of the risks and their responses, and for the alignment and integration of the risks and their responses with the organization’s strategy and culture.
It can support the decision making and planning for the risk management function, and for the allocation and optimization of the resources, time, and budget for the risk management function.
The other options are not the primary benefits of maintaining an up-to-date risk register, because they do not address the main purpose and benefit of building a risk profile for management review, which is to summarize and represent the organization’s exposure or level of risk, and to communicate and report it to the management.
Implementing uniform controls for common risk scenarios means applying and enforcing the same or similar controls or countermeasures for the risks that have the same or similar characteristics or features, such as source, cause, impact, etc. Implementing uniform controls for common risk scenarios can help to ensure the consistency and efficiency of the risk management function, but it is not the primary benefit of maintaining an up-to-date risk register, because it does not summarize or represent the organization’s exposure or level of risk, and it may not be relevant or appropriate for the organization’s objectives and needs.
Ensuring business unit risk is uniformly distributed means ensuring that the risks that are associated with the different business units or divisions of the organization are balanced or equalized, and that they do not exceed or fall below the organization’s risk appetite and tolerance. Ensuring business unit risk is uniformly distributed can help to optimize the performance and profitability of the organization, but it is not the primary benefit of maintaining an up-to-date risk register, because it does not summarize or represent the organization’s exposure or level of risk, and it may not be feasible or realistic for the organization.
Quantifying the organization’s risk appetite means measuring and expressing the amount and type of risk that the organization is willing and able to accept or take, in pursuit of its objectives and goals. Quantifying the organization’s risk appetite can help to establish and communicate the boundaries and expectations for the organization’s risk management function, but it is not the primary benefit of maintaining an up-to-date risk register, because it does not summarize or represent the organization’s exposure or level of risk, and it may not be consistent or compatible with the organization’s strategy and culture. 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 201
CRISC Practice Quiz and Exam Prep
Calculation of the recovery time objective (RTO) is necessary to determine the:
time required to restore files.
point of synchronization
priority of restoration.
annual loss expectancy (ALE).
The recovery time objective (RTO) is a metric that defines the maximum acceptable time frame for restoring a system or service after a disruption. The RTO is determined by the business impact and requirements of the system or service, as well as the risk appetite and tolerance of the organization. The calculation of the RTO is necessary to determine the priority of restoration, which means the order and urgency of recovering the systems or services based on their criticality and dependency. The priority of restoration helps to optimize the use of resources and minimize the downtime and losses during a disaster recovery. The other options are not the correct answers, as they are not the main purpose of calculating the RTO. The time required to restore files is a factor that affects the RTO, but it is not the outcome of the RTO calculation. The point of synchronization is the point in time to which the data must be restored to ensure consistency and accuracy. The point of synchronization is related to the recovery point objective (RPO), not the RTO. The annual loss expectancy (ALE) is a measure of the expected loss per year due to a specific risk or threat. The ALE is calculated by multiplying the single loss expectancy (SLE) by the annualized rate of occurrence (ARO). The ALE is not directly related to the RTO, although it may influence the RTO determination. References = Recovery Time Objective (RTO) - What Is It, Examples, Calculation; CRISC Review Manual, pages 197-1981; CRISC Review Questions, Answers & Explanations Manual, page 842
Which of the following is the MOST important requirement for monitoring key risk indicators (KRls) using log analysis?
Obtaining logs m an easily readable format
Providing accurate logs m a timely manner
Collecting logs from the entire set of IT systems
implementing an automated log analysis tool
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
Which of the following activities would BEST contribute to promoting an organization-wide risk-aware culture?
Performing a benchmark analysis and evaluating gaps
Conducting risk assessments and implementing controls
Communicating components of risk and their acceptable levels
Participating in peer reviews and implementing best practices
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 and deliverables, 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 key elements to creating and maintaining a good risk culture3; How to increase risk awareness - Project Management Institute4
Which of the following BEST describes the role of the IT risk profile in strategic IT-related decisions?
It compares performance levels of IT assets to value delivered.
It facilitates the alignment of strategic IT objectives to business objectives.
It provides input to business managers when preparing a business case for new IT projects.
It helps assess the effects of IT decisions on risk exposure
An IT risk profile is a document that summarizes the IT-related risks that an organization faces, as well as the information and actions related to those risks, such as the risk description, assessment, response, status, and owner. An IT risk profile is a valuable tool for managing and communicating IT risks and their impact on the organization’s objectives and operations. The best description of the role of the IT risk profile in strategic IT-related decisions is that it helps assess the effects of IT decisions on risk exposure. This means that the IT risk profile can help to evaluate the potential consequences and implications of different IT choices or actions on the level and nature of the IT risks that the organization faces. The IT risk profile can also help to identify and address the gaps or opportunities for improvement in the IT risk management process and performance. The other options are not the best descriptions of the role of the IT risk profile in strategic IT-related decisions, although they may be related or beneficial. Comparing performance levels of IT assets to value delivered is a technique to measure and optimize the efficiency and effectiveness of the IT resources and activities that support the organization’s goals and needs. However, this technique does not necessarily involve the IT risk profile, as it focuses on the output and outcome of the IT assets, not the input and impact of the IT risks. Facilitating the alignment of strategic IT objectives to business objectives is a technique to ensure that the IT strategy and plans are consistent and compatible with the organization’s vision, mission, strategy, and objectives. However, this technique does not depend on the IT risk profile, as it focuses on the direction and purpose of the IT objectives, not the probability and threat of the IT risks. Providing input to business managers when preparing a business case for new IT projects is a technique to support and justify the initiation and implementation of new IT initiatives that can create value or solve problems for the organization. However, this technique does not require the IT risk profile, as it focuses on the cost and benefit of the IT projects, not the risk and response of the IT risks. References = CRISC Review Manual, pages 38-391; CRISC Review Questions, Answers & Explanations Manual, page 962; IT Risk Management Guide for 2022 | CIO Insight3; IT Risk Management Process, Frameworks & Templates4
Which of the following is the MAIN reason to continuously monitor IT-related risk?
To redefine the risk appetite and risk tolerance levels based on changes in risk factors
To update the risk register to reflect changes in levels of identified and new IT-related risk
To ensure risk levels are within acceptable limits of the organization's risk appetite and risk tolerance
To help identify root causes of incidents and recommend suitable long-term solutions
According to the CRISC Review Manual (Digital Version), the main reason to continuously monitor IT-related risk is to ensure risk levels are within acceptable limits of the organization’s risk appetite and risk tolerance. The risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives, while the risk tolerance is the acceptable variation in outcomes related to specific performance measures linked to objectives. Continuous monitoring is a process that tracks the security state of an information system on an ongoing basis and maintains the security authorization for the system over time. Continuous monitoring helps to:
Provide ongoing assurance that the implemented security controls are operating effectively and efficiently
Detect changes in the risk profile of the information system and the environment of operation
Identify new or emerging threats and vulnerabilities that may affect the information system
Support risk-based decisions by providing timely and relevant risk information to stakeholders
Facilitate the implementation of corrective actions and risk mitigation strategies
Promote accountability and transparency in the risk management process
Enhance the security awareness and culture within the organization
References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.1: IT Risk Monitoring, pp. 213-2141
A risk practitioner is organizing a training session lo communicate risk assessment methodologies to ensure a consistent risk view within the organization Which of the following i< the MOST important topic to cover in this training?
Applying risk appetite
Applying risk factors
Referencing risk event data
Understanding risk culture
Applying risk appetite is the most important topic to cover in a training session to communicate risk assessment methodologies. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. It is a key element of the risk management framework and influences the risk assessment process. Applying risk appetite helps to ensure a consistent risk view within the organization by providing a common basis for evaluating and prioritizing risks, aligning risk responses with business goals, and communicating risk information to stakeholders. The other options are not the most important topics to cover in a training session to communicate risk assessment methodologies, although they may be relevant and useful. Applying risk factors is a technique to quantify or qualify the likelihood and impact of risks based on predefined criteria or scales. Referencing risk event data is a source of information to identify and analyze risks based on historical or current incidents. Understanding risk culture is a factor that affects the risk behavior and attitude of the organization and its people. References = CRISC Review Manual, pages 40-411; CRISC Review Questions, Answers & Explanations Manual, page 612
Which of the following is the MOST important consideration for a risk practitioner when making a system implementation go-live recommendation?
Completeness of system documentation
Results of end user acceptance testing
Variances between planned and actual cost
availability of in-house resources
End user acceptance testing is a process that verifies that a system or service meets the requirements and expectations of the end users, who are the actual or potential customers or beneficiaries of the system or service. End user acceptance testing is the final stage of testing before the system or service is deployed or released to the production environment. The results of end user acceptance testing are the most important consideration for a risk practitioner when making a system implementation go-live recommendation, as they indicate the quality, functionality, usability, and reliability of the system or service from the end user perspective. The results of end user acceptance testing can help to identify and resolve any defects, errors, or issues that may affect the performance, satisfaction, or acceptance of the system or service by the end users. The results of end user acceptance testing can also help to evaluate the benefits, value, and risks of the system or service for the end users and the organization. The other options are not the most important consideration for a risk practitioner when making a system implementation go-live recommendation, although they may be relevant and useful. The completeness of system documentation is a factor that affects the maintainability, supportability, and auditability of the system or service, but it does not measure the end user experience or satisfaction. The variances between planned and actual cost is a measure of the efficiency and budget management of the system or service development or implementation, but it does not reflect the end user needs or expectations. The availability of in-house resources is a resource that supports the system or service delivery and operation, but it does not ensure the end user acceptance or approval. References = CRISC Review Manual, pages 180-1811; CRISC Review Questions, Answers & Explanations Manual, page 87
Establishing and organizational code of conduct is an example of which type of control?
Preventive
Directive
Detective
Compensating
According to the CRISC Review Manual (Digital Version), establishing an organizational code of conduct is an example of a directive control, which is a type of control that guides or steers the behavior of individuals or processes to achieve desired outcomes. A directive control aims to influence or encourage compliance with the organization’s policies, standards, procedures, and guidelines. A directive control can also communicate the organization’s values, ethics, and expectations to its stakeholders. A directive control can take various forms, such as:
Codes of conduct or ethics
Policies or manuals
Training or awareness programs
Job descriptions or roles and responsibilities
Performance appraisals or incentives
Supervision or oversight
References = CRISC Review Manual (Digital Version), Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Scenarios, pp. 105-1061
Which of the following is the BEST key performance indicator (KPI) to measure the effectiveness of a disaster recovery plan (DRP)?
Number of users that participated in the DRP testing
Number of issues identified during DRP testing
Percentage of applications that met the RTO during DRP testing
Percentage of issues resolved as a result of DRP testing
A key performance indicator (KPI) is a measurable value that demonstrates how effectively an organization is achieving its objectives. In the context of disaster recovery planning (DRP), a KPI should reflect the ability of the organization to recover its critical business processes and applications within the predefined time frames and service levels. One of the most important KPIs for DRP is the percentage of applications that met the recovery time objective (RTO) during DRP testing. The RTO is the maximum acceptable length of time that a business process or application can be down after a disaster. By measuring the percentage of applications that met the RTO during DRP testing, the organization can evaluate the performance and reliability of its DRP, identify any gaps or weaknesses, and implement corrective actions to improve its readiness and resilience. The other options are not the best KPIs for DRP, as they do not directly measure the effectiveness of the recovery process. The number of users that participated in the DRP testing is a measure of the involvement and awareness of the staff, but not of the outcome of the testing. The number of issues identified during DRP testing is a measure of the quality and completeness of the DRP, but not of the actual recovery time. The percentage of issues resolved as a result of DRP testing is a measure of the improvement and maturity of the DRP, but not of the current recovery capability. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.3.3, Page 138.
Which of the following would be- MOST helpful to understand the impact of a new technology system on an organization's current risk profile?
Hire consultants specializing m the new technology.
Review existing risk mitigation controls.
Conduct a gap analysis.
Perform a risk assessment.
A risk assessment is a process of measuring and comparing the likelihood and impact of various risk scenarios, and prioritizing them based on their significance and urgency. A risk assessment can help the organization to understand and document the risks that may affect its objectives and operations, and to support the decision making and planning for the risk management.
Performing a risk assessment would be the most helpful to understand the impact of a new technology system on an organization’s current risk profile, because it can help the organization to address the following questions:
What are the potential benefits and challenges of implementing the new technology system, and how do they align with the organization’s objectives and needs?
What are the existing or emerging risks that may affect the new technology system, and how do they relate to the organization’s current risk profile?
How likely and severe are the risks that may affect the new technology system, and what are the possible consequences or impacts for the organization and its stakeholders?
How can the risks that may affect the new technology system be mitigated or prevented, and what are the available or feasible options or solutions?
Performing a risk assessment can help the organization to understand the impact of the new technology system on its current risk profile by providing the following benefits:
It can enable the comparison and evaluation of the current and desired state and performance of the organization’s risk management function, and to identify and quantify the gaps or opportunities for improvement.
It can provide useful references and benchmarks for the alignment and integration of the new technology system with the organization’s risk management function, and for the compliance with the organization’s risk policies and standards.
It can support the implementation and monitoring of the new technology system, and for the allocation and optimization of the resources, time, and budget for the new technology system.
The other options are not the most helpful to understand the impact of a new technology system on an organization’s current risk profile, because they do not provide the same level of detail and insight that performing a risk assessment provides, and they may not be specific or applicable to the organization’s objectives and needs.
Hiring consultants specializing in the new technology means engaging or contracting external experts or professionals that have the skills and knowledge on the new technology system, and that can provide advice or guidance on the implementation and management of the new technology system. Hiring consultants specializing in the new technology can help the organization to enhance its competence and performance on the new technology system, but it is not the most helpful, because it does not measure and compare the likelihood and impact of the risks that may affect the new technology system, and it may not be relevant or appropriate for the organization’s current risk profile.
Reviewing existing risk mitigation controls means examining and evaluating the adequacy and effectiveness of the controls or countermeasures that are intended to reduce or eliminate the risks that may affect the organization’s objectives and operations. Reviewing existing risk mitigation controls can help the organization to improve and optimize its risk management function, but it is not the most helpful, because it does not identify and prioritize the risks that may affect the new technology system, and it may not cover all the relevant or significant risks that may affect the new technology system.
Conducting a gap analysis means comparing and contrasting the current and desired state and performance of the organization’s objectives and operations, and identifying and quantifying the gaps or differences that need to be addressed or corrected. Conducting a gap analysis can help the organization to identify and document its improvement needs and opportunities, but it is not the most helpful, because it does not measure and compare the likelihood and impact of the risks that may affect the new technology system, and it may not be aligned or integrated with the organization’s current risk profile. References =
ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63
ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 208
CRISC Practice Quiz and Exam Prep
An organization has procured a managed hosting service and just discovered the location is likely to be flooded every 20 years. Of the following, who should be notified of this new information FIRST.
The risk owner who also owns the business service enabled by this infrastructure
The data center manager who is also employed under the managed hosting services contract
The site manager who is required to provide annual risk assessments under the contract
The chief information officer (CIO) who is responsible for the hosted services
The risk owner is the person who has the authority and accountability to manage a specific risk and its associated controls. The risk owner is also responsible for ensuring that the risk is within the acceptable level and that the risk response is effective and efficient. In this case, the risk owner is also the owner of the business service that depends on the managed hosting service. Therefore, the risk owner should be notified of the new information about the flood risk first, as they have the most interest and influence on the risk and its impact on the business objectives. The risk owner can then decide on the appropriate actions to take, such as reviewing the contract terms, requesting additional controls, or changing the service provider. The other options are not the correct answers because they are not the primary stakeholders of the risk and its consequences. The data center manager is an employee of the managed hosting service provider, not the organization that procured the service. The data center manager may not have the authority or the incentive to address the flood risk or inform the organization. The site manager is also an employee of the managed hosting service provider, and their role is to conduct annual risk assessments under the contract. The site manager may not be aware of the new information or have the responsibility to communicate it to the organization. The CIO is the senior executive who oversees the IT strategy and operations of the organization. The CIO may have a general interest in the managed hosting service and its risks, but they are not the direct owner or manager of the specific risk or the business service that relies on the service. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 702
Which of the following is the BEST course of action to reduce risk impact?
Create an IT security policy.
Implement corrective measures.
Implement detective controls.
Leverage existing technology
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
An organization is concerned that a change in its market situation may impact the current level of acceptable risk for senior management. As a result, which of the following is MOST important to reevaluate?
Risk classification
Risk policy
Risk strategy
Risk appetite
Risk Appetite:
Risk appetite is the amount and type of risk that an organization is willing to take in order to meet its objectives. It reflects the organization’s risk tolerance and guides decision-making at all levels.
Impact of Market Changes:
A change in the market situation can alter the risk landscape, potentially affecting the organization’s ability to achieve its objectives. This might necessitate a reassessment of what level of risk is acceptable.
Senior management needs to ensure that the risk appetite remains aligned with the new market conditions and organizational goals.
Reevaluation Process:
Reevaluating the risk appetite involves assessing the organization's capacity to bear risk and determining if the current acceptable risk levels are still appropriate.
This might involve more conservative or aggressive risk-taking strategies based on the new market dynamics.
Other Considerations:
Risk Classification: This categorizes risks but does not directly address changes in acceptable risk levels.
Risk Policy: While important, the policy outlines the approach to managing risk and is influenced by the risk appetite.
Risk Strategy: This defines how risks are managed but should be aligned with the risk appetite.
References:
The CRISC Review Manual emphasizes the importance of aligning risk appetite with the organization’s strategic objectives and market conditions (CRISC Review Manual, Chapter 1: Governance, Section 1.10 Risk Appetite, Tolerance, and Capacity) .
Which of the following is the ULTIMATE objective of utilizing key control indicators (KCIs) in the risk management process?
To provide a basis for determining the criticality of risk mitigation controls
To provide early warning signs of a potential change in risk level
To provide benchmarks for assessing control design effectiveness against industry peers
To provide insight into the effectiveness of the intemnal control environment
Key control indicators (KCIs) are metrics that measure the performance of a control in reducing the causes, consequences, or likelihood of a risk. They help to evaluate the adequacy and efficiency of the internal control environment, which is the set of policies, procedures, and practices that support the achievement of organizational objectives and the management of risks. By monitoring KCIs, organizations can identify and address any gaps or weaknesses in their internal controls and ensure that they are operating as intended.
References
•ISACA CRISC Review Manual, 7th Edition, Domain 3: Risk Response, Section 3.2.2: Control Design and Implementation
•KRI Framework for Operational Risk Management | Workiva
•What is the difference between key risk indicators and key control indicators?
Which of the following will BEST help to improve an organization's risk culture?
Maintaining a documented risk register
Establishing a risk awareness program
Rewarding employees for reporting security incidents
Allocating resources for risk remediation
A risk awareness program is a set of activities that aim to educate and inform employees about the organization’s risk culture, policies, and procedures. A risk awareness program can help improve an organization’s risk culture by enhancing the employees’ understanding of risk, their roles and responsibilities in risk management, and the benefits of risk mitigation. A risk awareness program can also foster a culture of openness, trust, and collaboration among employees, managers, and stakeholders, which can improve the organization’s risk performance and resilience.
Maintaining a documented risk register, rewarding employees for reporting security incidents, and allocating resources for risk remediation are also important aspects of risk management, but they do not directly address the organization’s risk culture, which is the shared values, beliefs, and attitudes that influence how risk is perceived and handled within the organization.
After an annual risk assessment is completed, which of the following would be MOST important to communicate to stakeholders?
A decrease in threats
A change in the risk profile
An increase in reported vulnerabilities
An increase in identified risk scenarios
A change in the risk profile would be the most important information to communicate to stakeholders after an annual risk assessment is completed, as it indicates how the risk landscape of the organization has changed over time, and how it affects the achievement of the business goals and objectives. A decrease in threats, an increase in reported vulnerabilities, and an increase in identified risk scenarios are also important information, but they are not the most important, as they are specific aspects of the risk profile, and do not provide a holistic view of the risk exposure and appetite of the organization. References = CRISC Review Manual, 7th Edition, page 109.
An organization has updated its acceptable use policy to mitigate the risk of employees disclosing confidential information. Which of the following is the BEST way to reinforce the effectiveness of this policy?
Communicate sanctions for policy violations to all staff.
Obtain signed acceptance of the new policy from employees.
Train all staff on relevant information security best practices.
Implement data loss prevention (DLP) within the corporate network.
Train all staff on relevant information security best practices, because it helps to increase the awareness and understanding of the employees regarding the acceptable use policy and its purpose, and to improve their skills and knowledge on how to protect and handle confidential information. An acceptable use policy is a document that outlines the standards and expectations for the proper usage of the organization’s IT resources, such as systems, applications, networks, or devices, and the consequences of non-compliance. Confidential information is information that is sensitive or proprietary, and may cause harm or damage to the organization or its stakeholders if disclosed or compromised, such as trade secrets, customer data, or financial records. Training all staff on relevant information security best practices is the best way to reinforce the effectiveness of the policy, as it helps to ensure that the employees are aware of and comply with the policy, and that they adopt the appropriate behaviors and techniques to prevent or mitigate the risk of disclosing confidential information.
Communicating sanctions for policy violations to all staff, obtaining signed acceptance of the new policy from employees, and implementing data loss prevention (DLP) within the corporate network are all possible ways to reinforce the effectiveness of the policy, but they are not the best way, as they do not directly address the awareness and understanding of the employees regarding the policy and its purpose, and they may not be sufficient or effective to prevent or mitigate the risk of disclosing confidential information.
Senior management has requested more information regarding the risk associated with introducing a new application into the environment. Which of the following should be done FIRST?
Perform an audit.
Conduct a risk analysis.
Develop risk scenarios.
Perform a cost-benefit analysis.
Understanding Risk Analysis:
Risk analysis involves identifying potential risks associated with a new application and assessing their likelihood and impact on the organization.
It provides a detailed understanding of the potential threats, vulnerabilities, and consequences, enabling informed decision-making.
Steps in Conducting a Risk Analysis:
Identify Risks: Determine what risks could arise from the new application, including security vulnerabilities, compliance issues, and operational disruptions.
Assess Risks: Evaluate the likelihood and impact of each identified risk. This includes both qualitative and quantitative assessments.
Prioritize Risks: Rank the risks based on their assessed impact and likelihood to focus on the most significant threats first.
Importance of Risk Analysis:
Provides senior management with a comprehensive view of the risks involved, enabling them to make informed decisions about proceeding with the application.
Helps in developing mitigation strategies to address the identified risks.
Comparing Other Options:
Perform an Audit: Audits are useful for evaluating existing controls but are not the first step in assessing risks for a new application.
Develop Risk Scenarios: This is part of the risk analysis process but comes after identifying and assessing risks.
Perform a Cost-Benefit Analysis: Important for decision-making but follows the initial risk analysis to understand potential impacts.
References:
The CRISC Review Manual emphasizes the importance of conducting a risk analysis to understand and manage risks associated with new applications (CRISC Review Manual, Chapter 2: IT Risk Assessment, Section 2.2.1 Conducting Risk Analysis).
Numerous media reports indicate a recently discovered technical vulnerability is being actively exploited. Which of the following would be the BEST response to this scenario?
Assess the vulnerability management process.
Conduct a control serf-assessment.
Conduct a vulnerability assessment.
Reassess the inherent risk of the target.
A technical vulnerability is a weakness or flaw in the design or implementation of an information system or resource that can be exploited or compromised by a threat or source of harm that may affect the organization’s objectives or operations. A technical vulnerability may be caused by various factors, such as human error, system failure, process inefficiency, resource limitation, etc.
A vulnerability assessment is a process of identifying and evaluating the technical vulnerabilities that exist or may arise in the organization’s information systems or resources, and determining their severity and impact. A vulnerability assessment can help the organization to assess and prioritize the risks, and to design and implement appropriate controls or countermeasures to mitigate or prevent the risks.
The best response to the scenario of a recently discovered technical vulnerability being actively exploited is to conduct a vulnerability assessment, because it can help the organization to address the following questions:
What is the nature and extent of the technical vulnerability, and how does it affect the functionality or security of the information system or resource?
How is the technical vulnerability being exploited or compromised, and by whom or what?
What are the potential consequences or impacts of the exploitation or compromise of the technical vulnerability for the organization and its stakeholders?
How can the technical vulnerability be detected and reported, and what are the available or feasible options or solutions to address or correct it?
Conducting a vulnerability assessment can help the organization to improve and optimize the information system or resource quality and performance, and to reduce or eliminate the technical vulnerability. It can also help the organization to align the information system or resource with the organization’s objectives and requirements, and to comply with the organization’s policies and standards.
The other options are not the best responses to the scenario of a recently discovered technical vulnerability being actively exploited, because they do not address the main purpose and benefit of conducting a vulnerability assessment, which is to identify and evaluate the technical vulnerability, and to determine its severity and impact.
Assessing the vulnerability management process is a process of evaluating and verifying the adequacy and effectiveness of the process that is used to identify, analyze, evaluate, and communicate the technical vulnerabilities, and to align them with the organization’s objectives and requirements. Assessing the vulnerability management process can help the organization to improve and optimize the process, and to reduce or eliminate the gaps or weaknesses in the process, but it is not the best response to the scenario, because it does not indicate the nature and extent of the technical vulnerability, and how it affects the organization and its stakeholders.
Conducting a control self-assessment is a process of evaluating and verifying the adequacy and effectiveness of the controls that are intended to ensure the confidentiality, integrity, availability, and reliability of the information systems and resources, using the input and feedback from the individuals or groups that are involved or responsible for the information systems activities or functions. Conducting a control self-assessment can help the organization to identify and document the control deficiencies, and to align them with the organization’s objectives and requirements, but it is not the best response to the scenario, because it does not indicate the nature and extent of the technical vulnerability, and how it affects the organization and its stakeholders.
Reassessing the inherent risk of the target is a process of reevaluating and recalculating the amount and type of risk that exists in the absence of any controls, and that is inherent to the nature or characteristics of the target, which is the information system or resource that is affected by the technical vulnerability. Reassessing the inherent risk of the target can help the organization to understand and document the risk exposure or level, and to align it with the organization’s risk appetite and tolerance, but it is not the best response to the scenario, because it does not indicate the nature and extent of the technical vulnerability, and how it affects the organization and its stakeholders. 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 195
CRISC Practice Quiz and Exam Prep
When reviewing management's IT control self-assessments, a risk practitioner noted an ineffective control that links to several low residual risk scenarios. What should be the NEXT course of action?
Assess management's risk tolerance.
Recommend management accept the low-risk scenarios.
Propose mitigating controls
Re-evaluate the risk scenarios associated with the control
IT control self-assessments are techniques that involve identifying and evaluating the effectiveness and efficiency of the IT controls that are designed and implemented to mitigate the IT risks, by the managers and staff within the organization12.
An ineffective control is a control that does not achieve its intended objective or purpose, or does not operate as designed or expected34.
A low residual risk scenario is a situation or occurrence that has a low likelihood and impact of affecting the organization’s objectives, performance, or value creation, after considering the existing controls and their effectiveness56.
The next course of action when reviewing management’s IT control self-assessments and noting an ineffective control that links to several low residual risk scenarios is to recommend management accept the low-risk scenarios, which is a risk response strategy that involves acknowledging and tolerating the level of risk exposure, and not taking any further action to reduce or eliminate it78.
Recommending management accept the low-risk scenarios is the next course of action because it is the most cost-effective and reasonable option, given that the level of risk exposure is low and acceptable, and the cost and effort of implementing or improving the control may outweigh the potential benefits or value78.
Recommending management accept the low-risk scenarios is also the next course of action because it is consistent with the risk management process and objectives, which are to identify and address the risks that may affect the achievement of the organization’s goals and the delivery of value to the stakeholders, and to optimize the balance between risk and reward78.
The other options are not the next course of action, but rather possible alternatives or steps that may be considered or followed in different circumstances or scenarios. For example:
Assessing management’s risk tolerance is a step that involves determining and communicating the acceptable or tolerable level of risk exposure for the organization or its business units, based on the organization’s risk appetite, criteria, and objectives78. However, this step is not the next course of action because it is usually done before or during the risk assessment process, and not after noting an ineffective control that links to several low residual risk scenarios78.
Proposing mitigating controls is a course of action that involves suggesting or recommending additional or alternative controls that can reduce or eliminate the level of risk exposure, and improve the effectiveness and efficiency of the risk management process78. However, this course of action is not the next course of action because it is not necessary or appropriate for low residual risk scenarios, as the cost and effort of implementing or improving the controls may outweigh the potential benefits or value78.
Re-evaluating the risk scenarios associated with the control is a course of action that involves revising and updating the likelihood and impact of the risk scenarios, and the level of risk exposure or tolerance for the organization, based on the current or changed conditions or factors that influence the risk landscape78. However, this course of action is not the next course of action because it is not required or relevant for low residual risk scenarios, as the level of risk exposure is already low and acceptable, and the ineffective control does not significantly affect the risk assessment78. References =
1: Control Self Assessments - PwC1
2: Control self-assessment - Wikipedia2
3: Ineffective Controls: What They Are and How to Identify Them3
4: Ineffective Controls: What They Are and How to Identify Them4
5: Residual Risk - Definition and Examples5
6: Residual Risk: Definition, Formula & Management6
7: Risk IT Framework, ISACA, 2009
8: IT Risk Management Framework, University of Toronto, 2017
Which of the following is the MOST important consideration when sharing risk management updates with executive management?
Using an aggregated view of organizational risk
Ensuring relevance to organizational goals
Relying on key risk indicator (KRI) data Including
Trend analysis of risk metrics
According to the CRISC Review Manual (Digital Version), the most important consideration when sharing risk management updates with executive management is ensuring relevance to organizational goals, as this helps to align risk management with business strategy and performance. The risk management updates should:
Highlight the key risks that may affect the achievement of the organizational goals and objectives
Demonstrate the value and benefits of risk management in supporting decision making and enhancing business resilience
Provide clear and concise information on the current risk profile, risk appetite, risk tolerance and risk exposure of the organization
Recommend appropriate risk response actions and resource allocation to address the identified risks
Communicate the roles and responsibilities of executive management in overseeing and governing risk management
References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.2: IT Risk Reporting, pp. 221-2221
Which of the following should be the PRIMARY consideration when implementing controls for monitoring user activity logs?
Ensuring availability of resources for log analysis
Implementing log analysis tools to automate controls
Ensuring the control is proportional to the risk
Building correlations between logs collected from different sources
The primary consideration when implementing controls for monitoring user activity logs is ensuring that the control is proportional to the risk, because this helps to optimize the balance between the benefits and costs of the control, and to avoid over- or under-controlling the risk. User activity logs are records of the actions or events performed by users on IT systems, networks, or resources, such as accessing, modifying, or transferring data or files. Monitoring user activity logs can help to detect and prevent potential threats, such as unauthorized access, data leakage, or malicious activity, and to support the investigation and remediation of incidents. However, monitoring user activity logs also involves certain costs and challenges, such as collecting, storing, analyzing, and reporting large amounts of log data, ensuring the accuracy, completeness, and timeliness of the log data, protecting the privacy and security of the log data, and complying with the relevant laws and regulations. Therefore, when implementing controls for monitoring user activity logs, the organization should consider the level and impact of the risk that the control is intended to address, and the value and effectiveness of the control in reducing the risk exposure and impact. The organization should also consider the costs and feasibility of implementing and maintaining the control, and the potential negative consequences or side effects of the control, such as performance degradation, user dissatisfaction, or legal liability. By ensuring that the control is proportional to the risk, the organization can achieve the optimal level of risk management, and avoid wasting resources or creating new risks. References = Risk IT Framework, ISACA, 2022, p. 151
Which group has PRIMARY ownership of reputational risk stemming from unethical behavior within the organization?
Board of directors
Human resources (HR)
Risk management committee
Audit committee
The group that has primary ownership of reputational risk stemming from unethical behavior within the organization is A. Board of directors. According to the CFA Institute, the board of directors is responsible for setting the tone at the top and ensuring that the company adheres to high ethical standards and values. The board of directors also oversees the company’s culture, governance, and risk management practices, and holds the management accountable for any misconduct or breach of trust1 The board of directors may delegate some of its oversight functions to other committees, such as the human resources, risk management, or audit committee, but ultimately, the board of directors bears the ultimate responsibility for the company’s reputation and integrity
Which of the following is the PRIMARY factor in determining a recovery time objective (RTO)?
Cost of offsite backup premises
Cost of downtime due to a disaster
Cost of testing the business continuity plan
Response time of the emergency action plan
A recovery time objective (RTO) is the maximum acceptable time or duration that a business process or function can be disrupted or unavailable due to a disaster or incident, before it causes unacceptable or intolerable consequences for the organization. It is usually expressed in hours, days, or weeks, and it is aligned with the organization’s business continuity and disaster recovery objectives and requirements.
The primary factor in determining a RTO is the cost of downtime due to a disaster, which is the estimated loss or damage that the organization may suffer if a business process or function is disrupted or unavailable for a certain period of time. The cost of downtime can be expressed in terms of financial, operational, reputational, or legal consequences, and it can help the organization to assess the impact and urgency of the disaster, and to decide on the appropriate recovery strategy and resources.
The other options are not the primary factors in determining a RTO, because they do not address the fundamental question of how long the organization can tolerate the disruption or unavailability of a business process or function.
The cost of offsite backup premises is the cost of acquiring, maintaining, or using an alternative or secondary location or facility that can be used to resume or continue the business process or function in case of a disaster or incident. The cost of offsite backup premises is important to consider when selecting or implementing a recovery strategy, but it is not the primary factor in determining a RTO, because it does not indicate the impact or urgency of the disaster, and it may not reflect the organization’s business continuity and disaster recovery objectives and requirements.
The cost of testing the business continuity plan is the cost of conducting, evaluating, or improving the tests or exercises that are performed to verify or validate the effectiveness and efficiency of the business continuity plan, which is the document that describes the actions and procedures that the organization will take to recover or restore the business process or function in case of a disaster or incident. The cost of testing the business continuity plan is important to consider when developing or updating the business continuity plan, but it is not the primary factor in determining a RTO, because it does not indicate the impact or urgency of the disaster, and it may not reflect the organization’s business continuity and disaster recovery objectives and requirements.
The response time of the emergency action plan is the time or duration that it takes for the organization to initiate or execute the emergency action plan, which is the document that describes the immediate actions and procedures that the organization will take to protect the life, health, and safety of the people, and to minimize the damage or loss of the assets, in case of a disaster or incident. The response time of the emergency action plan is important to consider when preparing or reviewing the emergency action plan, but it is not the primary factor in determining a RTO, because it does not indicate the impact or urgency of the disaster, and it may not reflect the organization’s business continuity and disaster recovery objectives and requirements. References =
ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 62-63, 66-67, 70-71, 74-75, 78-79
ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 165
CRISC Practice Quiz and Exam Prep
Which of the following will BEST quantify the risk associated with malicious users in an organization?
Business impact analysis
Risk analysis
Threat risk assessment
Vulnerability assessment
A threat risk assessment will best quantify the risk associated with malicious users in an organization, because it focuses on identifying and evaluating the potential sources of harm or damage to the organization’s assets, such as data, systems, or networks. A malicious user is a person who intentionally and unauthorizedly accesses, modifies, destroys, or steals the organization’s information or resources, for personal gain, revenge, espionage, or sabotage. A threat risk assessment can help the organization to estimate the likelihood and impact of malicious user attacks, based on factors such as the user’s motivation, capability, opportunity, and access level. A threat risk assessment can also help the organization to determine the appropriate risk response strategies, such as prevention, detection, mitigation, or transfer, to reduce the risk exposure and impact of malicious user attacks. References = Risk IT Framework, ISACA, 2022, p. 141
Malware has recently affected an organization. The MOST effective way to resolve this situation and define a comprehensive risk treatment plan would be to perform:
a gap analysis
a root cause analysis.
an impact assessment.
a vulnerability assessment.
The most effective way to resolve the situation and define a comprehensive risk treatment plan would be to perform a root cause analysis. A root cause analysis is a method of identifying and addressing the underlying factors or causes that led to the occurrence of a problem or incident1. In this case, the problem or incident is the malware infection that affected the organization. By performing a root cause analysis, the organization can determine how and why the malware was able to infect the systems, what vulnerabilities or weaknesses were exploited, what controls or processes failed or were missing, and what actions or decisions contributed to the situation. A root cause analysis can help the organization to prevent or reduce the recurrence of similar incidents, as well as to improve the effectiveness and efficiency of the risk management process. A root cause analysis can also help the organization to define a comprehensive risk treatment plan, which is a set of actions or measures that are taken to modify the risk, such as reducing, avoiding, transferring, or accepting the risk2. Based on the findings and recommendations of the root cause analysis, the organization can select and implement the most appropriate risk treatment option for the malware risk, as well as for any other related or emerging risks. The risk treatment plan should also include the roles and responsibilities, resources, timelines, and performance indicators for the risk treatment actions3. The other options are not the most effective ways to resolve the situation and define a comprehensive risk treatment plan, as they are either less thorough or less relevant than a root cause analysis. A gap analysis is a method of comparing the current state and the desired state of a process, system, or organization, and identifying the gaps or differences between them4. A gap analysis can help the organization to identify the areas of improvement or enhancement, as well as the opportunities or challenges for achieving the desired state. However, a gap analysis is not the most effective way to resolve the situation and define a comprehensive risk treatment plan, as it does not address the causes or consequences of the malware infection, or the actions or measures to mitigate the risk. An impact assessment is a method of estimating the potential effects or consequences of a change, decision, or action on a process, system, or organization5. An impact assessment can help the organization to evaluate the benefits and costs, as well as the risks and opportunities, of a proposed or implemented change, decision, or action. However, an impact assessment is not the most effective way to resolve the situation and define a comprehensive risk treatment plan, as it does not investigate the origin or nature of the malware infection, or the solutions or alternatives to manage the risk. A vulnerability assessment is a method of identifying and analyzing the weaknesses or flaws in a process, system, or organization that can be exploited by threats to cause harm or loss6. A vulnerability assessment can help the organization to discover and prioritize the vulnerabilities, as well as to recommend and implement the controls or measures to reduce or eliminate them. However, a vulnerability assessment is not the most effective way to resolve the situation and define a comprehensive risk treatment plan, as it does not consider the root causes or impacts of the malware infection, or the risk treatment options or plans to address the risk. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.8, Page 61.
A risk practitioner identifies an increasing trend of employees copying company information unrelated to their job functions to USB drives. Which of the following elements of the risk register should be updated to reflect this observation?
Risk impact
Key risk indicator (KRI)
Risk appetite
Risk likelihood
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.
References:
The CRISC Review Manual emphasizes the importance of regularly updating the risk likelihood based on new observations and trends (CRISC Review Manual, Chapter 2: IT Risk Assessment, Section 2.9.1 Inherent Risk).
Which of the following is MOST important to ensure risk management practices are effective at all levels within the organization?
Communicating risk awareness materials regularly
Establishing key risk indicators (KRIs) to monitor risk management processes
Ensuring that business activities minimize inherent risk
Embedding risk management in business activities
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.
CRISC Review Manual: Emphasizes the importance of embedding risk management into business activities to ensure comprehensive and effective risk practices .
ISACA Guidelines: Support the integration of risk management into all levels of the organization to achieve effective risk management outcomes .
References:
Which of the following provides the MOST reliable evidence to support conclusions after completing an information systems controls assessment?
Risk and control self-assessment (CSA) reports
Information generated by the systems
Control environment narratives
Confirmation from industry peers
The source that provides the most reliable evidence to support conclusions after completing an information systems controls assessment is the information generated by the systems, as it reflects the actual and objective data and results of the system operations and performance, and can be verified and tested against the control objectives and criteria. The other options are not the most reliable sources, as they may be subjective, biased, or incomplete, and may not reflect the actual or current state of the system controls, respectively. References = CRISC Review Manual, 7th Edition, page 154.
What is senior management's role in the RACI model when tasked with reviewing monthly status reports provided by risk owners?
Accountable
Informed
Responsible
Consulted
Senior management’s role in the RACI model when tasked with reviewing monthly status reports provided by risk owners is accountable, as it means that they have the ultimate authority and responsibility to approve or reject the risk management decisions and actions, and to oversee the risk management performance and outcomes. The other options are not the correct roles, as they imply different levels or types of involvement or participation in the risk management process, such as being informed, responsible, or consulted, respectively. References = CRISC Review Manual, 7th Edition, page 101.
Which of the following is MOST useful for measuring the existing risk management process against a desired state?
Balanced scorecard
Risk management framework
Capability maturity model
Risk scenario analysis
The most useful tool for measuring the existing risk management process against a desired state is the capability maturity model, as it provides a structured and standardized way to assess the current and target levels of maturity, performance, and effectiveness of the risk management process, and to identify the gaps and improvement opportunities. The balanced scorecard, the risk management framework, and the risk scenario analysis are not the most useful tools, as they are more related to the evaluation, design, or identification of the risk management process, respectively, rather than the measurement of the risk management process. References = CRISC Review Manual, 7th Edition, page 154.
A penetration test reveals several vulnerabilities in a web-facing application. Which of the following should be the FIRST step in selecting a risk response?
Correct the vulnerabilities to mitigate potential risk exposure.
Develop a risk response action plan with key stakeholders.
Assess the level of risk associated with the vulnerabilities.
Communicate the vulnerabilities to the risk owner.
The first step in selecting a risk response after a penetration test reveals several vulnerabilities in a web-facing application is to assess the level of risk associated with the vulnerabilities, as it involves evaluating the likelihood and impact of the vulnerabilities being exploited, and comparing them with the risk tolerance and appetite of the organization. Correcting the vulnerabilities, developing a risk response action plan, and communicating the vulnerabilities are possible steps in selecting a risk response, but they are not the first step, as they require the prior knowledge of the risk level and the optimal risk response. References = CRISC Review Manual, 7th Edition, page 108.
Which of the following provides the BEST evidence that robust risk management practices are in place within an organization?
Regularly updated risk management procedures
A management-approved risk dashboard
A current control framework
A regularly updated risk register
Understanding the Question:
The question asks what provides the best evidence that robust risk management practices are in place within an organization.
Analyzing the Options:
A. Regularly updated risk management procedures: Important but not as comprehensive as a risk register.
B. A management-approved risk dashboard: Useful for reporting but not as comprehensive as a risk register.
C. A current control framework: Important but does not provide ongoing evidence of risk management practices.
D. A regularly updated risk register: Provides comprehensive and current information on risks, their status, and the effectiveness of risk management efforts.
Detailed Explanation:
Risk Register: A regularly updated risk register reflects the organization's ongoing risk management activities. It includes details of identified risks, their assessments, mitigation strategies, and current status, providing a comprehensive view of the risk landscape.
Evidence of Practices: Keeping the risk register up-to-date demonstrates that the organization is actively monitoring and managing risks, making it a clear indicator of robust risk management practices.
References:
CRISC Review Manual, Chapter 3: Risk Response and Reporting, highlights the importance of maintaining an updated risk register as part of effective risk management practices.
A risk practitioner has been asked to propose a risk acceptance framework for an organization. Which of the following is the MOST important consideration for the risk practitioner to address in the framework?
Consistent forms to document risk acceptance rationales
Acceptable scenarios to override risk appetite or tolerance thresholds
Individuals or roles authorized to approve risk acceptance
Communication protocols when a risk is accepted
When proposing a risk acceptance framework for an organization, the most important consideration for the risk practitioner is to clearly define the individuals or roles authorized to approve risk acceptance. This ensures that the process is controlled, accountable, and aligned with the organization’s risk management policies.
Risk Acceptance Framework:
Purpose: A risk acceptance framework provides structured criteria and processes for deciding whether to accept a risk. This includes evaluating the risk against the organization's risk appetite and tolerance.
Authorization: Identifying who has the authority to accept risk is critical. This ensures that only those with the appropriate knowledge, experience, and understanding of the organization's risk appetite and strategic objectives can make these decisions.
Importance of Authorized Individuals:
Accountability: Clearly defined roles for risk acceptance ensure accountability. It is essential that those making the decisions are accountable for the outcomes and understand the potential impact of their decisions.
Consistency: By defining specific roles, the organization ensures consistency in risk acceptance decisions, reducing the likelihood of ad-hoc or inconsistent risk management practices.
Alignment with Strategy: Authorized individuals are typically those who understand the strategic objectives of the organization, ensuring that risk acceptance aligns with these goals.
References:
The CRISC Review Manual emphasizes that risk acceptance must be formally authorized by individuals with the appropriate level of authority and responsibility within the organization.
According to ISACA’s guidelines, effective risk management frameworks must include clear definitions of who can accept risks to ensure proper oversight and alignment with organizational goals .
Which of the following will MOST likely change as a result of the decrease in risk appetite due to a new privacy regulation?
Key risk indicator (KRI) thresholds
Risk trends
Key performance indicators (KPIs)
Risk objectives
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
Which of the following would BEST indicate to senior management that IT processes are improving?
Changes in the number of security exceptions
Changes to the structure of the risk register
Changes in the number of intrusions detected
Changes in the position in the maturity model
Maturity Models:
Maturity models provide a framework for assessing the development and optimization of processes within an organization.
They typically range from ad hoc and immature processes to well-defined and continuously improving processes.
Assessing IT Process Improvement:
Changes in the organization’s position within a maturity model indicate that processes are becoming more mature, standardized, and optimized.
Improvements in maturity levels reflect enhancements in process efficiency, effectiveness, and consistency.
Importance of Maturity Models:
Provides a clear and structured approach to evaluate and benchmark process improvements.
Helps senior management understand the progress and development of IT processes over time.
Comparing Other Indicators:
Number of Security Exceptions: Useful for identifying issues but not a comprehensive measure of process improvement.
Risk Register Changes: Reflects risk management activities but not overall process maturity.
Number of Intrusions Detected: Indicates security effectiveness but not broader process improvements.
References:
The CRISC Review Manual discusses the use of maturity models to assess and improve risk management capabilities and IT processes (CRISC Review Manual, Chapter 3: Risk Response and Mitigation, Section 3.6 Capability Maturity Models).
Which of the following is the PRIMARY reason for a risk practitioner to use global standards related to risk management?
To build an organizational risk-aware culture
To continuously improve risk management processes
To comply with legal and regulatory requirements
To identify gaps in risk management practices
Global standards related to risk management are documents that provide the principles, guidelines, and best practices for managing risk in a consistent, effective, and efficient manner across different organizations, sectors, and regions12.
The primary reason for a risk practitioner to use global standards related to risk management is to continuously improve risk management processes, which are the activities and tasks that enable the organization to identify, analyze, evaluate, treat, monitor, and communicate the risks that may affect its objectives, performance, and value creation34.
Continuously improving risk management processes is the primary reason because it helps the organization to enhance its risk management capabilities and maturity, and to adapt to the changing risk environment and stakeholder expectations34.
Continuously improving risk management processes is also the primary reason because it supports the achievement of the organization’s goals and the delivery of value to the stakeholders, which are the ultimate purpose and outcome of risk management34.
The other options are not the primary reason, but rather possible benefits or objectives that may result from using global standards related to risk management. For example:
Building an organizational risk-aware culture is a benefit of using global standards related to risk management that involves creating and maintaining a shared understanding, attitude, and behavior towards risk among the organization’s employees and leaders, and fostering a culture of accountability, transparency, and learning34. However, this benefit is not the primary reason because it is an enabler and a consequence of continuously improving risk management processes, rather than a driver or a goal34.
Complying with legal and regulatory requirements is an objective of using global standards related to risk management that involves meeting and exceeding the expectations and obligations of the external authorities or bodies that govern or oversee the organization’s activities and operations, such as laws, regulations, standards, or contracts34. However, this objective is not the primary reason because it is a constraint and a challenge of continuously improving risk management processes, rather than a motivation or a benefit34.
Identifying gaps in risk management practices is an objective of using global standards related to risk management that involves assessing and comparing the current and desired state of the organization’s risk management processes, and identifying the areas or aspects that need to be improved or addressed34. However, this objective is not the primary reason because it is a step and a tool of continuously improving risk management processes, rather than a reason or a result34. References =
1: ISO - ISO 31000 — Risk management1
2: Risk Management Standards2
3: Risk IT Framework, ISACA, 2009
4: IT Risk Management Framework, University of Toronto, 2017
A review of an organization s controls has determined its data loss prevention {DLP) system is currently failing to detect outgoing emails containing credit card data. Which of the following would be MOST impacted?
Key risk indicators (KRls)
Inherent risk
Residual risk
Risk appetite
Residual risk is the risk that remains after applying controls to mitigate the inherent risk. Inherent risk is the risk that exists before considering the controls. Key risk indicators (KRIs) are metrics that measure the level and impact of risks. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. The failure of the data loss prevention (DLP) system to detect outgoing emails containing credit card data would most impact the residual risk, because it would increase the likelihood and impact of data leakage, data loss, and data exfiltration incidents. These incidents could cause financial, reputational, legal, and regulatory damages to the organization. The failure of the DLP system would also affect the KRIs, as they would show a higher level of risk exposure and a lower level of control effectiveness. However, the KRIs are not the risk itself, but rather the indicators of the risk. The failure of the DLP system would not directly impact the inherent risk or the risk appetite, as they are independent of the controls. The inherent risk would remain the same, as it is based on the nature and value of the data and the threats and vulnerabilities that exist. The risk appetite would also remain the same, as it is based on the organization’s culture, strategy, and stakeholder expectations. Therefore, the most impacted factor would be the residual risk, as it reflects the actual risk level that the organization faces after applying the controls. References = Risk IT Framework, ISACA, 2022, p. 131
Which of the following is the FIRST step in managing the security risk associated with wearable technology in the workplace?
Identify the potential risk.
Monitor employee usage.
Assess the potential risk.
Develop risk awareness training.
The security risk associated with wearable technology in the workplace is the possibility and impact of unauthorized access, disclosure, or use of the data or information that are collected, stored, or transmitted by the wearable devices, such as smartwatches, fitness trackers, or glasses, that are worn or used by the employees12.
The first step in managing the security risk associated with wearable technology in the workplace is to identify the potential risk, which is the process of recognizing and describing the sources, causes, and consequences of the risk, and the potential impacts on the organization’s objectives, performance, and value creation34.
Identifying the potential risk is the first step because it provides the basis and input for the subsequent steps of the risk management process, such as assessing, treating, monitoring, and communicating the risk34.
Identifying the potential risk is also the first step because it enables the organization to understand and prioritize the risk, and to allocate the appropriate resources and controls for the risk management process34.
The other options are not the first step, but rather possible subsequent steps that may depend on or follow the identification of the potential risk. For example:
Monitoring employee usage is a step that involves collecting and analyzing data and information on the frequency, duration, and purpose of the wearable devices that are used by the employees, and detecting and reporting any deviations, anomalies, or issues that may indicate a security risk5 . However, this step is not the first step because it requires the identification of the potential risk to provide the guidance and standards for the monitoring process5 .
Assessing the potential risk is a step that involves estimating and evaluating the likelihood and impact of the risk, and the level of risk exposure or tolerance for the organization34. However, this step is not the first step because it requires the identification of the potential risk to provide the information and data for the assessment process34.
Developing risk awareness training is a step that involves educating and training the employees and other stakeholders on the security risks and best practices associated with the wearable technology, and informing them of their roles, obligations, and responsibilities for the risk management process . However, this step is not the first step because it requires the identification of the potential risk to provide the content and objectives for the training process . References =
1: Wearable Devices in the Workplace: Security Threats and Protection1
2: 10 security risks of wearables | CSO Online2
3: Risk IT Framework, ISACA, 2009
4: IT Risk Management Framework, University of Toronto, 2017
5: Continuous Monitoring - ISACA3
: Continuous Monitoring: A New Approach to Risk Management - ISACA Journal4
: What Is Security Awareness Training and Why Is It Important? - Kaspersky5
: Security Awareness Training - Cybersecurity Education Online | Proofpoint US
Which of the following BEST facilitates the development of relevant risk scenarios?
Perform quantitative risk analysis of historical data.
Adopt an industry-recognized risk framework.
Use qualitative risk assessment methodologies.
Conduct brainstorming sessions with key stakeholders.
Brainstorming sessions with key stakeholders are the best way to facilitate the development of relevant risk scenarios, as they can generate diverse and creative ideas, perspectives, and insights about the potential risks and their impact on the organization’s objectives and operations. Brainstorming sessions can also foster collaboration, communication, and engagement among the stakeholders, and help to identify and prioritize the most significant and realistic risk scenarios. Brainstorming sessions can be guided by an industry-recognized risk framework, such as ISACA’s Risk IT, and supported by qualitative or quantitative risk assessment methodologies, but they are not sufficient by themselves to develop relevant risk scenarios.
References:
•ISACA, How to Write Strong Risk Scenarios and Statements1
•ISACA, Risk Scenario Development and Analysis2
Which of the following is the MOST important benefit of key risk indicators (KRIs)'
Assisting in continually optimizing risk governance
Enabling the documentation and analysis of trends
Ensuring compliance with regulatory requirements
Providing an early warning to take proactive actions
The most important benefit of key risk indicators (KRIs) is providing an early warning to take proactive actions, because this helps organizations to prevent or mitigate potential risks that may impact their operations, objectives, or performance. KRIs are specific metrics that measure the level and impact of risks, and provide timely signals that something may be going wrong or needs urgent attention. By monitoring and analyzing KRIs, organizations can identify and assess emerging or existing risks, and initiate appropriate risk responses before the risks escalate into significant issues. This can enhance the organization’s resilience, competitiveness, and value creation. The other options are less important benefits of KRIs. Assisting in continually optimizing risk governance is a benefit of KRIs, but it is not the most important one. Risk governance is the framework and process that defines how an organization manages its risks, including the roles, responsibilities, policies, and standards. KRIs can help to evaluate and improve the effectiveness and efficiency of risk governance, but they are not the only factor that influences it. Enabling the documentation and analysis of trends is a benefit of KRIs, but it is not the most important one. Documenting and analyzing trends can help organizations to understand the patterns, causes, and consequences of risks, and to learn from their experiences. However, this benefit is more relevant for historical or retrospective analysis, rather than for proactive action. Ensuring compliance with regulatory requirements is a benefit of KRIs, but it is not the most important one. Compliance is the adherence to the laws, regulations, and standards that apply to an organization’s activities and operations. KRIs can help to monitor and demonstrate compliance, but they are not the only tool or objective for doing so. References = Why Key Risk Indicators Are Important for Risk Management 1
The BEST way to justify the risk mitigation actions recommended in a risk assessment would be to:
align with audit results.
benchmark with competitor s actions.
reference best practice.
focus on the business drivers
The best way to justify the risk mitigation actions recommended in a risk assessment would be to focus on the business drivers, which are the factors that influence the organization’s objectives, performance, and value creation12.
Focusing on the business drivers means aligning the risk mitigation actions with the organization’s strategic goals, priorities, and values, and demonstrating how the actions will support or enhance the organization’s capabilities, opportunities, and competitive advantage12.
Focusing on the business drivers also means communicating the benefits, costs, and trade-offs of the risk mitigation actions to the relevant stakeholders, and showing how the actions will address the organization’s risk appetite, tolerance, and exposure12.
The other options are not the best way to justify the risk mitigation actions, but rather possible sources of information or guidance that may support the justification. For example:
Aligning with audit results is a way to validate the effectiveness and efficiency of the risk mitigation actions, and to identify any gaps or weaknesses that need improvement34. However, audit results may not reflect the organization’s current or future business drivers, and may not capture the full scope or impact of the risk mitigation actions34.
Benchmarking with competitor’s actions is a way to compare the organization’s risk mitigation actions with the best practices or standards of the industry or market, and to identify any areas of improvement or differentiation56. However, competitor’s actions may not be suitable or applicable for the organization’s specific context, needs, or challenges, and may not align with the organization’s business drivers56.
Referencing best practice is a way to adopt the proven or accepted methods or techniques for risk mitigation, and to ensure the quality and consistency of the risk mitigation actions78. However, best practice may not be the most optimal or innovative solution for the organization’s unique situation, and may not address the organization’s business drivers78. References =
1: Risk IT Framework, ISACA, 2009
2: IT Risk Management Framework, University of Toronto, 2017
3: IT Audit and Assurance Standards, ISACA, 2014
4: IT Audit and Assurance Guidelines, ISACA, 2014
5: Benchmarking IT Risk Management Practices, ISACA Journal, Volume 4, 2017
6: Benchmarking: A Tool for Improving IT Risk Management, ISACA Now Blog, March 27, 2017
7: IT Risk Management Best Practices, ISACA Journal, Volume 1, 2018
8: IT Risk Management Best Practices, ISACA Now Blog, January 9, 2018
Which of the following changes would be reflected in an organization's risk profile after the failure of a critical patch implementation?
Risk tolerance is decreased.
Residual risk is increased.
Inherent risk is increased.
Risk appetite is decreased
A critical patch is a software update that fixes a security vulnerability or a bug that may affect the performance, functionality, or reliability of a system or a network. A critical patch implementation is a process that applies the software update to the system or network in a timely and effective manner. The failure of a critical patch implementation is a situation where the software update is not applied or not applied correctly, which may expose the system or network to various threats, such as data theft, data corruption, data leakage, or denial of service. The failure of a critical patch implementation would be reflected in an organization’s risk profile by increasing the residual risk. Residual risk is the risk that remains after the risk response, which means the risk that is not avoided, transferred, or mitigated by the existing controls or measures. The failure of a critical patch implementation would increase the residual risk, as it would reduce the effectiveness or efficiency of the existing controls or measures that are supposed to address the security vulnerability or the bug. The failure of a critical patch implementation would also increase the likelihood or impact of the potential threats, as well as the exposure or consequences of the system or network. The other options are not the correct changes that would be reflected in an organization’s risk profile after the failure of a critical patch implementation, although they may be affected or related. Risk tolerance is the degree of variation from the risk appetite that the organization is not willing to accept. Risk tolerance may be decreased by the failure of a critical patch implementation, as the organization may become more cautious or conservative in accepting the risk, but it is not a direct or immediate change in the risk profile. Inherent risk is the risk that exists in the absence of any controls or measures, which means the risk that is inherent to the system or network or the environment. Inherent risk may be increased by the failure of a critical patch implementation, as the system or network may become more vulnerable or susceptible to the threats, but it is not a change in the risk profile, as the risk profile considers the existing controls or measures. Risk appetite is the amount and type of risk that the organization is willing to accept in pursuit of its objectives. Risk appetite may be decreased by the failure of a critical patch implementation, as the organization may become less willing or able to accept the risk, but it is not a change in the risk profile, as the risk profile reflects the actual or current risk level, not the desired or expected risk level. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 972; What is a Critical Patch? - Definition from Techopedia3; What is Residual Risk? - Definition from Techopedia4
Which of the following is the BEST way to determine the ongoing efficiency of control processes?
Perform annual risk assessments.
Interview process owners.
Review the risk register.
Analyze key performance indicators (KPIs).
Control processes are the procedures and activities that aim to ensure the effectiveness and efficiency of the organization’s operations, the reliability of its information, and the compliance with its policies and regulations12.
The ongoing efficiency of control processes is the degree to which the control processes achieve their intended results with minimum resources, costs, or waste34.
The best way to determine the ongoing efficiency of control processes is to analyze key performance indicators (KPIs), which are quantifiable measures of progress toward an intended result, such as a strategic objective or a desired outcome56.
Analyzing KPIs is the best way because it provides a systematic and consistent method of evaluating the performance of the control processes, and identifying the areas of improvement or optimization56.
Analyzing KPIs is also the best way because it enables the organization to monitor and report the efficiency of the control processes to the relevant stakeholders, and to take corrective or preventive actions when necessary56.
The other options are not the best way, but rather possible sources of information or inputs that may support or complement the analysis of KPIs. For example:
Performing annual risk assessments is a way to identify and evaluate the risks that may affect the organization’s objectives, and to determine the adequacy and effectiveness of the control processes in mitigating those risks12. However, this way is not the best because it is periodic rather than continuous, and may not capture the changes or trends in the efficiency of the control processes12.
Interviewing process owners is a way to collect and verify the information and feedback from the people who are responsible for designing, implementing, and operating the control processes12. However, this way is not the best because it is subjective and qualitative, and may not provide reliable or comparable data on the efficiency of the control processes12.
Reviewing the risk register is a way to examine and update the documentation and status of the risks and the control processes that are associated with them12. However, this way is not the best because it is descriptive rather than analytical, and may not measure or evaluate the efficiency of the control processes12. References =
1: Risk IT Framework, ISACA, 2009
2: IT Risk Management Framework, University of Toronto, 2017
3: The Control Process | Principles of Management4
4: Control Management: What it is + Why It’s Essential | Adobe Workfront5
5: What is a Key Performance Indicator (KPI)? Guide & Examples - Qlik1
6: What is a Key Performance Indicator (KPI)? - KPI.org2
When determining which control deficiencies are most significant, which of the following would provide the MOST useful information?
Risk analysis results
Exception handling policy
Vulnerability assessment results
Benchmarking assessments
A control deficiency is a weakness or flaw in the design or implementation of a control that reduces its effectiveness or efficiency in achieving its intended objective or mitigating the risk that it is designed to address. A control deficiency may be caused by various factors, such as human error, system failure, process inefficiency, resource limitation, etc.
When determining which control deficiencies are most significant, the most useful information would be the risk analysis results, which are the outcomes or outputs of the risk analysis process that measures and compares the likelihood and impact of various risk scenarios, and prioritizes them based on their significance and urgency. The risk analysis results can help to determine which control deficiencies are most significant by providing the following information:
The level and priority of the risks that are associated with the control deficiencies, and the potential consequences or impacts that they may cause for the organization if they materialize.
The gap or difference between the current and desired level of risk, and the extent or degree to which the control deficiencies contribute to or affect the gap or difference.
The cost-benefit or feasibility analysis of the possible actions or plans to address or correct the control deficiencies, and the expected or desired outcomes or benefits that they may provide for the organization.
The other options are not the most useful information when determining which control deficiencies are most significant, because they do not provide the same level of detail and insight that the risk analysis results provide, and they may not be relevant or actionable for the organization.
An exception handling policy is a policy that defines and describes the procedures and guidelines for dealing with the situations or circumstances that deviate from the normal or expected operation or functionality of a control, and that may require special or alternative actions or measures to address or resolve them. An exception handling policy can provide useful information on how to handle or manage the control deficiencies, but it is not the most useful information when determining which control deficiencies are most significant, because it does not indicate the level and priority of the risks that are associated with the control deficiencies, and the potential consequences or impacts that they may cause for the organization.
A vulnerability assessment is an assessment that identifies and evaluates the weaknesses or flaws in the organization’s assets, processes, or systems that can be exploited or compromised by the threats or sources of harm that may affect the organization’s objectives or operations. A vulnerability assessment can provide useful information on the existence and severity of the control deficiencies, but it is not the most useful information when determining which control deficiencies are most significant, because it does not indicate the likelihood and impact of the risk scenarios that are associated with the control deficiencies, and the potential consequences or impacts that they may cause for the organization.
A benchmarking assessment is an assessment that compares and contrasts the organization’s performance, practices, or processes with those of other organizations or industry standards, and identifies the strengths, weaknesses, opportunities, or threats that may affect the organization’s objectives or operations. A benchmarking assessment can provide useful information on the best practices or improvement areas for the organization, but it is not the most useful information when determining which control deficiencies are most significant, because it does not indicate the level and priority of the risks that are associated with the control deficiencies, and the potential consequences or impacts that they may cause for the organization. References =
ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63
ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 176
CRISC Practice Quiz and Exam Prep
A contract associated with a cloud service provider MUST include:
ownership of responsibilities.
a business recovery plan.
provision for source code escrow.
the providers financial statements.
According to the CRISC Review Manual (Digital Version), a contract associated with a cloud service provider must include ownership of responsibilities, as this defines the roles and obligations of both the cloud provider and the customer in relation to the cloud services. The contract should specify who is responsible for:
Service delivery and performance
Data security and privacy
Compliance with regulations and standards
Incident management and reporting
Business continuity and disaster recovery
Change management and configuration control
Intellectual property rights and licensing
Termination and data egress
The contract should also include service level agreements (SLAs) that measure and monitor the quality and availability of the cloud services, as well as remedies and penalties for non-compliance. The contract should also address pricing and payment terms, dispute resolution mechanisms, and liability and indemnification clauses.
References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 173-1741
A risk practitioner has identified that the organization's secondary data center does not provide redundancy for a critical application. Who should have the authority to accept the associated risk?
Business continuity director
Disaster recovery manager
Business application owner
Data center manager
The business application owner should have the authority to accept the associated risk, because they are responsible for the performance and outcomes of the critical application, and they understand the business requirements, expectations, and impact of the application. The business application owner can also evaluate the trade-offs between the potential benefits and costs of the application, and the potential risks and consequences of a disruption or failure of the application. The business application owner can also communicate and justify their risk acceptance decision to the senior management and other stakeholders, and ensure that the risk is monitored and reviewed regularly. The other options are less appropriate to have the authority to accept the associated risk. The business continuity director is responsible for overseeing the planning and execution of the business continuity strategy, which includes ensuring the availability and resilience of the critical business processes and applications. However, they are not the owner of the application, and they may not have the full knowledge or authority to accept the risk on behalf of the business. The disaster recovery manager is responsible for managing the recovery and restoration of the IT systems and applications in the event of a disaster or disruption. However, they are not the owner of the application, and they may not have the full knowledge or authority to accept the risk on behalf of the business. The data center manager is responsible for managing the operation and maintenance of the data center infrastructure, which includes providing the physical and environmental security, power, cooling, and network connectivity for the IT systems and applications. However, they are not the owner of the application, and they may not have the full knowledge or authority to accept the risk on behalf of the business. References = Risk IT Framework, ISACA, 2022, p. 181
An organization has detected unauthorized logins to its client database servers. Which of the following should be of GREATEST concern?
Potential increase in regulatory scrutiny
Potential system downtime
Potential theft of personal information
Potential legal risk
Potential theft of personal information should be of greatest concern for an organization that has detected unauthorized logins to its client database servers, as it poses a serious threat to the confidentiality, integrity, and availability of the client data and the reputation and trust of the organization. Potential theft of personal information is a scenario that involves the unauthorized access, disclosure, or use of the client data by malicious actors, such as hackers, competitors, or insiders. Potential theft of personal information can have significant impacts and consequences for the organization and its clients, such as:
It can compromise the privacy and security of the client data, and expose the clients to identity theft, fraud, or blackmail.
It can violate the legal and regulatory obligations and requirements of the organization, such as the General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), or the Payment Card Industry Data Security Standard (PCI DSS), and result in fines, penalties, or lawsuits.
It can damage the reputation and credibility of the organization, and erode the confidence and loyalty of the clients, and lead to loss of business or market share.
The other options are not the greatest concerns for an organization that has detected unauthorized logins to its client database servers. Potential increase in regulatory scrutiny is a possible consequence of the unauthorized logins, as it may trigger audits, investigations, or sanctions by the relevant authorities, but it is not the most critical or immediate concern. Potential system downtime is a possible consequence of the unauthorized logins, as it may disrupt or degrade the performance or availability of the database servers or the applications that depend on them, but it is not the most severe or lasting concern. Potential legal risk is a possible consequence of the unauthorized logins, as it may expose the organization to litigation or liability claims by the affected clients or parties, but it is not the most direct or urgent concern. References = Data Breach Response: A Guide for Business - Federal Trade Commission, IT Risk Resources | ISACA, How to Prevent Unauthorized Access to Your Database - ScaleGrid
A PRIMARY advantage of involving business management in evaluating and managing risk is that management:
better understands the system architecture.
is more objective than risk management.
can balance technical and business risk.
can make better-informed business decisions.
Involving business management in evaluating and managing risk is beneficial, as it enables management to have a comprehensive and holistic view of the risk environment and its impact on the organization’s objectives and strategy. By participating in the risk management process, management can make better-informed business decisions, as they can consider the risk factors and implications of their choices, and align their decisions with the organization’s risk appetite and tolerance. Involving business management in evaluating and managing risk can also enhance the risk culture and governance of the organization, and foster a proactive and collaborative approach to risk management. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 253. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 253. CRISC by Isaca Actual Free Exam Q&As, Question 9.
While reviewing an organization's monthly change management metrics, a risk practitioner notes that the number of emergency changes has increased substantially Which of the following would be the BEST approach for the risk practitioner to take?
Temporarily suspend emergency changes.
Document the control deficiency in the risk register.
Conduct a root cause analysis.
Continue monitoring change management metrics.
According to the CRISC Review Manual, a root cause analysis is a technique that identifies the underlying causes of an event or a problem. It helps to determine the most effective actions to prevent or mitigate the recurrence of the event or problem. A root cause analysis is the best approach for the risk practitioner to take in this scenario, because it will help to understand why the number of emergency changes has increased substantially and what can be done to address the issue. The other options are not the best approaches, because they do not address the underlying causes of the problem. Temporarily suspending emergency changes may disrupt the business operations and create more risks. Documenting the control deficiency in the risk register is a passive action that does not resolve the problem. Continuing monitoring change management metrics is an ongoing activity that does not provide any insight into the problem. References = CRISC Review Manual, 7th Edition, Chapter 3, Section 3.2.4, page 130.
Which of the following should be included in a risk scenario to be used for risk analysis?
Risk appetite
Threat type
Risk tolerance
Residual risk
A risk scenario is a hypothetical situation that describes how a risk event could adversely affect an organization’s objectives, assets, or operations. A risk scenario can be used for risk analysis, which is the process of estimating the likelihood and impact of the risk event, and evaluating the effectiveness and efficiency of the risk response1.
One of the essential components of a risk scenario is the threat type, which is the source or cause of the risk event. The threat type can be classified into various categories, such as natural, human, technical, environmental, or legal. The threat type can help to define the characteristics, motivations, capabilities, and methods of the risk event, and to identify the potential vulnerabilities and exposures of the organization. The threat type can also help to determine the frequency and severity of the risk event, and to select the appropriate risk response strategies and controls23.
The other options are not the components of a risk scenario, but rather the outcomes or inputs of risk analysis. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite can help to guide the risk analysis by providing a high-level statement of the desired level of risk taking and tolerance4. Risk tolerance is the acceptable variation in the outcomes related to specific objectives or risks. Risk tolerance can help to measure the risk analysis by providing quantitative or qualitative indicators of the acceptable range of risk exposure and performance4. Residual risk is the remaining risk after the risk response has been implemented. Residual risk can help to monitor the risk analysis by providing feedback on the effectiveness and efficiency of the risk response and the need for further action. References =
Risk Analysis - ISACA
Threat - ISACA
Threat Modeling - ISACA
Risk Appetite and Risk Tolerance - ISACA
[Residual Risk - ISACA]
[CRISC Review Manual, 7th Edition]
Which of the following is MOST important when developing key risk indicators (KRIs)?
Alignment with regulatory requirements
Availability of qualitative data
Properly set thresholds
Alignment with industry benchmarks
The most important factor when developing key risk indicators (KRIs) is to properly set thresholds, which are the predefined values or ranges that indicate the acceptable or unacceptable level of risk1. Thresholds can help to:
Trigger alerts or actions when the risk level exceeds or falls below the threshold, and enable timely and appropriate risk responses2.
Measure and monitor the performance and effectiveness of the risk responses, and ensure that the residual risk is within the risk appetite and tolerance3.
Communicate and report the risk status and performance to the stakeholders, and facilitate the decision-making and accountability for the risk management4.
The other factors are not the most important when developing KRIs, because:
Alignment with regulatory requirements is a necessary but not sufficient factor when developing KRIs, as it ensures that the KRIs comply with the applicable laws, rules, or standards that govern the organization’s activities and operations5. However, alignment with regulatory requirements does not guarantee that the KRIs are relevant and useful for the organization’s specific risk profile and objectives.
Availability of qualitative data is a desirable but not essential factor when developing KRIs, as it provides additional information or insights that may not be captured by quantitative data, such as opinions, perceptions, or feedback. However, availability of qualitative data does not ensure that the KRIs are reliable and consistent, as qualitative data may be subjective and difficult to measure and compare.
Alignment with industry benchmarks is a useful but not critical factor when developing KRIs, as it provides a reference or a standard for comparing the organization’s risk level and performance with its peers or competitors. However, alignment with industry benchmarks does not ensure that the KRIs are suitable and feasible for the organization’s specific context and capabilities.
References =
Threshold - CIO Wiki
Risk Thresholds: How to Set Them and When to Use Them - ProjectManager.com
Risk Appetite and Tolerance - CIO Wiki
Risk Reporting - CIO Wiki
Regulatory Compliance - CIO Wiki
[Regulatory Risk - CIO Wiki]
[Qualitative Data - CIO Wiki
Determining if organizational risk is tolerable requires:
mapping residual risk with cost of controls
comparing against regulatory requirements
comparing industry risk appetite with the organizations.
understanding the organization's risk appetite.
Determining if organizational risk is tolerable requires understanding the organization’s risk appetite, which is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives1. Understanding the organization’s risk appetite can help to:
Define and communicate the risk tolerance, which is the acceptable or unacceptable level of risk for each risk category or scenario2.
Guide and align the risk identification, analysis, evaluation, and treatment processes, and ensure that the risks are consistent and proportional to the risk appetite3.
Measure and monitor the risk performance and outcome, and ensure that the residual risk (the risk that remains after the risk responses) is within the risk appetite, or take corrective actions if needed4.
The other options are not the best ways to determine if organizational risk is tolerable, because:
Mapping residual risk with cost of controls is a useful but not sufficient way to determine if organizational risk is tolerable, as it provides a quantitative analysis of the trade-off between the risk level and the risk response cost5. However, mapping residual risk with cost of controls does not consider the qualitative aspects of the risk, such as the impact on the organization’s strategy, culture, or reputation.
Comparing against regulatory requirements is a necessary but not sufficient way to determine if organizational risk is tolerable, as it ensures that the organization complies with the applicable laws, rules, or standards that govern its activities and operations6. However, comparing against regulatory requirements does not guarantee that the organization meets its own objectives and expectations, which may be higher or lower than the regulatory requirements.
Comparing industry risk appetite with the organization’s risk appetite is a helpful but not sufficient way to determine if organizational risk is tolerable, as it provides a reference or a standard for benchmarking the organization’s risk level and performance with its peers or competitors7. However, comparing industry risk appetite with the organization’s risk appetite does not ensure that the organization addresses its specific or unique risks, which may differ from the industry risks.
References =
Risk Appetite - CIO Wiki
Risk Tolerance - CIO Wiki
Risk Management Process - CIO Wiki
Risk Monitoring - CIO Wiki
Residual Risk - CIO Wiki
Regulatory Compliance - CIO Wiki
Benchmarking - CIO Wiki
Risk and Information Systems Control documents and learning resources by ISACA
Which of the following is a drawback in the use of quantitative risk analysis?
It assigns numeric values to exposures of assets.
It requires more resources than other methods
It produces the results in numeric form.
It is based on impact analysis of information assets.
The drawback in the use of quantitative risk analysis is that it requires more resources than other methods. Quantitative risk analysis is a method of risk analysis that assigns numeric values to the exposures of assets, the impact and likelihood of risk events, and the cost and benefit of risk responses. Quantitative risk analysis can provide more precise and objective results, and support the risk-based decision making process. However, quantitative risk analysis also requires more resources than other methods, such as data, time, expertise, and tools, to collect, validate, and analyze the quantitative information, and to perform the complex calculations and simulations. Quantitative risk analysis may also be limited by the availability, reliability, and accuracy of the data, and the assumptions and models used. Assigning numeric values to exposures of assets, producing the results in numeric form, and being based on impact analysis of information assets are not drawbacks, but characteristics of quantitative risk analysis. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 49.
A risk practitioner has been asked to evaluate the adoption of a third-party blockchain integration platform based on the value added by the platform and the organization's risk appetite. Which of the following is the risk practitioner's BEST course of action?
Conduct a risk assessment with stakeholders.
Conduct third-party resilience tests.
Update the risk register with the process changes.
Review risk related to standards and regulations.
Conducting a risk assessment with stakeholders is the best course of action for the risk practitioner to evaluate the adoption of a third-party blockchain integration platform, because it helps to identify, analyze, and evaluate the risks and opportunities associated with the platform, and to compare them with the organization’s risk appetite and value proposition. A risk assessment is a process of systematically identifying and assessing the sources and types of risk that an organization faces, and estimating their likelihood and impact. A risk assessment also involves identifying and evaluating the existing or proposed controls or mitigating factors that can reduce or eliminate the risk. A stakeholder is a person or group that has an interest or influence in the organization or its activities, such as customers, employees, shareholders, suppliers, regulators, or partners. A blockchain integration platform is a software solution that enables the organization to connect and interact with blockchain networks or applications, such as cryptocurrencies, smart contracts, or distributed ledgers. A blockchain integration platform can offer benefits such as transparency, security, efficiency, and innovation, but it can also pose risks such as technical complexity, interoperability issues, regulatory uncertainty, or cyberattacks. Therefore, conducting a risk assessment with stakeholders is the best way to evaluate the adoption of a third-party blockchain integration platform, as it helps to understand the benefits and risks of the platform, and to align them with the organization’s objectives and risk appetite. Conducting third-party resilience tests, updating the risk register with the process changes, and reviewing risk related to standards and regulations are all important tasks to perform after conducting a risk assessment, but they are not the best course of action, as they depend on the results of the risk assessment. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.2, page 87
Which of the following is the PRIMARY accountability for a control owner?
Communicate risk to senior management.
Own the associated risk the control is mitigating.
Ensure the control operates effectively.
Identify and assess control weaknesses.
The primary accountability for a control owner is to ensure the control operates effectively, as they have the authority and responsibility to design, implement, monitor, and report on the performance and adequacy of the control, and to identify and address any control gaps or deficiencies. Communicating risk to senior management, owning the associated risk the control is mitigating, and identifying and assessing control weaknesses are not the primary accountabilities, as they are more related to the roles and responsibilities of the risk owner, the risk practitioner, or the auditor, respectively, rather than the control owner. References = CRISC Review Manual, 7th Edition, page 101.
Which of the following would be the BEST way to help ensure the effectiveness of a data loss prevention (DLP) control that has been implemented to prevent the loss of credit card data?
Testing the transmission of credit card numbers
Reviewing logs for unauthorized data transfers
Configuring the DLP control to block credit card numbers
Testing the DLP rule change control process
A data loss prevention (DLP) control is a technology that tries to detect and stop sensitive data breaches, or data leakage incidents, in an organization. A DLP control is used to prevent sensitive data, such as credit card numbers, from being disclosed to an unauthorized person, whether it is deliberate or accidental1. The best way to help ensure the effectiveness of a DLP control that has been implemented to prevent the loss of credit card data is to test the transmission of credit card numbers. This is a technique to verify that the DLP control can successfully identify and block the credit card data when it is sent or received through various channels, such as email, messaging, or file transfers. Testing the transmission of credit card numbers can help to evaluate the accuracy and reliability of the DLP control, as well as to identify and correct any false positives or false negatives. The other options are not the best ways to help ensure the effectiveness of a DLP control that has been implemented to prevent the loss of credit card data, although they may be helpful and complementary. Reviewing logs for unauthorized data transfers is a technique to monitor and analyze the DLP control activities and incidents, such as who, what, when, where, and how the data was transferred. However, reviewing logs is a reactive and passive approach, while testing the transmission is a proactive and active approach. Configuring the DLP control to block credit card numbers is a technique to set up the DLP control rules and policies, such as defining the data patterns, the detection methods, and the response actions. However, configuring the DLP control is a prerequisite and a preparation step, while testing the transmission is a validation and a verification step. Testing the DLP rule change control process is a technique to ensure that the DLP control rules and policies are updated and maintained in a controlled and coordinated manner, such as obtaining approval, documenting the changes, testing the changes, and communicating the changes. However, testing the DLP rule change control process is a quality and governance step, while testing the transmission is a performance and functionality step. References = What is Data Loss Prevention (DLP)? | Digital Guardian1; CRISC Review Manual, pages 164-1652; CRISC Review Questions, Answers & Explanations Manual, page 833
Which of the following is MOST effective against external threats to an organizations confidential information?
Single sign-on
Data integrity checking
Strong authentication
Intrusion detection system
Strong authentication is the most effective measure against external threats to an organization’s confidential information. Confidential information is any data or information that is sensitive, proprietary, or valuable to the organization, and that should not be disclosed to unauthorized parties1. External threats are malicious actors outside the organization who attempt to gain unauthorized access to the organization’s networks, systems, and data, using various methods such as malware, hacking, or social engineering2. Strong authentication is a method of verifying the identity and legitimacy of a user or device before granting access to the organization’s resources or data3. Strong authentication typically involves the use of multiple factors or methods of authentication, such as passwords, tokens, biometrics, or certificates4. Strong authentication can prevent or reduce the risk of external threats to the organization’s confidential information, by making it more difficult and costly for the attackers to compromise the credentials or devices of the authorized users, and by limiting the access to the data or resources that are relevant and necessary for the users’ roles and responsibilities5. The other options are not the most effective measures against external threats to the organization’s confidential information, as they are either less secure or less relevant than strong authentication. Single sign-on is a method of allowing a user to access multiple systems or applications with a single set of credentials, without having to log in separately for each system or application6. Single sign-on can improve the user experience and convenience, as well as reduce the administrative burden and cost of managing multiple accounts and passwords. However, single sign-on is not the most effective measure against external threats to the organization’s confidential information, as it can also increase the risk of credential compromise or misuse, and create a single point of failure or attack for the attackers to access multiple systems or data. Data integrity checking is a method of ensuring that the data or information is accurate, complete, and consistent, and that it has not been altered or corrupted by unauthorized parties or processes. Data integrity checking can involve the use of techniques such as checksums, hashes, digital signatures, or encryption. Data integrity checking can enhance the quality and reliability of the data or information, as well as detect and prevent any unauthorized or malicious changes or tampering. However, data integrity checking is not the most effective measure against external threats to the organization’s confidential information, as it does not prevent or reduce the risk of data theft or leakage, and it does not verify the identity or legitimacy of the users or devices accessing the data. Intrusion detection system is a system that monitors the network or system activities and events, and detects and alerts any suspicious or malicious behaviors or anomalies that may indicate an attempted or successful breach or attack. Intrusion detection system can help to identify and respond to external threats to the organization’s networks, systems, and data, by providing visibility and awareness of the network or system status and activities, and by enabling timely and appropriate actions or countermeasures. However, intrusion detection system is not the most effective measure against external threats to the organization’s confidential information, as it is a reactive or passive system that does not prevent or block the attacks, and it may generate false positives or negatives that can affect its accuracy and efficiency. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1, Page 189.
An organization has identified a risk exposure due to weak technical controls in a newly implemented HR system. The risk practitioner is documenting the risk in the risk register. The risk should be owned by the:
chief risk officer.
project manager.
chief information officer.
business process owner.
The business process owner should be the risk owner for the risk exposure due to weak technical controls in a newly implemented HR system, because they are responsible for the performance and outcomes of the HR business process, and they understand the business requirements, expectations, and impact of the HR system. The business process owner can also evaluate the trade-offs between the potential benefits and costs of the HR system, and the potential risks and consequences of a failure or breach of the system. The business process owner can also communicate and justify their risk acceptance or mitigation decision to the senior management and other stakeholders, and ensure that the risk is monitored and reviewed regularly. The other options are less appropriate to be the risk owner for this risk exposure. The chief risk officer is responsible for overseeing the enterprise-wide risk management framework and process, which includes ensuring the identification, assessment, and reporting of risks. However, they are not the owner of the HR system or the HR business process, and they may not have the full knowledge or authority to accept or mitigate the risk on behalf of the business. The project manager is responsible for managing the implementation of the HR system, which includes ensuring the delivery of the system within the scope, time, and budget constraints. However, they are not the owner of the HR system or the HR business process, and they may not have the full knowledge or authority to accept or mitigate the risk on behalf of the business. The chief information officer is responsible for managing the IT function and resources, which includes providing the technical support and security for the HR system. However, they are not the owner of the HR system or the HR business process, and they may not have the full knowledge or authority to accept or mitigate the risk on behalf of the business. References = Getting risk ownership right 1
When classifying and prioritizing risk responses, the areas to address FIRST are those with:
low cost effectiveness ratios and high risk levels
high cost effectiveness ratios and low risk levels.
high cost effectiveness ratios and high risk levels
low cost effectiveness ratios and low risk levels.
The areas to address first when classifying and prioritizing risk responses are those with high cost effectiveness ratios and high risk levels, as they represent the most optimal and urgent risk responses that can reduce the risk exposure and impact significantly with a reasonable cost. The other options are not the areas to address first, as they may indicate suboptimal or less urgent risk responses that may not align with the risk tolerance and appetite of the organization. References = CRISC Review Manual, 7th Edition, page 109.
Which of the following is the PRIMARY purpose of a risk register?
To assign control ownership of risk
To provide a centralized view of risk
To identify opportunities to transfer risk
To mitigate organizational risk
According to ISACA, a risk register is a tool to record and track the identified risks, their ratings, responses, and status. The primary purpose of a risk register is to provide a centralized view of risk for the organization, as it enables the consolidation, communication, and reporting of risk information across different levels, units, and functions. A risk register can also support the risk management process, such as risk identification, assessment, treatment, monitoring, and review.
References:
•ISACA, Risk IT Framework, 2nd Edition, 2019, p. 761
•ISACA, Capability Maturity Model and Risk Register Integration: The Right Approach to Enterprise Governance2
A risk practitioner is defining metrics for security threats that were not identified by antivirus software. Which type of metric is being developed?
Key control indicator (KCI)
Key risk indicator (KRI)
Operational level agreement (OLA)
Service level agreement (SLA)
A KRI is a measure used by an organization to measure the health of a particular risk. In this case, the risk practitioner is developing a metric to measure the risk associated with security threats that were not identified by antivirus software12.
References
1Standardized Scoring for Security and Risk Metrics - ISACA
2Key Performance Indicators for Security Governance, Part 1 - ISACA
Which of the following BEST mitigates reputational risk associated with disinformation campaigns against an organization?
Monitoring digital platforms that disseminate inaccurate or misleading news stories
Engaging public relations personnel to debunk false stories and publications
Restricting the use of social media on corporate networks during specific hours
Providing awareness training to understand and manage these types of attacks
Understanding Reputational Risk:
Reputational risk arises from negative public perception, which can be fueled by disinformation campaigns. These campaigns spread false or misleading information about an organization, potentially damaging its reputation.
Mitigating Reputational Risk:
The best way to mitigate this risk is to actively counteract false information and restore public trust. This involves debunking false stories and correcting misinformation promptly and effectively.
Role of Public Relations:
Engaging public relations (PR) personnel is crucial in managing the organization's reputation. PR professionals are skilled in crafting messages, dealing with media, and using communication strategies to address and correct false narratives.
PR personnel can issue press releases, organize press conferences, and leverage social media to reach a wide audience, ensuring the correct information is disseminated.
Monitoring and Awareness Training:
While monitoring digital platforms and providing awareness training are important, they are more preventive measures. Monitoring helps in early detection, and training aids in internal management of such risks. However, they do not actively counteract the false information once it is in the public domain.
Restricting Social Media:
Restricting social media usage on corporate networks does not address the core issue of disinformation campaigns. It may reduce internal risks but does not mitigate external reputational damage.
References:
The CRISC Review Manual discusses strategies for managing reputational risk and highlights the importance of proactive communication and public relations efforts (CRISC Review Manual, Chapter 1: Governance, Section 1.3.4 The Value of Risk Communication).
Which of the following describes the relationship between risk appetite and risk tolerance?
Risk appetite is completely independent of risk tolerance.
Risk tolerance is used to determine risk appetite.
Risk appetite and risk tolerance are synonymous.
Risk tolerance may exceed risk appetite.
Relationship between Risk Appetite and Risk Tolerance:
Risk Appetite: Defined as the amount of risk an organization is willing to accept in pursuit of its objectives. It is a broad measure that reflects the organization's strategy and goals.
Risk Tolerance: Refers to the acceptable level of variation in performance relative to achieving objectives. It is narrower and can sometimes exceed the risk appetite in specific situations where deviations are permissible.
Contextual Understanding:
Controlled Exceedance: Risk tolerance allows for occasional and controlled exceedance of the risk appetite, typically under specific conditions and for compelling business reasons.
Management Decisions: Decisions to exceed risk appetite should be carefully considered and documented, ensuring they do not threaten the overall risk capacity of the organization.
Comparison with Other Options:
Independent of Each Other: Incorrect, as risk tolerance is related to risk appetite.
Risk Tolerance Determines Risk Appetite: Incorrect, risk appetite is generally broader and set before determining risk tolerance.
Synonymous: Incorrect, they are distinct concepts with risk tolerance providing operational flexibility within the boundaries set by risk appetite.
Best Practices:
Clear Definitions: Clearly define and communicate the organization’s risk appetite and risk tolerance.
Regular Reviews: Regularly review and adjust risk appetite and tolerance to align with changes in business strategy and external environment.
CRISC Review Manual: Provides detailed definitions and examples illustrating the relationship between risk appetite and risk tolerance .
ISACA Guidelines: Emphasize the importance of understanding and managing the interplay between risk appetite and tolerance for effective risk management .
References:
Which of the following is the BEST method to track asset inventory?
Periodic asset review by management
Asset registration form
Automated asset management software
IT resource budgeting process
Automated asset management software is the best method to track asset inventory because it can provide real-time, accurate, and comprehensive data on the location, condition, value, and usage of assets. It can also help to optimize asset utilization, reduce costs, improve compliance, and enhance security.
References
•Free Asset Tracking Templates | Smartsheet
•5 Best Asset Management Software (2023) – Forbes Advisor
•What Is Asset Tracking? Benefits & How It Works - Forbes
•Inventory and Asset Tracking: Keep it Simple (But Powerful)
Which of the following emerging technologies is frequently used for botnet distributed denial of service (DDoS) attacks?
Internet of Things (IoT)
Quantum computing
Virtual reality (VR)
Machine learning
Internet of Things (IoT) is an emerging technology that refers to the network of devices, such as cameras, sensors, appliances, or vehicles, that can communicate and exchange data via the internet. IoT is frequently used for botnet distributed denial of service (DDoS) attacks, which are cyberattacks that aim to disrupt or disable a target’s online services by overwhelming them with traffic from multiple sources. IoT devices are often unsecured, unpatched, or misconfigured, which makes them vulnerable to being infected by malware and controlled by attackers. Attackers can use IoT devices to create large and powerful botnets that can launch DDoS attacks against various targets, such as websites, servers, or networks. According to the CRISC Review Manual 2022, IoT is one of the key emerging technologies that pose new IT risks, including DDoS attacks1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, IoT is the correct answer to this question2. According to the web search results, IoT devices are commonly used for botnet DDoS attacks, such as the Mirai botnet, the Emotet botnet, and the BoT-IoT dataset345.
A data processing center operates in a jurisdiction where new regulations have significantly increased penalties for data breaches. Which of the following elements of the risk register is MOST important to update to reflect this change?
Risk impact
Risk trend
Risk appetite
Risk likelihood
Risk impact is the potential loss or damage that a risk event can cause to an organization. Risk impact can be expressed in qualitative or quantitative terms, such as financial, reputational, operational, or legal. A risk register is a tool that records and tracks the key information about the identified risks, such as their description, likelihood, impact, response, and status. A risk register helps an organization to monitor and manage its risks effectively and efficiently. When there is a change in the external or internal environment that affects the organization’s risks, such as new regulations, the risk register should be updated to reflect this change. The most important element of the risk register to update in this case is the risk impact, because the new regulations have significantly increased the penalties for data breaches, which means that the potential loss or damage that a data breach can cause to the organization has also increased. By updating the risk impact, the organization can reassess the severity and priority of the data breach risk, and adjust its risk response accordingly. The other elements of the risk register are less important to update in this case. The risk trend shows the direction and rate of change of the risk over time, which may or may not be affected by the new regulations. The risk appetite is the amount and type of risk that the organization is willing to accept in pursuit of its objectives, which is unlikely to change due to the new regulations. The risk likelihood is the probability of a risk event occurring, which is also independent of the new regulations. References = Risk IT Framework, ISACA, 2022, p. 131
Which of the following risk management practices BEST facilitates the incorporation of IT risk scenarios into the enterprise-wide risk register?
Key risk indicators (KRls) are developed for key IT risk scenarios
IT risk scenarios are assessed by the enterprise risk management team
Risk appetites for IT risk scenarios are approved by key business stakeholders.
IT risk scenarios are developed in the context of organizational objectives.
IT risk scenarios are hypothetical situations that describe how IT-related events or incidents could adversely affect an organization’s objectives, assets, or operations. IT risk scenarios can help to identify, analyze, and prioritize IT risks, and to develop appropriate responses and controls1.
An enterprise-wide risk register is a document that records and tracks the significant risks that an organization faces across its various functions, processes, and activities. An enterprise-wide risk register can help to provide a comprehensive and consistent view of the organization’s risk profile, and to support the decision making and reporting of the risk management function2.
The best practice that facilitates the incorporation of IT risk scenarios into the enterprise-wide risk register is to develop IT risk scenarios in the context of organizational objectives. This means that IT risk scenarios should be aligned with and derived from the organization’s strategic goals, mission, vision, and values. IT risk scenarios should also consider the interdependencies and interactions between IT and other business domains, and the potential impact of IT risks on the organization’s performance and reputation3.
By developing IT risk scenarios in the context of organizational objectives, the organization can ensure that the IT risk scenarios are relevant, realistic, and meaningful for the enterprise-wide risk management. The organization can also ensure that the IT risk scenarios are consistent and comparable with other types of risk scenarios, such as financial, operational, or reputational risk scenarios. This can facilitate the integration and consolidation of IT risk scenarios into the enterprise-wide risk register, and enable a holistic and balanced assessment and reporting of the organization’s risks4.
The other options are not as effective as developing IT risk scenarios in the context of organizational objectives for incorporating IT risk scenarios into the enterprise-wide risk register. Developing key risk indicators (KRIs) for key IT risk scenarios can help to monitor and measure the IT risk exposure and performance, but it does not ensure that the IT risk scenarios are aligned with the organizational objectives or integrated with other risk scenarios. Assessing IT risk scenarios by the enterprise risk management team can help to validate and prioritize the IT risk scenarios, but it does not ensure that the IT risk scenarios are derived from the organizational objectives or consistent with other risk scenarios. Approving risk appetites for IT risk scenarios by key business stakeholders can help to establish the acceptable level of IT risk taking and tolerance, but it does not ensure that the IT risk scenarios are based on the organizational objectives or comparable with other risk scenarios. References =
IT Risk Scenario Development - ISACA
Risk Register - ISACA
Identifying Risks and Scenarios Threatening the Organization as an Enterprise - A New Enterprise Risk Identification Framework
Risk Register 2021-2022 - UNECE
[CRISC Review Manual, 7th Edition]
What is the PRIMARY reason to periodically review key performance indicators (KPIs)?
Ensure compliance.
Identify trends.
Promote a risk-aware culture.
Optimize resources needed for controls
According to the CRISC Review Manual, the primary reason to periodically review key performance indicators (KPIs) is to identify trends, because it helps to monitor the changes and patterns in the performance and effectiveness of the risk management processes and controls. KPIs are metrics that measure the achievement of the objectives and targets of the risk management activities. Periodically reviewing KPIs allows the organization to evaluate the progress and results of the risk management strategies and actions, and to identify any gaps, issues, or opportunities for improvement. The other options are not the primary reason to periodically review KPIs, as they are related to other aspects or outcomes of the risk management process. Ensuring compliance is the reason to review key risk indicators (KRIs), which are metrics that measure the level of risk exposure and the occurrence of risk events. Promoting a risk-aware culture is the reason to review key goal indicators (KGIs), which are metrics that measure the alignment of the risk management with the business goals and values. Optimizing resources needed for controls is the reason to review key control indicators (KCIs), which are metrics that measure the efficiency and adequacy of the risk controls. References = CRISC Review Manual, 7th Edition, Chapter 3, Section 3.3.2, page 143.
The PRIMARY reason to have risk owners assigned to entries in the risk register is to ensure:
risk is treated appropriately
mitigating actions are prioritized
risk entries are regularly updated
risk exposure is minimized.
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.
Which of the following represents a vulnerability?
An identity thief seeking to acquire personal financial data from an organization
Media recognition of an organization's market leadership in its industry
A standard procedure for applying software patches two weeks after release
An employee recently fired for insubordination
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 …
Which of the following is the GREATEST benefit of incorporating IT risk scenarios into the corporate risk register?
Corporate incident escalation protocols are established.
Exposure is integrated into the organization's risk profile.
Risk appetite cascades to business unit management
The organization-wide control budget is expanded.
IT risk scenarios are hypothetical situations that describe the sources, causes, and consequences of IT-related risks, and the potential impacts on the organization’s objectives, performance, and value creation12.
A corporate risk register is a document that records and tracks the significant risks that the organization faces, and the responses and actions that are taken to address them34.
The greatest benefit of incorporating IT risk scenarios into the corporate risk register is that exposure is integrated into the organization’s risk profile, which is a comprehensive and integrated representation of the risks that may affect the organization’s objectives, performance, and value creation56.
Exposure is integrated into the organization’s risk profile means that the organization has a complete and consistent view of the IT risk landscape, and the potential impacts and interdependencies of IT risks on other types of risks, such as financial, operational, strategic, or reputational risks56.
Exposure is integrated into the organization’s risk profile also means that the organization can make informed and balanced decisions on the risk responses and actions, and allocate the appropriate resources and priorities to the IT risk management and control processes56.
The other options are not the greatest benefit, but rather possible outcomes or consequences of incorporating IT risk scenarios into the corporate risk register. For example:
Corporate incident escalation protocols are established is an outcome of incorporating IT risk scenarios into the corporate risk register that indicates the organization has defined and implemented the procedures and mechanisms for reporting and resolving IT-related incidents, and for escalating them to the appropriate authorities or levels when necessary78. However, this outcome does not measure or reflect the exposure or the risk profile of the organization, which may depend on other factors such as the frequency, severity, or complexity of the incidents78.
Risk appetite cascades to business unit management is a consequence of incorporating IT risk scenarios into the corporate risk register that indicates the organization has communicated and aligned the risk appetite, which is the amount and type of risk that the organization is willing to accept or pursue, to the business unit management, who are responsible for executing the risk strategy and objectives at the operational level . However, this consequence does not indicate or imply the exposure or the risk profile of the organization, which may vary depending on the context, environment, or stakeholder expectations .
The organization-wide control budget is expanded is an outcome of incorporating IT risk scenarios into the corporate risk register that indicates the organization has increased the amount of resources and funds that are allocated to the control processes, which are the procedures and activities that aim to ensure the effectiveness and efficiency of the organization’s operations, the reliability of its information, and the compliance with its policies and regulations . However, this outcome does not affect or determine the exposure or the risk profile of the organization, which is independent of the control budget . References =
1: IT Risk Scenarios - Morland-Austin3
2: Risk Scenarios Toolkit, ISACA, 2019
3: Risk Register Template and Examples | Prioritize and Manage Risk1
4: Risk Register Examples for Cybersecurity Leaders4
5: Risk IT Framework, ISACA, 2009
6: IT Risk Management Framework, University of Toronto, 2017
7: Security Incident Reporting and Response, University of Toronto, 2017
8: Security Incident Reporting and Response, ISACA, 2019
: Risk Appetite: Linking Strategy, Risk and Performance, ISACA, 2012
: Risk Appetite and Tolerance, ISACA Journal, Volume 4, 2013
: The Control Process | Principles of Management2
: Control Management: What it is + Why It’s Essential | Adobe Workfront5
Which of the following would be a risk practitioners’ BEST recommendation for preventing cyber intrusion?
Establish a cyber response plan
Implement data loss prevention (DLP) tools.
Implement network segregation.
Strengthen vulnerability remediation efforts.
A cyber intrusion is an unauthorized or malicious access to a computer system or network by an attacker. A cyber intrusion can compromise the confidentiality, integrity, or availability of the system or network, as well as the data and services that it hosts. A cyber intrusion can also cause damage, disruption, or theft to the organization or its stakeholders. One of the best ways to prevent cyber intrusion is to strengthen vulnerability remediation efforts, which means to identify and fix the weaknesses or flaws in the system or network that can be exploited by the attackers. Vulnerability remediation efforts can include conducting regular vulnerability assessments, applying security patches and updates, configuring security settings and policies, and implementing security controls and measures. By strengthening vulnerability remediation efforts, the organization can reduce the attack surface and the likelihood of cyber intrusion, as well as enhance the resilience and protection of the system or network. The other options are not the best recommendations for preventing cyber intrusion, although they may be helpful and complementary. Establishing a cyber response plan is a technique to prepare for and respond to a cyber incident, such as a cyber intrusion, by defining the roles, responsibilities, procedures, and resources that are needed to manage and recover from the incident. However, a cyber response plan is a reactive and contingency measure, while strengthening vulnerability remediation efforts is a proactive and preventive measure. Implementing data loss prevention (DLP) tools is a technology that tries to detect and stop sensitive data breaches, or data leakage incidents, in an organization. DLP tools can help to protect the data from being disclosed to an unauthorized person, whether it is deliberate or accidental. However, DLP tools do not prevent cyber intrusion itself, as they only focus on the data, not the system or network. Implementing network segregation is a method to divide a network into smaller segments or subnetworks, each with its own security policies and controls. Network segregation can help to isolate and contain the impact of a cyber intrusion, as well as to limit the access and movement of the attackers within the network. However, network segregation does not prevent cyber intrusion from occurring, as it does not address the vulnerabilities or flaws in the system or network. References = CRISC Review Manual, pages 164-1651; CRISC Review Questions, Answers & Explanations Manual, page 902; What Are Security Controls? - F53; Assessing Security Controls: Keystone of the Risk Management … - ISACA4
A key risk indicator (KRI) is reported to senior management on a periodic basis as exceeding thresholds, but each time senior management has decided to take no action to reduce the risk. Which of the following is the MOST likely reason for senior management's response?
The underlying data source for the KRI is using inaccurate data and needs to be corrected.
The KRI is not providing useful information and should be removed from the KRI inventory.
The KRI threshold needs to be revised to better align with the organization s risk appetite
Senior management does not understand the KRI and should undergo risk training.
A key risk indicator (KRI) is a metric that measures the level and trend of a risk that may affect the organization’s objectives, operations, or performance1. A KRI threshold is a predefined value or range that indicates the acceptable or tolerable level of risk for the organization2. The organization’s risk appetite is the amount and type of risk that it is willing to take in order to meet its strategic goals3. Therefore, the most likely reason for senior management’s response is that the KRI threshold needs to be revised to better align with the organization’s risk appetite. This means that the current threshold is either too low or too high, resulting in false alarms or missed signals. By adjusting the threshold to reflect the organization’s risk appetite, senior management can ensure that the KRI provides relevant and actionable information for risk management and decision making. The other options are not the most likely reasons for senior management’s response, as they imply that the KRI is faulty, irrelevant, or misunderstood. The underlying data source for the KRI is using inaccurate data and needs to be corrected. This option assumes that the KRI is based on erroneous or unreliable data, which would affect its validity and reliability. However, this is not the most likely reason, as senior management would be expected to verify the data quality and accuracy before using the KRI for risk monitoring and reporting. The KRI is not providing useful information and should be removed from the KRI inventory. This option assumes that the KRI is not aligned with the organization’s objectives, strategies, or risk profile, which would affect its usefulness and value. However, this is not the most likely reason, as senior management would be expected to review and update the KRI inventory periodically to ensure that the KRIs are relevant and meaningful for risk management. Senior management does not understand the KRI and should undergo risk training. This option assumes that senior management lacks the knowledge or skills to interpret and use the KRI for risk management, which would affect their competence and confidence. However, this is not the most likely reason, as senior management would be expected to have sufficient risk awareness and education to understand and apply the KRI for risk management. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.4, Page 53.
Which of the following, who should be PRIMARILY responsible for performing user entitlement reviews?
IT security manager
IT personnel
Data custodian
Data owner
The person or entity who should be primarily responsible for performing user entitlement reviews is the data owner. A user entitlement review is a process that verifies and validates the access rights and privileges of the users to the data and resources in the IT environment. A user entitlement review helps to ensure that the users have the appropriate and necessary access to perform their roles and functions, and to prevent or detect any unauthorized or inappropriate access. A data owner is the person or entity that has the authority and responsibility to define, classify, and protect the data and resources in the IT environment. A data owner helps to perform user entitlement reviews, because they help to establish and enforce the access policies and standards for the data and resources, and to approve or revoke the access requests and changes for the users. A data owner also helps to monitor and report on the access performance and compliance for the data and resources, and to identify and address any issues or gaps in the access management activities. The other options are not the primary responsible party for performing user entitlement reviews, although they may be involved in the process. IT security manager, IT personnel, and data custodian are all examples of roles or functions that can help to support or implement the user entitlement reviews, but they do not necessarily have the authority or responsibility to define, classify, or protect the data and resources. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.2.1, page 5-14.
Which of the following sources is MOST relevant to reference when updating security awareness training materials?
Risk management framework
Risk register
Global security standards
Recent security incidents reported by competitors
The most relevant source to reference when updating security awareness training materials is the recent security incidents reported by competitors. This can help to illustrate the real-world threats and consequences of poor security practices, and to motivate the employees to follow the security policies and procedures. Risk management framework, risk register, and global security standards are other sources that may be useful, but they are not as relevant as the recent security incidents. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 9; CRISC Review Manual, 6th Edition, page 214.
An organization is participating in an industry benchmarking study that involves providing customer transaction records for analysis Which of the following is the MOST important control to ensure the privacy of customer information?
Nondisclosure agreements (NDAs)
Data anonymization
Data cleansing
Data encryption
Data anonymization is the most important control to ensure the privacy of customer information when participating in an industry benchmarking study that involves providing customer transaction records for analysis. Data anonymization is the process of removing or modifying personally identifiable information (PII) from data sets, such as names, addresses, phone numbers, email addresses, etc., so that the data cannot be traced back to specific individuals. Data anonymization protects the confidentiality and privacy of customers, while still allowing for meaningful analysis and comparison of data. Nondisclosure agreements (NDAs), data cleansing, and data encryption are also useful controls, but they do not eliminate the risk of data breaches or unauthorized access to PII. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, page 3-21.
Which of the following would BEST facilitate the implementation of data classification requirements?
Implementing a data toss prevention (DLP) solution
Assigning a data owner
Scheduling periodic audits
Implementing technical controls over the assets
The best way to facilitate the implementation of data classification requirements is to assign a data owner. A data owner is a person who has the authority and responsibility for defining, classifying, and protecting the data. A data owner can help to facilitate the implementation of data classification requirements by providing the criteria, categories, roles, and procedures for classifying the data according to its sensitivity, value, and criticality. A data owner can also ensure that the data is handled and stored appropriately, and that the data classification policy is enforced and monitored. The other options are not as effective as assigning a data owner, as they are related to the prevention, audit, or control of the data, not the classification or protection of the data. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.
A highly regulated enterprise is developing a new risk management plan to specifically address legal and regulatory risk scenarios What should be done FIRST by IT governance to support this effort?
Request a regulatory risk reporting methodology
Require critical success factors (CSFs) for IT risks.
Establish IT-specific compliance objectives
Communicate IT key risk indicators (KRIs) and triggers
The first thing that should be done by IT governance to support the development of a new risk management plan to specifically address legal and regulatory risk scenarios is to establish IT-specific compliance objectives. Compliance objectives are the goals or targets that the organization sets to ensure that its IT activities and processes comply with the relevant laws, regulations, standards, and contracts. Compliance objectives help to define the scope, criteria, and expectations for the IT compliance program, and to align the IT compliance activities with the organization’s strategy, risk appetite, and performance measures. Compliance objectives also help to communicate and demonstrate the organization’s commitment and accountability for IT compliance to the internal and external stakeholders, such as the board, management, regulators, auditors, and customers. The other options are not the first thing that should be done, although they may be useful or necessary steps or components of the IT compliance program. Requesting a regulatory risk reporting methodology, requiring critical success factors (CSFs) for IT risks, and communicating IT key risk indicators (KRIs) and triggers are all activities that can help to implement and monitor the IT compliance program, but they require the prior definition and agreement of the IT compliance objectives. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.4.1, page 2-37.
A risk practitioner has reviewed new international regulations and realizes the new regulations will affect the organization. Which of the following should be the risk practitioner's NEXT course of
action?
Conduct a peer response assessment.
Update risk scenarios in the risk register.
Reevaluate the risk management program.
Ensure applications are compliant.
The risk practitioner should update the risk scenarios in the risk register to reflect the new international regulations and their potential impact on the organization. The risk register is a tool that records and tracks the identified risks, their likelihood, impact, mitigation strategies, and status. Updating the risk register will help the risk practitioner to prioritize and manage the risks effectively, and communicate them to the relevant stakeholders.
References
•ISACA CRISC Review Manual, 7th Edition, Domain 1: IT Risk Identification, Section 1.2.2: Risk Register
•Risk Register - ISACA
•How to Create a Risk Register: A Step-by-Step Guide | The Blueprint
Which of the following methods is an example of risk mitigation?
Not providing capability for employees to work remotely
Outsourcing the IT activities and infrastructure
Enforcing change and configuration management processes
Taking out insurance coverage for IT-related incidents
Risk mitigation is a proactive business strategy to identify, assess, and mitigate potential threats or uncertainties that could harm an organization’s objectives, assets, or operations1. It entails specific action plans to reduce the likelihood or impact of these identified risks2.
There are several recognized ways to mitigate risk, such as accepting, avoiding, hedging, transferring, or reducing the risk3. Among the options given, only C is an example of risk reduction, which involves implementing controls or safeguards to minimize the negative effects of the risk3. Change and configuration management processes are methods to ensure that changes to the IT systems or infrastructure are properly authorized, documented, tested, and implemented, and that the configuration of the IT assets is consistent and accurate. These processes can help prevent or detect errors, defects, or vulnerabilities that could compromise the IT performance, security, or availability.
The other options are not examples of risk mitigation, but rather risk avoidance (A), risk transfer (B), or risk acceptance (D). Risk avoidance means eliminating the risk entirely by not engaging in the activity that causes the risk3. Not providing capability for employees to work remotely could avoid the risk of data breaches or network issues, but it could also limit the productivity and flexibility of the workforce. Risk transfer means shifting the responsibility or burden of the risk to another party, such as a vendor or an insurer3. Outsourcing the IT activities and infrastructure could transfer the risk of IT failures or incidents to the service provider, but it could also introduce new risks such as vendor dependency or loss of control. Risk acceptance means acknowledging the risk and its consequences without taking any action to address it3. Taking out insurance coverage for IT-related incidents could provide some financial compensation in case of a loss, but it does not reduce the likelihood or impact of the risk itself. References =
5 Key Risk Mitigation Strategies (With Examples) | Indeed.com
10 Risk Mitigation techniques you need to know - Stakeholdermap.com
Risk Mitigation Strategies: Types & Examples (+ Free Template)
[Change and Configuration Management - ISACA]
Which of the following is the PRIMARY role of a data custodian in the risk management process?
Performing periodic data reviews according to policy
Reporting and escalating data breaches to senior management
Being accountable for control design
Ensuring data is protected according to the classification
The primary role of a data custodian in the risk management process is to ensure that data is protected according to the classification. A data custodian is a person or entity that has the responsibility for implementing and maintaining the security controls for the data, such as access rights, encryption, backup, or disposal. A data custodian acts as an agent of the data owner, who is the person or entity that has the authority and accountability for the data. A data custodian should ensure that data is protected according to the classification, which is the process of assigning a level of sensitivity and criticality to the data, based on the impact of its loss, disclosure, or modification. Data classification helps to determine the appropriate security controls and risk responses for the data, and to comply with the relevant laws, regulations, or contractual obligations. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.1, page 1271
An organization outsources the processing of us payroll data A risk practitioner identifies a control weakness at the third party trial exposes the payroll data. Who should own this risk?
The third party's IT operations manager
The organization's process owner
The third party's chief risk officer (CRO)
The organization's risk practitioner
The organization’s process owner should own the risk of exposing the payroll data due to a control weakness at the third party, because the process owner is the person who is responsible for the business process that generates, uses, or transfers the payroll data. The process owner should also ensure that the third party complies with the contractual obligations and service level agreements that define the expected performance and security standards of the payroll data processing. The other options are not the correct answers, because they are not the primary owners of the risk, although they may also be involved in the risk management process. The third party’s IT operations manager, the third party’s chief risk officer (CRO), and the organization’s risk practitioner are examples of secondary owners or stakeholders of the risk, who may provide support, guidance, or oversight to the risk owner, but they are not accountable for the risk or the risk response strategy. References = CRISC: Certified in Risk & Information Systems Control Sample Questions
Which of the following BEST indicates the efficiency of a process for granting access privileges?
Average time to grant access privileges
Number of changes in access granted to users
Average number of access privilege exceptions
Number and type of locked obsolete accounts
According to the CRISC Review Manual, the average time to grant access privileges is the best indicator of the efficiency of a process for granting access privileges, because it measures how quickly and effectively the process can respond to the access requests and meet the business needs. The average time to grant access privileges can be calculated by dividing the total time spent on granting access privileges by the number of access requests processed. The other options are not the best indicators of the efficiency of the process, because they measure other aspects of the process, such as the quality, the security, or the maintenance. The number of changes in access granted to users measures the quality of the process, as it indicates how well the process can align the access rights with the user roles and functions. The average number of access privilege exceptions measures the security of the process, as it indicates how often the process deviates from the established policies and standards. The number and type of locked obsolete accounts measures the maintenance of the process, as it indicates how well the process can remove the unnecessary or outdated accounts. References = CRISC Review Manual, 7th Edition, Chapter 4, Section 4.1.2, page 163
Which of the following is the PRIMARY benefit of using an entry in the risk register to track the aggregate risk associated with server failure?
It provides a cost-benefit analysis on control options available for implementation.
It provides a view on where controls should be applied to maximize the uptime of servers.
It provides historical information about the impact of individual servers malfunctioning.
It provides a comprehensive view of the impact should the servers simultaneously fail.
Using an entry in the risk register to track the aggregate risk associated with server failure provides a comprehensive view of the impact should the servers simultaneously fail, as it considers the combined effect of the server failure on the enterprise’s objectives and operations. The risk register is a document that records and tracks the identified risks, their likelihood, impact, and mitigation strategies. By aggregating the risk associated with server failure, the risk register can help to estimate the worst-case scenario and to prioritize the risk response accordingly. It provides a cost-benefit analysis on control options available for implementation, it provides a view on where controls should be applied to maximize the uptime of servers, and it provides historical information about the impact of individual servers malfunctioning are not the primary benefits of using an entry in the risk register to track the aggregate risk associated with server failure, but rather the possible outcomes or actions of using the risk register. References = CRISC Certified in Risk and Information Systems Control – Question220; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 220.
Who should have the authority to approve an exception to a control?
information security manager
Control owner
Risk owner
Risk manager
The control owner is the person who has the authority to approve an exception to a control. A control is a policy, procedure, or technical measure that is implemented to prevent or mitigate a risk. A control owner is responsible for the design, implementation, operation, and maintenance of the control, as well as for monitoring and reporting its performance and effectiveness. A control owner is also accountable for the approval of any changes or exceptions to the control, based on the risk assessment and business justification. An information security manager, a risk owner, and a risk manager are not the best choices, as they do not have the same level of authority, responsibility, and knowledge as the control owner in relation to the control. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 35.
The PRIMARY objective for requiring an independent review of an organization's IT risk management process should be to:
assess gaps in IT risk management operations and strategic focus.
confirm that IT risk assessment results are expressed as business impact.
verify implemented controls to reduce the likelihood of threat materialization.
ensure IT risk management is focused on mitigating potential risk.
The primary objective for requiring an independent review of an organization’s IT risk management process should be to assess gaps in IT risk management operations and strategic focus, as this helps to identify the strengths and weaknesses of the current process, and to provide recommendations for improvement and alignment with the enterprise’s objectives and environment. An independent review is an objective and unbiased evaluation of the IT risk management process by a qualified and competent party that is not involved in the process. An independent review can help to ensure the quality, effectiveness, and efficiency of the IT risk management process, as well as to enhance the credibility and confidence of the process. Confirming that IT risk assessment results are expressed as business impact, verifying implemented controls to reduce the likelihood of threat materialization, and ensuring IT risk management is focused on mitigating potential risk are not the primary objectives for requiring an independent review of an organization’s IT risk management process, but rather the expected outcomes or benefits of the independent review. References = CRISC Certified in Risk and Information Systems Control – Question219; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 219.
Which of the following helps ensure compliance with a nonrepudiation policy requirement for electronic transactions?
Digital signatures
Encrypted passwords
One-time passwords
Digital certificates
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 of verification 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, expiration date, 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
Which of the following risk register updates is MOST important for senior management to review?
Extending the date of a future action plan by two months
Retiring a risk scenario no longer used
Avoiding a risk that was previously accepted
Changing a risk owner
A risk register is a document that records and tracks the information and status of the identified risks and their responses. It includes the risk description, category, source, cause, impact, probability, priority, response, owner, action plan, status, etc.
A risk register update is a change or modification to the information or status of the risks and their responses in the risk register. It may be triggered by the occurrence or resolution of a risk event, the identification or evaluation of a new or emerging risk, the implementation or completion of a risk response, the monitoring or review of the risk performance, etc.
The most important risk register update for senior management to review is avoiding a risk that was previously accepted, which means that the organization has decided to eliminate or withdraw from the risk exposure or activity that may cause the risk, instead of tolerating or retaining the risk as before. This may indicate a significant change in the organization’s risk appetite, strategy, objectives, or environment, and it may have a major impact on the organization’s performance and value.
The other options are not the most important risk register updates for senior management to review, because they do not indicate a significant change or impact on the organization’s risk profile or performance.
Extending the date of a future action plan by two months means that the organization has postponed the implementation or completion of the planned actions or measures to address the risk, due to some reasons or constraints. This may indicate a delay or deviation from the expected or desired risk outcome, but it may not have a major impact on the organization’s performance and value, unless the risk is very urgent or critical.
Retiring a risk scenario no longer used means that the organization has removed or discarded the risk scenario that is no longer relevant or applicable to the organization’s objectives or operations, due to some changes or developments. This may indicate a reduction or improvement in the organization’s risk exposure or level, but it may not have a major impact on the organization’s performance and value, unless the risk scenario was very significant or influential.
Changing a risk owner means that the organization has assigned or transferred the responsibility and accountability for the risk and its response to a different person or role, due to some reasons or circumstances. This may indicate a change or improvement in the organization’s risk governance or culture, but it may not have a major impact on the organization’s performance and value, unless the risk owner was very ineffective or inappropriate. 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 160
CRISC Practice Quiz and Exam Prep
The MAIN purpose of conducting a control self-assessment (CSA) is to:
gain a better understanding of the control effectiveness in the organization
gain a better understanding of the risk in the organization
adjust the controls prior to an external audit
reduce the dependency on external audits
A control self-assessment (CSA) is a technique that allows managers and work teams directly involved in business units, functions, or processes to participate in assessing the organization’s risk management and control processes. The main purpose of conducting a CSA is to gain a better understanding of the control effectiveness in the organization, which means how well the controls are designed, implemented, and operated to achieve the desired outcomes and mitigate the risks. A CSA can help to identify the strengths and weaknesses of the existing controls, as well as the gaps and opportunities for improvement. A CSA can also help to enhance the awareness, ownership, and accountability of the control environment among the managers and staff. The other options are not the main purpose of conducting a CSA, although they may be related or beneficial. Gaining a better understanding of the risk in the organization is a result of conducting a CSA, but it is not the primary goal. The primary goal is to evaluate the controls that address the risks, not the risks themselves. Adjusting the controls prior to an external audit is a possible action that may follow a CSA, but it is not the reason for conducting a CSA. The reason for conducting a CSA is to improve the control effectiveness, not to prepare for an audit. Reducing the dependency on external audits is a potential benefit of conducting a CSA, but it is not the objective of conducting a CSA. The objective of conducting a CSA is to enhance the internal control assurance, not to replace the external audit assurance. References = CRISC Review Manual, pages 153-1541; CRISC Review Questions, Answers & Explanations Manual, page 802
An organization wants to assess the maturity of its internal control environment. The FIRST step should be to:
validate control process execution.
determine if controls are effective.
identify key process owners.
conduct a baseline assessment.
A baseline assessment is the first step in assessing the maturity of an organization’s internal control environment. A baseline assessment is a comprehensive evaluation of the current state of the internal control structure, processes, and activities across the organization. A baseline assessment helps to identify the strengths and weaknesses of the existing internal controls, as well as the gaps and opportunities for improvement. A baseline assessment also provides a reference point for measuring the progress and effectiveness of the internal control improvement initiatives. The other options are not the first steps in assessing the maturity of an internal control environment, although they may be part of the subsequent steps. Validating control process execution is a technique to verify that the internal control activities are performed as designed and intended. Determining if controls are effective is a process to evaluate the adequacy and efficiency of the internal controls in achieving the desired outcomes and mitigating the risks. Identifying key process owners is a task to assign the roles and responsibilities for the internal control design, implementation, and monitoring to the appropriate individuals or groups within the organization. References = CRISC Review Manual, pages 153-1541; CRISC Review Questions, Answers & Explanations Manual, page 742
Which of the following should be the PRIMARY consideration when assessing the automation of control monitoring?
impact due to failure of control
Frequency of failure of control
Contingency plan for residual risk
Cost-benefit analysis of automation
Automation of control monitoring is the application of technology to allow continuous or high-frequency, automated monitoring of controls to validate the effectiveness of controls designed to mitigate risk1.
Automation of control monitoring can provide benefits such as increased test coverage, improved timeliness, reduced risk velocity, greater visibility, improved consistency, and the ability to identify trends23.
However, automation of control monitoring also involves costs such as the acquisition, implementation, maintenance, and updating of the technology, as well as the training and support of the staff who use it45.
Therefore, the primary consideration when assessing the automation of control monitoring is the cost-benefit analysis of automation, which compares the expected benefits and costs of automation and determines whether the benefits outweigh the costs or vice versa45.
The other options are not the primary consideration, but rather secondary or tertiary factors that may influence the decision to automate or not. For example, the impact due to failure of control and the frequency of failure of control are aspects of the risk assessment that may indicate the need for automation, but they do not provide the basis for evaluating the feasibility and desirability of automation45. Similarly, the contingency plan for residual risk is a component of the risk response that may include automation as a risk mitigation strategy, but it does not measure the effectiveness and efficiency of automation45. References =
2: A Practical Approach to Continuous Control Monitoring, ISACA Journal, Volume 2, 2015
3: Continuous Controls Monitoring: The Next Generation Of Controls Testing, Forbes Technology Council, June 2, 2022
1: Making Continuous Controls Monitoring Work for Everyone, ISACA Now Blog, June 13, 2022
4: Controls Automation - Monitoring vs. Operation - Part 3, Turnkey Consulting, July 29, 2021
5: What’s Continuous Control Monitoring and Why Is It Important?, MetricStream Blog, October 15, 2019
IT risk assessments can BEST be used by management:
for compliance with laws and regulations
as a basis for cost-benefit analysis.
as input for decision-making
to measure organizational success.
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
Which of the following is the BEST indication of an effective risk management program?
Risk action plans are approved by senior management.
Residual risk is within the organizational risk appetite
Mitigating controls are designed and implemented.
Risk is recorded and tracked in the risk register
An effective risk management program is a systematic and consistent process of identifying, analyzing, evaluating, treating, monitoring, and communicating risks that may affect the achievement of the organization’s objectives12.
The best indication of an effective risk management program is that the residual risk, which is the risk remaining after risk treatment, is within the organizational risk appetite, which is the amount and type of risk that the organization is willing to accept in pursuit of its objectives12.
This indicates that the organization has successfully implemented appropriate risk responses that align with its risk strategy and criteria, and that the organization is able to balance the potential benefits and costs of taking risks12.
The other options are not the best indication, but rather components or outcomes of an effective risk management program. For example:
Risk action plans are approved by senior management is an outcome of an effective risk management program that demonstrates the commitment and accountability of the leadership for risk management12.
Mitigating controls are designed and implemented is a component of an effective risk management program that involves reducing the likelihood or impact of a risk event12.
Risk is recorded and tracked in the risk register is a component of an effective risk management program that involves documenting and updating the risk information and status12. References =
1: Risk IT Framework, ISACA, 2009
2: IT Risk Management Framework, University of Toronto, 2017
Which of the following would BEST help minimize the risk associated with social engineering threats?
Enforcing employees’ sanctions
Conducting phishing exercises
Enforcing segregation of dunes
Reviewing the organization's risk appetite
Conducting phishing exercises would best help minimize the risk associated with social engineering threats, because they can help to raise awareness and educate employees about the common techniques and tactics used by social engineers, such as sending deceptive emails or text messages that ask for sensitive information or direct users to malicious websites. Phishing exercises are simulated attacks that test the employees’ ability to recognize and respond to social engineering attempts, and provide feedback and guidance on how to improve their security behavior. By conducting phishing exercises, the organization can measure and improve the employees’ level of security awareness and resilience, and reduce the likelihood and impact of falling victim to social engineering attacks. The other options are less effective ways to minimize the risk associated with social engineering threats. Enforcing employees’ sanctions can help to deter and punish employees who violate the security policies or procedures, but it may not prevent or reduce the occurrence of social engineering attacks, as they may target employees who are unaware, careless, or coerced by the attackers. Enforcing segregation of duties can help to prevent or limit the damage caused by social engineering attacks, by restricting the access and authority of employees to perform certain tasks or functions, but it may not address the root cause or source of the attacks, which is the human factor. Reviewing the organization’s risk appetite can help to define and communicate the amount and type of risk that the organization is willing to accept in pursuit of its objectives, but it may not directly affect or influence the employees’ behavior or attitude toward social engineering threats, which may depend on their individual or situational factors. References = How to Prevent and Mitigate Social Engineering Attacks 1
Which of the following is the BEST approach to use when creating a comprehensive set of IT risk scenarios?
Derive scenarios from IT risk policies and standards.
Map scenarios to a recognized risk management framework.
Gather scenarios from senior management.
Benchmark scenarios against industry peers.
IT risk scenarios are the descriptions or representations of the possible or hypothetical situations or events that may cause or result in an IT risk for the organization. IT risk scenarios usually consist of three elements: a threat or source of harm, a vulnerability or weakness, and an impact or consequence.
The best approach to use when creating a comprehensive set of IT risk scenarios is to map scenarios to a recognized risk management framework, which is an established or recognized model or standard that provides the principles, guidelines, and best practices for the organization’s IT risk management function. Mapping scenarios to a recognized risk management framework can help the organization to create a comprehensive set of IT risk scenarios by providing the following benefits:
It can ensure that the IT risk scenarios are relevant, appropriate, and proportional to the organization’s IT objectives and needs, and that they support the organization’s IT strategy and culture.
It can ensure that the IT risk scenarios are consistent and compatible with the organization’s IT governance, risk management, and control functions, and that they reflect the organization’s IT risk appetite and tolerance.
It can provide useful references and benchmarks for the identification, analysis, evaluation, and communication of the IT risk scenarios, and for the alignment and integration of the IT risk scenarios with the organization’s IT risk policies and standards.
The other options are not the best approaches to use when creating a comprehensive set of IT risk scenarios, because they do not provide the same level of detail and insight that mapping scenarios to a recognized risk management framework provides, and they may not be specific or applicable to the organization’s IT objectives and needs.
Deriving scenarios from IT risk policies and standards means creating or generating the IT risk scenarios based on the rules or guidelines that define and describe the organization’s IT risk management function, and that specify the expectations and requirements for the organization’s IT risk management function. Deriving scenarios from IT risk policies and standards can help the organization to create a consistent and compliant set of IT risk scenarios, but it is not the best approach, because it may not cover all the relevant or significant IT risks that may affect the organization, and it may not support the organization’s IT strategy and culture.
Gathering scenarios from senior management means collecting or obtaining the IT risk scenarios from the senior management or executives that oversee or direct the organization’s IT activities or functions. Gathering scenarios from senior management can help the organization to create a high-level and strategic set of IT risk scenarios, but it is not the best approach, because it may not reflect the operational or technical aspects of the IT risks, and it may not involve the input or feedback from the other stakeholders or parties that are involved or responsible for the IT activities or functions.
Benchmarking scenarios against industry peers means comparing and contrasting the IT risk scenarios with those of other organizations or industry standards, and identifying the strengths, weaknesses, opportunities, or threats that may affect the organization’s IT objectives or operations. Benchmarking scenarios against industry peers can help the organization to create a competitive and innovative set of IT risk scenarios, but it is not the best approach, because it may not be relevant or appropriate for the organization’s IT objectives and needs, and it may not comply with the organization’s IT policies and standards. 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 199
CRISC Practice Quiz and Exam Prep
Risk mitigation procedures should include:
buying an insurance policy.
acceptance of exposures
deployment of counter measures.
enterprise architecture implementation.
Risk mitigation procedures are the actions and plans that an organization implements to reduce the likelihood and impact of identified risks. Risk mitigation procedures should include the deployment of counter measures, which are the specific controls or solutions that address the root causes or sources of the risks, and prevent or minimize the potential losses or damages. For example, a counter measure for the risk of data breach could be encrypting the data or implementing a firewall. The deployment of counter measures should be based on a cost-benefit analysis, a risk assessment, and a risk response strategy. The other options are not necessarily part of risk mitigation procedures. Buying an insurance policy is an example of risk transfer, which is a risk response strategy that shifts the responsibility or burden of the risk to another party, such as an insurer or a vendor. However, risk transfer does not eliminate or reduce the risk itself, and it may involve additional costs or conditions. Acceptance of exposures is an example of risk acceptance, which is a risk response strategy that acknowledges the existence and consequences of the risk, and decides not to take any action to change the risk situation. However, risk acceptance does not mitigate the risk, and it may require contingency plans or reserves to deal with the potential outcomes. Enterprise architecture implementation is an example of a business process or project that may involve or create risks, but it is not a risk mitigation procedure itself. Enterprise architecture is the design and structure of an organization’s IT systems, networks, and resources, and how they align with the organization’s goals and strategies. Enterprise architecture implementation may require risk management activities, such as risk identification, assessment, and response, but it is not a risk mitigation procedure itself. References = Risk IT Framework, ISACA, 2022, p. 151
Which of the following would be MOST important for a risk practitioner to provide to the internal audit department during the audit planning process?
Closed management action plans from the previous audit
Annual risk assessment results
An updated vulnerability management report
A list of identified generic risk scenarios
The audit planning process is the process of defining and describing the scope, objectives, and approach of the internal audit that is performed to assess and evaluate the adequacy and effectiveness of the organization’s governance, risk management, and control functions. The audit planning process involves identifying and prioritizing the audit areas, topics, or issues, and allocating the audit resources, time, and budget.
The most important information for a risk practitioner to provide to the internal audit department during the audit planning process is the annual risk assessment results, which are the outcomes or outputs of the risk assessment process that measures and compares the likelihood and impact of various risk scenarios, and prioritizes them based on their significance and urgency. The annual risk assessment results can help the internal audit department to plan the audit by providing the following information:
The level and priority of the risks that may affect the organization’s objectives and operations, and the potential consequences or impacts that they may cause for the organization if they materialize.
The gap or difference between the current and desired level of risk, and the extent or degree to which the risk responses or controls contribute to or affect the gap or difference.
The cost-benefit or feasibility analysis of the possible actions or plans to address or correct the risks and their responses, and the expected or desired outcomes or benefits that they may provide for the organization.
The other options are not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because they do not provide the same level of detail and insight that the annual risk assessment results provide, and they may not be relevant or actionable for the internal audit department.
Closed management action plans from the previous audit are the actions or plans that have been implemented or completed by the management to address or correct the findings or recommendations from the previous internal audit that was performed. Closed management action plans from the previous audit can provide useful information on the progress and performance of the management in improving and optimizing the organization’s governance, risk management, and control functions, but they are not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because they do not indicate the current or accurate state and performance of the organization’s risk profile, and they may not cover all the relevant or emerging risks that may exist or arise.
An updated vulnerability management report is a report that provides the information and status of the vulnerabilities or weaknesses in the organization’s assets, processes, or systems that can be exploited or compromised by the threats or sources of harm that may affect the organization’s objectives or operations. An updated vulnerability management report can provide useful information on the existence and severity of the vulnerabilities, and the actions or plans to mitigate or prevent them, but it is not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because it does not indicate the likelihood and impact of the risk scenarios that are associated with the vulnerabilities, and the potential consequences or impacts that they may cause for the organization.
A list of identified generic risk scenarios is a list that contains the descriptions or representations of the possible or hypothetical situations or events that may cause or result in a risk for the organization, without specifying the details or characteristics of the risk source, event, cause, or impact. A list of identified generic risk scenarios can provide useful information on the types or categories of the risks that may affect the organization, but it is not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because it does not indicate the level and priority of the risks, and the potential consequences or impacts that they may cause for the organization. References =
ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63
ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 188
CRISC Practice Quiz and Exam Prep
A risk heat map is MOST commonly used as part of an IT risk analysis to facilitate risk:
communication
identification.
treatment.
assessment.
A risk heat map is a tool that shows the likelihood and impact of different risks on a matrix, using colors to indicate the level of risk. A risk heat map is most commonly used as part of an IT risk analysis to facilitate risk assessment, which is the process of estimating the probability and consequences of the risks, and comparing them against the risk criteria1. A risk heat map can help to visualize, communicate, and prioritize the risks, as well as to evaluate the effectiveness of the risk response actions2. The other options are not the best choices for describing the purpose of a risk heat map, as they are either less specific or less relevant than risk assessment. Risk communication is the process of sharing and exchanging information about the risks among the stakeholders3. A risk heat map can support risk communication by providing a clear and concise representation of the risks, but it is not the main objective of the tool. Risk identification is the process of finding, recognizing, and describing the risks that may affect the organization4. A risk heat map can help to identify the risks by categorizing them into different domains or sources, but it is not the primary function of the tool. Risk treatment is the process of selecting and implementing the appropriate measures to modify the risk5. A risk heat map can help to guide the risk treatment by showing the risk ratings and thresholds, but it is not the core purpose of the tool. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.1, Page 47.
Which of the following would BEST help to ensure that suspicious network activity is identified?
Analyzing intrusion detection system (IDS) logs
Analyzing server logs
Using a third-party monitoring provider
Coordinating events with appropriate agencies
An intrusion detection system (IDS) is a network security tool that monitors and analyzes network traffic for signs of malicious or suspicious activity, such as unauthorized access, data exfiltration, malware infection, or denial-of-service attack. An IDS can detect and alert the organization to potential threats based on predefined rules or signatures, or based on anomalies or deviations from normal network behavior. An IDS can also generate logs that record the details of the network events and incidents, such as the source, destination, content, and context of the network traffic. By analyzing the IDS logs, the organization can identify and validate the suspicious network activity, and determine its scope, impact, and root cause. The organization can also use the IDS logs to support the incident response and remediation process, and to improve the network security and resilience. The other options are less effective ways to ensure that suspicious network activity is identified. Analyzing server logs can provide some information about the network activity, but it may not be sufficient or timely to detect and validate the suspicious or malicious activity, as server logs only capture the events or activities that occur on the server, and not on the entire network. Using a third-party monitoring provider can help to outsource the network monitoring and analysis function, but it may not be the best option, as it may introduce additional risks, such as data privacy, vendor reliability, or service quality issues. Coordinating events with appropriate agencies can help to share information and resources with other organizations or authorities, such as law enforcement, regulators, or industry peers, but it may not be the best option, as it may depend on the availability and cooperation of the agencies, and it may not be feasible or desirable to disclose the network activity to external parties. References = Monitoring for Suspicious Network Activity: Key Tips to Secure Your Network 1
What is the BEST information to present to business control owners when justifying costs related to controls?
Loss event frequency and magnitude
The previous year's budget and actuals
Industry benchmarks and standards
Return on IT security-related investments
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 PRIMARY objective for selecting risk response options is to:
reduce risk 10 an acceptable level.
identify compensating controls.
minimize residual risk.
reduce risk factors.
The primary objective for selecting risk response options is to reduce risk to an acceptable level. Risk response options are the possible actions that can be taken to address the risks that have been identified and analyzed in the risk management process. Risk response options can be classified into four categories: avoid, transfer, mitigate, and accept for negative risks (or threats), and exploit, share, enhance, and accept for positive risks (or opportunities). The selection of the risk response options depends on various factors, such as the risk level, the risk appetite and tolerance, the cost and benefit, and the feasibility and availability of the options. The main goal of selecting the risk response options is to reduce the risk to a level that is acceptable to the organization, which means that the risk exposure is within the boundaries of the risk criteria and the risk appetite. The other options are not the primary objective for selecting risk response options, although they may be related or beneficial. Identifying compensating controls is a technique to implement additional or alternative controls when the existing controls are not effective or sufficient to reduce the risk to an acceptable level. Minimizing residual risk is a result of selecting and implementing the risk response options, but it is not the main purpose. Residual risk is the risk that remains after the risk response, and it may or may not be acceptable depending on the risk appetite and tolerance. Reducing risk factors is a method to decrease the likelihood or impact of the risk by addressing the root causes or sources of the risk. However, reducing risk factors does not necessarily mean that the risk is reduced to an acceptable level, as there may be other factors or uncertainties that affect the risk. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 862
An organization that has been the subject of multiple social engineering attacks is developing a risk awareness program. The PRIMARY goal of this program should be to:
reduce the risk to an acceptable level.
communicate the consequences for violations.
implement industry best practices.
reduce the organization's risk appetite
According to the CRISC Review Manual (Digital Version), the primary goal of a risk awareness program is to reduce the risk to an acceptable level by increasing the knowledge and understanding of the risk among the stakeholders. A risk awareness program should:
Educate the stakeholders about the sources, types and impacts of IT-related risks
Explain the roles and responsibilities of the stakeholders in the risk management process
Promote a risk-aware culture that supports the risk appetite and risk tolerance of the organization
Provide guidance and tools for identifying, assessing, responding and monitoring IT-related risks
Encourage the reporting and escalation of risk issues and incidents
Reinforce the benefits and value of effective risk management
References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.2: IT Risk Reporting, pp. 224-2251
An unauthorized individual has socially engineered entry into an organization's secured physical premises. Which of the following is the BEST way to prevent future occurrences?
Employ security guards.
Conduct security awareness training.
Install security cameras.
Require security access badges.
Social engineering is a technique that involves manipulating or deceiving people into performing actions or divulging information that may compromise the security of an organization or its data12.
Entry into an organization’s secured physical premises is a form of physical access that allows an unauthorized individual to access, steal, or damage the organization’s assets, such as equipment, documents, or systems34.
The best way to prevent future occurrences of social engineering entry into an organization’s secured physical premises is to conduct security awareness training, which is an educational program that aims to equip the organization’s employees with the knowledge and skills they need to protect the organization’s data and sensitive information from cyber threats, such as hacking, phishing, or other breaches56.
Security awareness training is the best way because it helps the employees to recognize and resist the common and emerging social engineering techniques, such as tailgating, impersonation, or pretexting, that may be used by the attackers to gain physical access to the organization’s premises56.
Security awareness training is also the best way because it fosters a culture of security and responsibility among the employees, and encourages them to follow the best practices and policies for physical security, such as locking the doors, verifying the identity of visitors, or reporting any suspicious activities or incidents56.
The other options are not the best way, but rather possible measures or controls that may supplement or enhance the security awareness training. For example:
Employing security guards is a measure that involves hiring or contracting professional personnel who are trained and authorized to monitor, patrol, and protect the organization’s premises from unauthorized access or intrusion78. However, this measure is not the best way because it may not be sufficient or effective to prevent or deter all types of social engineering attacks, especially if the attackers are able to bypass, deceive, or coerce the security guards78.
Installing security cameras is a control that involves using electronic devices that capture and record the visual images of the organization’s premises, and provide evidence or alerts of any unauthorized access or activity . However, this control is not the best way because it is reactive rather than proactive, and may not prevent or stop the social engineering attacks before they cause any harm or damage to the organization .
Requiring security access badges is a control that involves using physical or electronic cards that identify and authenticate the employees or authorized visitors who are allowed to enter the organization’s premises, and restrict or deny the access to anyone else . However, this control is not the best way because it may not be foolproof or reliable to prevent or detect the social engineering attacks, especially if the attackers are able to steal, forge, or clone the security access badges . References =
1: What is Social Engineering? | Types & Examples of Social Engineering Attacks1
2: Social Engineering: What It Is and How to Prevent It | Digital Guardian2
3: What is physical Social Engineering and why is it important? - Integrity3603
4: What Is Tailgating (Piggybacking) In Cyber Security? - Wlan Labs4
5: What Is Security Awareness Training and Why Is It Important? - Kaspersky5
6: Security Awareness Training - Cybersecurity Education Online | Proofpoint US6
7: Security Guard - Wikipedia7
8: Security Guard Services - Allied Universal8
: Security Camera - Wikipedia
: Security Camera Systems - The Home Depot
: Access Badge - Wikipedia
: Access Control Systems - HID Global
Which of the following is the MOST important key performance indicator (KPI) to establish in the service level agreement (SLA) for an outsourced data center?
Percentage of systems included in recovery processes
Number of key systems hosted
Average response time to resolve system incidents
Percentage of system availability
The percentage of system availability is the most important key performance indicator (KPI) to establish in the service level agreement (SLA) for an outsourced data center. This KPI measures the uptime or reliability of the systems hosted by the data center provider, and reflects the ability of the provider to meet the customer’s expectations and requirements for system performance and accessibility. A high percentage of system availability indicates that the provider is delivering consistent and quality service, while a low percentage of system availability indicates that the provider is experiencing frequent or prolonged system failures or disruptions, which can negatively affect the customer’s business operations and reputation. Therefore, the percentage of system availability is a critical factor for evaluating the effectiveness and efficiency of the data center provider, and should be clearly defined and monitored in the SLA. The other options are not the most important KPIs to establish in the SLA for an outsourced data center, as they do not directly measure the quality or reliability of the service provided. The percentage of systems included in recovery processes is a measure of the scope or coverage of the disaster recovery plan (DRP) of the data center provider, but it does not indicate how well the provider can execute the DRP or restore the systems in the event of a disaster. The number of key systems hosted is a measure of the capacity or utilization of the data center provider, but it does not indicate how efficiently or securely the provider can manage the systems. The average response time to resolve system incidents is a measure of the responsiveness or agility of the data center provider, but it does not indicate how effectively or proactively the provider can prevent or mitigate system incidents. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.3.4, Page 140.
Which of the following aspects of an IT risk and control self-assessment would be MOST important to include in a report to senior management?
Changes in control design
A decrease in the number of key controls
Changes in control ownership
An increase in residual risk
An IT risk and control self-assessment (RCSA) is a process that helps organizations identify and evaluate operational risks and assess the effectiveness of their control measures12. It is a structured approach that involves identifying, assessing, mitigating, and monitoring risks across all levels of an organization12.
A report to senior management is a document that summarizes and communicates the results and findings of the RCSA, and provides recommendations and action plans for improving the risk management and control processes34.
The most important aspect of an IT risk and control self-assessment to include in a report to senior management is an increase in residual risk, which is the risk remaining after risk treatment, and represents the exposure or potential impact of the risk on the organization’s objectives56.
An increase in residual risk is the most important aspect because it indicates the level of risk that the organization is willing to accept or tolerate, and the gap between the current and desired risk profile56.
An increase in residual risk is also the most important aspect because it requires the attention and decision of the senior management, who are responsible for defining the organization’s risk appetite, strategy, and criteria, and for ensuring that the residual risk is within the acceptable range56.
The other options are not the most important aspects, but rather possible components or outcomes of an IT risk and control self-assessment that may support or complement the report to senior management. For example:
Changes in control design are components of an IT risk and control self-assessment that involve modifying or updating the control measures to address the changes in the risk environment or the organization’s objectives56. However, changes in control design are not the most important aspect because they do not measure or reflect the residual risk, which is the ultimate goal of the risk treatment56.
A decrease in the number of key controls is an outcome of an IT risk and control self-assessment that indicates the improvement or optimization of the control processes, and the reduction of the complexity or redundancy of the control measures56. However, a decrease in the number of key controls is not the most important aspect because it does not indicate or imply the residual risk, which may depend on other factors such as the effectiveness or efficiency of the controls56.
Changes in control ownership are components of an IT risk and control self-assessment that involve assigning or reassigning the responsibility and accountability for the control processes to the appropriate individuals or groups within the organization56. However, changes in control ownership are not the most important aspect because they do not affect or determine the residual risk, which is independent of the control owners56. References =
1: Risk and control self-assessment - KPMG Global1
2: Control Self Assessments - PwC2
3: How-To Guide: Implementing Risk Control Self-Assessment Steps4
4: RISK MANAGEMENT SELF-ASSESSMENT TEMPLATE - Smartsheet5
5: Risk IT Framework, ISACA, 2009
6: IT Risk Management Framework, University of Toronto, 2017
The risk associated with an asset before controls are applied can be expressed as:
a function of the likelihood and impact
the magnitude of an impact
a function of the cost and effectiveness of control.
the likelihood of a given threat
The risk associated with an asset before controls are applied is also known as the inherent risk. It is the level of risk that exists in the absence of any mitigating actions or measures. To express the inherent risk, one needs to consider two factors: the likelihood and the impact of a potential threat. The likelihood is the probability or frequency of a threat occurring, while the impact is the magnitude or severity of the consequences if the threat materializes. The inherent risk can be calculated by multiplying the likelihood and the impact, or by using a risk matrix that assigns a risk rating based on the combination of these two factors. The other options are not correct ways of expressing the inherent risk, as they do not account for both the likelihood and the impact of a threat. The magnitude of an impact is only one component of the risk, and it does not reflect how likely the threat is to happen. The function of the cost and effectiveness of control is related to the residual risk, which is the risk that remains after controls are applied. The likelihood of a given threat is also only one component of the risk, and it does not indicate how severe the impact would be if the threat occurs. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.1, Page 47.
Periodically reviewing and updating a risk register with details on identified risk factors PRIMARILY helps to:
minimize the number of risk scenarios for risk assessment.
aggregate risk scenarios identified across different business units.
build a threat profile of the organization for management review.
provide a current reference to stakeholders for risk-based decisions.
A risk register is a document that records and tracks the information and status of the identified risks and their responses. It includes the risk description, category, source, cause, impact, probability, priority, response, owner, action plan, status, etc.
Periodically reviewing and updating a risk register with details on identified risk factors primarily helps to provide a current reference to stakeholders for risk-based decisions, which are the decisions that are made based on the consideration and evaluation of the risks and their responses. Providing a current reference to stakeholders for risk-based decisions helps to ensure that the decisions are consistent, appropriate, and proportional to the level and nature of the risks, and that they support the organization’s objectives and values. It also helps to optimize the balance between risk and return, and to create and protect value for the organization and its stakeholders.
The other options are not the primary benefits of periodically reviewing and updating a risk register with details on identified risk factors, because they do not address the main purpose and benefit of a risk register, which is to provide a current reference to stakeholders for risk-based decisions.
Minimizing the number of risk scenarios for risk assessment means reducing the scope and depth of risk analysis and reporting, and impairing the organization’s ability to identify and respond to emerging or changing risks. Periodically reviewing and updating a risk register with details on identified risk factors does not necessarily minimize the number of risk scenarios for risk assessment, and it may not be a desirable or beneficial outcome for the organization.
Aggregating risk scenarios identified across different business units means combining or consolidating the risks that are identified by different parts or functions of the organization, and creating a holistic or integrated view of the organization’s risk profile. Periodically reviewing and updating a risk register with details on identified risk factors does not necessarily aggregate risk scenarios identified across different business units, and it may not be a sufficient or effective way to achieve a holistic or integrated view of the organization’s risk profile.
Building a threat profile of the organization for management review means creating or developing a summary or representation of the potential threats or sources of harm that may affect the organization’s objectives and operations, and presenting or reporting it to the senior management for their awareness and approval. Periodically reviewing and updating a risk register with details on identified risk factors does not necessarily build a threat profile of the organization for management review, and it may not be a comprehensive or reliable way to create or develop a summary or representation of the potential threats or sources of harm that may affect the organization. References =
ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63
ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 172
CRISC Practice Quiz and Exam Prep
Which of the following would be considered a vulnerability?
Delayed removal of employee access
Authorized administrative access to HR files
Corruption of files due to malware
Server downtime due to a denial of service (DoS) attack
According to the CRISC Review Manual (Digital Version), a vulnerability is a flaw or weakness in an asset’s design, implementation, or operation and management that could be exploited by a threat. A delayed removal of employee access is a vulnerability, as it allows former employees to retain access to the organization’s IT assets and processes, which could lead to unauthorized disclosure, modification, or destruction of data or resources. A delayed removal of employee access could be caused by poor personnel management, lack of security awareness, or inadequate access control policies and procedures.
References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.5: IT Risk Identification Methods and Techniques, pp. 32-331
Which of the following roles would provide the MOST important input when identifying IT risk scenarios?
Information security managers
Internal auditors
Business process owners
Operational risk managers
Business process owners would provide the most important input when identifying IT risk scenarios. IT risk scenarios are the situations or events that may affect the organization’s objectives, operations, or performance due to the use of information and technology1. Identifying IT risk scenarios means finding, recognizing, and describing the IT risks that the organization faces, as well as their sources, drivers, consequences, and responses2. Business process owners are the persons or entities who are responsible for the design, implementation, and operation of the business processes that support the organization’s goals and values3. Business process owners would provide the most important input when identifying IT risk scenarios, because they can:
Provide the context and perspective of the business objectives, strategies, and requirements that are affected or supported by the IT risks and controls;
Identify and prioritize the IT risks that are relevant and significant to their business processes, as well as the IT assets and resources that are involved or impacted by the IT risks;
Evaluate and communicate the likelihood and impact of the IT risks on their business processes, as well as the risk appetite and tolerance of their business units;
Suggest and implement the most suitable and effective IT risk response actions or measures to mitigate the IT risks, as well as monitor and report on the IT risk and control performance;
Align and integrate the IT risk management activities and outcomes with the business risk management framework, policies, and standards. The other options are not the most important roles for providing input when identifying IT risk scenarios, as they are either less relevant or less specific than business process owners. Information security managers are the persons or entities who are responsible for the planning, implementation, and maintenance of the information security measures and controls that protect the confidentiality, integrity, and availability of the organization’s data and systems4. Information security managers can provide input when identifying IT risk scenarios, because they can:
Provide the expertise and guidance on the information security risks and controls that are related to the use of information and technology;
Identify and assess the information security vulnerabilities and threats that may affect the organization’s data and systems, as well as the information security assets and resources that are involved or impacted by the information security risks;
Recommend and implement the most appropriate and effective information security risk response actions or measures to reduce or eliminate the information security risks, as well as monitor and report on the information security risk and control performance;
Align and integrate the information security risk management activities and outcomes with the information security framework, policies, and standards. However, information security managers are not the most important roles for providing input when identifying IT risk scenarios, because they may not have the full understanding or visibility of the business objectives, strategies, and requirements that are affected or supported by the IT risks and controls, or the risk appetite and tolerance of the business units. Internal auditors are the persons or entities who are responsible for the independent and objective assurance and consulting on the effectiveness and efficiency of the organization’s governance, risk management, and internal control system5. Internal auditors can provide input when identifying IT risk scenarios, because they can:
Provide the assurance and validation on the design and operation of the IT risks and controls that are related to the use of information and technology;
Identify and evaluate the IT risk and control gaps or deficiencies that may affect the organization’s objectives, operations, or performance, as well as the IT risk and control objectives and activities that are involved or impacted by the IT risk and control gaps or deficiencies;
Report and recommend improvements or enhancements to the IT risks and controls, as well as follow up and verify the implementation and effectiveness of the IT risk and control improvements or enhancements;
Align and integrate the IT risk and control assurance and consulting activities and outcomes with the internal audit framework, policies, and standards. However, internal auditors are not the most important roles for providing input when identifying IT risk scenarios, because they may not have the authority or responsibility to implement or operate the IT risks and controls, or to decide or prioritize the IT risk response actions or measures. Operational risk managers are the persons or entities who are responsible for the identification, analysis, evaluation, and treatment of the risks that arise from the failures or inadequacies of the organization’s people, processes, systems, or external events6. Operational risk managers can provide input when identifying IT risk scenarios, because they can:
Provide the oversight and coordination of the operational risk management activities and performance across the organization, including the IT risks and controls that are related to the use of information and technology;
Identify and prioritize the operational risks that are relevant and significant to the organization, as well as the operational assets and resources that are involved or impacted by the operational risks;
Evaluate and communicate the likelihood and impact of the operational risks on the organization, as well as the risk appetite and tolerance of the organization;
Suggest and implement the most suitable and effective operational risk response actions or measures to mitigate the operational risks, as well as monitor and report on the operational risk and control performance;
Align and integrate the operational risk management activities and outcomes with the operational risk management framework, policies, and standards. However, operational risk managers are not the most important roles for providing input when identifying IT risk scenarios, because they may not have the specific knowledge or expertise on the IT risks and controls that are related to the use of information and technology, or the context and perspective of the business processes that are affected or supported by the IT risks and controls. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.1.1, Page 85.
The number of tickets to rework application code has significantly exceeded the established threshold. Which of the following would be the risk practitioner s BEST recommendation?
Perform a root cause analysis
Perform a code review
Implement version control software.
Implement training on coding best practices
A root cause analysis is a process of identifying and understanding the underlying or fundamental causes or factors that contribute to or result in a problem or incident that has occurred or may occur in the organization. A root cause analysis can provide useful insights and solutions on the origin and nature of the problem or incident, and prevent or reduce its recurrence or impact.
Performing a root cause analysis is the risk practitioner’s best recommendation when the number of tickets to rework application code has significantly exceeded the established threshold, because it can help the organization to address the following questions:
Why did the application code require rework?
What were the errors or defects in the application code?
How did the errors or defects affect the functionality or usability of the application?
Who was responsible or accountable for the application code development and testing?
When and how were the errors or defects detected and reported?
What were the costs or consequences of the rework for the organization and its stakeholders?
How can the errors or defects be prevented or minimized in the future?
Performing a root cause analysis can help the organization to improve and optimize the application code quality and performance, and to reduce or eliminate the need for rework. It can also help the organization to align the application code development and testing with the organization’s objectives and requirements, and to comply with the organization’s policies and standards.
The other options are not the risk practitioner’s best recommendations when the number of tickets to rework application code has significantly exceeded the established threshold, because they do not address the main purpose and benefit of performing a root cause analysis, which is to identify and understand the underlying or fundamental causes or factors that contribute to or result in the problem or incident.
Performing a code review is a process of examining and evaluating the application code for its quality, functionality, and security, using the input and feedback from the peers, experts, or tools. Performing a code review can help the organization to identify and resolve the errors or defects in the application code, but it is not the risk practitioner’s best recommendation, because it does not indicate why the application code required rework, and how the errors or defects affected the organization and its stakeholders.
Implementing version control software is a process of using a software tool to manage and track the changes and modifications to the application code, and to ensure the consistency and integrity of the application code. Implementing version control software can help the organization to control and monitor the application code development and testing, but it is not the risk practitioner’s best recommendation, because it does not indicate why the application code required rework, and how the errors or defects affected the organization and its stakeholders.
Implementing training on coding best practices is a process of providing and facilitating the learning and development of the skills and knowledge on the principles, guidelines, and standards for the application code development and testing. Implementing training on coding best practices can help the organization to enhance the competence and performance of the application code developers and testers, but it is not the risk practitioner’s best recommendation, because it does not indicate why the application code required rework, and how the errors or defects affected the organization and its stakeholders. 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 189
CRISC Practice Quiz and Exam Prep
A risk practitioner has observed that there is an increasing trend of users sending sensitive information by email without using encryption. Which of the following would be the MOST effective approach to mitigate the risk associated with data loss?
Implement a tool to create and distribute violation reports
Raise awareness of encryption requirements for sensitive data.
Block unencrypted outgoing emails which contain sensitive data.
Implement a progressive disciplinary process for email violations.
According to the CRISC Review Manual (Digital Version), the most effective approach to mitigate the risk associated with data loss due to users sending sensitive information by email without using encryption is to block unencrypted outgoing emails which contain sensitive data. This is an example of a risk avoidance strategy, which aims to eliminate the risk by removing the source of the risk or the activity that causes the risk. Blocking unencrypted outgoing emails which contain sensitive data can prevent unauthorized access, disclosure, modification or destruction of the sensitive information, and thus protect the confidentiality, integrity and availability of the data. This approach can also deter users from violating the encryption policy and enforce compliance with the security standards and regulations.
References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 167-1681
A risk practitioner is assisting with the preparation of a report on the organization s disaster recovery (DR) capabilities. Which information would have the MOST impact on the overall recovery profile?
The percentage of systems meeting recovery target times has increased.
The number of systems tested in the last year has increased.
The number of systems requiring a recovery plan has increased.
The percentage of systems with long recovery target times has decreased.
According to the CRISC Review Manual (Digital Version), the percentage of systems with long recovery target times has decreased is the information that would have the most impact on the overall recovery profile, as it indicates that the organization has improved its ability to restore its critical systems and processes within the acceptable time frames after a disaster. The recovery target time, also known as the recovery time objective (RTO), is the maximum acceptable time that an application, computer, network, or system can be down after an unexpected disaster, failure, or comparable event takes place. The recovery profile, also known as the recovery point objective (RPO), is the maximum acceptable amount of data loss measured in time. A lower percentage of systems with long recovery target times means that the organization has:
Reduced the gap between the business requirements and the IT capabilities for disaster recovery
Enhanced the resilience and availability of its critical systems and processes
Minimized the potential losses and damages caused by prolonged downtime
Increased the confidence and satisfaction of its stakeholders and customers
References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 174-1751
Which of the following is a risk practitioner's MOST important responsibility in managing risk acceptance that exceeds risk tolerance?
Verify authorization by senior management.
Increase the risk appetite to align with the current risk level
Ensure the acceptance is set to expire over lime
Update the risk response in the risk register.
The risk practitioner’s most important responsibility in managing risk acceptance that exceeds risk tolerance is to verify authorization by senior management. Risk acceptance is a risk response strategy that involves acknowledging and agreeing to bear the risk and its potential consequences. Risk tolerance is the acceptable or allowable level of variation or deviation from the expected or desired outcomes or objectives. When the risk acceptance exceeds the risk tolerance, it means that the organization is taking on more risk than it can handle or afford. Therefore, the risk practitioner should verify that the risk acceptance is authorized by senior management, who have the authority and accountability for making risk management decisions and ensuring that they are aligned with the organizational strategy and objectives. The other options are not as important as verifying authorization by senior management, as they are related to the adjustments, conditions, or documentation of the risk acceptance, not the approval or validation of the risk acceptance. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.2: IT Risk Response Options, page 133.
An organization's control environment is MOST effective when:
controls perform as intended.
controls operate efficiently.
controls are implemented consistent
control designs are reviewed periodically
The control environment is the set of standards, processes, and structures that provide the basis for carrying out internal control across the organization. The control environment is most effective when the controls perform as intended, meaning that they achieve their objectives, mitigate the risks, and comply with the policies and regulations. The other options are desirable attributes of the controls, but they do not necessarily indicate the effectiveness of the control environment. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: IT Control Assessment, page 69.
Which of the following is the MOST effective way 10 identify an application backdoor prior to implementation'?
User acceptance testing (UAT)
Database activity monitoring
Source code review
Vulnerability analysis
A source code review is the process of examining and analyzing the source code of an application to identify any vulnerabilities, errors, or flaws that may compromise the security, functionality, or performance of the application. A source code review is the most effective way to identify an application backdoor prior to implementation, as it can detect any hidden or unauthorized code that may allow unauthorized access, bypass security controls, or execute malicious commands. A source code review can also help to improve the quality and reliability of the application, and ensure compliance with the coding standards and best practices. References = CRISC Review Manual, 7th Edition, page 181.
An organization has an approved bring your own device (BYOD) policy. Which of the following would BEST mitigate the security risk associated with the inappropriate use of enterprise applications on the devices?
Periodically review application on BYOD devices
Include BYOD in organizational awareness programs
Implement BYOD mobile device management (MDM) controls.
Enable a remote wee capability for BYOD devices
The best way to mitigate the security risk associated with the inappropriate use of enterprise applications on the BYOD devices is to implement BYOD mobile device management (MDM) controls. MDM controls are software tools or services that allow the organization to remotely manage, monitor, and secure the BYOD devices and the enterprise applications and data on them. MDM controls can help to enforce security policies, restrict unauthorized access, encrypt sensitive data, wipe data in case of loss or theft, and update or patch applications. The other options are not as effective as implementing MDM controls, as they are related to the review, awareness, or recovery of the BYOD devices and applications, not the prevention or protection of the security risk. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.
Which of the following is the BEST method to maintain a common view of IT risk within an organization?
Collecting data for IT risk assessment
Establishing and communicating the IT risk profile
Utilizing a balanced scorecard
Performing and publishing an IT risk analysis
The best method to maintain a common view of IT risk within an organization is to establish and communicate the IT risk profile. An IT risk profile is a document that summarizes the key IT risks that the organization faces or accepts, and their likelihood, impact, and priority. An IT risk profile helps to identify and prioritize the most critical or relevant IT risks, and to align them with the organization’s objectives, strategy, and risk appetite. Establishing and communicating the IT risk profile is the best method to maintain a common view of IT risk, because it helps to create a shared understanding and awareness of the IT risks among the organization’s stakeholders, such as the board, management, business units, and IT functions. Establishing and communicating the IT risk profile also helps to facilitate the IT risk decision-making and reporting processes, and to monitor and control the IT risk performance and improvement. The other options are not the best method to maintain a common view of IT risk, although they may be part of or derived from the IT risk profile. Collecting data for IT risk assessment, utilizing a balanced scorecard, and performing and publishing an IT risk analysis are all activities that can help to support or update the IT risk profile, but they are not the best method to maintain a common view of IT risk. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.1, page 1-15.
Which of the following findings of a security awareness program assessment would cause the GREATEST concern to a risk practitioner?
The program has not decreased threat counts.
The program has not considered business impact.
The program has been significantly revised
The program uses non-customized training modules.
The greatest concern for a risk practitioner when reviewing the findings of a security awareness program assessment is that the program uses non-customized training modules. Non-customized training modules are generic and may not address the specific security needs, issues, and challenges of the organization. They may also fail to engage and motivate the employees to follow the security policies and procedures, and to enhance their security knowledge and skills. The program not decreasing threat counts, not considering business impact, or being significantly revised are other possible findings, but they are not as concerning as the program using non-customized training modules. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 7; CRISC Review Manual, 6th Edition, page 202.
Which of the following is MOST helpful in providing an overview of an organization's risk management program?
Risk management treatment plan
Risk assessment results
Risk management framework
Risk register
The most helpful source in providing an overview of an organization’s risk management program is the risk management framework. The risk management framework is a set of components that provide the foundations and organizational arrangements for designing, implementing, monitoring, reviewing, and continually improving risk management throughout the organization. The framework includes the risk management principles, policies, processes, procedures, roles, responsibilities, and resources that enable the organization to manage risk effectively. Risk management treatment plan, risk assessment results, and risk register are other sources that may provide some information about the risk management program, but they are not as comprehensive as the risk management framework. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.
Which of the following BEST helps to identify significant events that could impact an organization?
Control analysis
Vulnerability analysis
Scenario analysis
Heat map analysis
Scenario analysis is the best method to identify significant events that could impact an organization. Scenario analysis is the process of creating and evaluating hypothetical situations or scenarios that represent plausible outcomes of various events or actions. Scenario analysis helps to anticipate and prepare for potential risks and opportunities, as well as to test the robustness and resilience of the organization’s strategies and plans. Control analysis, vulnerability analysis, and heat map analysis are not as effective as scenario analysis, because they focus on the existing or current state of the organization, rather than the future or alternative states. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.
Which of the following is MOST important to update when an organization's risk appetite changes?
Key risk indicators (KRIs)
Risk reporting methodology
Key performance indicators (KPIs)
Risk taxonomy
The most important element to update when an organization’s risk appetite changes is the key risk indicators (KRIs). KRIs are metrics that provide an early warning of increasing risk exposure in various areas of the organization. They help to monitor the level of risk and to trigger risk responses when the risk exceeds the risk appetite. The risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk reporting methodology, key performance indicators (KPIs), and risk taxonomy are other elements that may be updated, but they are not as important as the KRIs. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.
Which of the following is the BEST way to determine whether system settings are in alignment with control baselines?
Configuration validation
Control attestation
Penetration testing
Internal audit review
The best way to determine whether system settings are in alignment with control baselines is to perform configuration validation. Configuration validation is the process of verifying that the system settings and parameters are consistent with the predefined standards and requirements, and that they reflect the current and desired state of the system. Configuration validation helps to ensure that the system is configured correctly and securely, and that it complies with the relevant policies, regulations, and best practices. Configuration validation also helps to identify and correct any deviations or errors in the system settings, and to prevent or mitigate any potential risks or issues. The other options are not as effective as configuration validation, although they may provide some input or information for the system alignment. Control attestation, penetration testing, and internal audit review are all activities that can help to assess or evaluate the system alignment, but they do not necessarily determine or validate the system settings. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.
When is the BEST to identify risk associated with major project to determine a mitigation plan?
Project execution phase
Project initiation phase
Project closing phase
Project planning phase
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.
An organization is considering the adoption of an aggressive business strategy to achieve desired growth From a risk management perspective what should the risk practitioner do NEXT?
Identify new threats resorting from the new business strategy
Update risk awareness training to reflect current levels of risk appetite and tolerance
Inform the board of potential risk scenarios associated with aggressive business strategies
Increase the scale for measuring impact due to threat materialization
The next thing that the risk practitioner should do from a risk management perspective when the organization is considering the adoption of an aggressive business strategy to achieve desired growth is to identify new threats resulting from the new business strategy. A threat is a potential cause of an unwanted incident that may affect the achievement of the objectives. An aggressive business strategy is a strategy that involves pursuing high-risk, high-reward opportunities or initiatives to gain a competitive advantage or a significant market share. An aggressive business strategy may introduce new threats or increase the likelihood or impact of existing threats, such as market volatility, regulatory changes, customer dissatisfaction, or competitor retaliation. Therefore, the risk practitioner should identify the new threats resulting from the new business strategy, and assess their potential consequences and implications for the organization. The other options are not as immediate as identifying new threats resulting from the new business strategy, as they are related to the update, information, or measurement of the risk management process, not the identification or analysis of the risk. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.
Using key risk indicators (KRIs) to illustrate changes in the risk profile PRIMARILY helps to:
communicate risk trends to stakeholders.
assign ownership of emerging risk scenarios.
highlight noncompliance with the risk policy
identify threats to emerging technologies.
The primary purpose of using key risk indicators (KRIs) to illustrate changes in the risk profile is to communicate risk trends to stakeholders. KRIs are metrics that provide an early warning of increasing risk exposure in various areas of the organization. By using KRIs to illustrate changes in the risk profile, the organization can communicate the risk trends to the stakeholders, such as the board, senior management, business units, and external parties, and enable them to take appropriate actions to manage the risk. Assigning ownership of emerging risk scenarios, highlighting noncompliance with the risk policy, and identifying threats to emerging technologies are other possible purposes, but they are not as important as communicating risk trends to stakeholders. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.
An organization is implementing robotic process automation (RPA) to streamline business processes. Given that implementation of this technology is expected to impact existing controls, which of the following is the risk practitioner's BEST course of action?
Reassess whether mitigating controls address the known risk in the processes.
Update processes to address the new technology.
Update the data governance policy to address the new technology.
Perform a gap analysis of the impacted processes.
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.
Which of the following management action will MOST likely change the likelihood rating of a risk scenario related to remote network access?
Updating the organizational policy for remote access
Creating metrics to track remote connections
Implementing multi-factor authentication
Updating remote desktop software
The management action that will most likely change the likelihood rating of a risk scenario related to remote network access is implementing multi-factor authentication. Multi-factor authentication is a technique that requires the user to provide two or more pieces of evidence to verify their identity, such as a password, a token, or a biometric factor. Multi-factor authentication can help to reduce the likelihood of unauthorized or malicious access to the remote network, as it adds an extra layer of security and makes it harder for the attackers to compromise the user credentials. The other options are not as likely to change the likelihood rating of the risk scenario, as they are related to the update, creation, or maintenance of the remote network access, not the verification or protection of the remote network access. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.
An organization has operations in a location that regularly experiences severe weather events. Which of the following would BEST help to mitigate the risk to operations?
Prepare a cost-benefit analysis to evaluate relocation.
Prepare a disaster recovery plan (DRP).
Conduct a business impact analysis (BIA) for an alternate location.
Develop a business continuity plan (BCP).
The best way to mitigate the risk to operations caused by severe weather events is to develop a business continuity plan (BCP). A BCP is a document that describes the procedures and resources needed to ensure the continuity of the organization’s critical functions and processes in the event of a disruption or disaster. A BCP helps to identify the recovery objectives, strategies, and priorities, as well as the roles and responsibilities of the recovery team members. A BCP also helps to prepare and test the recovery capabilities and resources, such as alternate locations, backup systems, and communication channels. The other options are not as effective as developing a BCP, although they may be part of the BCP process or outcomes. Preparing a cost-benefit analysis to evaluate relocation, preparing a disaster recovery plan (DRP), and conducting a business impact analysis (BIA) for an alternate location are all activities that can help to develop or implement a BCP, but they are not the best way to mitigate the risk to operations. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.2.1, page 5-9.
An organization's chief information officer (CIO) has proposed investing in a new. untested technology to take advantage of being first to market Senior management has concerns about the success of the project and has set a limit for expenditures before final approval. This conditional approval indicates the organization's risk:
capacity.
appetite.
management capability.
treatment strategy.
The conditional approval of the CIO’s proposal indicates the organization’s risk appetite. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. By setting a limit for expenditures before final approval, senior management is expressing their willingness to take a calculated risk with the new technology, but also their desire to control the potential loss or harm. Risk capacity, management capability, and treatment strategy are other possible factors, but they are not as relevant as risk appetite. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97
Which of the following would be of MOST concern to a risk practitioner reviewing risk action plans for documented IT risk scenarios?
Individuals outside IT are managing action plans for the risk scenarios.
Target dates for completion are missing from some action plans.
Senior management approved multiple changes to several action plans.
Many action plans were discontinued after senior management accepted the risk.
The most concerning factor for a risk practitioner reviewing risk action plans for documented IT risk scenarios is that many action plans were discontinued after senior management accepted the risk. Risk action plans are documents that define the roles, responsibilities, procedures, and resources for implementing the risk responses and strategies for the IT risk scenarios. Risk action plans help to reduce, transfer, avoid, or accept the IT risks, and to monitor and report on the IT risk performance and improvement. Discontinuing risk action plans after senior management accepted the risk is a major concern, because it may indicate that the risk acceptance decision was not based on a proper risk analysis or evaluation, or that the risk acceptance decision was not communicated or coordinated with the relevant stakeholders, such as the board, management, business units, and IT functions. Discontinuing risk action plans after senior management accepted the risk may also create challenges or risks for the organization, such as compliance, legal, reputational, or operational risks, or conflicts or inconsistencies with the organization’s risk appetite, risk objectives, or risk policies. The other options are not as concerning as discontinuing risk action plans after senior management accepted the risk, although they may also pose some difficulties or limitations for the risk management process. Individuals outside IT managing action plans for the risk scenarios, target dates for completion missing from some action plans, and senior management approving multiple changes to several action plans are all factors that could affect the quality and timeliness of the risk management process, but they do not necessarily indicate a lack of risk management accountability or oversight. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.1, page 4-32.
Of the following, who is BEST suited to assist a risk practitioner in developing a relevant set of risk scenarios?
Internal auditor
Asset owner
Finance manager
Control owner
The asset owner is the best suited to assist a risk practitioner in developing a relevant set of risk scenarios. The asset owner is the person who has the authority and responsibility for the IT assets that support the business processes. The asset owner can provide valuable information on the business objectives, requirements, and expectations that the IT assets should meet. The asset owner can also help identify the potential threats, vulnerabilities, and impacts that may affect the IT assets and the business processes. The asset owner can also suggest possible risk responses and mitigation strategies to address the risk scenarios. The other options are not as relevant as the asset owner, as they may not have the same level of knowledge, interest, or involvement in the IT assets and the business processes. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.
An organization is concerned that its employees may be unintentionally disclosing data through the use of social media sites. Which of the following will MOST effectively mitigate tins risk?
Requiring the use of virtual private networks (VPNs)
Establishing a data classification policy
Conducting user awareness training
Requiring employee agreement of the acceptable use policy
The most effective way to mitigate the risk of unintentional data disclosure through the use of social media sites is to conduct user awareness training. User awareness training is a process of educating and informing the users about the security policies, procedures, and practices that are relevant and applicable to their roles and responsibilities. User awareness training can help to increase the knowledge, understanding, and compliance of the users regarding the data protection and privacy requirements, and the potential risks and consequences of data disclosure through social media sites. User awareness training can also help to influence the behavior, attitude, and culture of the users toward data security and privacy. The other options are not as effective as conducting user awareness training, as they are related to the technical, procedural, or contractual measures to mitigate the risk, not the human or behavioral measures to mitigate the risk. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.
A bank recently incorporated Blockchain technology with the potential to impact known risk within the organization. Which of the following is the risk practitioner’s BEST course of action?
Determine whether risk responses are still adequate.
Analyze and update control assessments with the new processes.
Analyze the risk and update the risk register as needed.
Conduct testing of the control that mitigate the existing risk.
The best course of action for a risk practitioner when a bank recently incorporated Blockchain technology with the potential to impact known risk within the organization is to analyze the risk and update the risk register as needed. Blockchain technology is a new and emerging technology that may introduce new risks or change the existing risks for the bank. Therefore, the risk practitioner should perform a risk analysis to identify, assess, and evaluate the risks associated with the Blockchain technology, and update the risk register accordingly. Determining whether risk responses are still adequate, analyzing and updating control assessments, and conducting testing of the controls are possible actions that may follow the risk analysis, but they are not the best initial course of action. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.
Which of the following is PRIMARILY a risk management responsibly of the first line of defense?
Implementing risk treatment plans
Validating the status of risk mitigation efforts
Establishing risk policies and standards
Conducting independent reviews of risk assessment results
The primary risk management responsibility of the first line of defense is to implement risk treatment plans. The first line of defense is the operational management and staff who are directly involved in the execution of the business activities and processes. They are responsible for identifying, assessing, and responding to the risks that affect their objectives and performance. Implementing risk treatment plans means applying the appropriate risk response strategies and actions to address the identified risks, and monitoring and reporting the results and outcomes of the risk treatment. The other options are not as primary as implementing risk treatment plans, as they are related to the validation, establishment, or review of the risk management process, not the execution of the risk management process. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Management Process, page 15.
Which of the following is the MAIN benefit to an organization using key risk indicators (KRIs)?
KRIs provide an early warning that a risk threshold is about to be reached.
KRIs signal that a change in the control environment has occurred.
KRIs provide a basis to set the risk appetite for an organization.
KRIs assist in the preparation of the organization's risk profile.
The main benefit of using key risk indicators (KRIs) for an organization is that they provide an early warning that a risk threshold is about to be reached. KRIs are metrics that measure the likelihood and impact of risks, and help monitor and prioritize the most critical risks. KRIs also help to trigger timely and appropriate risk responses, before the risk becomes unmanageable or unacceptable. The other options are not the main benefit of using KRIs, although they may be secondary benefits or outcomes. KRIs signal that a change in the control environment has occurred, provide a basis to set the risk appetite for an organization, and assist in the preparation of the organization’s risk profile. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.1, page 4-36.
Which of the following is the BEST indicator of executive management's support for IT risk mitigation efforts?
The number of stakeholders involved in IT risk identification workshops
The percentage of corporate budget allocated to IT risk activities
The percentage of incidents presented to the board
The number of executives attending IT security awareness training
The best indicator of executive management’s support for IT risk mitigation efforts is the number of executives attending IT security awareness training. This shows that the executives are committed to enhancing their knowledge and skills on IT security issues, and that they are setting a positive example for the rest of the organization. The number of stakeholders involved in IT risk identification workshops, the percentage of corporate budget allocated to IT risk activities, and the percentage of incidents presented to the board are other possible indicators, but they are not as strong as the number of executives attending IT security awareness training. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 7; CRISC Review Manual, 6th Edition, page 202.
When performing a risk assessment of a new service to support a core business process, which of the following should be done FIRST to ensure continuity of operations?
Define metrics for restoring availability.
Identify conditions that may cause disruptions.
Review incident response procedures.
Evaluate the probability of risk events.
When performing a risk assessment of a new service to support a core business process, the first step is to identify the conditions that may cause disruptions to the service or the process. This involves identifying the sources and causes of potential risk events, such as natural disasters, cyberattacks, human errors, equipment failures, power outages, etc. that may affect the availability, integrity, or confidentiality of the service or the process. By identifying the conditions that may cause disruptions, the risk practitioner can then analyze the probability and impact of the risk events, evaluate the risk exposure, and determine the appropriate risk responses to ensure the continuity of operations. References = CRISC Review Manual, 7th Edition, page 66.
Which risk response strategy could management apply to both positive and negative risk that has been identified?
Transfer
Accept
Exploit
Mitigate
Accepting risk is the only risk response strategy that could be applied to both positive and negative risk that has been identified. Accepting risk means taking no action to change the likelihood or impact of the risk, but being prepared to deal with the consequences if the risk occurs. Accepting risk is usually chosen when the risk is low, unavoidable, or outweighed by the benefits. For positive risks, accepting risk means taking advantage of the opportunities if they arise. For negative risks, accepting risk means setting aside contingency reserves or plans to cope with the threats. The other risk response strategies are specific to either positive or negative risks. Transfer, exploit, and mitigate are strategies for negative risks, while share, enhance, and avoid are strategies for positive risks. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.
Which of the following would BEST mitigate an identified risk scenario?
Conducting awareness training
Executing a risk response plan
Establishing an organization's risk tolerance
Performing periodic audits
The best way to mitigate an identified risk scenario is to execute a risk response plan. A risk response plan is a document that describes the actions and resources that are needed to address the risk scenario. A risk response plan can include one or more of the following strategies: avoid, transfer, mitigate, accept, or exploit. By executing a risk response plan, the organization can reduce the likelihood and/or impact of the risk scenario, or take advantage of the opportunities that the risk scenario may present. The other options are not as effective as executing a risk response plan, as they are related to the awareness, assessment, or monitoring of the risk scenario, not the actual treatment of the risk scenario. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.2: IT Risk Response Options, page 133.
What is the BEST recommendation to reduce the risk associated with potential system compromise when a vendor stops releasing security patches and updates for a business-critical legacy system?
Segment the system on its own network.
Ensure regular backups take place.
Virtualize the system in the cloud.
Install antivirus software on the system.
The best recommendation to reduce the risk associated with potential system compromise when a vendor stops releasing security patches and updates for a business-critical legacy system is to segment the system on its own network. Network segmentation is the process of dividing a network into smaller subnetworks or segments, based on different criteria, such as function, location, or security level. Network segmentation helps to isolate the system from the rest of the network, and limit the exposure and access to the system. Network segmentation also helps to improve the performance and security of the network, by reducing the network traffic and congestion, and enhancing the monitoring and control capabilities. The other options are not as effective as segmenting the system on its own network, although they may provide some additional protection or recovery options. Ensuring regular backups take place, virtualizing the system in the cloud, and installing antivirus software on the system are all measures that can help to reduce the risk of data loss or system damage, but they do not address the root cause of the risk, which is the lack of security patches and updates for the system. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.
What should be the PRIMARY consideration related to data privacy protection when there are plans for a business initiative to make use of personal information?
Do not collect or retain data that is not needed.
Redact data where possible.
Limit access to the personal data.
Ensure all data is encrypted at rest and during transit.
Data privacy protection is the process of safeguarding the personal information of individuals from unauthorized access, use, disclosure, modification, or destruction. Personal information is any information that can be used to identify, locate, or contact an individual, such as name, address, phone number, email, social security number, etc. When there are plans for a business initiative to make use of personal information, the primary consideration related to data privacy protection is to do not collect or retain data that is not needed. This means that the organization should only collect the minimum amount of personal information that is necessary for the purpose of the business initiative, and should only retain the data for as long as it is required by law or business needs. By doing so, the organization can reduce the risk of data breaches, comply with the data protection regulations, respect the data subjects’ rights, and enhance the trust and reputation of the organization. References = CRISC Review Manual, 7th Edition, page 159.
When a risk practitioner is determining a system's criticality. it is MOST helpful to review the associated:
process flow.
business impact analysis (BIA).
service level agreement (SLA).
system architecture.
The most helpful information to review when determining a system’s criticality is the associated business impact analysis (BIA). A BIA is a process of identifying and evaluating the potential effects of disruptions to the organization’s critical business functions and processes. A BIA can help to determine the system’s criticality by assessing its impact on the organization’s objectives, performance, and value. Process flow, service level agreement (SLA), and system architecture are other possible information sources, but they are not as helpful as the BIA. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.
Which key performance efficiency IKPI) BEST measures the effectiveness of an organization's disaster recovery program?
Number of service level agreement (SLA) violations
Percentage of recovery issues identified during the exercise
Number of total systems recovered within tie recovery point objective (RPO)
Percentage of critical systems recovered within tie recovery time objective (RTO)
The key performance indicator (KPI) that best measures the effectiveness of an organization’s disaster recovery program is the percentage of critical systems recovered within the recovery time objective (RTO). The RTO is the acceptable timeframe within which a business process or system must be restored after a disruption. The percentage of critical systems recovered within the RTO indicates how well the disaster recovery program can meet the business continuity requirements and minimize the impact of the disruption. The other options are not as good as the percentage of critical systems recovered within the RTO, as they are related to the efficiency, quality, or scope of the disaster recovery program, not the effectiveness of the disaster recovery program. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Key Performance Indicators, page 183.
Which of the following is the MOST important consideration for effectively maintaining a risk register?
An IT owner is assigned for each risk scenario.
The register is updated frequently.
The register is shared with executive management.
Compensating controls are identified.
A risk register is a tool that records and tracks the information about the identified risks, such as the risk description, category, owner, probability, impact, response strategy, status, and action plan. The most important consideration for effectively maintaining a risk register is to update it frequently, as the risk environment is dynamic and subject to change. By updating the risk register regularly, an organization can ensure that the risk information is current, accurate, and relevant, and that the risk responses are timely, appropriate, and effective. References = CRISC Review Manual, 7th Edition, page 99.
When developing a response plan to address security incidents regarding sensitive data loss, it is MOST important
revalidate current key risk indicators (KRIs).
revise risk management procedures.
review the data classification policy.
revalidate existing risk scenarios.
When developing a response plan to address security incidents regarding sensitive data loss, it is most important to review the data classification policy. A data classification policy is a document that defines the categories and levels of data based on their sensitivity, value, and criticality, and specifies the appropriate security measures and handling procedures for each data type. A data classification policy helps to identify and protect the sensitive data that could be exposed or compromised in a security incident, and to comply with the relevant laws, regulations, standards, and contracts. Reviewing the data classification policy is important when developing a response plan, because it helps to determine the scope, impact, and priority of the security incident, and to select the most appropriate and effective response actions and strategies. Reviewing the data classification policy also helps to communicate and coordinate the response plan with the internal and external stakeholders, such as the data owners, users, custodians, and regulators, and to report and disclose the security incident as required. The other options are not as important as reviewing the data classification policy, although they may be part of or derived from the response plan. Revalidating current key risk indicators (KRIs), revising risk management procedures, and revalidating existing risk scenarios are all activities that can help to improve or update the risk management process, but they are not the most important when developing a response plan. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.1, page 5-25.
Which of the following is the MOST effective way for a large and diversified organization to minimize risk associated with unauthorized software on company devices?
Scan end points for applications not included in the asset inventory.
Prohibit the use of cloud-based virtual desktop software.
Conduct frequent reviews of software licenses.
Perform frequent internal audits of enterprise IT infrastructure.
The most effective way for a large and diversified organization to minimize risk associated with unauthorized software on company devices is to scan end points for applications not included in the asset inventory. An asset inventory is a document that records and tracks all the hardware and software assets that are owned, used, or managed by the organization, such as laptops, tablets, smartphones, servers, applications, etc. An asset inventory helps to identify and classify the assets based on their type, model, location, owner, status, etc. An asset inventory also helps to monitor and control the assets, such as enforcing security policies, applying patches and updates, detecting and resolving issues, etc. Scanning end points for applications not included in the asset inventory helps to minimize the risk of unauthorized software, because it helps to discover and remove any software that is not approved, authorized, or licensed by the organization, and that may pose security, legal, or operational risks, such as malware, spyware, pirated software, etc. The other options are not as effective as scanning end points for applications not included in the asset inventory, although they may provide some protection or compliance for the software assets. Prohibiting the use of cloud-based virtual desktop software, conducting frequent reviews of software licenses, and performing frequent internal audits of enterprise IT infrastructure are all examples of preventive or detective controls, which may help to prevent or deter the installation or use of unauthorized software, or to verify or validate the software assets, but they do not necessarily discover or remove the unauthorized software. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.
Which of the following is MOST important for successful incident response?
The quantity of data logged by the attack control tools
Blocking the attack route immediately
The ability to trace the source of the attack
The timeliness of attack recognition
The most important factor for successful incident response is the timeliness of attack recognition. Incident response is the process of detecting, analyzing, containing, eradicating, recovering, and reporting on security incidents that could affect the organization’s IT systems or data. The timeliness of attack recognition is the speed and accuracy with which the organization can identify and confirm that an attack has occurred or is in progress. The timeliness of attack recognition is crucial for successful incident response, as it affects the ability and effectiveness of the organization to respond to and mitigate the attack, and to minimize the damage and impact of the attack. The other options are not as important as the timeliness of attack recognition, although they may also contribute to or influence the incident response. The quantity of data logged by the attack control tools, the ability to trace the source of the attack, and the blocking of the attack route immediately are all factors that could help or hinder the incident response, but they are not the most important factor for successful incident response. References = CISA Review Manual, 27th Edition, Chapter 5, Section 5.4.1, page 5-32.
A risk practitioner has identified that the agreed recovery time objective (RTO) with a Software as a Service (SaaS) provider is longer than the business expectation. Which of the following is the risk practitioner's BEST course of action?
Collaborate with the risk owner to determine the risk response plan.
Document the gap in the risk register and report to senior management.
Include a right to audit clause in the service provider contract.
Advise the risk owner to accept the risk.
The best course of action for the risk practitioner who has identified that the agreed RTO with a SaaS provider is longer than the business expectation is to document the gap in the risk register and report to senior management. The risk register is the document that records the details of all identified risks, including their sources, causes, impacts, likelihood, and responses. The risk register should be updated regularly to reflect any changes in the risk environment or the risk status. Reporting to senior management is also important, because senior management is the highest level of authority and responsibility in the organization, and they are responsible for setting the strategic direction, objectives, and risk appetite of the organization. Senior management should also oversee the risk management process, and ensure that the risks are aligned with the organization’s goals and values. By documenting the gap in the risk register and reporting to senior management, the risk practitioner can communicate the issue clearly and effectively, and seek guidance and support for resolving the problem. Collaborating with the risk owner, including a right to audit clause, or advising the risk owner to accept the risk are not the best courses of action, because they may not be feasible, effective, or desirable in some situations, or they may require senior management approval or involvement. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.
Which of the following is the GREATEST benefit of centralizing IT systems?
Risk reporting
Risk classification
Risk monitoring
Risk identification
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 objective of collecting information and reviewing documentation when performing periodic risk analysis should be to:
Identify new or emerging risk issues.
Satisfy audit requirements.
Survey and analyze historical risk data.
Understand internal and external threat agents.
The primary objective of collecting information and reviewing documentation when performing periodic risk analysis is to identify new or emerging risk issues that may affect the enterprise’s objectives, processes, or resources. This helps to update the risk profile and prioritize the risk responses accordingly. Satisfying audit requirements, surveying and analyzing historical risk data, and understanding internal and external threat agents are secondary objectives that support the primary objective of risk identification. References = Risk IT Framework, 2nd Edition, page 22; CRISC Review Manual, 6th Edition, page 64.
Which stakeholder is MOST important to include when defining a risk profile during me selection process for a new third party application'?
The third-party risk manager
The application vendor
The business process owner
The information security manager
A risk profile is a summary of the nature and level of risk that an organization faces. It includes information such as the sources, causes, and consequences of the risks, their likelihood and impact, their interrelationships and dependencies, and their alignment with the risk appetite and tolerance. A risk profile is influenced by various factors, such as the organization’s objectives, strategies, activities, processes, resources, capabilities, culture, etc. When defining a risk profile during the selection process for a new third party application, the stakeholder that is most important to include is the business process owner, who is the person who has the authority and responsibility for the design, execution, and performance of a business process. The business process owner can provide valuable input and insight into the requirements, expectations, and dependencies of the business process that will use the new third party application, and the potential risks and opportunities that may arise from the selection of the application. The business process owner can also help to prioritize and address the risks, and ensure that the risk profile is aligned with the business objectives and strategies. References = 5
The BEST metric to demonstrate that servers are configured securely is the total number of servers:
exceeding availability thresholds
experiencing hardware failures
exceeding current patching standards.
meeting the baseline for hardening.
The best metric to demonstrate that servers are configured securely is the total number of servers meeting the baseline for hardening. Hardening is the process of applying security configurations and settings to servers to reduce their attack surface and vulnerability. A baseline is a standard or benchmark that defines the minimum level of security required for servers. By measuring the number of servers that meet the baseline, the organization can assess the effectiveness of its hardening efforts and identify any gaps or deviations. The other metrics, such as exceeding availability thresholds, experiencing hardware failures, or exceeding current patching standards, are not directly related to the security configuration of servers, but rather to their performance, reliability, or maintenance. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.2, page 2-25.
Which of the following is the BEST indication that key risk indicators (KRls) should be revised?
A decrease in the number of critical assets covered by risk thresholds
An Increase In the number of risk threshold exceptions
An increase in the number of change events pending management review
A decrease In the number of key performance indicators (KPls)
The best indication that key risk indicators (KRIs) should be revised is a decrease in the number of critical assets covered by risk thresholds. KRIs are metrics that provide information on the level of exposure to a given risk. Risk thresholds are the predefined values or ranges that indicate the acceptable or unacceptable level of risk exposure. Critical assets are the assets that are essential or vital for the achievement of the objectives or the continuity of the operations. A decrease in the number of critical assets covered by risk thresholds means that the KRIs are not capturing or reflecting the current and relevant risk exposure of the organization, and that they may not provide sufficient or accurate information for risk management decisions. Therefore, the KRIs should be revised to ensure that they cover all the critical assets and their risk thresholds. The other options are not as indicative as a decrease in the number of critical assets covered by risk thresholds, as they are related to the outcomes, impacts, or activities of the KRIs, not the scope or quality of the KRIs. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Key Performance Indicators, page 183.
Which of the following would be of GREATEST concern regarding an organization's asset management?
Lack of a mature records management program
Lack of a dedicated asset management team
Decentralized asset lists
Incomplete asset inventory
Asset management is the process of identifying, tracking, and maintaining the physical and information assets of an organization. Asset management helps to optimize the value, performance, and security of the assets, and support the business objectives and strategies. The factor that would be of greatest concern regarding an organization’s asset management is an incomplete asset inventory, which is a list of all the assets that the organization owns or uses. An incomplete asset inventory may indicate that the organization does not have a clear and accurate understanding of its assets, their location, ownership, value, dependencies, etc. This may lead to various risks, such as asset loss, theft, misuse, damage, underutilization, overutilization, etc. An incomplete asset inventory may also affect the asset classification, protection, recovery, and disposal processes. References = 6
Senior management wants to increase investment in the organization's cybersecurity program in response to changes in the external threat landscape. Which of the following would BEST help to prioritize investment efforts?
Analyzing cyber intelligence reports
Engaging independent cybersecurity consultants
Increasing the frequency of updates to the risk register
Reviewing the outcome of the latest security risk assessment
The best tool to help prioritize investment efforts in the organization’s cybersecurity program is to review the outcome of the latest security risk assessment. A security risk assessment is a process of identifying, analyzing, and evaluating the risks associated with the confidentiality, integrity, and availability of the organization’s information assets and systems. By reviewing the outcome of the security risk assessment, senior management can identify the most critical and urgent risks, and allocate the resources and funds accordingly. Analyzing cyber intelligence reports, engaging independent cybersecurity consultants, and increasing the frequency of updates to the risk register are other possible tools, but they are not as effective as reviewing the outcome of the security risk assessment. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.
Which of the following is the PRIMARY reason to perform periodic vendor risk assessments?
To provide input to the organization's risk appetite
To monitor the vendor's control effectiveness
To verify the vendor's ongoing financial viability
To assess the vendor's risk mitigation plans
The primary reason to perform periodic vendor risk assessments is to monitor the vendor’s control effectiveness. A vendor risk assessment is a process of evaluating the risks associated with outsourcing a service or function to a third-party vendor. The assessment should be performed periodically to ensure that the vendor is complying with the contractual obligations, service level agreements, and security standards, and that the vendor’s controls are operating effectively to mitigate the risks. Providing input to the organization’s risk appetite, verifying the vendor’s ongoing financial viability, and assessing the vendor’s risk mitigation plans are other possible reasons, but they are not as important as monitoring the vendor’s control effectiveness. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.
Which of the following is MOST important when conducting a post-implementation review as part of the system development life cycle (SDLC)?
Verifying that project objectives are met
Identifying project cost overruns
Leveraging an independent review team
Reviewing the project initiation risk matrix
The most important activity when conducting a post-implementation review as part of the system development life cycle (SDLC) is to verify that the project objectives are met. The project objectives are the specific and measurable outcomes that the project aims to achieve. By verifying that the project objectives are met, the post-implementation review can evaluate the success and value of the project, and identify the lessons learned and best practices for future projects. Identifying project cost overruns, leveraging an independent review team, and reviewing the project initiation risk matrix are other possible activities, but they are not as important as verifying that the project objectives are met. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.
Recovery the objectives (RTOs) should be based on
minimum tolerable downtime
minimum tolerable loss of data.
maximum tolerable downtime.
maximum tolerable loss of data
Recovery time objectives (RTOs) are the acceptable timeframes within which business processes must be restored after a disruption. RTOs should be based on the maximum tolerable downtime (MTD), which is the longest time that a business process can be inoperable without causing irreparable harm to the organization. The other options are not directly related to RTOs, as they refer to the amount of data loss or corruption that can be tolerated, not the time to restore the business processes. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.3: Key Risk Indicators, page 197.
Who is the BEST person to the employee personal data?
Human resources (HR) manager
System administrator
Data privacy manager
Compliance manager
The HR manager is the person or entity that has the authority and responsibility to collect, process, and protect the personal data of the employees in the organization. The HR manager helps to manage the employee personal data, because they help to establish and enforce the data policies and standards for the employees, and to comply with the legal and regulatory requirements, such as the GDPR. The HR manager also helps to monitor and report on the data performance and compliance for the employees, and to identify and address any issues or gaps in the data management activities. The other options are not the best person to manage the employee personal data, although they may be involved in the process. System administrator, data privacy manager, and compliance manager are all examples of roles or functions that can help to support or implement the data management activities, but they do not necessarily have the authority or responsibility to collect, process, or protect the employee personal data
During an acquisition, which of the following would provide the MOST useful input to the parent company's risk practitioner when developing risk scenarios for the post-acquisition phase?
Risk management framework adopted by each company
Risk registers of both companies
IT balanced scorecard of each company
Most recent internal audit findings from both companies
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 balanced scorecard, 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.
Who should be responsible (of evaluating the residual risk after a compensating control has been
Compliance manager
Risk owner
Control owner
Risk practitioner
The control owner should be responsible for evaluating the residual risk after a compensating control has been implemented. A compensating control is a control that provides an alternative or additional measure of protection when the primary or preferred control is not feasible or effective. A residual risk is the risk that remains after the risk response or mitigation has been applied. The control owner is the person who has the authority and responsibility for designing, implementing, and monitoring the controls that enforce the policy. The control owner can assess the impact and effectiveness of the compensating control on the residual risk, and report the results and recommendations to the risk owner or the risk practitioner. The other options are not as responsible as the control owner, as they are related to the compliance, ownership, or management of the risk, not the evaluation of the control. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.
An organization is analyzing the risk of shadow IT usage. Which of the following is the MOST important input into the assessment?
Business benefits of shadow IT
Application-related expresses
Classification of the data
Volume of data
The most important input into the assessment of the risk of shadow IT usage is the classification of the data that is being processed, stored, or transmitted by the unauthorized applications or devices. This determines the level of confidentiality, integrity, and availability that is required for the data and the potential impact of a breach or loss. Business benefits of shadow IT, application-related expenses, and volume of data are less important inputs that may affect the risk analysis, but not as much as the data classification. References = Risk IT Framework, 2nd Edition, page 28; CRISC Review Manual, 6th Edition, page 98.
Which of the following should be of GREATEST concern when reviewing the results of an independent control assessment to determine the effectiveness of a vendor's control environment?
The report was provided directly from the vendor.
The risk associated with multiple control gaps was accepted.
The control owners disagreed with the auditor's recommendations.
The controls had recurring noncompliance.
The most concerning issue when reviewing the results of an independent control assessment to determine the effectiveness of a vendor’s control environment is that the controls had recurring noncompliance. This indicates that the vendor’s controls are not operating as intended or designed, and that the vendor is not taking corrective actions to address the control deficiencies. This can increase the risk exposure and liability for the organization that outsources the service or function to the vendor. The report being provided directly from the vendor, the risk associated with multiple control gaps being accepted, and the control owners disagreeing with the auditor’s recommendations are other possible issues, but they are not as critical as the recurring noncompliance. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.
Which of the following would be the result of a significant increase in the motivation of a malicious threat actor?
Increase in mitigating control costs
Increase in risk event impact
Increase in risk event likelihood
Increase in cybersecurity premium
The result of a significant increase in the motivation of a malicious threat actor would be an increase in risk event likelihood. The likelihood of a risk event is influenced by the factors of threat, vulnerability, and exposure. The motivation of a threat actor is a key component of the threat factor, as it reflects the intent and capability of the actor to exploit a vulnerability. Therefore, a higher motivation would imply a higher probability of an attack. An increase in mitigating control costs, risk event impact, or cybersecurity premium are possible consequences of a risk event, but they are not directly affected by the motivation of the threat actor. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 6; CRISC Review Manual, 6th Edition, page 67.
Which of the following s MOST likely to deter an employee from engaging in inappropriate use of company owned IT systems?
A centralized computer security response team
Regular performance reviews and management check-ins
Code of ethics training for all employees
Communication of employee activity monitoring
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. The purpose 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.
The MAIN reason for prioritizing IT risk responses is to enable an organization to:
determine the risk appetite.
determine the budget.
define key performance indicators (KPIs).
optimize resource utilization.
Optimizing resource utilization is the main reason for prioritizing IT risk responses, as it helps to allocate resources to the most critical and urgent risks. The other options are not the main reasons for prioritizing IT risk responses, although they may be related to the process.
Which of the following is MOST important for maintaining the effectiveness of an IT risk register?
Removing entries from the register after the risk has been treated
Recording and tracking the status of risk response plans within the register
Communicating the register to key stakeholders
Performing regular reviews and updates to the register
An IT risk register is a document that records the identified IT risks, their analysis, and their responses. It is a useful tool for managing and communicating the IT risks throughout the project or the organization. The most important factor for maintaining the effectiveness of an IT risk register is to perform regular reviews and updates to the register, meaning that the risk practitioner should periodically check and revise the risk register to reflect the changes in the IT risk environment, the project status, or the organization’s objectives. Performing regular reviews and updates to the register can help to ensure that the risk register is accurate, complete, and current, and that it provides relevant and reliable information for the risk management decision making and actions. Performing regular reviews and updates to the register can also help to identify any new or emerging IT risks, as well as to monitor and report on the IT risk performance and improvement. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, p. 106-107
Which of the following will BEST help to ensure the continued effectiveness of the IT risk management function within an organization experiencing high employee turnover?
Well documented policies and procedures
Risk and issue tracking
An IT strategy committee
Change and release management
The best way to ensure the continued effectiveness of the IT risk management function within an organization experiencing high employee turnover is to have well documented policies and procedures. Policies and procedures are the formal documents that define the roles, responsibilities, processes, and standards for the IT risk management function. They provide guidance, consistency, and continuity for the IT risk management activities and outcomes. They also facilitate the knowledge transfer, training, and performance evaluation of the IT risk management staff. The other options are not as helpful as well documented policies and procedures, as they are related to the tools, mechanisms, or structures that support the IT risk management function, not the foundation and direction of the IT risk management function. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Management Process, page 15.
When preparing a risk status report for periodic review by senior management, it is MOST important to ensure the report includes
risk exposure in business terms
a detailed view of individual risk exposures
a summary of incidents that have impacted the organization.
recommendations by an independent risk assessor.
When preparing a risk status report for periodic review by senior management, it is most important to ensure the report includes risk exposure in business terms. Risk exposure is the potential loss or harm that may result from a risk event. Expressing risk exposure in business terms can help senior management to understand the impact and significance of the risk on the organization’s objectives, performance, and value. A detailed view of individual risk exposures, a summary of incidents that have impacted the organization, and recommendations by an independent risk assessor are other possible contents of the report, but they are not as important as risk exposure in business terms. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 10; CRISC Review Manual, 6th Edition, page 140.
Which of the following is MOST helpful to understand the consequences of an IT risk event?
Fault tree analysis
Historical trend analysis
Root cause analysis
Business impact analysis (BIA)
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
Which of the following is MOST important for mitigating ethical risk when establishing accountability for control ownership?
Ensuring processes are documented to enable effective control execution
Ensuring regular risk messaging is Included in business communications from leadership
Ensuring schedules and deadlines for control-related deliverables are strictly monitored
Ensuring performance metrics balance business goals with risk appetite
The most important thing for mitigating ethical risk when establishing accountability for control ownership is to ensure that the performance metrics balance business goals with risk appetite. Performance metrics are the measures that evaluate the achievement of the objectives or the performance of the processes or controls. Business goals are the desired or expected outcomes or results of the business activities or processes. Risk appetite is the amount and type of risk that the organization is willing and able to take. Ethical risk is the risk that arises from the violation or breach of the ethical principles or standards of the organization or the profession. To mitigate ethical risk, the performance metrics should balance business goals with risk appetite, meaning that they should not encourage or reward excessive or inappropriate risk-taking or unethical behavior, but rather promote and support responsible and ethical risk management and decision making. The other options are not as important as ensuring performance metrics balance business goals with risk appetite, as they are related to the documentation, communication, or monitoring of the processes or controls, not the evaluation or alignment of the performance metrics. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Key Performance Indicators, page 183.
In order to determining a risk is under-controlled the risk practitioner will need to
understand the risk tolerance
monitor and evaluate IT performance
identify risk management best practices
determine the sufficiency of the IT risk budget
To determine if a risk is under-controlled, the risk practitioner will need to understand the risk tolerance. Risk tolerance is the acceptable or allowable level of variation or deviation from the expected or desired outcomes or objectives. Risk tolerance reflects the amount and type of risk that the organization is willing and able to take. A risk is under-controlled when the risk exposure exceeds the risk tolerance, meaning that the organization is taking on more risk than it can handle or afford. Therefore, the risk practitioner will need to understand the risk tolerance to compare it with the risk exposure and identify the gap or difference. The other options are not as relevant as understanding the risk tolerance, as they are related to the monitoring, identification, or determination of the risk or the IT performance, not the comparison or evaluation of the risk. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.
Which of the following is MOST important information to review when developing plans for using emerging technologies?
Existing IT environment
IT strategic plan
Risk register
Organizational strategic plan
The most important information to review when developing plans for using emerging technologies is the organizational strategic plan. The organizational strategic plan is a document that defines the vision, mission, goals, and objectives of the organization. It also outlines the strategies, actions, and resources that are needed to achieve them. The organizational strategic plan provides the direction, alignment, and guidance for the use of emerging technologies, and ensures that they are aligned with and support the organizational needs and priorities. The other options are not as important as the organizational strategic plan, as they are related to the current state, specific area, or potential issues of the use of emerging technologies, not the overall purpose and value of the use of emerging technologies. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.2: IT Risk Identification Methods, page 19.
Which of the following is MOST important for senior management to review during an acquisition?
Risk appetite and tolerance
Risk framework and methodology
Key risk indicator (KRI) thresholds
Risk communication plan
The most important factor for senior management to review during an acquisition is the risk appetite and tolerance of the target organization. The risk appetite and tolerance reflect the amount and type of risk that an organization is willing to accept in pursuit of its objectives. By reviewing the risk appetite and tolerance of the target organization, senior management can determine if they are compatible with their own, and if the acquisition will create any significant risk exposure or opportunity for the acquiring organization. Risk framework and methodology, key risk indicator (KRI) thresholds, and risk communication plan are other factors that may be reviewed, but they are not as important as the risk appetite and tolerance. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.
Which of the following BEST enables a risk practitioner to understand management's approach to organizational risk?
Organizational structure and job descriptions
Risk appetite and risk tolerance
Industry best practices for risk management
Prior year's risk assessment results
The best way to enable a risk practitioner to understand management’s approach to organizational risk is to know the risk appetite and risk tolerance of the organization. Risk appetite is the amount and type of risk that an organization is willing to pursue, retain, or take in order to achieve its objectives. Risk tolerance is the amount and type of risk that an organization is willing to accept in relation to specific performance measures, such as availability, reliability, or security. Risk appetite and risk tolerance reflect the management’s attitude, preferences, and expectations towards risk, and guide the risk management process, such as risk identification, assessment, response, and monitoring. The other options are not as effective as knowing the risk appetite and risk tolerance, although they may provide some input or context for understanding the management’s approach to organizational risk. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.1, page 1-8.
Risk appetite should be PRIMARILY driven by which of the following?
Enterprise security architecture roadmap
Stakeholder requirements
Legal and regulatory requirements
Business impact analysis (BIA)
Risk appetite should be primarily driven by stakeholder requirements. Stakeholder requirements are the needs and expectations of the internal and external parties that have an interest or influence in the organization’s objectives or operations, such as the board, management, employees, customers, regulators, investors, etc. Risk appetite is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives. Risk appetite should be driven by stakeholder requirements, because they reflect the organization’s mission, vision, values, and strategy, and they provide the basis and direction for the organization’s risk management activities. Risk appetite should also be aligned and communicated with stakeholder requirements, because they affect the organization’s performance and reputation, and they require the organization’s accountability and transparency. The other options are not the primary drivers of risk appetite, although they may be considered or influenced by risk appetite. Enterprise security architecture roadmap, legal and regulatory requirements, and business impact analysis (BIA) are all factors that could affect the organization’s risk profile, risk assessment, or risk response, but they do not necessarily determine or reflect the organization’s risk appetite. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.1, page 2-23.
Which of the following is the MOST important concern when assigning multiple risk owners for an identified risk?
Accountability may not be clearly defined.
Risk ratings may be inconsistently applied.
Different risk taxonomies may be used.
Mitigation efforts may be duplicated.
The most important concern when assigning multiple risk owners for an identified risk is that accountability may not be clearly defined. Accountability is the obligation of an individual or group to take responsibility for the risk and its associated actions and outcomes. If multiple risk owners are assigned for the same risk, there may be confusion, conflict, or overlap in their roles and responsibilities, and they may not be held accountable for the risk management performance. Risk ratings being inconsistently applied, different risk taxonomies being used, and mitigation efforts being duplicated are other possible concerns, but they are not as important as accountability not being clearly defined. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.
Senior management is deciding whether to share confidential data with the organization's business partners. The BEST course of action for a risk practitioner would be to submit a report to senior management containing the:
possible risk and suggested mitigation plans.
design of controls to encrypt the data to be shared.
project plan for classification of the data.
summary of data protection and privacy legislation.
The best course of action for a risk practitioner when senior management is deciding whether to share confidential data with the organization’s business partners is to submit a report to senior management containing the possible risk and suggested mitigation plans. A risk practitioner is a professional who is responsible for identifying, assessing, and managing the risks that could affect the organization’s objectives or operations. A risk practitioner should provide senior management with the information and guidance they need to make informed and effective decisions regarding the sharing of confidential data. A risk practitioner should submit a report that outlines the possible risk scenarios, such as data loss, theft, or compromise, and their likelihood and impact. A risk practitioner should also suggest mitigation plans, such as encryption, access control, monitoring, or contractual agreements, that could reduce or transfer the risk. The other options are not as effective as submitting a report containing the possible risk and suggested mitigation plans, although they may be part of or derived from the report. Designing controls to encrypt the data to be shared, developing a project plan for classification of the data, and summarizing the data protection and privacy legislation are all activities or outcomes that could be included or referenced in the report, but they are not the best course of action for a risk practitioner. References = CISA Review Manual, 27th Edition, Chapter 2, Section 2.3.1, page 2-23
An organization has recently hired a large number of part-time employees. During the annual audit, it was discovered that many user IDs and passwords were documented in procedure manuals for use by the part-time employees. Which of the following BEST describes this situation?
Threat
Risk
Vulnerability
Policy violation
Documenting user IDs and passwords in procedure manuals is a vulnerability that exposes the organization to unauthorized access, data breaches, and other security risks. A vulnerability is a weakness or flaw in a system, process, or control that can be exploited by a threat. A threat is a potential cause of an unwanted incident that may harm the system or organization. A risk is the combination of the likelihood and impact of a threat exploiting a vulnerability. A policy violation is an act of non-compliance with a rule or standard that is established by the organization. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 67.
Which of the following stakeholders are typically included as part of a line of defense within the three lines of defense model?
Board of directors
Vendors
Regulators
Legal team
The three lines of defense model is a framework that describes the roles and responsibilities of different stakeholders in the risk management and internal control processes of an organization. The three lines of defense are:
The first line of defense: the operational management and staff who are responsible for identifying, assessing, and responding to the risks, as well as implementing and maintaining the controls within their areas of activity.
The second line of defense: the risk management, compliance, and security functions who are responsible for establishing the risk policies and standards, providing guidance and support, monitoring and reporting on the risk performance and compliance, and facilitating the risk management and internal control processes across the organization.
The third line of defense: the internal audit function who is responsible for providing independent and objective assurance on the effectiveness and efficiency of the risk management and internal control processes, as well as recommending improvements and best practices. The stakeholders who are typically included as part of a line of defense within the three lines of defense model are the legal team, who belong to the second line of defense. The legal team is responsible for ensuring that the organization complies with the relevant laws and regulations, as well as for advising and assisting the organization on the legal aspects and implications of the risk management and internal control processes. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.4.1, p. 32-33
Which of the blowing is MOST important when implementing an organization s security policy?
Obtaining management support
Benchmarking against industry standards
Assessing compliance requirements
Identifying threats and vulnerabilities
The most important thing when implementing an organization’s security policy is to obtain management support. Management support means that the senior management and the board of directors endorse, approve, and fund the security policy and its implementation. Management support also means that the management communicates, promotes, and enforces the security policy across the organization. Management support can help to ensure that the security policy is aligned with the organizational strategy and objectives, and that it is effective, consistent, and sustainable. The other options are not as important as obtaining management support, as they are related to the specific aspects or components of the security policy implementation, not the overall success and acceptance of the security policy implementation. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.
Which of the following is the PRIMARY reason for a risk practitioner to review an organization's IT asset inventory?
To plan for the replacement of assets at the end of their life cycles
To assess requirements for reducing duplicate assets
To understand vulnerabilities associated with the use of the assets
To calculate mean time between failures (MTBF) for the assets
Understanding vulnerabilities associated with the use of the assets is the primary reason for a risk practitioner to review an organization’s IT asset inventory, as it helps to identify and assess the potential threats and risks to the assets. The other options are not the primary reasons for a risk practitioner to review an organization’s IT asset inventory, although they may be related to the process.
Which of the following is MOST important to determine when assessing the potential risk exposure of a loss event involving personal data?
The cost associated with incident response activities
The composition and number of records in the information asset
The maximum levels of applicable regulatory fines
The length of time between identification and containment of the incident
When assessing the potential risk exposure of a loss event involving personal data, the most important factor to determine is the composition and number of records in the information asset. The composition refers to the type and sensitivity of the personal data, such as name, address, phone number, email, social security number, health information, financial information, etc. The number of records refers to the quantity and scope of the personal data that is affected by the loss event. The composition and number of records in the information asset determine the severity and impact of the loss event, as they indicate the extent of the harm and damage that can be caused to the data subjects, the organization, and other stakeholders. The composition and number of records in the information asset also influence the cost of the incident response activities, the level of the regulatory fines, and the duration of the incident containment and recovery. References = CRISC Review Manual, 7th Edition, page 159.
A recent vulnerability assessment of a web-facing application revealed several weaknesses. Which of the following should be done NEXT to determine the risk exposure?
Code review
Penetration test
Gap assessment
Business impact analysis (BIA)
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.
Which of the following issues found during the review of a newly created disaster recovery plan (DRP) should be of MOST concern?
Some critical business applications are not included in the plan
Several recovery activities will be outsourced
The plan is not based on an internationally recognized framework
The chief information security officer (CISO) has not approved the plan
The most concerning issue found during the review of a newly created disaster recovery plan (DRP) is that some critical business applications are not included in the plan. This means that the DRP is incomplete and does not cover all the essential IT systems and services that support the business continuity. This could result in significant losses and damages in the event of a disaster. The other issues are not as critical, as they can be addressed by ensuring proper contracts, standards, and approvals are in place for the outsourced activities, the framework, and the CISO. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.
Which of the following would provide the MOST reliable evidence of the effectiveness of security controls implemented for a web application?
Penetration testing
IT general controls audit
Vulnerability assessment
Fault tree analysis
The most reliable evidence of the effectiveness of security controls implemented for a web application is penetration testing. Penetration testing is a process that simulates an attack on the web application by exploiting its vulnerabilities, using the same tools and techniques as real attackers. Penetration testing helps to evaluate the effectiveness of security controls, because it helps to verify that the security controls can prevent, detect, or mitigate the attack, and to measure the impact and severity of the attack. Penetration testing also helps to identify and address any weaknesses or gaps in the security controls, and to provide recommendations and solutions for improving the security of the web application. The other options are not as reliable as penetration testing, although they may provide some evidence of the effectiveness of security controls. IT general controls audit, vulnerability assessment, and fault tree analysis are all examples of analytical or evaluative methods, which may help to assess or estimate the effectiveness of security controls, but they do not necessarily test or measure the effectiveness of security controls in a realistic scenario. References = 10
Which of the following BEST reduces the risk associated with the theft of a laptop containing sensitive information?
Cable lock
Data encryption
Periodic backup
Biometrics access control
The best way to reduce the risk associated with the theft of a laptop containing sensitive information is to use data encryption. Data encryption is a process that transforms the data into an unreadable or unintelligible format, using a secret key or algorithm, to protect the data from unauthorized access or disclosure. Data encryption helps to reduce the risk of data theft, because even if the laptop is stolen, the data on the laptop cannot be accessed or used by the thief without the proper key or algorithm. Data encryption also helps to comply with the relevant laws, regulations, standards, and contracts that may require the protection of sensitive data. The other options are not as effective as data encryption, although they may provide some protection for the laptop or the data. A cable lock, a periodic backup, and a biometrics access control are all examples of physical or logical controls, which may help to prevent or deter the theft of the laptop, or to recover or restore the data on the laptop, but they do not necessarily protect the data from unauthorized access or disclosure if the laptop is stolen. References = 8
Which of the following BEST enables effective IT control implementation?
Key risk indicators (KRIs)
Documented procedures
Information security policies
Information security standards
Documented procedures are the best way to enable effective IT control implementation. Documented procedures are the specific actions or steps that are performed to achieve the IT control objectives and mitigate the IT risks. Documented procedures provide clear guidance, consistency, and accountability for the IT control activities. Documented procedures also help to monitor and evaluate the effectiveness and efficiency of the IT controls, and to identify and address any gaps or weaknesses. The other options are not as effective as documented procedures, although they may support or complement the IT control implementation. Key risk indicators (KRIs) are metrics that measure the likelihood and impact of IT risks, but they do not specify how to implement the IT controls. Information security policies and standards are high-level statements that define the IT security goals and requirements, but they do not detail how to implement the IT controls. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, page 1-15.
Which of the following is MOST important to promoting a risk-aware culture?
Regular testing of risk controls
Communication of audit findings
Procedures for security monitoring
Open communication of risk reporting
Open communication of risk reporting is the most important factor for promoting a risk-aware culture, because it fosters trust, transparency, and accountability among all stakeholders. It also enables timely and informed decision-making, feedback, and learning from risk events. Regular testing of risk controls, communication of audit findings, and procedures for security monitoring are all important aspects of risk management, but they do not necessarily create a risk-aware culture, which requires a shared understanding and commitment to risk management across the organization. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.2, page 1-9.
What is the PRIMARY reason an organization should include background checks on roles with elevated access to production as part of its hiring process?
Reduce internal threats
Reduce exposure to vulnerabilities
Eliminate risk associated with personnel
Ensure new hires have the required skills
The primary reason an organization should include background checks on roles with elevated access to production as part of its hiring process is to reduce internal threats. Internal threats are the risks that originate from within the organization, such as employees, contractors, or partners. Roles with elevated access to production have the privilege and ability to access, modify, or delete sensitive or critical data and systems. If these roles are assigned to individuals who have malicious intent, criminal records, or conflicts of interest, they may pose a significant threat to the organization’s security, integrity, and availability. By conducting background checks, the organization can verify the identity, credentials, and history of the candidates, and prevent or minimize the possibility of hiring untrustworthy or unsuitable individuals. The other options are not as important as reducing internal threats, as they are related to the outcomes, impacts, or requirements of the roles with elevated access to production, not the reasons for conducting background checks. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.
Which of the following is the BEST way to ensure data is properly sanitized while in cloud storage?
Deleting the data from the file system
Cryptographically scrambling the data
Formatting the cloud storage at the block level
Degaussing the cloud storage media
The best way to ensure data is properly sanitized while in cloud storage is to cryptographically scramble the data. Cryptographic scrambling is the process of transforming data into an unreadable form using a secret key or algorithm. Cryptographic scrambling protects the data from unauthorized access, modification, or deletion, even if the cloud storage provider or a third party gains access to the data. Cryptographic scrambling also ensures that the data can be restored to its original form using the same key or algorithm, if needed. The other options are not as effective as cryptographic scrambling, because they either do not completely remove the data, or they make it impossible to recover the data. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, page 3-21.
A risk practitioner implemented a process to notify management of emergency changes that may not be approved. Which of the following is the BEST way to provide this information to management?
Change logs
Change management meeting minutes
Key control indicators (KCIs)
Key risk indicators (KRIs)
The best way to provide information to management about emergency changes that may not be approved is to use key risk indicators (KRIs). KRIs are metrics that measure the likelihood and impact of risks, and help monitor and prioritize the most critical risks. KRIs help to provide information to management about emergency changes, because they help to alert and inform management about the potential risks and consequences of the changes, and to support the risk decision-making and reporting processes. KRIs also help to provide information to management about emergency changes, because they help to track and evaluate the effectiveness and performance of the changes, and to identify and address any issues or gaps that may arise from the changes. The other options are not the best way to provide information to management about emergency changes, although they may be part of or derived from the KRIs. Change logs, change management meeting minutes, and key control indicators (KCIs) are all examples of documentation or communication tools, which may help to record or report the details and status of the changes, but they do not necessarily measure or monitor the risks and outcomes of the changes. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.5.1, page 4-38.
Which of the following is the GREATEST benefit of a three lines of defense structure?
An effective risk culture that empowers employees to report risk
Effective segregation of duties to prevent internal fraud
Clear accountability for risk management processes
Improved effectiveness and efficiency of business operations
A three lines of defense structure is a model that defines the roles and responsibilities of different functions and levels within an organization for risk management and control. The first line of defense is the operational management, which is responsible for owning and managing the risks. The second line of defense is the risk management and compliance functions, which are responsible for overseeing and supporting the risk management processes. The third line of defense is the internal audit function, which is responsible for providing independent assurance on the effectiveness of the risk management and control systems. The greatest benefit of a three lines of defense structure is that it provides clear accountability for risk management processes, as it clarifies who is responsible for what, and how they interact and communicate with each other. This can help to avoid duplication, confusion, or gaps in the risk management activities, and ensure that the risks are properly identified, assessed, treated, monitored, and reported. References = CRISC Review Manual, 7th Edition, page 107.
Which of the following would be a risk practitioner's BEST course of action when a project team has accepted a risk outside the established risk appetite?
Reject the risk acceptance and require mitigating controls.
Monitor the residual risk level of the accepted risk.
Escalate the risk decision to the project sponsor for review.
Document the risk decision in the project risk register.
Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite can be expressed in qualitative or quantitative terms, and can vary depending on the context and the stakeholder. Risk appetite should be defined and communicated by the senior management or the board of directors, and should guide the risk management decisions and actions throughout the organization. When a project team has accepted a risk outside the established risk appetite, the risk practitioner’s best course of action is to escalate the risk decision to the project sponsor for review, meaning that the risk practitioner should report the risk acceptance and its rationale to the project sponsor, who is the person or group that provides the resources and support for the project, and is accountable for its success. The project sponsor should review the risk decision and determine whether it is aligned with the organization’s objectives and strategy, and whether it requires any further approval or action. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.1, p. 25-26
Which of the following would BEST facilitate the implementation of data classification requirements?
Assigning a data owner
Implementing technical control over the assets
Implementing a data loss prevention (DLP) solution
Scheduling periodic audits
Assigning a data owner would best facilitate the implementation of data classification requirements. A data owner is responsible for defining the classification of the data, ensuring that the data is properly labeled, and approving access requests. Implementing technical control over the assets, implementing a data loss prevention (DLP) solution, and scheduling periodic audits are important activities, but they are not as effective as assigning a data owner. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.
Which of the following BEST indicates how well a web infrastructure protects critical information from an attacker?
Failed login attempts
Simulating a denial of service attack
Absence of IT audit findings
Penetration test
A penetration test is a simulated cyberattack on a web infrastructure to evaluate its security posture and identify any vulnerabilities or weaknesses that could be exploited by an attacker. A penetration test is the best indicator of how well a web infrastructure protects critical information from an attacker, as it mimics the real-world scenarios and techniques that an attacker would use, and measures the effectiveness of the existing security controls and countermeasures. A penetration test can also provide recommendations for improving the security of the web infrastructure and reducing the risk exposure. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 236. CRISC by Isaca Actual Free Exam Q&As, Question 9. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 236. Most Asked CRISC Exam Questions and Answers, Question 10.
A risk practitioner has collaborated with subject matter experts from the IT department to develop a large list of potential key risk indicators (KRIs) for all IT operations within the organization of the following, who should review the completed list and select the appropriate KRIs for implementation?
IT security managers
IT control owners
IT auditors
IT risk owners
IT risk owners are the most appropriate people to review the completed list of potential key risk indicators (KRIs) and select the ones that should be implemented. IT risk owners are the individuals who have the authority and accountability to manage the IT risks within their scope of responsibility. They are also responsible for defining the risk appetite, tolerance, and thresholds for their IT operations, and for ensuring that the KRIs are aligned with the business objectives and risk management strategy. IT security managers, IT control owners, and IT auditors are also involved in the risk management process, but they do not have the same level of authority and accountability as IT risk owners, and they may have different perspectives and priorities on the selection of KRIs. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.1, page 1-13.
What are the MOST essential attributes of an effective Key control indicator (KCI)?
Flexibility and adaptability
Measurability and consistency
Robustness and resilience
Optimal cost and benefit
Measurability and consistency are the most essential attributes of an effective key control indicator (KCI), because they ensure that the KCI can be quantified, compared, and reported over time. A KCI should be able to measure the performance or effectiveness of a control in mitigating a risk and provide consistent results across different periods, sources, and methods. The other options are not the most essential attributes, although they may also be desirable for a KCI. Flexibility and adaptability are not the most essential attributes, because they may compromise the reliability and comparability of the KCI. Robustness and resilience are not the most essential attributes, because they are more relevant for the control itself, not the KCI. Optimal cost and benefit are not the most essential attributes, because they are more related to the value and feasibility of the KCI, not the quality and accuracy of the KCI. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers
Which of the following is MOST important when developing risk scenarios?
Reviewing business impact analysis (BIA)
Collaborating with IT audit
Conducting vulnerability assessments
Obtaining input from key stakeholders
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
A highly regulated organization acquired a medical technology startup company that processes sensitive personal information with weak data protection controls. Which of the following is the BEST way for the acquiring company to reduce its risk while still enabling the flexibility needed by the startup company?
Identify previous data breaches using the startup company’s audit reports.
Have the data privacy officer review the startup company’s data protection policies.
Classify and protect the data according to the parent company's internal standards.
Implement a firewall and isolate the environment from the parent company's network.
Data protection is the process of safeguarding sensitive personal information from unauthorized access, use, disclosure, modification, or destruction. Data protection can help to ensure the privacy and security of the data subjects, and to comply with the legal and regulatory requirements that apply to the data processing activities1.
A highly regulated organization that acquired a medical technology startup company that processes sensitive personal information with weak data protection controls faces a high risk of data breaches, fines, lawsuits, reputational damage, or loss of customer trust. The best way for the acquiring company to reduce its risk while still enabling the flexibility needed by the startup company is to classify and protect the data according to the parent company’s internal standards, because it can help to:
Identify and categorize the sensitive personal information based on its value, sensitivity, and criticality, such as confidential, restricted, internal, or public
Apply and enforce the appropriate data protection policies, procedures, and controls for each data category, such as encryption, access control, backup, retention, or disposal
Align and integrate the data protection practices and processes of the startup company with those of the parent company, and ensure the consistency and compliance across the organization
Balance and optimize the trade-off between data protection and data usability, and allow the startup company to leverage the data for innovation and growth, as long as it meets the data protection standards of the parent company23
The other options are not the best ways for the acquiring company to reduce its risk while still enabling the flexibility needed by the startup company, but rather some of the steps or aspects of data protection. Identify previous data breaches using the startup company’s audit reports is a step that can help to assess the current data protection status and gaps of the startup company, and to learn from the past incidents and mistakes, but it does not address the future data protection needs and challenges of the startup company. Have the data privacy officer review the startup company’s data protection policies is an aspect that can help to ensure the legal and regulatory compliance of the data protection activities of the startup company, and to provide guidance and oversight for the data protection issues and risks, but it does not ensure the technical and operational effectiveness and efficiency of the data protection controls of the startup company. Implement a firewall and isolate the environment from the parent company’s network is a control that can help to prevent or limit the external or internal attacks or threats to the data of the startup company, and to reduce the exposure or impact of a data breach, but it does not ensure the availability or accessibility of the data for the legitimate and authorized purposes of the startup company. References =
Data Protection - ISACA
Data Classification - ISACA
Data Protection Best Practices - ISACA
[CRISC Review Manual, 7th Edition]
Which of the following is MOST important when considering risk in an enterprise risk management (ERM) process?
Financial risk is given a higher priority.
Risk with strategic impact is included.
Security strategy is given a higher priority.
Risk identified by industry benchmarking is included.
According to the ISACA CRISC Review Manual, an enterprise risk management (ERM) process is a holistic approach to identifying, analyzing, responding to, and monitoring all types of risk that affect the achievement of the enterprise’s objectives. The ERM process should consider all types of risk, including strategic, operational, financial, compliance, and reputational risks. Among these, strategic risks are the most important, as they have the potential to affect the enterprise’s mission, vision, and goals. Therefore, risk with strategic impact should be included in the ERM process. References = ISACA CRISC Review Manual, 7th Edition, Chapter 1, Section 1.2.1, page 17.
Which of The following should be of GREATEST concern for an organization considering the adoption of a bring your own device (BYOD) initiative?
Device corruption
Data loss
Malicious users
User support
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 introduces significant 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
Which of the following is the PRIMARY risk management responsibility of the second line of defense?
Monitoring risk responses
Applying risk treatments
Providing assurance of control effectiveness
Implementing internal controls
The primary risk management responsibility of the second line of defense is to monitor the risk responses. The second line of defense is the function that oversees and supports the risk management activities of the first line of defense, which is the function that owns and manages the risks. The second line of defense includes the risk management, compliance, and quality assurance functions, among others. The second line of defense is responsible for monitoring the risk responses, which are the actions taken to address the risks, such as avoiding, transferring, mitigating, or accepting the risks. The second line of defense monitors the risk responses to ensure that they are implemented effectively and efficiently, that they achieve the desired outcomes, and that they are aligned with the risk appetite and tolerance of the organization. The second line of defense also provides guidance, advice, and feedback to the first line of defense on the risk responses, and reports the results and issues to the senior management and the board. Applying risk treatments, providing assurance of control effectiveness, and implementing internal controls are not the primary risk management responsibilities of the second line of defense, as they are either the responsibilities of the first line of defense or the third line of defense, which is the function that provides independent assurance of the risk management activities, such as the internal audit function. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 36.
Which of the following BEST mitigates the risk of sensitive personal data leakage from a software development environment?
Tokenized personal data only in test environments
Data loss prevention tools (DLP) installed in passive mode
Anonymized personal data in non-production environments
Multi-factor authentication for access to non-production environments
Anonymizing personal data in non-production environments means replacing the real data with fictitious but realistic data that does not allow identification of the individuals. This is a good way to mitigate the risk of sensitive personal data leakage from a software development environment, as it reduces the exposure of the data to unauthorized access or misuse. Tokenizing personal data only in test environments is not sufficient, as the data may still be exposed in other non-production environments, such as development or staging. Data loss prevention tools (DLP) installed in passive mode may detect and report data leakage incidents, but they do not prevent them from happening. Multi-factor authentication for access to non-production environments may enhance the security of the access, but it does not protect the data from being leaked by authorized users or compromised by other means. References = CRISC Review Manual (Digital Version), page 226; CRISC Review Questions, Answers & Explanations Database, question 195.
In an organization dependent on data analytics to drive decision-making, which of the following would BEST help to minimize the risk associated with inaccurate data?
Establishing an intellectual property agreement
Evaluating each of the data sources for vulnerabilities
Periodically reviewing big data strategies
Benchmarking to industry best practice
Periodically reviewing big data strategies is the best option to minimize the risk of inaccurate data, because it allows the organization to assess the quality, validity, and reliability of the data sources and the analytics methods. It also enables the organization to identify and address any gaps, errors, or inconsistencies in the data and the results. By reviewing the big data strategies, the organization can ensure that the data analytics are aligned with the business objectives and the risk appetite.
Establishing an intellectual property agreement is not relevant to the risk of inaccurate data, as it is a legal measure to protect the ownership and use of the data, not its quality or accuracy.
Evaluating each of the data sources for vulnerabilities is a good practice, but it is not sufficient to minimize the risk of inaccurate data, as it only focuses on the security aspect of the data, not the validity or reliability of the data itself.
Benchmarking to industry best practice is a useful way to compare the performance and results of the data analytics, but it does not directly address the risk of inaccurate data, as it assumes that the data and the methods are already valid and reliable. References = Risk IT Framework, 2nd Edition, ISACA, 2019, page 62-63.
Which of the following would BEST assist in reconstructing the sequence of events following a security incident across multiple IT systems in the organization's network?
Network monitoring infrastructure
Centralized vulnerability management
Incident management process
Centralized log management
According to the CRISC Review Manual, centralized log management is the best way to assist in reconstructing the sequence of events following a security incident across multiple IT systems in the organization’s network, because it enables the collection, correlation, analysis, and retention of log data from various sources. Centralized log management can provide a comprehensive and consistent view of the activities and transactions that occurred before, during, and after the incident, and can facilitate the identification of the root cause, impact, and scope of the incident. The other options are not the best ways to assist in reconstructing the sequence of events, because they do not provide the same level of detail and accuracy as centralized log management. Network monitoring infrastructure is a tool that helps to monitor the performance and availability of the network, but it does not capture the log data from the IT systems. Centralized vulnerability management is a process that helps to identify and remediate the vulnerabilities in the IT systems, but it does not record the events and transactions that occurred on the systems. Incident management process is a process that helps to respond to and resolve the incidents, but it does not provide the log data from the IT systems. References = CRISC Review Manual, 7th Edition, Chapter 5, Section 5.3.2, page 263.
The GREATEST benefit of including low-probability, high-impact events in a risk assessment is the ability to:
develop a comprehensive risk mitigation strategy
develop understandable and realistic risk scenarios
identify root causes for relevant events
perform an aggregated cost-benefit analysis
Low-probability, high-impact events are those that have a low chance of occurring but would cause significant harm if they do. These events are often difficult to predict and quantify, but they can have a major impact on the organization’s objectives, reputation, or operations. By including these events in a risk assessment, the organization can develop understandable and realistic risk scenarios that reflect the potential consequences of different outcomes1. This can help the organization to prioritize its risk management activities and allocate its resources accordingly.
References = Risk and Information Systems Control Study Manual, Chapter 5: Risk Assessment Process
Which of the following describes the relationship between Key risk indicators (KRIs) and key control indicators (KCIS)?
KCIs are independent from KRIs KRIs.
KCIs and KRIs help in determining risk appetite.
KCIs are defined using data from KRIs.
KCIs provide input for KRIs
Key risk indicators (KRIs) are metrics that provide information on the level of exposure to a given risk. Key control indicators (KCIs) are metrics that measure the performance or effectiveness of a control in mitigating a risk. KCIs provide input for KRIs, because they help to assess the residual risk after applying the control. For example, if the KRI is the number of security incidents, and the KCI is the percentage of incidents detected by the intrusion prevention system (IPS), then the KCI provides input for the KRI by showing how well the IPS is reducing the risk of security breaches. References = CRISC: Certified in Risk & Information Systems Control Sample Questions
Which of the following is the GREATEST benefit for an organization with a strong risk awareness culture?
Reducing the involvement by senior management
Using more risk specialists
Reducing the need for risk policies and guidelines
Discussing and managing risk as a team
Discussing and managing risk as a team is the greatest benefit for an organization with a strong risk awareness culture, as it enables the organization to share and communicate the risk information and knowledge among all the stakeholders, and to collaborate and coordinate the risk management activities and responsibilities. Discussing and managing risk as a team can also help to foster a positive and proactive attitude toward risk, and to align the risk management process with the organization’s strategy and objectives. Discussing and managing risk as a team can also enhance the risk governance and accountability, and support the risk learning and improvement. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 252. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 252. CRISC by Isaca Actual Free Exam Q&As, Question 9.
Which of the following would be the BEST key performance indicator (KPI) for monitoring the effectiveness of the IT asset management process?
Percentage of unpatched IT assets
Percentage of IT assets without ownership
The number of IT assets securely disposed during the past year
The number of IT assets procured during the previous month
The percentage of unpatched IT assets is a KPI that measures the effectiveness of the IT asset management process in ensuring that the IT assets are updated with the latest security patches and are protected from vulnerabilities. This KPI reflects the compliance of the IT assets with the enterprise’s security policy and standards, and the ability of the IT asset management process to identify and remediate any gaps or risks in the IT asset inventory. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 5. CRISC by Isaca Actual Free Exam Q&As, Question 4. Most Asked CRISC Exam Questions and Answers, Question 10. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 4.
Which of the following controls BEST helps to ensure that transaction data reaches its destination?
Securing the network from attacks
Providing acknowledgments from receiver to sender
Digitally signing individual messages
Encrypting data-in-transit
Providing acknowledgments from receiver to sender is a control that helps to ensure that transaction data reaches its destination, as it confirms the successful delivery of the data and allows the sender to resend the data in case of failure. Securing the network from attacks, digitally signing individual messages, and encrypting data-in-transit are controls that help to ensure the integrity and confidentiality of the data, but not the availability or delivery of the data. References = CRISC by Isaca Actual Free Exam Q&As, question 199.
Which of the following is the MOST appropriate action when a tolerance threshold is exceeded?
Communicate potential impact to decision makers.
Research the root cause of similar incidents.
Verify the response plan is adequate.
Increase human resources to respond in the interim.
The most appropriate action when a tolerance threshold is exceeded is to communicate the potential impact to the decision makers. A tolerance threshold is the acceptable level of variation or deviation from the expected or planned performance or outcome of a risk response. When a tolerance threshold is exceeded, it means that the risk response is not effective or efficient enough to reduce the risk to an acceptable level, and that the enterprise is exposed to unacceptable levels of risk that could impair its ability to achieve its objectives. Therefore, the potential impact of the risk should be communicated to the decision makers, such as senior management, risk owners, or risk committee, who have the authority and responsibility to decide on the appropriate actions to address the risk situation. Communicating the potential impact can help to raise the awareness and urgency of the risk issue, and to facilitate the risk-based decision making process. Researching the root cause of similar incidents, verifying the response plan is adequate, and increasing human resources to respond in the interim are not as appropriate as communicating the potential impact, as they do not address the primary need of informing and involving the decision makers, and may not be feasible or effective in resolving the risk issue. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 41.
Which of the following BEST enables a risk practitioner to enhance understanding of risk among stakeholders?
Key risk indicators (KRIs)
Risk scenarios
Business impact analysis (BIA)
Threat analysis
Risk scenarios are descriptions of possible events or situations that could cause or affect a risk. Risk scenarios can help a risk practitioner to enhance understanding of risk among stakeholders, as they can illustrate the causes, consequences, and impacts of the risk in a clear and realistic way. Risk scenarios can also facilitate communication and collaboration among stakeholders, as they can provide a common language and framework for risk identification, analysis, and response. Risk scenarios can also support decision-making and prioritization, as they can show the likelihood and severity of the risk outcomes. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 237.
Which of the following is MOST useful when communicating risk to management?
Risk policy
Audit report
Risk map
Maturity model
A risk map is a visual tool that helps to communicate risk to management by showing the likelihood and impact of different risks on a matrix1. A risk map can help to:
Identify the most critical risks that need immediate attention or action
Compare and prioritize risks based on their severity and probability
Align risk management strategies with the organization’s risk appetite and tolerance
Communicate risk information in a clear and concise way that is easy to understand and interpret2
References = Risk and Information Systems Control Study Manual, Chapter 5: Risk Assessment Process3
An organization recently received an independent security audit report of its cloud service provider that indicates significant control weaknesses. What should be done NEXT in response to this report?
Migrate all data to another compliant service provider.
Analyze the impact of the provider's control weaknesses to the business.
Conduct a follow-up audit to verify the provider's control weaknesses.
Review the contract to determine if penalties should be levied against the provider.
An independent security audit report is a document that provides an objective and comprehensive assessment of the security posture and practices of a cloud service provider (CSP), based on a set of standards, criteria, or frameworks1. An independent security audit report can help an organization to evaluate the risks and benefits of using a CSP, and to ensure that the CSP meets the organization’s security and compliance requirements2.
If an organization receives an independent security audit report of its CSP that indicates significant control weaknesses, the next step that should be done in response to this report is to analyze the impact of the provider’s control weaknesses to the business. This means that the organization should:
Identify and prioritize the business processes, functions, or objectives that depend on or are affected by the CSP’s services
Assess the potential consequences and likelihood of the control weaknesses leading to security incidents, breaches, or losses
Estimate the financial, operational, reputational, or legal impacts of the security incidents, breaches, or losses
Compare the impacts with the organization’s risk appetite and tolerance, and determine the level of risk exposure and acceptance
Communicate the results of the analysis to the relevant stakeholders and decision-makers3
References = What is a Security Audit?, Cloud Security Audit: A 10-Step Checklist, Independent security audits are essential for cloud service providers. Here’s why
An organization discovers significant vulnerabilities in a recently purchased commercial off-the-shelf software product which will not be corrected until the next release. Which of the following is the risk manager's BEST course of action?
Review the risk of implementing versus postponing with stakeholders.
Run vulnerability testing tools to independently verify the vulnerabilities.
Review software license to determine the vendor's responsibility regarding vulnerabilities.
Require the vendor to correct significant vulnerabilities prior to installation.
The risk manager’s best course of action when discovering significant vulnerabilities in a commercial off-the-shelf software product is to review the risk of implementing versus postponing with stakeholders. This means that the risk manager should assess the potential impact and likelihood of the vulnerabilities being exploited, as well as the benefits and costs of using the software product. The risk manager should also consult with the relevant stakeholders, such as the business owners, the IT department, the security team, and the vendor, to understand their perspectives, expectations, and requirements. Based on this analysis, the risk manager should decide whether to proceed with the implementation, delay it until the next release, or look for alternative solutions. The risk manager should also document and communicate the decision and the rationale behind it, and monitor the situation for any changes or new developments.
The other options are not the best course of action, because:
Running vulnerability testing tools to independently verify the vulnerabilities is a useful step to confirm the existence and severity of the vulnerabilities, but it is not sufficient to address the risk. The risk manager still needs to evaluate the trade-offs between implementing and postponing the software product, and involve the stakeholders in the decision-making process.
Reviewing the software license to determine the vendor’s responsibility regarding vulnerabilities is an important step to understand the contractual obligations and liabilities of the vendor, but it is not enough to mitigate the risk. The risk manager still needs to consider the impact and likelihood of the vulnerabilities, and the benefits and costs of the software product, and consult with the stakeholders to decide the best course of action.
Requiring the vendor to correct significant vulnerabilities prior to installation is an unrealistic and impractical option, as the vendor has already stated that the vulnerabilities will not be corrected until the next release. The risk manager cannot force the vendor to change their schedule or priorities, and may risk damaging the relationship with the vendor. The risk manager should instead work with the vendor to understand the nature and scope of the vulnerabilities, and the expected timeline and features of the next release, and use this information to inform the risk assessment and decision-making process.
Which of the following is the MOST important technology control to reduce the likelihood of fraudulent payments committed internally?
Automated access revocation
Daily transaction reconciliation
Rule-based data analytics
Role-based user access model
A role-based user access model is a type of technology control that assigns access rights and permissions to users based on their roles and responsibilities within the organization. A role-based user access model can reduce the likelihood of fraudulent payments committed internally, because it can help to:
Enforce the principle of least privilege, which means that users only have the minimum level of access required to perform their duties
Implement segregation of duties, which means that users cannot perform conflicting or incompatible functions, such as initiating and approving payments
Prevent unauthorized or inappropriate access to sensitive data or systems, such as payment information or applications
Detect and deter fraud attempts by creating audit trails and logs of user activities and transactions
Simplify and streamline the management and maintenance of user access rights and permissions, such as adding, modifying, or deleting users or roles12
The other options are not as important as a role-based user access model for reducing the likelihood of fraudulent payments committed internally. Automated access revocation is a technology control that automatically revokes or suspends user access rights and permissions when certain conditions are met, such as termination of employment, change of role, or expiration of password. Automated access revocation can help to prevent fraud by former or inactive users, but it does not address the risk of fraud by current or active users3. Daily transaction reconciliation is a technology control that compares and verifies the transactions recorded in different systems or sources, such as bank statements and accounting records. Daily transaction reconciliation can help to detect fraud by identifying discrepancies or anomalies in the transactions, but it does not prevent fraud from occurring in the first place4. Rule-based data analytics is a technology control that applies predefined rules or criteria to analyze data and identify patterns, trends, or outliers. Rule-based data analytics can help to monitor fraud by generating alerts or reports of suspicious or unusual transactions, but it does not prevent fraud from happening or being attempted5. References =
Role-Based Access Control (RBAC) - ISACA
Role-Based Access Control: What It Is and How It Works
Automated Access Revocation - ISACA
Reconciliation - ISACA
Rule-Based Data Analytics - ISACA
[CRISC Review Manual, 7th Edition]
Which of the following provides the MOST useful information when developing a risk profile for management approval?
Residual risk and risk appetite
Strength of detective and preventative controls
Effectiveness and efficiency of controls
Inherent risk and risk tolerance
A risk profile is a summary of the key risks that an organization faces, along with the corresponding risk responses, risk owners, and risk indicators1. A risk profile is a useful tool for communicating and reporting the risk status and performance to the management and other stakeholders2. When developing a risk profile for management approval, the most useful information to include is the residual risk and the risk appetite, because:
Residual risk is the level of risk that remains after the implementation of risk responses3. It indicates the degree of exposure or uncertainty that the organization still faces, and the potential impact or consequences of the risk events. Residual risk helps the management to evaluate the effectiveness and adequacy of the risk responses, and to decide whether to accept, reduce, transfer, or avoid the risk4.
Risk appetite is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives5. It reflects the organization’s risk culture, strategy, and priorities, and provides a basis for setting risk thresholds and targets. Risk appetite helps the management to align the risk profile with the organizational goals and values, and to ensure that the risk responses are consistent and proportional to the risk level6.
The other options are not the most useful information when developing a risk profile for management approval, because:
Strength of detective and preventative controls is a measure of how well the controls can identify or prevent the occurrence or impact of the risk events7. It is a part of the risk response information, but it does not provide a comprehensive or holistic view of the risk profile. It does not show the residual risk or the risk appetite, which are more relevant and important for the management approval.
Effectiveness and efficiency of controls is a measure of how well the controls achieve their intended objectives and how well they use the available resources8. It is a part of the risk performance information, but it does not provide a complete or balanced view of the risk profile. It does not show the residual risk or the risk appetite, which are more significant and meaningful for the management approval.
Inherent risk and risk tolerance are related but different concepts from residual risk and risk appetite. Inherent risk is the level of risk that exists before the implementation of risk responses3. Risk tolerance is the acceptable variation or deviation from the risk appetite or the risk objectives5. They are useful for the risk assessment and analysis, but they do not provide the current or desired state of the risk profile. They do not show the residual risk or the risk appetite, which are more critical and valuable for the management approval.
References =
Risk Profile - CIO Wiki
Risk Profile: Definition, Example, and How to Create One
Residual Risk - CIO Wiki
What is Residual Risk? - Definition from Techopedia
Risk Appetite - CIO Wiki
Risk Appetite: What It Is and Why It Matters - Gartner
Preventive and Detective Controls - CIO Wiki
Control Effectiveness and Efficiency - CIO Wiki
Which of the following provides the BEST measurement of an organization's risk management maturity level?
Level of residual risk
The results of a gap analysis
IT alignment to business objectives
Key risk indicators (KRIs)
Risk management maturity level is the degree to which an organization has developed and implemented a systematic and proactive approach to managing the risks that it faces across its various functions, processes, and activities. Risk management maturity level reflects the organization’s risk culture and capability, and its alignment with its objectives and strategies1.
The best measurement of an organization’s risk management maturity level is the key risk indicators (KRIs), which are metrics or measures that provide information on the current or potential exposure and performance of the organization in relation to specific risks. KRIs can help to:
Monitor and track the changes or trends in the risk level and the risk response over time
Identify and alert the risk issues or events that require attention or action
Evaluate and report the effectiveness and efficiency of the risk management processes and practices
Support and inform the risk decision making and improvement23
KRIs can be classified into different types, such as:
Leading KRIs, which are forward-looking and predictive, and indicate the likelihood or probability of a risk event occurring in the future
Lagging KRIs, which are backward-looking and descriptive, and indicate the impact or consequence of a risk event that has already occurred
Quantitative KRIs, which are numerical or measurable, and indicate the magnitude or severity of a risk event or outcome
Qualitative KRIs, which are descriptive or subjective, and indicate the nature or characteristics of a risk event or outcome4
The other options are not the best measurements of an organization’s risk management maturity level, but rather some of the factors or outcomes of it. Level of residual risk is the level of risk that remains after the risk response has been implemented. Level of residual risk reflects the effectiveness and efficiency of the risk response, and the need for further action or monitoring. The results of a gap analysis are the differences between the current and the desired state of the risk management processes and practices. The results of a gap analysis reflect the completeness and coverage of the risk management activities, and the areas for improvement or enhancement. IT alignment to business objectives is the extent to which IT supports and enables the achievement of the organization’s goals and strategies. IT alignment to business objectives reflects the integration and coordination of the IT and business functions, and the optimization of the IT value and performance. References =
Risk Maturity Assessment Explained | Risk Maturity Model
Key Risk Indicators - ISACA
Key Risk Indicators: What They Are and How to Use Them
Key Risk Indicators: Types and Examples
[CRISC Review Manual, 7th Edition]
Which of the following would present the MOST significant risk to an organization when updating the incident response plan?
Obsolete response documentation
Increased stakeholder turnover
Failure to audit third-party providers
Undefined assignment of responsibility
The most significant risk to an organization when updating the incident response plan is the undefined assignment of responsibility. An incident response plan is a document that defines the roles, responsibilities, procedures, and resources for responding to an incident that could disrupt the normal operations of the organization, or compromise its assets, reputation, or compliance. An incident response plan should clearly assign the responsibility for each task and activity involved in the incident response process, such as detection, containment, analysis, eradication, recovery, and reporting. Undefined assignment of responsibility could lead to confusion, duplication, conflict, or omission among the stakeholders, and impair the effectiveness and efficiency of the incident response process. Undefined assignment of responsibility could also increase the risk of escalation, recurrence, or impact of the incident, and affect the accountability and performance of the organization. Obsolete response documentation, increased stakeholder turnover, and failure to audit third-party providers are also risks, but they are not as significant as undefined assignment of responsibility, as they do not directly affect the execution and outcome of the incident response process. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 130.
Which of the following is the STRONGEST indication an organization has ethics management issues?
Employees do not report IT risk issues for fear of consequences.
Internal IT auditors report to the chief information security officer (CISO).
Employees face sanctions for not signing the organization's acceptable use policy.
The organization has only two lines of defense.
According to the CRISC Review Manual, ethics management is the process of ensuring that the enterprise’s values and principles are embedded in its culture and practices. Ethics management helps to promote trust, integrity, accountability, and transparency among the stakeholders. One of the key elements of ethics management is to encourage the reporting of IT risk issues and incidents, and to protect the whistleblowers from any retaliation or negative consequences. Therefore, if employees do not report IT risk issues for fear of consequences, it is the strongest indication that the organization has ethics management issues, as it implies that there is a lack of trust, openness, and support in the organization. The other options are not the strongest indications of ethics management issues, as they are related to other aspects of IT governance, such as audit independence, policy compliance, and risk management framework. References = CRISC Review Manual, 7th Edition, Chapter 1, Section 1.3.2, page 34.
After the review of a risk record, internal audit questioned why the risk was lowered from medium to low. Which of the following is the BEST course of action in responding to this inquiry?
Obtain industry benchmarks related to the specific risk.
Provide justification for the lower risk rating.
Notify the business at the next risk briefing.
Reopen the risk issue and complete a full assessment.
The best course of action in responding to the internal audit inquiry is to provide justification for the lower risk rating. This would demonstrate that the risk record was updated based on a valid and documented rationale, such as changes in the risk environment, risk drivers, risk indicators, or risk responses. Providing justification would also help to maintain the transparency and accountability of the risk management process, and ensure that the internal audit is satisfied with the risk assessment outcome. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.3, page 184.
Which of the following is the GREATEST advantage of implementing a risk management program?
Enabling risk-aware decisions
Promoting a risk-aware culture
Improving security governance
Reducing residual risk
A risk management program is a systematic and structured approach to identify, analyze, evaluate, treat, monitor, and communicate the risks that may affect the organization’s objectives and performance.
The greatest advantage of implementing a risk management program is enabling risk-aware decisions. This means that the organization incorporates the risk information and analysis into its decision making process, such as strategic planning, resource allocation, project management, etc.
Enabling risk-aware decisions helps to optimize the outcomes and benefits of the decisions, balance the opportunities and threats of the decisions, and align the decisions with the organization’s risk appetite and tolerance.
The other options are not the greatest advantages of implementing a risk management program. They are either secondary or not essential for risk management.
The references for this answer are:
Risk IT Framework, page 25
Information Technology & Security, page 19
Risk Scenarios Starter Pack, page 17
Which of the following is the MOST important factor when deciding on a control to mitigate risk exposure?
Relevance to the business process
Regulatory compliance requirements
Cost-benefit analysis
Comparison against best practice
The most important factor when deciding on a control to mitigate risk exposure is the cost-benefit analysis. This is a process that compares the costs and benefits of implementing a control, and determines whether the control is worth the investment. A cost-benefit analysis helps to ensure that the control is efficient and effective in reducing the risk to an acceptable level, and that it does not introduce new risks or adversely affect other objectives. A cost-benefit analysis also helps to prioritize the controls based on their value and feasibility, and to allocate the resources accordingly. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.5, page 1861
An application runs a scheduled job that compiles financial data from multiple business systems and updates the financial reporting system. If this job runs too long, it can delay financial reporting. Which of the following is the risk practitioner's BEST recommendation?
Implement database activity and capacity monitoring.
Ensure the business is aware of the risk.
Ensure the enterprise has a process to detect such situations.
Consider providing additional system resources to this job.
The risk practitioner’s best recommendation is to consider providing additional system resources to this job, as this would help to reduce the likelihood and impact of the risk of delaying financial reporting. Providing additional system resources, such as memory, CPU, disk space, or bandwidth, can improve the performance and efficiency of the application and the scheduled job. This can also help to avoid potential errors, failures, or interruptions that could affect the quality and timeliness of the financial data and reporting.
The other options are not the best recommendations for this situation. Implementing database activity and capacity monitoring is a good practice to identify and analyze the root causes of performance issues, but it does not directly address the risk of delaying financial reporting. Ensuring the business is aware of the risk is an important step to communicate and escalate the risk, but it does not provide a solution or mitigation strategy. Ensuring the enterprise has a process to detect such situations is a preventive measure to avoid or minimize the occurrence of the risk, but it does not eliminate or reduce the risk. References = Practical Recommendations for Better Enterprise Risk Management - ISACA, HR Risk Management: A Practitioner’s Guide - AIHR, Isaca CRISC today updated questions - Verified by Isaca Experts
Which of the following is the FIRST step in risk assessment?
Review risk governance
Asset identification
Identify risk factors
Inherent risk identification
The first step in risk assessment is asset identification, which is the process of identifying and documenting the assets that are relevant and valuable to the organization, such as people, information, systems, processes, or infrastructure1. Asset identification can help to:
Establish the scope and boundaries of the risk assessment, and ensure that all the assets within the scope are considered and covered2.
Determine the criticality and priority of the assets, and assign them appropriate values or ratings based on their importance and contribution to the organization’s objectives3.
Identify the potential threats and vulnerabilities that may affect the assets, and assess their likelihood and impact on the assets4.
The other options are not the first step in risk assessment, because:
Review risk governance is not the first step, but rather a prerequisite or a foundation for risk assessment. Risk governance is the system of principles, policies, roles, and responsibilities that guide and oversee the risk management activities and initiatives of the organization5. Reviewing risk governance can help to ensure that the risk assessment is aligned with the organization’s risk strategy, culture, and appetite, and that the risk assessment process is consistent, effective, and efficient6.
Identify risk factors is not the first step, but rather a subsequent or a parallel step to asset identification. Risk factors are the elements or conditions that influence or contribute to the occurrence or outcome of a risk event7. Identifying risk factors can help to understand the causes and sources of the risks, and to analyze and evaluate the risks based on their probability and severity.
Inherent risk identification is not the first step, but rather a later or a dependent step on asset identification and risk factor identification. Inherent risk is the level of risk that exists before the implementation of risk responses. Identifying inherent risk can help to measure the exposure or uncertainty of the assets, and to determine the need and extent of the risk responses.
References =
Risk Governance - CIO Wiki
Risk Governance Framework - CIO Wiki
Asset Identification - CIO Wiki
Asset Identification and Valuation - ISACA
Asset Criticality - CIO Wiki
Threat and Vulnerability Assessment - CIO Wiki
Risk Factor - CIO Wiki
[Risk Factor Analysis - CIO Wiki]
[Inherent Risk - CIO Wiki]
[Inherent Risk Assessment - CIO Wiki]
[Risk Assessment - CIO Wiki]
Which of the following provides the MOST useful information when determining if a specific control should be implemented?
Business impact analysis (BIA)
Cost-benefit analysis
Attribute analysis
Root cause analysis
A cost-benefit analysis is a tool that compares the costs and benefits of different alternatives, such as implementing or not implementing a specific control. A cost-benefit analysis provides the most useful information when determining if a specific control should be implemented, as it can show the potential savings, benefits, and risks of each option, and help the decision-makers choose the best course of action. A cost-benefit analysis can also include qualitative factors, such as security, compliance, performance, and customer satisfaction, that may be affected by the control implementation. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 256. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 256. Most Asked CRISC Exam Questions and Answers, Question 10. CRISC by Isaca Actual Free Exam Q&As, Question 9.
The BEST metric to monitor the risk associated with changes deployed to production is the percentage of:
changes due to emergencies.
changes that cause incidents.
changes not requiring user acceptance testing.
personnel that have rights to make changes in production.
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
Which of the following will BEST help in communicating strategic risk priorities?
Heat map
Business impact analysis (BIA)
Balanced Scorecard
Risk register
The best tool for communicating strategic risk priorities is a heat map. A heat map is a graphical representation of the risk profile of an enterprise, showing the likelihood and impact of various risks on a matrix. A heat map can help to highlight the most significant risks that require attention, as well as the risk appetite and tolerance levels of the enterprise. A heat map can also facilitate the comparison of risks across different business units, processes, or objectives, and enable the communication of risk information to stakeholders in a clear and concise manner. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.3.1, page 240.
Which of the following should be done FIRST when developing a data protection management plan?
Perform a cost-benefit analysis.
Identify critical data.
Establish a data inventory.
Conduct a risk analysis.
A data protection management plan is a document that outlines how an organization will protect its sensitive data from unauthorized access, use, disclosure, or loss. A data protection management plan should include the following components1:
The scope and objectives of the data protection management plan, and how it aligns with the organization’s data protection policy and strategy
The roles and responsibilities of the data protection team and other stakeholders, and how they will communicate and coordinate
The data protection risks and threats that the organization faces, and how they will be assessed and prioritized
The data protection controls and measures that the organization will implement and maintain, and how they will be monitored and evaluated
The data protection incidents and breaches that the organization may encounter, and how they will be reported and resolved
The data protection training and awareness programs that the organization will provide and conduct, and how they will be measured and improved
The first step that should be done when developing a data protection management plan is to identify critical data. This means that the organization should:
Define what constitutes sensitive data in the organization, such as personal data, confidential data, or regulated data
Identify and classify the sensitive data that the organization collects, processes, stores, or transfers, and assign appropriate labels or tags
Determine the value and importance of the sensitive data to the organization and its stakeholders, and the potential impacts or consequences of data loss or compromise
Map the data flows and locations of the sensitive data within the organization and across its partners or vendors, and document the data lifecycle stages and activities
By identifying critical data, the organization can:
Establish a clear and consistent understanding of the data protection scope and objectives, and ensure that they are relevant and realistic
Provide a comprehensive and accurate data inventory that can support the data protection risk assessment and control implementation
Identify and prioritize the data protection needs and requirements of the organization and its stakeholders, and align them with the data protection laws and standards
Communicate and report the data protection status and performance to the stakeholders and regulators, and ensure transparency and accountability
References = Guide to Developing a Data Protection Management Programme
Which of the following controls are BEST strengthened by a clear organizational code of ethics?
Detective controls
Administrative controls
Technical controls
Preventive controls
Administrative controls are the best controls to be strengthened by a clear organizational code of ethics, because they are the policies, procedures, standards, and guidelines that define the expected behavior and conduct of the employees and management. A code of ethics is an example of an administrative control that sets the ethical principles and values of the organization and helps to prevent or deter unethical or illegal actions. The other options are not the best controls to be strengthened by a clear organizational code of ethics, because they are not directly related to the ethical culture or governance of the organization. Detective controls are the controls that monitor and report the occurrence of unwanted events or incidents. Technical controls are the controls that use hardware, software, or network devices to protect the information systems and data. Preventive controls are the controls that prevent or avoid the occurrence of unwanted events or incidents. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers
Which of the following statements describes the relationship between key risk indicators (KRIs) and key control indicators (KCIs)?
KRI design must precede definition of KCIs.
KCIs and KRIs are independent indicators and do not impact each other.
A decreasing trend of KRI readings will lead to changes to KCIs.
Both KRIs and KCIs provide insight to potential changes in the level of risk.
KRIs and KCIs are both metrics that measure and monitor the risk and control environment of an enterprise. KRIs are indicators that reflect the level and trend of risk exposure, and help to identify potential risk events or issues. KCIs are indicators that reflect the performance and effectiveness of the risk controls, and help to ensure that the controls are operating as intended and mitigating the risk. Both KRIs and KCIs provide insight to potential changes in the level of risk, as they can signal the need for risk response actions, such as enhancing, modifying, or implementing new controls, or adjusting the risk strategy and objectives. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 240.
Which of the following BEST mitigates the risk of violating privacy laws when transferring personal information lo a supplier?
Encrypt the data while in transit lo the supplier
Contractually obligate the supplier to follow privacy laws.
Require independent audits of the supplier's control environment
Utilize blockchain during the data transfer
Contractually obligating the supplier to follow privacy laws is the best way to mitigate the risk of violating privacy laws when transferring personal information to a supplier, because it ensures that the supplier is legally bound to comply with the applicable laws and regulations that protect the privacy and security of the personal information. This also creates a clear accountability and liability for the supplier in case of a privacy breach, and defines the rights and obligations of both parties in relation to the personal information. The other options are not the best ways to mitigate the risk of violating privacy laws, although they may also be helpful in reducing the likelihood or impact of a privacy breach. Encrypting the data while in transit to the supplier, requiring independent audits of the supplier’s control environment, and utilizing blockchain during the data transfer are examples of technical or assurance controls that aim to protect the confidentiality, integrity, and availability of the personal information, but they do not address the legal or contractual aspects of the privacy laws. References = CRISC: Certified in Risk & Information Systems Control Sample Questions
The BEST key performance indicator (KPI) to measure the effectiveness of a backup process would be the number of:
resources to monitor backups
restoration monitoring reports
backup recovery requests
recurring restore failures
The number of recurring restore failures is the best key performance indicator (KPI) to measure the effectiveness of a backup process, as it helps to evaluate the reliability and quality of the backup data and the backup system. A backup process is a process of creating and storing copies of data or systems to enable recovery in case of data loss, corruption, or disaster. A restore process is a process of retrieving and restoring the backup data or systems to the original or alternative location or state. A restore failure is an event that occurs when the restore process fails to complete successfully or correctly, due to various reasons, such as corrupted or missing backup data, incompatible or outdated backup system, or insufficient or unavailable resources. A recurring restore failure is a restore failure that happens repeatedly or frequently, indicating a persistent or systemic problem with the backup process.
The number of recurring restore failures helps to measure the effectiveness of the backup process by providing the following benefits:
It indicates the extent and magnitude of the backup process performance and quality issues, and the impact and severity of the backup process failures on the data or system availability and integrity.
It identifies and analyzes the root causes and contributing factors of the backup process failures, and the gaps or weaknesses in the backup process design, implementation, operation, or monitoring.
It provides feedback and learning opportunities for the backup process improvement and enhancement, and guides the development and implementation of corrective or preventive actions.
It communicates and reports the backup process status and results to the relevant stakeholders, and supports the alignment of the backup process with the organizational strategy and objectives.
The other options are not the best key performance indicators (KPIs) to measure the effectiveness of a backup process. The number of resources to monitor backups is a measure of the inputs or costs of the backup process, but it does not indicate the outputs or benefits of the backup process. The number of restoration monitoring reports is a measure of the documentation or communication of the backup process, but it does not reflect the actual or potential performance or quality of the backup process. The number of backup recovery requests is a measure of the demand or frequency of the backup process, but it does not evaluate the reliability or quality of the backup process. References = 12 Process KPIs to Monitor Process Performance in 2024 - AIMultiple, IT Risk Resources | ISACA, Mastering RTO and RPO in Backup Strategies: A Key to Data Recovery Success
Which of the following would require updates to an organization's IT risk register?
Discovery of an ineffectively designed key IT control
Management review of key risk indicators (KRls)
Changes to the team responsible for maintaining the register
Completion of the latest internal audit
An IT risk register is a document that records and tracks the identified IT risks, their likelihood, impact, and mitigation strategies. It is a living document that needs to be updated regularly to reflect the current risk profile of the organization. One of the situations that would require updates to the IT risk register is the discovery of an ineffectively designed key IT control, as this would increase the likelihood or impact of the related IT risk. Management review of key risk indicators (KRIs), changes to the team responsible for maintaining the register, and completion of the latest internal audit are not reasons to update the IT risk register, as they do not affect the identified IT risks or their mitigation strategies. References = [CRISC Review Manual (Digital Version)], page 97; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 198.
The PRIMARY purpose of IT control status reporting is to:
ensure compliance with IT governance strategy.
assist internal audit in evaluating and initiating remediation efforts.
benchmark IT controls with Industry standards.
facilitate the comparison of the current and desired states.
IT control status reporting is the process of collecting and analyzing data about the effectiveness and efficiency of IT controls. IT controls are the policies, procedures, and practices that ensure the confidentiality, integrity, and availability of IT resources and information. IT control status reporting helps to monitor the performance of IT controls against the predefined objectives and criteria, and to identify any gaps or issues that need to be addressed. IT control status reporting also provides information to the stakeholders about the current status and progress of IT control implementation and improvement.
The primary purpose of IT control status reporting is to facilitate the comparison of the current and desired states of IT controls. This means that IT control status reporting helps to evaluate the gap between the actual and expected performance of IT controls, and to determine the actions and resources needed to close the gap. IT control status reporting also helps to align the IT controls with the business goals and strategies, and to ensure that the IT controls are delivering value to the organization. By comparing the current and desired states of IT controls, IT control status reporting enables continuous improvement and optimization of IT control processes and outcomes.
The other options are not the primary purpose of IT control status reporting, but rather some of the benefits or outcomes of it. IT control status reporting can help to ensure compliance with IT governance strategy, but it is not the main reason for doing it. IT governance is the framework that defines the roles, responsibilities, and relationships among the stakeholders involved in IT decision making and oversight. IT control status reporting can support IT governance by providing relevant and reliable information to the stakeholders, and by demonstrating the accountability and transparency of IT control activities. However, IT control status reporting is not the same as IT governance, and it is not the only way to ensure compliance with IT governance strategy.
IT control status reporting can also assist internal audit in evaluating and initiating remediation efforts, but it is not the main objective of it. Internal audit is an independent and objective assurance and consulting activity that evaluates the adequacy and effectiveness of IT controls, and provides recommendations for improvement. IT control status reporting can provide input and evidence to the internal audit process, and help to identify the areas of IT control that need further review or testing. IT control status reporting can also help to monitor and track the implementation of the audit findings and recommendations, and to verify the results of the remediation efforts. However, IT control status reporting is not the same as internal audit, and it is not the only source of information for internal audit.
Finally, IT control status reporting can benchmark IT controls with industry standards, but it is not the main goal of it. Industry standards are the best practices or guidelines that define the minimum requirements or expectations for IT control performance and quality. IT control status reporting can help to compare the IT controls with the industry standards, and to identify the areas of IT control that need to be enhanced or updated. IT control status reporting can also help to demonstrate the compliance or conformance of IT controls with the industry standards, and to provide assurance to the external parties or regulators. However, IT control status reporting is not the same as industry standards, and it is not the only way to benchmark IT controls. References =
Service Reporting in ITIL: Process, Objectives and Examples - KnowledgeHut
Anatomy of an effective status report - Project Management Institute
How to Create a Project Status Report [Template & Examples]
Communicating Document Control Progress on a Project
[CRISC Review Manual, 7th Edition]
Which of the following is the BEST way to manage the risk associated with malicious activities performed by database administrators (DBAs)?
Activity logging and monitoring
Periodic access review
Two-factor authentication
Awareness training and background checks
According to the CRISC Review Manual, activity logging and monitoring is the best way to manage the risk associated with malicious activities performed by database administrators (DBAs), because it enables the detection and prevention of unauthorized or inappropriate actions on the database. Activity logging and monitoring involves capturing and reviewing the activities of the DBAs, such as the commands executed, the data accessed or modified, the privileges used, and the time and duration of the sessions. Activity logging and monitoring can also provide an audit trail for accountability and forensic purposes. The other options are not the best ways to manage the risk, because they do not directly address the malicious activities of the DBAs. Periodic access review is a control that verifies the appropriateness of the access rights granted to the DBAs, but it does not monitor their actual activities. Two-factor authentication is a control that enhances the security of the authentication process, but it does not prevent the DBAs from performing malicious activities once they are authenticated. Awareness training and background checks are controls that aim to reduce the likelihood of the DBAs engaging in malicious activities, but they do not guarantee their compliance or behavior. References = CRISC Review Manual, 7th Edition, Chapter 4, Section 4.1.3, page 166.
Which of the following roles is BEST suited to help a risk practitioner understand the impact of IT-related events on business objectives?
IT management
Internal audit
Process owners
Senior management
Process owners are the best suited to help a risk practitioner understand the impact of IT-related events on business objectives, as they have the responsibility and authority over the design, execution, and performance of business processes. Process owners are also accountable for the risks and controls associated with their processes, and they can provide valuable input and feedback on the likelihood and impact of IT-related events on the process outcomes and objectives.
The other options are not the best suited to help a risk practitioner understand the impact of IT-related events on business objectives. IT management is responsible for the delivery and support of IT services and solutions, but they may not have the full visibility or understanding of the business objectives and processes. Internal audit is responsible for providing independent and objective assurance and consulting services on the effectiveness and efficiency of governance, risk management, and control processes, but they may not have the direct involvement or influence on the business objectives and processes. Senior management is responsible for setting the strategic direction and objectives of the organization, but they may not have the detailed knowledge or experience of the business processes and their risks and controls. References = IT Risk Manager: Skills and Roles & Responsibilities, IT Risk Resources | ISACA, Managing information technology risk | Business Queensland
To reduce the risk introduced when conducting penetration tests, the BEST mitigating control would be to:
require the vendor to sign a nondisclosure agreement
clearly define the project scope.
perform background checks on the vendor.
notify network administrators before testing
According to the CRISC Review Manual, notifying network administrators before testing is the best mitigating control to reduce the risk introduced when conducting penetration tests, because it helps to avoid any disruption or damage to the network services and systems. Penetration testing is a technique that simulates an attack on the network to identify and exploit the vulnerabilities and weaknesses. Notifying network administrators before testing allows them to prepare for the test, monitor the test activities, and respond to any incidents or issues that may arise during the test. The other options are not the best mitigating controls, because they do not address the risk of network disruption or damage. Requiring the vendor to sign a nondisclosure agreement is a legal measure that protects the confidentiality of the network information, but it does not prevent the vendor from causing any harm to the network. Clearly defining the project scope is a planning activity that sets the boundaries and objectives of the test, but it does not ensure the safety and availability of the network. Performing background checks on the vendor is a due diligence activity that verifies the vendor’s credentials and reputation, but it does not guarantee the vendor’s performance or behavior. References = CRISC Review Manual, 7th Edition, Chapter 4, Section 4.2.2, page 181.
Which of the following is the BEST way to determine the potential organizational impact of emerging privacy regulations?
Evaluate the security architecture maturity.
Map the new requirements to the existing control framework.
Charter a privacy steering committee.
Conduct a privacy impact assessment (PIA).
The best way to determine the potential organizational impact of emerging privacy regulations is to conduct a privacy impact assessment (PIA). A PIA is a systematic process of identifying, analyzing, and evaluating the privacy risks and impacts of a new or existing system, process, program, or initiative that involves the collection, use, storage, or disclosure of personal information. A PIA can help to ensure that the enterprise complies with the emerging privacy regulations, and that the privacy rights and expectations of the individuals are respected and protected. A PIA can also help to identify the gaps, weaknesses, and opportunities for improvement in the enterprise’s privacy policies, procedures, and controls. Evaluating the security architecture maturity, mapping the new requirements to the existing control framework, and chartering a privacy steering committee are not as comprehensive and effective as conducting a PIA, as they do not address the specific privacy risks and impacts of the enterprise’s activities. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 192.
Which of the following is MOST appropriate to prevent unauthorized retrieval of confidential information stored in a business application system?
Implement segregation of duties.
Enforce an internal data access policy.
Enforce the use of digital signatures.
Apply single sign-on for access control.
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
Which of the following will be the GREATEST concern when assessing the risk profile of an organization?
The risk profile was not updated after a recent incident
The risk profile was developed without using industry standards.
The risk profile was last reviewed two years ago.
The risk profile does not contain historical loss data.
The greatest concern when assessing the risk profile of an organization is that the risk profile was last reviewed two years ago. A risk profile is a snapshot of the current risk exposure and appetite of the organization, based on the identification, analysis, and evaluation of the risks that could affect the achievement of the organization’s objectives. A risk profile should be reviewed and updated regularly, at least annually, or whenever there are significant changes in the internal or external environment, such as new projects, strategies, regulations, or incidents. A risk profile that was last reviewed two years ago may not reflect the current risk situation and status of the organization, and may lead to inaccurate or incomplete risk assessment and response. The risk profile not being updated after a recent incident, the risk profile being developed without using industry standards, and the risk profile not containing historical loss data are also concerns, but they are not as critical as the risk profile being outdated. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 48.
When reporting on the performance of an organization's control environment including which of the following would BEST inform stakeholders risk decision-making?
The audit plan for the upcoming period
Spend to date on mitigating control implementation
A report of deficiencies noted during controls testing
A status report of control deployment
A report of deficiencies noted during controls testing is the best option to inform stakeholders risk decision-making, as it provides an accurate and timely assessment of the effectiveness and efficiency of the organization’s control environment. A report of deficiencies noted during controls testing is a document that summarizes the results of the testing activities performed on the organization’s internal controls, such as design, implementation, operation, and monitoring. A report of deficiencies noted during controls testing should include the following elements:
The scope, objectives, and methodology of the controls testing
The criteria and standards used to evaluate the controls
The findings and observations of the testing process
The root causes and impacts of the identified deficiencies
The recommendations and action plans to address the deficiencies
The roles and responsibilities of the stakeholders involved in the remediation process
A report of deficiencies noted during controls testing helps to inform stakeholders risk decision-making by providing them with relevant and reliable information on the current state of the organization’s control environment. It also helps to identify and prioritize the areas for improvement and enhancement of the control environment. A report of deficiencies noted during controls testing also facilitates the communication, collaboration, and accountability among the stakeholders involved in the risk management and control processes.
The other options are not the best options to inform stakeholders risk decision-making. The audit plan for the upcoming period is a document that outlines the scope, objectives, and methodology of the planned audit activities, but it does not provide any information on the actual performance of the organization’s control environment. Spend to date on mitigating control implementation is a measure of the resources and costs incurred to implement the risk response actions, but it does not indicate the effectiveness or efficiency of the control environment. A status report of control deployment is a document that tracks and monitors the progress and performance of the control implementation process, but it does not evaluate the quality or adequacy of the control environment. References = Internal Control Deficiencies: Identification, Reporting and Communication, IT Risk Resources | ISACA, Internal Control Testing: Techniques, Types, and Examples
Which of the following is the BEST Key control indicator KCO to monitor the effectiveness of patch management?
Percentage of legacy servers out of support
Percentage of severs receiving automata patches
Number of unpremeditated vulnerabilities
Number of intrusion attempts
The percentage of servers receiving automatic patches is the best key control indicator (KCI) to monitor the effectiveness of patch management, because it measures how well the patch management process is ensuring that the servers are updated with the latest security patches and fixes. A high percentage of servers receiving automatic patches indicates that the patch management process is effective and efficient, and that the servers are protected from known vulnerabilities and threats. The other options are not the best KCIs, because they do not directly measure the effectiveness of patch management. The percentage of legacy servers out of support, the number of unpatched vulnerabilities, and the number of intrusion attempts are examples of risk indicators or consequence indicators that measure the exposure or impact of the lack of patch management, but not the performance or outcome of the patch management process. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers
Which of the following is the MOST important consideration when selecting key risk indicators (KRIs) to monitor risk trends over time?
Ongoing availability of data
Ability to aggregate data
Ability to predict trends
Availability of automated reporting systems
Ongoing availability of data is the most important consideration when selecting key risk indicators (KRIs) to monitor risk trends over time, as it ensures that the KRIs can provide timely and reliable information on the current and future risk status and performance. KRIs are metrics that measure the level of risk exposure and the effectiveness of risk response strategies, and they should be aligned with the enterprise’s risk appetite and objectives. Ongoing availability of data means that the data sources and collection methods for the KRIs are consistent, accessible, and sustainable, and that the data quality and integrity are maintained and verified. Ability to aggregate data, ability to predict trends, and availability of automated reporting systems are not the most important considerations, as they do not affect the validity and usefulness of the KRIs, but rather the presentation and analysis of the KRI data. References = CRISC Certified in Risk and Information Systems Control – Question213; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 213.
Which of the following is the BEST way to determine whether new controls mitigate security gaps in a business system?
Complete an offsite business continuity exercise.
Conduct a compliance check against standards.
Perform a vulnerability assessment.
Measure the change in inherent risk.
A business system is a set of interconnected processes, functions, or activities that support the operations and objectives of a business1. A security gap is a weakness or flaw in a business system that can be exploited by a threat to cause harm or gain unauthorized access2. A control is a measure or mechanism that reduces the likelihood or impact of a security gap or threat3.
The best way to determine whether new controls mitigate security gaps in a business system is to perform a vulnerability assessment. A vulnerability assessment is a process of identifying and evaluating the security gaps and threats in a business system, and testing the effectiveness and efficiency of the controls that are implemented to address them. A vulnerability assessment can help to:
Measure and compare the current and desired state of the security posture and performance of the business system
Detect and prioritize the most critical and urgent security gaps and threats that may compromise the business system or its objectives
Validate and validate the adequacy and reliability of the new controls and their ability to prevent, detect, or respond to security incidents or breaches
Provide feedback and recommendations for improving the security of the business system and enhancing the security awareness and culture of the organization
References = What is a Business System?, What is a Security Gap?, What is a Control?, [What is a Vulnerability Assessment?], [Vulnerability Assessment: A Guide for Business Leaders]
When updating the risk register after a risk assessment, which of the following is MOST important to include?
Historical losses due to past risk events
Cost to reduce the impact and likelihood
Likelihood and impact of the risk scenario
Actor and threat type of the risk scenario
A risk register is a document that records and tracks the information about the risks that may affect the organization’s objectives, such as the risk description, category, source, cause, impact, probability, status, owner, response, etc.
When updating the risk register after a risk assessment, the most important information to include is the likelihood and impact of the risk scenario. This means that the risk register should reflect the current or updated estimates of the probability and consequence of the risk scenario, based on the risk analysis and evaluation methods and criteria.
The likelihood and impact of the risk scenario helps to determine the risk level and priority, select the most appropriate risk response, allocate the resources and budget for risk management, and monitor and report the risk performance and outcomes.
The other options are not the most important information to include when updating the risk register after a risk assessment. They are either secondary or not essential for risk management.
The references for this answer are:
Risk IT Framework, page 29
Information Technology & Security, page 23
Risk Scenarios Starter Pack, page 21
Which of the following is the BEST indicator of the effectiveness of IT risk management processes?
Percentage of business users completing risk training
Percentage of high-risk scenarios for which risk action plans have been developed
Number of key risk indicators (KRIs) defined
Time between when IT risk scenarios are identified and the enterprise's response
IT risk management is the process of identifying, assessing, and mitigating the risks related to the use of information technology (IT) in the organization. IT risk management aims to ensure the confidentiality, integrity, and availability of IT resources and information, and to support the IT governance and strategy of the organization1.
The best indicator of the effectiveness of IT risk management processes is the time between when IT risk scenarios are identified and the enterprise’s response. This indicator can help to measure how quickly and efficiently the organization can detect and respond to the IT risks, and how well the organization can prevent or minimize the negative impacts of the IT risks. The time between when IT risk scenarios are identified and the enterprise’s response can include:
The time taken to identify and report the IT risk scenarios, using various methods and sources, such as risk assessments, audits, monitoring, alerts, or incidents
The time taken to analyze and evaluate the IT risk scenarios, using various tools and techniques, such as risk matrices, risk registers, risk indicators, or risk models
The time taken to select and implement the IT risk responses, using various strategies and controls, such as avoidance, mitigation, transfer, or acceptance
The time taken to review and improve the IT risk management processes, using various feedback and learning mechanisms, such as lessons learned, best practices, or benchmarks23
The other options are not the best indicators of the effectiveness of IT risk management processes, but rather some of the inputs or outputs of IT risk management processes. Percentage of business users completing risk training is an indicator of the awareness and competence of the IT users and providers, which can affect the IT risk management performance, but it does not measure the IT risk management processes directly. Percentage of high-risk scenarios for which risk action plans have been developed is an indicator of the completeness and coverage of the IT risk management activities, which can affect the IT risk management outcomes, but it does not measure the IT risk management processes directly. Number of key risk indicators (KRIs) defined is an indicator of the scope and complexity of the IT risk management objectives, which can affect the IT risk management resources and capabilities, but it does not measure the IT risk management processes directly. References =
IT Risk Management - ISACA
Risk Management Process - ISACA
Risk Response - ISACA
[CRISC Review Manual, 7th Edition]
During a risk treatment plan review, a risk practitioner finds the approved risk action plan has not been completed However, there were other risk mitigation actions implemented. Which of the fallowing is the BEST course of action?
Review the cost-benefit of mitigating controls
Mark the risk status as unresolved within the risk register
Verify the sufficiency of mitigating controls with the risk owner
Update the risk register with implemented mitigating actions
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.
From a risk management perspective, the PRIMARY objective of using maturity models is to enable:
solution delivery.
resource utilization.
strategic alignment.
performance evaluation.
Maturity models are tools that help organizations assess and improve their risk management processes and capabilities. They provide a set of criteria or standards that define different levels of maturity, from ad-hoc to innovative. The primary objective of using maturity models in risk management is to enable strategic alignment, which means ensuring that the risk management activities and objectives are consistent with and support the organization’s mission, vision, values, and goals. By using maturity models, organizations can identify their current level of risk management maturity, compare it with their desired level, and plan and implement actions to close the gap. This way, they can align their risk management practices with their strategic direction and priorities, and enhance their performance and value creation. References = How to Use a Maturity Model in Risk Management — RiskOptics - Reciprocity, Using a Maturity Model to Assess Your Risk Management Program, How to Use a Risk Maturity Model to Level Up · Riskonnect
A change management process has recently been updated with new testing procedures. What is the NEXT course of action?
Monitor processes to ensure recent updates are being followed.
Communicate to those who test and promote changes.
Conduct a cost-benefit analysis to justify the cost of the control.
Assess the maturity of the change management process.
A change management process is a set of procedures and activities that ensure that any changes to the IT systems or applications are planned, approved, tested, implemented, and documented in a consistent and controlled manner.
A change management process has recently been updated with new testing procedures. This means that the process has been improved or modified to include new or additional steps or methods for verifying and validating the changes before they are deployed to the production environment.
The next course of action after updating the change management process with new testing procedures is to communicate to those who test and promote changes. This means that the change management team or function should inform and educate the people who are involved or affected by the changes, such as the developers, testers, users, customers, etc., about the new testing procedures, their purpose, benefits, requirements, and expectations.
Communicating to those who test and promote changes helps to ensure that the new testing procedures are understood and followed by all the parties, that the changes are tested and promoted in accordance with the process standards and criteria, and that the changes are delivered with the expected quality and performance.
The other options are not the next courses of action after updating the change management process with new testing procedures. They are either secondary or not essential for change management.
The references for this answer are:
Risk IT Framework, page 27
Information Technology & Security, page 21
Risk Scenarios Starter Pack, page 19
Which of the following is MOST important to the integrity of a security log?
Least privilege access
Inability to edit
Ability to overwrite
Encryption
A security log is a record of security-related events or activities that occur in an IT system, network, or application, such as user authentication, access control, firewall activity, or intrusion detection1. Security logs can help to monitor and audit the security posture and performance of the IT environment, and to detect and investigate any security incidents, breaches, or anomalies2.
The integrity of a security log refers to the accuracy and completeness of the log data, and the assurance that the log data has not been modified, deleted, or tampered with by unauthorized or malicious parties3. The integrity of a security log is essential for ensuring the reliability and validity of the log analysis and reporting, and for providing evidence and accountability for security incidents and compliance4.
Among the four options given, the most important factor to the integrity of a security log is the inability to edit. This means that the security log data should be protected from any unauthorized or accidental changes or alterations, such as adding, deleting, or modifying log entries, or changing the log format or timestamps5. The inability to edit can be achieved by implementing various controls and measures, such as:
Applying digital signatures or hashes to the log data to verify its authenticity and integrity
Encrypting the log data to prevent unauthorized access or disclosure
Implementing least privilege access to the log data to restrict who can view, modify, or delete the log data
Using write-once media or devices to store the log data, such as CD-ROMs or WORM drives
Sending the log data to a secure and centralized log server or repository, and using syslog or other protocols to ensure secure and reliable log transmission
Performing regular backups and archiving of the log data to prevent data loss or corruption
References = Security Log: Best Practices for Logging and Management, Security Audit Logging Guideline, Confidentiality, Integrity, & Availability: Basics of Information Security, Steps for preserving the integrity of log data, Guide to Computer Security Log Management
Which of the following is the BEST evidence that risk management is driving business decisions in an organization?
Compliance breaches are addressed in a timely manner.
Risk ownership is identified and assigned.
Risk treatment options receive adequate funding.
Residual risk is within risk tolerance.
Risk treatment options are the actions or plans that are implemented to modify or reduce the risk exposure of the organization. Risk treatment options receive adequate funding when the organization allocates sufficient resources and budget to support the risk response actions, and to ensure that the risk controls are effective and efficient. This is the best evidence that risk management is driving business decisions in the organization, as it shows that the organization prioritizes and values the risk management process, and that it aligns its risk strategy and objectives with its business goals and value creation. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 245. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 245. CRISC Sample Questions 2024, Question 245.
Which of the following should be the risk practitioner's FIRST course of action when an organization plans to adopt a cloud computing strategy?
Request a budget for implementation
Conduct a threat analysis.
Create a cloud computing policy.
Perform a controls assessment.
The first course of action for a risk practitioner when an organization plans to adopt a cloud computing strategy is to perform a controls assessment. This means evaluating the existing controls in the organization and the cloud service provider, and identifying the gaps and weaknesses that need to be addressed. A controls assessment can help to determine the level of risk exposure and the suitability of the cloud service model and provider for the organization’s needs and objectives. It can also help to establish the baseline for monitoring and reporting on the cloud service performance and compliance. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2.2, p. 242-243
Which of me following is MOST helpful to mitigate the risk associated with an application under development not meeting business objectives?
Identifying tweets that may compromise enterprise architecture (EA)
Including diverse Business scenarios in user acceptance testing (UAT)
Performing risk assessments during the business case development stage
Including key stakeholders in review of user requirements
The most helpful way to mitigate the risk associated with an application under development not meeting business objectives is to include key stakeholders in the review of user requirements, because this ensures that the application is designed and developed according to the needs and expectations of the end users and the business owners. Including key stakeholders in the review of user requirements also helps to avoid scope creep, requirement changes, or miscommunication that may affect the quality, functionality, or usability of the application. The other options are not the most helpful ways to mitigate the risk, although they may also be useful in reducing the likelihood or impact of the risk. Identifying threats that may compromise enterprise architecture (EA), including diverse business scenarios in user acceptance testing (UAT), and performing risk assessments during the business case development stage are examples of preventive or detective controls that aim to identify and address the potential issues or problems that may arise during the application development process, but they do not address the alignment of the application with the business objectives. References = CRISC: Certified in Risk & Information Systems Control Sample Questions
An IT department has provided a shared drive for personnel to store information to which all employees have access. Which of the following parties is accountable for the risk of potential loss of confidential information?
Risk manager
Data owner
End user
IT department
The data owner is the person who has the authority and responsibility to classify, label, and protect the information assets of the organization. The data owner is accountable for the risk of potential loss of confidential information, as they are the ones who determine the level of protection and access required for the data. The risk manager is responsible for identifying, assessing, and mitigating the risks that may affect the organization, but they are not accountable for the data itself. The end user is the person who uses the information assets for their operational tasks, but they are not accountable for the data protection or classification. The IT department is responsible for providing the technical support and infrastructure for the information assets, but they are not accountable for the data ownership or risk management. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: Data Classification, p. 69-70.
Which of the following is the MOST appropriate key risk indicator (KRI) for backup media that is recycled monthly?
Time required for backup restoration testing
Change in size of data backed up
Successful completion of backup operations
Percentage of failed restore tests
The most appropriate key risk indicator (KRI) for backup media that is recycled monthly is the percentage of failed restore tests. A KRI is a metric that measures the likelihood or impact of a risk, and provides an early warning signal of a potential risk event. The percentage of failed restore tests is a KRI that reflects the quality and reliability of the backup media, and indicates the possibility of data loss or corruption. A high percentage of failed restore tests would suggest that the backup media is not functioning properly, and that the risk of data unavailability is increasing. Therefore, this KRI would help the risk practitioner to monitor the risk and take corrective actions as needed. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.2.2, page 235.
A management team is on an aggressive mission to launch a new product to penetrate new markets and overlooks IT risk factors, threats, and vulnerabilities. This scenario BEST demonstrates an organization's risk:
management.
tolerance.
culture.
analysis.
Risk culture is the system of values and behaviors present in an organization that shapes risk decisions of management and employees1. Risk culture influences how the organization perceives, responds to, and manages the risks that may affect its objectives, operations, or assets2.
The scenario described in the question best demonstrates an organization’s risk culture, because it shows how the management team’s attitude and actions towards risk are driven by the organization’s values and goals. In this case, the organization’s risk culture is characterized by:
A high risk appetite and tolerance, which means that the organization is willing to take and accept significant risks in order to achieve its strategic objectives of launching a new product and penetrating new markets
A low risk awareness and sensitivity, which means that the organization does not pay enough attention or consideration to the potential IT risk factors, threats, and vulnerabilities that may affect its product development and market entry
A weak risk governance and control, which means that the organization does not have adequate or effective policies, procedures, or mechanisms to identify, assess, respond, or monitor the IT risks and their impacts
References = Risk Culture of Companies | ERM - Enterprise Risk Management Initiative …, Taking control of organizational risk culture | McKinsey
Which of The following is the MOST comprehensive input to the risk assessment process specific to the effects of system downtime?
Business continuity plan (BCP) testing results
Recovery lime objective (RTO)
Business impact analysis (BIA)
results Recovery point objective (RPO)
The most comprehensive input to the risk assessment process specific to the effects of system downtime is the business impact analysis (BIA). The BIA is a process of analyzing the potential impacts of disruptive events on the business processes, functions, and resources. The BIA identifies the criticality, dependencies, recovery priorities, and recovery objectives of the business processes, and quantifies the financial and non-financial impacts of system downtime. The BIA provides valuable information for the risk assessment process, as it helps to evaluate the likelihood and impact of the risks, and to determine the appropriate risk responses. Business continuity plan (BCP) testing results, recovery time objective (RTO), and recovery point objective (RPO) are not as comprehensive as the BIA, as they are derived from the BIA and focus on specific aspects of the business continuity and recovery strategies. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 130.
Which of the following is the GREATEST benefit when enterprise risk management (ERM) provides oversight of IT risk management?
Aligning IT with short-term and long-term goals of the organization
Ensuring the IT budget and resources focus on risk management
Ensuring senior management's primary focus is on the impact of identified risk
Prioritizing internal departments that provide service to customers
Enterprise risk management (ERM) is a holistic and strategic approach to managing the risks that an organization faces across its various functions, processes, and activities. ERM aims to align the organization’s risk appetite and tolerance with its objectives and vision, and to optimize the value and performance of the organization1.
IT risk management is a subset of ERM that focuses on identifying, assessing, and mitigating the risks related to the use of information technology (IT) in the organization. IT risk management aims to ensure the confidentiality, integrity, and availability of IT resources and information, and to support the IT governance and strategy of the organization2.
The greatest benefit when ERM provides oversight of IT risk management is aligning IT with short-term and long-term goals of the organization, because it can help to:
Integrate IT risk management with the overall business strategy and risk management, and ensure that IT risks are considered and addressed at the enterprise level
Align IT risk appetite and tolerance with the business risk appetite and tolerance, and ensure that IT risks are balanced with the expected benefits and opportunities
Enhance IT risk awareness and communication among the stakeholders, and ensure that IT risks are reported and escalated appropriately
Optimize IT risk response and control, and ensure that IT risks are managed efficiently and effectively
Demonstrate IT risk value and impact, and ensure that IT risks are measured and monitored against the business objectives and performance34
The other options are not the greatest benefit when ERM provides oversight of IT risk management, but rather some of the outcomes or consequences of it. Ensuring the IT budget and resources focus on risk management is a benefit that can help to allocate and prioritize the IT resources and funds according to the IT risk level and the business needs. Ensuring senior management’s primary focus is on the impact of identified risk is a benefit that can help to increase the senior management’s involvement and accountability in IT risk management, and to support the IT risk decision making and reporting. Prioritizing internal departments that provide service to customers is a benefit that can help to improve the quality and efficiency of the IT service delivery and customer satisfaction. References =
Enterprise Risk Management - ISACA
IT Risk Management - ISACA
Aligning IT risks with Enterprise Risk Management (ERM)
Five Benefits of Enterprise Risk Management : Articles : Resources …
[CRISC Review Manual, 7th Edition]
An organization practices the principle of least privilege. To ensure access remains appropriate, application owners should be required to review user access rights on a regular basis by obtaining:
business purpose documentation and software license counts
an access control matrix and approval from the user's manager
documentation indicating the intended users of the application
security logs to determine the cause of invalid login attempts
The best way to ensure that access remains appropriate for an organization that practices the principle of least privilege is to review user access rights on a regular basis by obtaining an access control matrix and approval from the user’s manager. An access control matrix is a table that shows the access rights and permissions of each user or role for each resource or function. An access control matrix helps to verify that the users have the minimum level of access required to perform their duties, and to identify any unauthorized or excessive access rights. Approval from the user’s manager helps to confirm that the user’s access rights are consistent with their current role and responsibilities, and to authorize any changes or exceptions as needed. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.2, page 1281
Which of the following would BEST indicate to senior management that IT processes are improving?
Changes in the number of intrusions detected
Changes in the number of security exceptions
Changes in the position in the maturity model
Changes to the structure of the risk register
The best indicator to senior management that IT processes are improving is the changes in the position in the maturity model. A maturity model is a framework that defines the levels of capability and performance of a process, such as IT processes, based on the criteria such as governance, management, control, measurement, and improvement. A maturity model can help to assess the current state and the desired state of the IT processes, and to identify the gaps, strengths, and opportunities for improvement. A maturity model can also help to communicate the progress and the value of the IT processes to the senior management, and to support the strategic alignment and integration of the IT processes with the business objectives. Changes in the position in the maturity model indicate that the IT processes are improving, as they show that the IT processes are moving from a lower level to a higher level of maturity, and that they are achieving higher standards of quality, efficiency, and effectiveness. Changes in the number of intrusions detected, changes in the number of security exceptions, and changes to the structure of the risk register are not as good as changes in the position in the maturity model, as they do not provide a comprehensive and consistent measure of the IT processes improvement, and they may not reflect the actual impact and performance of the IT processes. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 36.
The BEST key performance indicator (KPI) for monitoring adherence to an organization's user accounts provisioning practices is the percentage of:
accounts without documented approval
user accounts with default passwords
active accounts belonging to former personnel
accounts with dormant activity.
User accounts provisioning is the process of creating, managing, and modifying user accounts within a system or an application, based on the user’s roles, responsibilities, and requirements. User accounts provisioning is an essential part of identity and access management (IAM), which aims to ensure the confidentiality, integrity, and availability of the system or the application, and the information or resources that it handles or supports1.
The best key performance indicator (KPI) for monitoring adherence to an organization’s user accounts provisioning practices is the percentage of accounts without documented approval, because it can help to measure how well the organization follows the policies, standards, and procedures for user accounts provisioning, and how effectively the organization controls and audits the user accounts provisioning activities. The percentage of accounts without documented approval can indicate:
The level of compliance and accountability of the user accounts provisioning process, and the extent to which the user accounts provisioning requests and actions are authorized and verified by the appropriate parties, such as managers, IT staff, or security officers
The level of risk and exposure of the user accounts provisioning process, and the likelihood and impact of unauthorized or inappropriate user accounts provisioning, such as granting excessive or unnecessary access privileges, creating duplicate or fraudulent accounts, or violating legal or regulatory requirements
The level of quality and efficiency of the user accounts provisioning process, and the ability and capacity of the organization to manage and maintain the user accounts provisioning records and documents, such as forms, logs, or reports23
The other options are not the best KPIs for monitoring adherence to an organization’s user accounts provisioning practices, but rather some of the factors or outcomes of it. User accounts with default passwords are user accounts that have not changed their passwords from the initial or default values that are assigned by the system or the application. User accounts with default passwords are a factor that can increase the risk of unauthorized or malicious access to the system or the application, as the default passwords may be easily guessed or compromised by attackers. Active accounts belonging to former personnel are user accounts that have not been deactivated or deleted after the users have left the organization. Active accounts belonging to former personnel are an outcome of ineffective or inefficient user accounts deprovisioning, which is the process of revoking or removing the user accounts and access privileges when they are no longer needed or valid. Accounts with dormant activity are user accounts that have not been used or accessed for a long period of time. Accounts with dormant activity are an outcome of poor or inconsistent user accounts management, which is the process of updating or modifying the user accounts and access privileges according to the changes or needs of the users or the organization4. References =
User Provisioning for SaaS Apps: Top 10 Best Practices | Resmo
Top Identity and Access Management Metrics
KPI-driven approach to Identity & Access Management - Elimity
[CRISC Review Manual, 7th Edition]
Accountability for a particular risk is BEST represented in a:
risk register
risk catalog
risk scenario
RACI matrix
A RACI matrix is a tool that assigns the roles and responsibilities for each risk, such as who is responsible, accountable, consulted, and informed. A RACI matrix helps to clarify the expectations and accountabilities for each risk owner and stakeholder, and to ensure that the risk is managed and monitored effectively and efficiently.
A risk register is a document that records and tracks the identified risks, their likelihood, impact, and mitigation strategies. A risk register does not assign the accountability for each risk, but rather the ownership and response.
A risk catalog is a collection of risks that have been identified and categorized based on common attributes, such as source, type, or impact. A risk catalog does not assign the accountability for each risk, but rather the classification and description.
A risk scenario is a technique that simulates the possible outcomes of different risk events and assesses their impact on the enterprise’s objectives and operations. A risk scenario does not assign the accountability for each risk, but rather the analysis and evaluation.
References: CRISC Certified in Risk and Information Systems Control – Question216; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 216.
Which of the following is MOST important to have in place to ensure the effectiveness of risk and security metrics reporting?
Organizational reporting process
Incident reporting procedures
Regularly scheduled audits
Incident management policy
The most important factor to have in place to ensure the effectiveness of risk and security metrics reporting is an organizational reporting process. An organizational reporting process is a set of procedures that defines the roles, responsibilities, frequency, format, and distribution of the risk and security metrics reports. An organizational reporting process helps to ensure that the risk and security metrics are relevant, accurate, consistent, and timely, and that they provide useful information for decision making and performance improvement. An organizational reporting process also helps to align the risk and security metrics reporting with the enterprise’s objectives, strategies, and policies, and to communicate the risk and security status and issues to the appropriate stakeholders. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.3.2, page 2421
Which of the following presents the GREATEST risk to change control in business application development over the complete life cycle?
Emphasis on multiple application testing cycles
Lack of an integrated development environment (IDE) tool
Introduction of requirements that have not been approved
Bypassing quality requirements before go-live
The greatest risk to change control in business application development over the complete life cycle is the introduction of requirements that have not been approved. Requirements are the specifications or expectations of the business users or stakeholders for the application, such as the features, functions, or performance1. Change control is the process of identifying, evaluating, approving, and implementing changes to the application, such as the design, code, or configuration2. By introducing requirements that have not been approved, the organization can face significant risks, such as:
Scope creep, which is the uncontrolled or unauthorized expansion of the project scope, and can result in increased costs, delays, or errors3.
Quality issues, which can affect the reliability, usability, or security of the application, and can lead to defects, failures, or breaches4.
Stakeholder dissatisfaction, which can arise from the mismatch or inconsistency between the delivered application and the expected application, and can cause complaints, disputes, or litigation5.
The other options are not the greatest risk to change control, because:
Emphasis on multiple application testing cycles is not a risk, but rather a benefit or a best practice for change control, as it can help to ensure that the application meets the requirements and standards, and that the changes are effective and efficient.
Lack of an integrated development environment (IDE) tool is a challenge, but not a risk, for change control, as it can affect the productivity, collaboration, or integration of the developers, and can cause difficulties or inefficiencies in the development process. However, it does not directly affect the requirements or the quality of the application, and it can be overcome by using other tools or methods.
Bypassing quality requirements before go-live is a risk, but not the greatest risk, for change control, as it can compromise the quality or performance of the application, and can expose the organization to errors, failures, or breaches. However, it is less likely or frequent than introducing requirements that have not been approved, and it can be detected or prevented by using quality assurance or quality control techniques.
References =
Requirements - CIO Wiki
Change Control - CIO Wiki
Scope Creep - CIO Wiki
Quality - CIO Wiki
Stakeholder Management - CIO Wiki
[Software Testing - CIO Wiki]
[Integrated Development Environment (IDE) - CIO Wiki]
[Quality Requirements - CIO Wiki]
[Software Development Life Cycle - CIO Wiki]
A global organization is planning to collect customer behavior data through social media advertising. Which of the following is the MOST important business risk to be considered?
Regulatory requirements may differ in each country.
Data sampling may be impacted by various industry restrictions.
Business advertising will need to be tailored by country.
The data analysis may be ineffective in achieving objectives.
Customer behavior data is the information that reflects how customers interact with a brand, product, or service, such as their preferences, needs, motivations, and feedback1. Collecting customer behavior data through social media advertising can help an organization to understand its target market, improve its customer experience, and optimize its marketing strategies2.
However, collecting customer behavior data through social media advertising also poses significant business risks, especially for a global organization that operates in different countries. Among the four options given, the most important business risk to be considered is the regulatory requirements that may differ in each country. This means that the organization should:
Be aware of the different laws and regulations that govern the collection, processing, storage, and transfer of personal data in each country, such as the GDPR in the EU, the CCPA in California, or the PDPA in Singapore3
Ensure that the organization complies with the relevant data protection and privacy rules and standards in each country, such as obtaining consent, providing notice, ensuring security, and respecting rights4
Avoid or mitigate the potential legal, financial, reputational, or operational consequences of violating the data protection and privacy laws and regulations in each country, such as fines, lawsuits, sanctions, or loss of trust5
References = What is Customer Behavior Data?, How to Collect Customer Behavior Data for Marketing, Data Protection Laws Around the World, Data Protection and Privacy: The Age of Intelligent Machines, The Risks of Non-Compliance with Data Protection Laws
Which of the following information is MOST useful to a risk practitioner for developing IT risk scenarios?
Published vulnerabilities relevant to the business
Threat actors that can trigger events
Events that could potentially impact the business
IT assets requiring the greatest investment
Developing IT Risk Scenarios:
Risk scenarios are hypothetical events that describe potential threats and their impact on business operations. These scenarios are essential for identifying and assessing risks.
Importance of Potential Impact Events:
Events that could potentially impact the business provide the most useful information for developing risk scenarios because they directly relate to the organization’s objectives and operations.
Understanding these events helps in crafting realistic and relevant risk scenarios that can guide risk assessment and mitigation efforts.
Components of Risk Scenarios:
Threat Actors: Identify who might exploit vulnerabilities.
Threat Events: Describe the specific events that could impact the business.
Business Impact: Assess how these events would affect business operations, finances, reputation, etc.
Using Impact Events for Scenario Development:
Focusing on events that could disrupt critical business functions ensures that the scenarios are relevant and actionable.
It enables the risk practitioner to communicate the potential consequences effectively to stakeholders and prioritize mitigation efforts accordingly.
Comparing Other Information Sources:
Published Vulnerabilities: Useful for understanding specific threats but may not directly relate to business impact.
Threat Actors: Important for identifying potential sources of risk but not sufficient alone for scenario development.
IT Assets: Relevant for risk assessment but secondary to understanding potential impact events.
References:
The CRISC Review Manual discusses the importance of considering events that could impact the business when developing risk scenarios (CRISC Review Manual, Chapter 2: IT Risk Assessment, Section 2.4 Risk Scenario Development).
Which of the following provides the MOST useful information to trace the impact of aggregated risk across an organization's technical environment?
Business case documentation
Organizational risk appetite statement
Enterprise architecture (EA) documentation
Organizational hierarchy
Enterprise architecture (EA) documentation provides the most useful information to trace the impact of aggregated risk across the organization’s technical environment, because it describes the structure and behavior of the organization’s IT systems, applications, infrastructure, and processes, and how they support and enable the organization’s strategy and objectives. EA documentation also defines the principles, standards, and guidelines that govern the design and implementation of the IT solutions and services. Aggregated risk is the total or combined level of risk that the organization faces from multiple or interrelated sources or scenarios. Aggregated risk may have a greater impact than the sum of the individual risks, due to the synergistic or compounding effects of the risks. The technical environment is the set of IT components and capabilities that support the organization’s business functions and processes. Tracing the impact of aggregated risk across the technical environment is a process of identifying and assessing the potential or actual consequences of the aggregated risk on the performance, functionality, or security of the IT systems, applications, infrastructure, or processes. EA documentation provides the most useful information, as it helps to understand and analyze the interdependencies and relationships of the IT components and capabilities, and to evaluate the effect of the aggregated risk on the alignment and integration of IT with the organization’s strategy and objectives. Business case documentation, organizational risk appetite statement, and organizational hierarchy are all possible sources of information to trace the impact of aggregated risk, but they are not the most useful information, as they do not provide a comprehensive and detailed view of the technical environment and its architecture. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.2.1, page 183
Which of the following is MOST important when determining risk appetite?
Assessing regulatory requirements
Benchmarking against industry standards
Gaining management consensus
Identifying risk tolerance
The most important factor when determining risk appetite is gaining management consensus, as it involves obtaining the agreement and support of the senior management and the board of directors on the amount and type of risk that the organization is willing to accept in pursuit of its objectives, and ensuring the alignment and consistency of the risk appetite across the organization. The other options are not the most important factors, as they are more related to the assessment, benchmarking, or identification of the risk, respectively, rather than the determination of the risk appetite. References = CRISC Review Manual, 7th Edition, page 109.
Which of the following is a risk practitioner's BEST recommendation regarding disaster recovery management (DRM) for Software as a Service (SaaS) providers?
Conduct inoremental backups of data in the SaaS environment to a local data center.
Implement segregation of duties between multiple SaaS solution providers.
Codify availability requirements in the SaaS provider's contract.
Conduct performance benchmarking against other SaaS service providers.
Availability requirements specify the expected level of service and the consequences of non-compliance. They are essential for ensuring that the SaaS provider can meet the business continuity and disaster recovery needs of the customer. Codifying them in the contract creates a clear and enforceable agreement that protects both parties.
References
•ISACA CRISC Review Manual, 7th Edition, Domain 3: Risk Response, Section 3.2.3: Business Continuity and Disaster Recovery
•Guideline for Completing Disaster Recovery Plans for SaaS and PaaS Applications (Yale-MSS-3.1 GD.02)
•How to Build a SaaS Disaster Recovery Plan | Acsense
Zero Trust architecture is designed and deployed with adherence to which of the following basic tenets?
Incoming traffic must be inspected before connection is established.
Security frameworks and libraries should be leveraged.
Digital identities should be implemented.
All communication is secured regardless of network location.
Zero Trust Architecture:
Zero Trust is a security concept centered on the belief that organizations should not automatically trust anything inside or outside their perimeters and must verify everything attempting to connect to their systems.
Basic Tenets of Zero Trust:
The primary principle is "never trust, always verify." This means every access request is authenticated, authorized, and encrypted regardless of where it originates.
Zero Trust requires securing all communication, whether it occurs within the internal network or comes from external sources. This approach prevents lateral movement by potential attackers who have breached the network perimeter.
Key Components:
Authentication and Authorization: Continuous verification of user identities and access privileges.
Microsegmentation: Dividing the network into small, isolated segments to limit the spread of threats.
Encryption: Ensuring that all data, whether at rest or in transit, is encrypted to protect its confidentiality and integrity.
Other Options:
Incoming Traffic Inspection: While important, this is just one aspect of Zero Trust.
Security Frameworks and Libraries: These are tools and guidelines to implement security but do not define the core tenets of Zero Trust.
Digital Identities: Implementing digital identities is part of the broader Zero Trust strategy but not a standalone tenet.
References:
The CISSP Study Guide explains the Zero Trust architecture and its emphasis on securing all communications regardless of network location (Sybex CISSP Study Guide, Chapter 8: Principles of Security Models, Design, and Capabilities).
Which of the following is the PRIMARY reason for a risk practitioner to report changes and trends in the IT risk profile to senior management?
To ensure risk owners understand their responsibilities
To ensure IT risk is managed within acceptable limits
To ensure the organization complies with legal requirements
To ensure the IT risk awareness program is effective
The primary reason for a risk practitioner to report changes and trends in the IT risk profile to senior management is to ensure that IT risk is managed within acceptable limits, because it helps to inform and advise the senior management on the current state and direction of IT risk, and to support the risk-based decision making and prioritization. An IT risk profile is a summary of the key IT risks that an organization faces, and their implications for the organization’s objectives and strategy. An IT risk profile may change or evolve over time, due to factors such as new technologies, business initiatives, or external events. Reporting changes and trends in the IT risk profile to senior management is the primary reason, as it helps to ensure that the senior management is aware of and prepared for the IT risk challenges and opportunities, and that the IT risk is managed within the acceptable limits defined by the organization’s risk appetite and tolerance. To ensure risk owners understand their responsibilities, to ensure the organization complies with legal requirements, and to ensure the IT risk awareness program is effective are all possible reasons for reporting changes and trends in the IT risk profile, but they are not the primary reason, as they are not directly related to the management of IT risk within acceptable limits. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.3, page 91
Which of the following should a risk practitioner do NEXT after learning that Internet of Things (loT) devices installed in the production environment lack appropriate security controls for
sensitive data?
Assess the threat and associated impact.
Evaluate risk appetite and tolerance levels
Recommend device management controls
Enable role-based access control.
Assessing the threat and associated impact is the next thing that a risk practitioner should do after learning that Internet of Things (IoT) devices installed in the production environment lack appropriate security controls for sensitive data. This is because assessing the threat and associated impact can help determine the level and nature of the risk posed by the IoT devices, as well as the potential consequences and costs of a security breach or incident. Assessing the threat and associated impact can also provide the basis for further risk analysis and response steps, such as evaluating risk appetite and tolerance levels, recommending device management controls, or enabling role-based access control. According to the CRISC Review Manual 2022, assessing the threat and associated impact is one of the key steps in the IT risk assessment process1. According to the web search results, assessing the threat and associated impact is a common and recommended practice for addressing the security risks of IoT devices
Which of the following is PRIMARILY responsible for providing assurance to the board of directors and senior management during the evaluation of a risk management program implementation?
Risk management
Business units
External audit
Internal audit
Role of Internal Audit:
Independent Assurance: Internal audit provides an independent assessment of the effectiveness of the risk management program, offering assurance to the board of directors and senior management.
Objective Evaluation: They evaluate whether the risk management processes are properly designed and operating effectively.
Responsibilities of Internal Audit:
Review Risk Management Implementation: Assess how well the risk management program has been implemented and whether it meets the organization's goals.
Compliance Check: Ensure that the risk management program complies with relevant regulations and standards.
Reporting: Provide detailed reports to the board and senior management on the effectiveness and efficiency of the risk management program.
Comparison with Other Options:
Risk Management: While involved in the implementation, they are not independent and therefore cannot provide objective assurance.
Business Units: They are responsible for managing risks but not for providing independent assurance.
External Audit: While they provide assurance, their scope is generally broader and less frequent compared to the continuous oversight by internal audit.
Best Practices:
Regular Audits: Conduct regular audits to ensure continuous improvement and alignment with organizational goals.
Stakeholder Communication: Maintain clear communication channels between internal audit, the board, and senior management.
CRISC Review Manual: Emphasizes the importance of internal audit in providing assurance to the board and senior management on the effectiveness of the risk management program.
ISACA Standards: Highlight the critical role of internal audit in risk governance and compliance.
References:
Which of the following is the BEST approach for obtaining management buy-in
to implement additional IT controls?
List requirements based on a commonly accepted IT risk management framework.
Provide information on new governance, risk, and compliance (GRC) platform functionalities.
Describe IT risk impact on organizational processes in monetary terms.
Present new key risk indicators (KRIs) based on industry benchmarks.
Presenting the impact of IT risks on organizational processes in monetary terms is effective for obtaining management buy-in because it directly relates to the organization's financial health and decision-making. It provides a clear and tangible understanding of the potential financial implications of risks, making it easier for management to appreciate the need for additional controls.
Which of the following should be the PRIMARY focus of a disaster recovery management (DRM) framework and related processes?
Restoring IT and cybersecurity operations
Assessing the impact and probability of disaster scenarios
Ensuring timely recovery of critical business operations
Determining capacity for alternate sites
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.
CRISC Review Manual: Emphasizes the importance of focusing on the recovery of critical business operations to ensure business continuity.
ISACA Guidelines: Recommend prioritizing the timely recovery of critical operations as the primary goal of disaster recovery management efforts.
References:
Which of the following would MOST likely cause management to unknowingly accept excessive risk?
Satisfactory audit results
Risk tolerance being set too low
Inaccurate risk ratings
Lack of preventive controls
Inaccurate risk ratings would most likely cause management to unknowingly accept excessive risk, as they may not reflect the true level of risk exposure and impact, and may lead to inappropriate risk responses or decisions. Satisfactory audit results, risk tolerance being set too low, and lack of preventive controls are not the most likely causes, as they may indicate a different risk management issue, such as over-reliance on audit assurance, misalignment of risk tolerance and appetite, or insufficient risk mitigation, respectively. References = CRISC Review Manual, 7th Edition, page 109.
Which of the following is the MOST important success factor when introducing risk management in an organization?
Implementing a risk register
Defining a risk mitigation strategy and plan
Assigning risk ownership
Establishing executive management support
Establishing executive management support is the most important success factor when introducing risk management in an organization. This is because executive management support can help ensure that risk management is aligned with the organization’s vision, mission, and strategy, as well as provide the necessary resources, authority, and accountability for risk management activities. Executive management support can also help foster a risk-aware culture, promote stakeholder engagement, and facilitate risk communication and reporting. According to the CRISC Review Manual 2022, one of the key elements of IT governance is to obtain executive management support and commitment for risk management1. According to the web search results, executive management support is a critical success factor for risk management in various contexts and industries234.
Which of the following is the GREATEST benefit of having a mature enterprise architecture (EA) in place?
Standards-based policies
Audit readiness
Efficient operations
Regulatory compliance
The greatest benefit of having a mature enterprise architecture (EA) in place is efficient operations, as EA provides a holistic view of the organization’s business processes, information systems, and technology infrastructure, and enables alignment, integration, and optimization of these components. Standards-based policies, audit readiness, and regulatory compliance are also benefits of EA, but they are not the greatest benefit. References = CRISC Review Manual, 7th Edition, page 145.
During a recent security framework review, it was discovered that the marketing department implemented a non-fungible token asset program. This was done without following established risk procedures. Which of the following should the risk practitioner do FIRST?
Report the infraction.
Perform a risk assessment.
Conduct risk awareness training.
Discontinue the process.
Perform a Risk Assessment:
Immediate Action: The first step when discovering a non-compliant implementation is to understand the potential risks it poses to the organization. This involves identifying threats, vulnerabilities, and potential impacts of the non-fungible token (NFT) asset program.
Risk Identification and Evaluation: Assess the new program’s impact on the organization’s risk profile. Determine if it introduces significant security, compliance, or operational risks.
Documentation and Reporting: Document the findings and present them to senior management along with recommendations for mitigation or further action.
Comparison with Other Options:
Report the Infraction: Reporting is necessary but should follow the risk assessment to provide a clear understanding of the implications and necessary mitigations.
Conduct Risk Awareness Training: Training is preventive and should be part of a long-term strategy, not the immediate response to a specific incident.
Discontinue the Process: Discontinuing the process may be a necessary step after assessing the risk, but the assessment must come first to justify such an action.
Best Practices:
Comprehensive Risk Assessment: Ensure that the risk assessment covers all aspects, including financial, reputational, and regulatory risks.
Stakeholder Involvement: Involve relevant stakeholders in the assessment process to gather diverse perspectives and ensure a thorough evaluation.
Actionable Recommendations: Provide clear, actionable recommendations based on the risk assessment findings.
CRISC Review Manual: Discusses the importance of performing risk assessments when new systems or processes are implemented without following established procedures.
ISACA Standards: Emphasize the need for a systematic approach to identifying and assessing risks introduced by new initiatives or changes within the organization.
References:
Optimized risk management is achieved when risk is reduced:
with strategic initiatives.
to meet risk appetite.
within resource availability.
below risk appetite.
Optimized risk management is achieved when risk is reduced to meet risk appetite, which is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite reflects the strategic goals and priorities of the organization, as well as its risk culture and tolerance. Reducing risk with strategic initiatives, within resource availability, or below risk appetite are all possible approaches, but they do not necessarily optimize risk management, as they may result in over- or under-investment in risk mitigation, or misalignment with business objectives. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.2, page 47
Which of the following is the BEST recommendation when a key risk indicator (KRI) is generating an excessive volume of events?
Reevaluate the design of the KRIs.
Develop a corresponding key performance indicator (KPI).
Monitor KRIs within a specific timeframe.
Activate the incident response plan.
Reevaluating the design of the key risk indicators (KRIs) is the best recommendation when a KRI is generating an excessive volume of events, because it helps to determine whether the KRI is relevant, reliable, and valid, and whether it needs to be modified or replaced. A KRI is a metric or indicator that helps to monitor and evaluate the likelihood or impact of a risk, or the effectiveness or efficiency of a control. A KRI can be quantitative or qualitative, and can be derived from internal or external sources. An event is an occurrence or incident that may indicate a change or trend in the risk level or performance. A KRI that generates an excessive volume of events may indicate that the KRI is not well-designed or well-aligned with the risk objectives or criteria, and that it may produce false positives or negatives, or irrelevant or misleading information. Therefore, reevaluating the design of the KRIs is the best recommendation, as it helps to improve the quality and usefulness of the KRIs, and to avoid unnecessary or inappropriate actions or responses. Developing a corresponding key performance indicator (KPI), monitoring KRIs within a specific timeframe, and activating the incident response plan are all possible actions to perform after reevaluating the design of the KRIs, but they are not the best recommendation, as they do not address the root cause of the excessive volume of events. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.2, page 97
An incentive program is MOST likely implemented to manage the risk associated with loss of which organizational asset?
Employees
Data
Reputation
Customer lists
An incentive program is most likely implemented to manage the risk associated with loss of employees, as it aims to motivate, retain, and reward the employees who have valuable skills, knowledge, and experience, and to reduce the risk of employee turnover, dissatisfaction, or underperformance. Data, reputation, and customer lists are not the organizational assets that are most likely managed by an incentive program, as they are more related to the information, image, or relationship of the organization, respectively, rather than the human capital of the organization. References = CRISC Review Manual, 7th Edition, page 100.
A risk practitioner wants to identify potential risk events that affect the continuity of a critical business process. Which of the following should the risk practitioner do FIRST?
Evaluate current risk management alignment with relevant regulations.
Determine if business continuity procedures are reviewed and updated on a regular basis.
Review the methodology used to conduct the business impact analysis (BIA).
Conduct a benchmarking exercise against industry peers.
Reviewing the methodology used to conduct the business impact analysis (BIA) is the first thing that a risk practitioner should do when wanting to identify potential risk events that affect the continuity of a critical business process, because it helps to ensure that the BIA is conducted in a consistent, comprehensive, and reliable manner, and that it covers all the relevant aspects and scenarios of the business process and its continuity. A BIA is a process of analyzing the potential impact of disruption to the critical business functions or processes, and identifying the recovery priorities and requirements. A BIA methodology is a set of principles, standards, and techniques that guide and support the BIA process, such as the scope, objectives, data sources, data collection methods, data analysis methods, and reporting methods. Reviewing the BIA methodology is the first thing to do, as it helps to establish the foundation and framework for the BIA process, and to ensure that the BIA results are valid and useful for identifying the potential risk events and their consequences. Evaluating current risk management alignment with relevant regulations, determining if business continuity procedures are reviewed and updated on a regular basis, and conducting a benchmarking exercise against industry peers are all possible things to do after reviewing the BIA methodology, but they are not the first thing to do, as they depend on the quality and accuracy of the BIA process and outcomes. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 143
Which of the following is the BEST key performance indicator (KPI) to measure the ability to deliver uninterrupted IT services?
Mean time between failures (MTBF)
Mean time to recover (MTTR)
Planned downtime
Unplanned downtime
Mean time between failures (MTBF) is a key performance indicator (KPI) that measures the average time that a system or component operates without interruption or failure. MTBF is a common metric for reliability and availability of IT services. A higher MTBF indicates a lower frequency of failures and a higher ability to deliver uninterrupted IT services. According to the CRISC Review Manual 2022, MTBF is one of the KPIs for IT service delivery1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, MTBF is the correct answer to this question2.
Mean time to recover (MTTR), planned downtime, and unplanned downtime are not the best KPIs to measure the ability to deliver uninterrupted IT services. MTTR measures the average time that it takes to restore a system or component to normal operation after a failure. Planned downtime measures the scheduled time that a system or component is not available for use due to maintenance or upgrades. Unplanned downtime measures the unscheduled time that a system or component is not available for use due to failures or incidents. These KPIs are useful for measuring the impact and duration of service interruptions, but they do not directly reflect the ability to prevent or avoid service interruptions.
An organization recently experienced a cyber attack that resulted in the loss of confidential customer data. Which of the following is the risk practitioner's BEST recommendation after recovery steps have been completed?
Develop new key risk indicators (KRIs).
Perform a root cause analysis.
Recommend the purchase of cyber insurance.
Review the incident response plan.
The risk practitioner’s best recommendation after recovery steps have been completed is B. Perform a root cause analysis. A root cause analysis is a process of identifying and assessing the underlying causes of a problem or an incident. By performing a root cause analysis, the risk practitioner can help the organization to understand how and why the cyber attack happened, what vulnerabilities and gaps were exploited, and what actions and controls can be implemented to prevent or mitigate similar incidents in the future12
A root cause analysis can also help the organization to improve its incident response plan, which is a set of instructions to help IT staff detect, respond to, and recover from network security incidents3 A root cause analysis can provide valuable feedback and lessons learned from the cyber attack, and help the organization to update and test its incident response plan accordingly45
Developing new key risk indicators, recommending the purchase of cyber insurance, and reviewing the incident response plan are all possible actions that the risk practitioner can take after a cyber attack, but they are not the best recommendation. Developing new key risk indicators can help the organization to monitor and measure its risk exposure and performance, but it does not address the root causes of the cyber attack12 Recommending the purchase of cyber insurance can help the organization to hedge against the financial losses caused by cyber incidents, but it does not prevent or solve the underlying issues67 Reviewing the incident response plan can help the organization to evaluate its effectiveness and identify areas for improvement, but it does not explain how and why the cyber attack occurred345
Therefore, the best recommendation is to perform a root cause analysis, as it can help the organization to understand, resolve, and prevent the cyber attack and its consequences12
Which of the following is the MOST significant indicator of the need to perform a penetration test?
An increase in the number of high-risk audit findings
An increase in the number of security incidents
An increase in the percentage of turnover in IT personnel
An increase in the number of infrastructure changes
An increase in the number of security incidents is the most significant indicator of the need to perform a penetration test, because it suggests that the organization’s IT systems or networks are vulnerable to attacks and may not have adequate security controls in place. A penetration test is a simulated attack on an IT system or network to identify and exploit its weaknesses and evaluate its security posture. A penetration test can help to discover and remediate the vulnerabilities that may have caused or contributed to the security incidents, and to prevent or reduce the likelihood and impact of future incidents. An increase in the number of high-risk audit findings, an increase in the percentage of turnover in IT personnel, and an increase in the number of infrastructure changes are all possible indicators of the need to perform a penetration test, but they are not the most significant indicator, as they do not directly reflect the actual or potential occurrence of security incidents. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2, page 200
Which of the following should be a risk practitioner's NEXT step after learning of an incident that has affected a competitor?
Activate the incident response plan.
Implement compensating controls.
Update the risk register.
Develop risk scenarios.
The risk practitioner’s next step after learning of an incident that has affected a competitor is to develop risk scenarios, as it involves identifying and describing the potential sources, events, impacts, and responses of the risk that may affect the organization in a similar way as the competitor, and assessing the likelihood and magnitude of the risk. Activating the incident response plan, implementing compensating controls, and updating the risk register are not the next steps, as they are more related to the reaction, mitigation, or reporting of the risk, respectively, rather than the identification and assessment of the risk. References = CRISC Review Manual, 7th Edition, page 100.
An organization has restructured its business processes, and the business continuity plan (BCP) needs to be revised accordingly. Which of the following should be identified FIRST?
Variances in recovery times
Ownership assignment for controls
New potentially disruptive scenarios
Contractual changes with customers
When an organization restructures its business processes, the first step in revising the BCP is to identify new potentially disruptive scenarios that may affect the continuity of the critical functions and processes. This can be done by conducting a risk assessment or a business impact analysis (BIA) to determine the likelihood and impact of various threats and vulnerabilities on the organization’s objectives and operations. By identifying new potentially disruptive scenarios, the organization can then update its recovery strategies, objectives, and plans accordingly.
References:
•ISACA, Risk IT Framework, 2nd Edition, 2019, p. 761
•ISACA, IT Business Continuity/Disaster Recovery Audit Program, 2021, p. 52
After the announcement of a new IT regulatory requirement, it is MOST important for a risk practitioner to;
prepare an IT risk mitigation strategy.
escalate to senior management.
perform a cost-benefit analysis.
review the impact to the IT environment.
Reviewing the impact to the IT environment is the most important task for a risk practitioner to perform after the announcement of a new IT regulatory requirement, because it helps to identify and assess the gaps and risks that the new requirement may introduce or affect. A regulatory requirement is a rule or standard that an organization must comply with to meet the expectations of a regulator, such as a government agency or an industry body. A new regulatory requirement may impose new obligations, restrictions, or expectations on the organization, especially on its IT environment, which supports the business processes and functions. Therefore, reviewing the impact to the IT environment is the first step to understand the implications and implications of the new requirement, and to plan the appropriate actions to achieve compliance. Preparing an IT risk mitigation strategy, escalating to senior management, and performing a cost-benefit analysis are all important tasks to perform after reviewing the impact to the IT environment, but they are not the most important task, as they depend on the results of the impact review. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 153
A key performance indicator (KPI) shows that a process is operating inefficiently, even though no control issues were noted during the most recent risk assessment. Which of the following should be done FIRST?
Implement new controls.
Recalibrate the key performance indicator (KPI).
Redesign the process.
Re-evaluate the existing control design.
Understanding KPIs:
Key Performance Indicators (KPIs) are metrics used to evaluate the efficiency and effectiveness of a process. They must be accurate and relevant to provide meaningful insights.
Process Inefficiency Despite No Control Issues:
If a KPI shows inefficiency but no control issues are noted, it suggests that the KPI may not be accurately reflecting the process performance.
Recalibrating the KPI ensures that it correctly measures what it is intended to, providing a true picture of the process efficiency.
Steps for Recalibration:
Review the current KPI and its alignment with process objectives.
Adjust the KPI parameters or thresholds to better reflect process performance.
Validate the recalibrated KPI with historical data to ensure accuracy.
Comparing Other Actions:
Implementing New Controls: Premature without understanding the root cause of the KPI discrepancy.
Redesigning the Process: Extensive and unnecessary if the KPI is simply miscalibrated.
Re-Evaluating Existing Control Design: Important but secondary to ensuring KPI accuracy.
References:
The CRISC Review Manual emphasizes the importance of accurate KPIs in monitoring process performance and the need for recalibration when discrepancies are found (CRISC Review Manual, Chapter 3: Risk Response and Mitigation, Section 3.14 Key Performance Indicators).
Which of the following situations would BEST justify escalation to senior management?
Residual risk exceeds acceptable limits.
Residual risk is inadequately recorded.
Residual risk remains after controls have been applied.
Residual risk equals current risk.
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 the awareness 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.
Which of the following is the PRIMARY benefit of integrating risk and security requirements in an organization's enterprise architecture (EA)?
Adherence to legal and compliance requirements
Reduction in the number of test cases in the acceptance phase
Establishment of digital forensic architectures
Consistent management of information assets
Integrating risk and security requirements in an organization’s enterprise architecture (EA) helps to ensure that information assets are consistently managed throughout their life cycle, and that the risks associated with them are identified and mitigated. (Risk and Information Systems Control Review Questions, Answers & Explanations Manual, 5th Edition, page 112)
Which of the following is MOST important for a multinational organization to consider when developing its security policies and standards?
Regional competitors' policies and standards
Ability to monitor and enforce compliance
Industry-standard templates
Differences in regulatory requirements
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 regulatory requirements 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 with external 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 they may 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.
Which of the following is the BEST indicator of the effectiveness of a control?
Scope of the control coverage
The number of exceptions granted
Number of steps necessary to operate process
Number of control deviations detected
The effectiveness of a control refers to how well it achieves its intended purpose of reducing the risk of material misstatement or error in a process or activity2. One way to measure the effectiveness of a control is to monitor the number of control deviations detected, which are instances where the control fails to operate as designed or is not applied consistently or correctly3. A high number of control deviations indicates a low effectiveness of the control, while a low number of control deviations indicates a high effectiveness of the control. The other options are not good indicators of the effectiveness of a control, as they do not directly relate to the performance or outcome of the control. The scope of the control coverage, the number of exceptions granted, and the number of steps necessary to operate the process are more relevant to the design or efficiency of the control, not its effectiveness
What is the MOST important consideration when selecting key performance indicators (KPIs) for control monitoring?
Source information is acquired at stable cost.
Source information is tailored by removing outliers.
Source information is readily quantifiable.
Source information is consistently available.
The most important consideration when selecting KPIs for control monitoring is that the source information is consistently available, meaning that it can be obtained regularly, reliably, and timely from the same or equivalent data sources. This ensures that the KPIs can measure the performance of the controls over time and across different units or functions, and provide meaningful and comparable results. Source information that is acquired at stable cost, tailored by removing outliers, or readily quantifiable are also desirable, but not as essential as consistency.
References:
•ISACA, Risk IT Framework, 2nd Edition, 2019, p. 751
•ISACA, Performance Measurement Metrics for IT Governance2
If concurrent update transactions to an account are not processed properly, which of the following will MOST likely be affected?
Confidentiality
Accountability
Availability
Integrity
Integrity is the property of data that ensures its accuracy, completeness, and consistency2. If concurrent update transactions to an account are not processed properly, the integrity of the data may be compromised, as it may lead to concurrency problems such as lost update, unrepeatable read, or phantom read3. These problems can cause the data to be incorrect, incomplete, or inconsistent, which may affect the reliability and validity of the data. Therefore, option D is the correct answer, as it reflects the impact of improper concurrent update transactions on the data integrity. The other options are not correct, as they do not directly relate to the effect of concurrent update transactions on the data. Option A, confidentiality, is the property of data that ensures its protection from unauthorized access or disclosure2. Concurrent update transactions do not necessarily affect the confidentiality of the data, as they do not involve exposing the data to unauthorized parties. Option B, accountability, is the property of data that ensures its traceability and auditability2. Concurrent update transactions do not necessarily affect the accountability of the data, as they do not involve losing the records or logs of the data transactions. Option C, availability, is the property of data that ensures its accessibility and usability2. Concurrent update transactions do not necessarily affect the availability of the data, as they do not involve preventing the access or use of the data.
Which of the following is the MOST reliable validation of a new control?
Approval of the control by senior management
Complete and accurate documentation of control objectives
Control owner attestation of control effectiveness
Internal audit review of control design
Internal Audit Review:
An internal audit review of control design involves a thorough examination of the control’s structure, implementation, and effectiveness.
Auditors use a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Steps in Audit Review:
Understand Control Objectives: Auditors ensure that the control is designed to meet specific risk management objectives.
Evaluate Implementation: Check whether the control has been implemented as designed.
Test Effectiveness: Perform tests to verify that the control operates effectively and consistently over time.
Importance of Audit Review:
Provides independent and objective assurance that the control is appropriately designed and functioning as intended.
Identifies any deficiencies or areas for improvement in the control design.
Comparing Other Validation Methods:
Senior Management Approval: Indicates support but does not validate effectiveness.
Documentation of Control Objectives: Important for understanding intent but not validation.
Control Owner Attestation: Provides insight but lacks the independence of an audit.
References:
The CRISC Review Manual highlights the role of internal audits in validating control design and ensuring effective risk management (CRISC Review Manual, Chapter 3: Risk Response and Mitigation, Section 3.9 Control Testing and Effectiveness Evaluation).
Which of the following will BEST ensure that controls adequately support business goals and objectives?
Using the risk management process
Enforcing strict disciplinary procedures in case of noncompliance
Reviewing results of the annual company external audit
Adopting internationally accepted controls
Using the risk management process will best ensure that controls adequately support business goals and objectives, as it involves identifying, assessing, responding, and monitoring the risks that may affect the achievement of the business goals and objectives, and designing and implementing controls to mitigate those risks. Enforcing strict disciplinary procedures in case of noncompliance, reviewing results of the annual company external audit, and adopting internationally accepted controls are also good practices, but they are not the best, as they do not necessarily align the controls with the business goals and objectives. References = CRISC Review Manual, 7th Edition, page 146.
Which of the following scenarios is MOST likely to cause a risk practitioner to request a formal risk acceptance sign-off?
Residual risk in excess of the risk appetite cannot be mitigated.
Inherent risk is too high, resulting in the cancellation of an initiative.
Risk appetite has changed to align with organizational objectives.
Residual risk remains at the same level over time without further mitigation.
Requesting a formal risk acceptance sign-off is the most likely scenario when the residual risk in excess of the risk appetite cannot be mitigated, because it indicates that the organization is willing to tolerate a higher level of risk than it normally would, and that the risk owner has the authority and accountability to accept the risk and its consequences. Risk acceptance is a risk response strategy that involves acknowledging the existence of a risk and deciding not to take any action to reduce it. Risk acceptance is usually chosen when the cost or effort of mitigating the risk outweighs the potential benefits, or when no feasible mitigation options are available. Residual risk is the risk that remains after applying controls or mitigating factors. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Inherent risk, cancellation of an initiative, change of risk appetite, and constant residual risk are all possible scenarios that may affect the risk management process, but they are not the most likely to cause a risk practitioner to request a formal risk acceptance sign-off, as they do not necessarily involve a risk owner accepting a higher level of risk than the organization’s risk appetite. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.2, page 103
Which of the following is the BEST method to track asset inventory?
Periodic asset review by management
Asset registration form
IT resource budgeting process
Automated asset management software
Automated asset management software provides a continuous and efficient way to track assets throughout their lifecycle. It reduces the likelihood of human error, ensures up-to-date records, and can often integrate with other systems to provide comprehensive oversight of an organization’s assets.
An assessment of information security controls has identified ineffective controls. Which of the following should be the risk practitioner's FIRST course of action?
Determine whether the impact is outside the risk appetite.
Report the ineffective control for inclusion in the next audit report.
Request a formal acceptance of risk from senior management.
Deploy a compensating control to address the identified deficiencies.
The first course of action for the risk practitioner when identifying ineffective controls is to determine whether the impact of the control failure is outside the risk appetite of the organization. The risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. If the impact is within the risk appetite, the risk practitioner may decide to accept the risk or monitor the situation. If the impact is outside the risk appetite, the risk practitioner may need to escalate the issue, report the ineffective control, request a formal acceptance of risk, or deploy a compensating control.
References: The answer is based on the following sources:
•CRISC Review Manual, 7th Edition, Chapter 3: Risk Response and Reporting, pages 149-1501
•CRISC Review Questions, Answers & Explanations Database, 12 Month Subscription, Question ID: QID-10042
•Effective Risk Management Strategies | CRISC Exam Preparation3
Which of the following management actions will MOST likely change the likelihood rating of a risk scenario related to remote network access?
Creating metrics to track remote connections
Updating the organizational policy for remote access
Updating remote desktop software
Implementing multi-factor authentication
Automated asset management software is the best method to track asset inventory, as it can provide accurate, timely, and comprehensive information about the organization’s IT assets, such as their location, status, configuration, ownership, and value. Automated asset management software can also help to optimize the utilization, performance, and lifecycle of the IT assets, and to reduce the risks of loss, theft, damage, or obsolescence. Automated asset management software can integrate with other systems, such as configuration management database (CMDB), service desk, and security tools, to enable better visibility, control, and governance of the IT assets.
References:
•ISACA, IT Asset Valuation, Risk Assessment and Control Implementation Model1
•ISACA, IT Asset Management: It’s All About Process2
•ISACA, IT Asset Management Audit/Assurance Program3
Which of the following techniques is MOST helpful when quantifying the potential loss impact of cyber risk?
Cost-benefit analysis
Penetration testing
Business impact analysis (BIA)
Security assessment
Understanding Business Impact Analysis (BIA):
BIA is a process used to identify and evaluate the potential effects (impact) of interruptions to critical business operations as a result of a disaster, accident, or emergency.
It helps quantify the potential loss impact of cyber risks by assessing the financial and operational consequences of disruptions.
Quantifying Loss Impact:
BIA involves determining the value of business processes and the impact of their loss. This includes evaluating factors such as revenue loss, additional operational costs, legal penalties, and reputational damage.
By analyzing the criticality of business functions and their dependencies, BIA provides a detailed understanding of potential impacts, aiding in the development of risk mitigation strategies.
Comparing Other Techniques:
Cost-Benefit Analysis: Useful for evaluating the cost-effectiveness of controls but does not provide a comprehensive assessment of potential loss impacts.
Penetration Testing: Identifies vulnerabilities but does not quantify the business impact of exploiting those vulnerabilities.
Security Assessment: Evaluates security controls but is not focused on the broader business impact of potential disruptions.
References:
The CRISC Review Manual emphasizes the role of BIA in assessing the impact of risks on business operations and quantifying potential losses (CRISC Review Manual, Chapter 2: IT Risk Assessment, Section 2.7 Business Impact Analysis).
Which of the following is the MAIN benefit of involving stakeholders in the selection of key risk indicators (KRIs)?
Improving risk awareness
Obtaining buy-in from risk owners
Leveraging existing metrics
Optimizing risk treatment decisions
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
An organization plans to implement a new Software as a Service (SaaS) speech-to-text solution Which of the following is MOST important to mitigate risk associated with data privacy?
Secure encryption protocols are utilized.
Multi-factor authentication is set up for users.
The solution architecture is approved by IT.
A risk transfer clause is included in the contact
Utilizing secure encryption protocols is the most important factor to mitigate risk associated with data privacy when implementing a new Software as a Service (SaaS) speech-to-text solution, as it ensures that the data is protected from unauthorized access, interception, or modification during the transmission and storage in the cloud. Setting up multi-factor authentication for users, approving the solution architecture by IT, and including a risk transfer clause in the contract are not the most important factors, as they may not address the data privacy issue, but rather the data access, quality, or liability issue, respectively. References = CRISC Review Manual, 7th Edition, page 153.
Which of the following is the result of a realized risk scenario?
Threat event
Vulnerability event
Technical event
Loss event
A loss event is the result of a realized risk scenario, as it represents the actual occurrence of an adverse outcome or impact due to the exploitation of a vulnerability by a threat. A threat event, a vulnerability event, and a technical event are not the results of a realized risk scenario, as they are more related to the sources, conditions, or mechanisms of the risk, respectively, rather than the outcome or impact of the risk. References = CRISC Review Manual, 7th Edition, page 100.
Which of the following would provide the MOST comprehensive information for updating an organization's risk register?
Results of the latest risk assessment
Results of a risk forecasting analysis
A review of compliance regulations
Findings of the most recent audit
A risk register is a document that is used as a risk management tool to identify and track risks that may affect a project or an organization1. A risk register should be updated regularly to reflect the current status and changes of the risks, as well as the actions taken to mitigate or resolve them2. The most comprehensive information for updating a risk register would come from the results of the latest risk assessment, which is a process that involves identifying, analyzing, and evaluating the risks and their potential impacts3. A risk assessment provides a detailed and systematic overview of the risks, their sources, causes, likelihood, severity, and consequences, as well as the existing and planned controls and responses4. A risk assessment also helps to prioritize the risks based on their level of exposure and urgency, and to align them with the organization’s risk appetite and tolerance5. Therefore, the results of the latest risk assessment would provide the most relevant and complete information for updating a risk register and ensuring that it reflects the current risk profile and situation of the project or the organization. Results of a risk forecasting analysis are not the most comprehensive information for updating a risk register, as they do not provide a complete picture of the risks and their impacts. A risk forecasting analysis is a technique that uses historical data, trends, and scenarios to estimate the potential outcomes and impacts of future events that may affect the organization’s objectives and performance6. A risk forecasting analysis can help to anticipate and prepare for the risks, but it does not provide specific information on the sources, causes, likelihood, severity, and consequences of the risks, nor the existing and planned controls and responses. A review of compliance regulations is not the most comprehensive information for updating a risk register, as it does not cover all the aspects and dimensions of risk management. A review of compliance regulations is a process that involves checking and verifying that the organization’s activities, processes, and systems are in accordance with the applicable laws, rules, and standards7. A review of compliance regulations can help to identify and mitigate the risks related to legal or regulatory violations, but it does not provide specific information on the other types and sources of risks, such as operational, strategic, financial, or reputational risks, nor the existing and planned controls and responses. Findings of the most recent audit are not the most comprehensive information for updating a risk register, as they do not provide a current and holistic view of the risks and their impacts. An audit is an independent examination and evaluation of the organization’s activities, processes, and systems, to provide assurance and advice on their adequacy and effectiveness. An audit can help to identify and report the issues or gaps in the organization’s risk management, but it does not provide specific information on the current status and changes of the risks, nor the existing and planned controls and responses. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.
Which of the following is the BEST indication that an organization's risk management program has not reached the desired maturity level?
Significant increases in risk mitigation budgets
Large fluctuations in risk ratings between assessments
A steady increase in the time to recover from incidents
A large number of control exceptions
A risk management program is a set of processes, policies, and tools that enable an enterprise to identify, analyze, evaluate, treat, monitor, and communicate its risks. The maturity level of a risk management program indicates how well the program is integrated, standardized, and aligned with the enterprise’s objectives, culture, and values. The best indication that an organization’s risk management program has not reached the desired maturity level is large fluctuations in risk ratings between assessments. Risk ratings are the measures of the impact and likelihood of the risks, and they should be consistent and comparable across the enterprise and over time. Large fluctuations in risk ratings between assessments suggest that the risk management program is not stable, reliable, or effective, and that the risk identification and analysis methods are not robust, accurate, or transparent. The other options are not as indicative of the maturity level of the risk management program, as they involve different aspects or outcomes of the risk management program:
Significant increases in risk mitigation budgets means that the enterprise is spending more resources on implementing risk responses, such as controls, policies, or procedures. This may indicate that the enterprise is facing more or higher risks, or that the risk responses are more costly or complex, but it does not necessarily reflect the maturity level of the risk management program, as it may also depend on the enterprise’s risk appetite, tolerance, and strategy.
A steady increase in the time to recover from incidents means that the enterprise is taking longer to restore its normal operations after a disruption or a loss. This may indicate that the enterprise is not prepared or resilient enough to deal with the incidents, or that the incidents are more frequent or severe, but it does not necessarily reflect the maturity level of the risk management program, as it may also depend on the nature and source of the incidents, or the availability and effectiveness of the recovery plans.
A large number of control exceptions means that the enterprise is deviating from the established controls, policies, or procedures, either intentionally or unintentionally. This may indicate that the enterprise is not complying with the risk management program, or that the controls are not adequate or appropriate for the enterprise’s needs, but it does not necessarily reflect the maturity level of the risk management program, as it may also depend on the reasons and justifications for the exceptions, or the approval and monitoring processes for the exceptions. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.1.3.1, pp. 14-15.
A maturity model will BEST indicate:
confidentiality and integrity.
effectiveness and efficiency.
availability and reliability.
certification and accreditation.
According to Wikipedia1, a maturity model is a framework for measuring an organization’s maturity, or that of a business function within an organization, with maturity being defined as a measurement of the ability of an organization for continuous improvement in a particular discipline. A maturity model will best indicate the effectiveness and efficiency of an organization or a business function, as it helps to evaluate how well they achieve their intended objectives with minimum resources, time, and cost. A maturity model also helps to identify and prioritize the areas and opportunities for improvement, and to establish and communicate the standards and best practices for the discipline. References = Wikipedia1
A large organization is replacing its enterprise resource planning (ERP) system and has decided not to deploy the payroll module of the new system. Instead, the current payroll system will continue to be
used. Of the following, who should own the risk if the ERP and payroll system fail to operate as expected?
The business owner
The ERP administrator
The project steering committee
The IT project manager
The business owner should own the risk if the ERP and payroll system fail to operate as expected, because the business owner is ultimately responsible for the business processes and objectives that depend on the systems. The other options are not the risk owners, because:
Option B: The ERP administrator is responsible for the technical aspects of the ERP system, but not the payroll system or the business outcomes.
Option C: The project steering committee is responsible for overseeing the project of replacing the ERP system, but not the ongoing operation and maintenance of the systems or the business risks.
Option D: The IT project manager is responsible for managing the project of replacing the ERP system, but not the payroll system or the business risks. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 90.
The purpose of requiring source code escrow in a contractual agreement is to:
ensure that the source code is valid and exists.
ensure that the source code is available if the vendor ceases to exist.
review the source code for adequacy of controls.
ensure the source code is available when bugs occur.
According to the How Important Is Source Code Escrow - ISACA article, the purpose of requiring source code escrow in a contractual agreement is to ensure that the source code is available if the vendor ceases to exist. Source code escrow is the deposit of the source code of software with a third-party escrow agent, who releases it to the licensee only if certain conditions are met, such as the bankruptcy, merger, or acquisition of the licensor. This arrangement protects the licensee from losing access to the software support and maintenance, and allows them to continue using and modifying the software as needed. Therefore, the answer is B. ensure that the source code is available if the vendor ceases to exist. References = How Important Is Source Code Escrow - ISACA
Which of the following is the MOST effective way to mitigate identified risk scenarios?
Assign ownership of the risk response plan
Provide awareness in early detection of risk.
Perform periodic audits on identified risk.
areas Document the risk tolerance of the organization.
A risk response plan is a document that outlines the actions to be taken to address the identified risk scenarios. A risk response plan should include the objectives, scope, roles and responsibilities, resources, timelines, and metrics for each risk response. Assigning ownership of the risk response plan is the most effective way to mitigate identified risk scenarios, as it ensures accountability, clarity, and communication among the stakeholders involved in the risk management process. Assigning ownership also helps to monitor and evaluate the progress and effectiveness of the risk response plan, and to make adjustments as needed. References = Risk and Information Systems Control Study Manual, Chapter 3: Risk Response and Mitigation, Section 3.3: Risk Response Plan, p. 152-155.
Which of the following observations would be GREATEST concern to a risk practitioner reviewing the implementation status of management action plans?
Management has not determined a final implementation date.
Management has not completed an early mitigation milestone.
Management has not secured resources for mitigation activities.
Management has not begun the implementation.
The observation that would be of GREATEST concern to a risk practitioner reviewing the implementation status of management action plans is that management has not begun the implementation, because it indicates that the management action plans are not being executed or monitored, and that the risks are not being addressed or mitigated. The lack of implementation may also imply that the management action plans are not realistic, feasible, or aligned with the enterprise’s strategy and objectives. The other options are not as concerning as the lack of implementation, because:
Option A: Management has not determined a final implementation date is a concern, but not the greatest one, because it may affect the timely completion and delivery of the management action plans, but it does not necessarily mean that the management action plans are not being executed or monitored.
Option B: Management has not completed an early mitigation milestone is a concern, but not the greatest one, because it may indicate a delay or deviation in the progress and performance of the management action plans, but it does not necessarily mean that the management action plans are not being executed or monitored.
Option C: Management has not secured resources for mitigation activities is a concern, but not the greatest one, because it may affect the quality and effectiveness of the management action plans, but it does not necessarily mean that the management action plans are not being executed or monitored. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 123.
Which type of cloud computing deployment provides the consumer the GREATEST degree of control over the environment?
Community cloud
Private cloud
Hybrid cloud
Public cloud
A private cloud is a type of cloud computing deployment that provides the consumer exclusive access to a pool of computing resources that are owned, managed, and operated by the consumer or a third-party provider on behalf of the consumer.
A private cloud provides the consumer the greatest degree of control over the environment, because the consumer can customize and configure the resources according to their specific needs and preferences, and can apply their own security and governance policies and standards.
The other options are not the types of cloud computing deployment that provide the consumer the greatest degree of control over the environment. They are either shared or limited by the provider’s settings and rules.
The references for this answer are:
Risk IT Framework, page 23
Information Technology & Security, page 17
Risk Scenarios Starter Pack, page 15
A risk practitioner notices that a particular key risk indicator (KRI) has remained below its established trigger point for an extended period of time. Which of the following should be done FIRST?
Recommend a re-evaluation of the current threshold of the KRI.
Notify management that KRIs are being effectively managed.
Update the risk rating associated with the KRI In the risk register.
Update the risk tolerance and risk appetite to better align to the KRI.
The FIRST thing that should be done when a KRI has remained below its established trigger point for an extended period of time is to recommend a re-evaluation of the current threshold of the KRI, because it may indicate that the trigger point is set too high or too low, or that the KRI is not relevant or effective in measuring the risk exposure. A re-evaluation of the current threshold of the KRI may result in adjusting the trigger point, changing the KRI, or removing the KRI. The other options are not the first thing that should be done, because:
Option B: Notifying management that KRIs are being effectively managed is not the first thing that should be done, because it may not reflect the true risk status and performance. A KRI that remains below its trigger point for a long time may not be a valid or reliable indicator of the risk exposure, and it may not capture the changes or trends in the risk environment.
Option C: Updating the risk rating associated with the KRI in the risk register is not the first thing that should be done, because it may not be accurate or consistent. A risk rating is based on the likelihood and impact of the risk, and it should be derived from a comprehensive risk analysis, not just from a single KRI. A KRI that remains below its trigger point for a long time may not reflect the actual likelihood and impact of the risk, and it may not be aligned with the other risk indicators and assessments.
Option D: Updating the risk tolerance and risk appetite to better align to the KRI is not the first thing that should be done, because it may not be appropriate or feasible. Risk tolerance and risk appetite are the acceptable level of risk exposure and variation that the enterprise is willing to accept in pursuit of its objectives, and they are determined by the executive management and the board of directors, based on the enterprise’s strategy and goals. A KRI that remains below its trigger point for a long time may not represent the desired or optimal level of risk exposure and variation, and it may not be aligned with the enterprise’s strategy and goals. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 121.
Which of the following is the BEST course of action when risk is found to be above the acceptable risk appetite?
Review risk tolerance levels
Maintain the current controls.
Analyze the effectiveness of controls.
Execute the risk response plan
The best course of action when risk is found to be above the acceptable risk appetite is to execute the risk response plan, which is the set of actions and measures that are designed to reduce, avoid, transfer, or accept the risk. The risk response plan is based on the risk assessment results, the risk appetite and tolerance of the organization, and the cost-benefit analysis of the risk response options. The risk response plan helps to achieve the optimal balance between the potential benefits and threats of the risk, and to align the risk decisions with the organizational objectives and context. The other options are not the best courses of action, as they are either too passive or too reactive in dealing with the risk. Reviewing risk tolerance levels may help to adjust the acceptable variation between the risk thresholds and the business objectives, but it does not address the actual risk level or impact. Maintaining the current controls may help to prevent the risk from increasing further, but it does not reduce the existing risk exposure or mitigation. Analyzing the effectiveness of controls may help to identify the gaps or weaknesses in the current risk management, but it does not implement the necessary improvements or changes. References = Risk Response Plan in Project Management: Key Strategies & Tips; A Practitioner’s Guide to Ethical Decision Making; How to Manage Project Risk: A 5-Step Guide
Which of the following should be considered FIRST when assessing risk associated with the adoption of emerging technologies?
Organizational strategy
Cost-benefit analysis
Control self-assessment (CSA)
Business requirements
The first factor that should be considered when assessing risk associated with the adoption of emerging technologies is the organizational strategy. The organizational strategy defines the vision, mission, goals, and objectives of the enterprise, and provides the direction and guidance for its activities and decisions. The adoption of emerging technologies should be aligned with the organizational strategy, and support its achievement and performance. The organizational strategy also helps to determine the risk appetite and tolerance of the enterprise, and the criteria for evaluating the risks and benefits of the emerging technologies. Cost-benefit analysis, control self-assessment, and business requirements are also important factors to consider when assessing risk associated with the adoption of emerging technologies, but they are not the first factor to consider. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.1.1, page 181
1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 656.
Which of the following resources is MOST helpful when creating a manageable set of IT risk scenarios?
Results of current and past risk assessments
Organizational strategy and objectives
Lessons learned from materialized risk scenarios
Internal and external audit findings
According to the CRISC Review Manual1, lessons learned from materialized risk scenarios are the insights and knowledge gained from analyzing the causes, impacts, and responses of actual risk events that occurred in the past. Lessons learned from materialized risk scenarios are the most helpful resource when creating a manageable set of IT risk scenarios, as they help to identify and prioritize the most relevant and realistic risks that could affect the organization’s objectives, processes, and resources. Lessons learned from materialized risk scenarios also help to improve the risk management practices and capabilities, and to avoid repeating the same mistakes or gaps in the future. References = CRISC Review Manual1, page 206.
An IT risk practitioner is evaluating an organization's change management controls over the last six months. The GREATEST concern would be an increase in:
rolled back changes below management's thresholds.
change-related exceptions per month.
the average implementation time for changes.
number of user stories approved for implementation.
= Change management is the process of planning, implementing, and monitoring changes to IT systems, services, or infrastructure in a controlled and coordinated manner1. Change management controls are the policies, procedures, and tools that ensure changes are authorized, documented, tested, and reviewed before they are deployed to the production environment2.
Change-related exceptions are the deviations or violations from the established change management controls, such as unauthorized, untested, or failed changes3. Change-related exceptions pose a high risk to the organization, as they can cause system instability, performance degradation, security breaches, data loss, or compliance issues3.
An increase in change-related exceptions per month would be the greatest concern for an IT risk practitioner, as it indicates a lack of effectiveness, efficiency, or compliance of the change management process and controls. An increase in change-related exceptions per month could result from:
Poor change planning, prioritization, or scheduling
Insufficient change approval, review, or communication
Inadequate change testing, validation, or verification
Lack of change monitoring, reporting, or auditing
Low change awareness, training, or support
An IT risk practitioner should investigate the root causes of the increase in change-related exceptions per month, and recommend corrective and preventive actions to improve the change management process and controls, such as:
Aligning the change management process with the organization’s goals, strategies, and risk appetite
Implementing a standardized and consistent change management methodology, such as ITIL or COBIT
Defining clear roles and responsibilities for change management stakeholders, such as change owners, change managers, change advisory boards, change implementers, and change users
Establishing clear and measurable criteria and thresholds for change authorization, classification, and evaluation
Leveraging tools and technologies to automate and streamline the change management process and controls, such as change management software, configuration management databases, or change management dashboards
Enhancing the change management culture and capabilities, such as change management awareness, training, support, or feedback
The other options are not as concerning as an increase in change-related exceptions per month, because they do not directly imply a risk to the organization’s IT systems, services, or infrastructure. Rolled back changes below management’s thresholds, which are the changes that are reversed or undone due to errors, defects, or issues, may indicate a need for improvement in the change testing, validation, or verification processes, but they do not necessarily cause harm or damage to the production environment, as long as they are within the acceptable limits set by the management. The average implementation time for changes, which is the duration of the change deployment process, may affect the organization’s agility, efficiency, or productivity, but it does not necessarily compromise the quality, security, or reliability of the changes, as long as they are implemented according to the change management controls. The number of user stories approved for implementation, which are the requirements or features that are expressed from the perspective of the end users, may reflect the organization’s demand, innovation, or customer satisfaction, but it does not necessarily increase the risk of the changes, as long as they are managed and controlled by the change management process.
References = What is Change Management? | ITIL | AXELOS, Change Management Controls: Definition, Types, and Best Practices, Change Management Exceptions: Definition, Causes, and Impacts, ITIL Change Management: Best Practices & Processes - BMC Software, COBIT 2019: Change Enablement
Which of the following should be the MAIN consideration when validating an organization's risk appetite?
Comparison against regulations
Maturity of the risk culture
Capacity to withstand loss
Cost of risk mitigation options
According to the Gaining the competitive edge – measuring and assessing an organization’s risk culture article, risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite should be aligned with the organization’s strategy, goals, and values, and should reflect the organization’s risk culture and capabilities. One of the main considerations when validating an organization’s risk appetite is the capacity to withstand loss, which is the ability of the organization to absorb the impact of adverse events without jeopardizing its viability or reputation. The capacity to withstand loss depends on various factors, such as the financial strength, the operational resilience, the governance structure, and the stakeholder expectations of the organization. By assessing the capacity to withstand loss, the organization can determine if its risk appetite is realistic and appropriate, or if it needs to be adjusted to match its risk profile and environment. References = Gaining the competitive edge – measuring and assessing an organization’s risk culture
Which of the following is the BEST key performance indicator (KPI) to measure the effectiveness of an anti-virus program?
Frequency of anti-virus software updates
Number of alerts generated by the anti-virus software
Number of false positives detected over a period of time
Percentage of IT assets with current malware definitions
An anti-virus program is a software that detects and removes malicious software, such as viruses, worms, or ransomware, from the IT assets, such as computers, servers, or networks. The effectiveness of an anti-virus program can be measured by the key performance indicators (KPIs) that reflect the achievement of the program objectives and the alignment with the enterprise’s risk appetite and tolerance. The best KPI to measure the effectiveness of an anti-virus program is the percentage of IT assets with current malware definitions. Malware definitions are the files or databases that contain the signatures or patterns of the known malicious software, and they are used by the anti-virus program to scan and identify the malware. The percentage of IT assets with current malware definitions indicates how well the anti-virus program is able to protect the IT assets from the latest or emerging threats, and reduce the exposure and impact of the risks associated with the malware. The other options are not as good as the percentage of IT assets with current malware definitions, as they may not reflect the quality or timeliness of the protection, or the alignment with the enterprise’s risk appetite and tolerance. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.3.2.1, pp. 171-172.
Which of the following should a risk practitioner do FIRST when an organization decides to use a cloud service?
Review the vendor selection process and vetting criteria.
Assess whether use of service falls within risk tolerance thresholds.
Establish service level agreements (SLAs) with the vendor.
Check the contract for appropriate security risk and control provisions.
According to the CRISC EXAM TOPIC 2 LONG Flashcards, the first thing that a risk practitioner should do when an organization decides to use a cloud service is to review the vendor selection process and vetting criteria. This is because the vendor selection process and vetting criteria are essential steps to ensure that the cloud service provider meets the organization’s requirements and expectations, and that the risks associated with the cloud service are identified and managed. By reviewing the vendor selection process and vetting criteria, the risk practitioner can evaluate the quality, reliability, security, and compliance of the cloud service provider, and determine if the cloud service is suitable and beneficial for the organization. The risk practitioner can also identify any gaps or weaknesses in the vendor selection process and vetting criteria, and recommend improvements or alternatives accordingly. References = CRISC EXAM TOPIC 2 LONG Flashcards
Which of the following will BEST help an organization select a recovery strategy for critical systems?
Review the business impact analysis.
Create a business continuity plan.
Analyze previous disaster recovery reports.
Conduct a root cause analysis.
According to the CRISC Review Manual (Digital Version), reviewing the business impact analysis (BIA) will best help an organization select a recovery strategy for critical systems, as it provides an assessment of the potential impact and consequences of a disruption to the organization’s critical business functions and processes. Reviewing the BIA helps to:
Identify and prioritize the critical systems and their dependencies that support the critical business functions and processes
Estimate the maximum tolerable downtime (MTD) and the recovery time objective (RTO) for each critical system
Evaluate the feasibility and cost-effectiveness of various recovery strategies and options for each critical system
Select the most appropriate recovery strategy and option for each critical system based on the organization’s objectives and requirements
Develop and implement the recovery plan and procedures for each critical system
References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 174-1751
Who should be responsible for strategic decisions on risk management?
Chief information officer (CIO)
Executive management team
Audit committee
Business process owner
Strategic decisions on risk management are the decisions that involve setting the direction, objectives, and priorities for risk management within an organization, as well as aligning them with the organization’s overall strategy, vision, and mission1. Strategic decisions on risk management also involve defining the organization’s risk appetite and tolerance, which are the amount and level of risk that the organization is willing and able to accept to achieve its goals2. The responsibility for strategic decisions on risk management should belong to the executive management team, which is the group of senior leaders who have the authority and accountability for the organization’s performance and governance3. The executive management team has the best understanding of the organization’s strategic context, environment, and stakeholders, and can make informed and balanced decisions that consider the benefits and costs of risk-taking4. The executive management team also has the ability and responsibility to communicate and cascade the strategic decisions on risk management to the rest of the organization, and to monitor and evaluate their implementation and outcomes5. The chief information officer (CIO), the audit committee, and the business process owner are not the best choices for being responsible for strategic decisions on risk management, as they do not have the same level of authority and accountability as the executive management team. The CIO is the senior leader who oversees the organization’s information and technology strategy, resources, and systems6. The CIO may be involved in providing input and feedback to the executive management team on the strategic decisions on risk management, especially those related to IT risk, but they do not have the final say or the overall responsibility for them. The audit committee is a subcommittee of the board of directors that oversees the organization’s financial reporting, internal controls, and external audits7. The audit committee may be involved in reviewing and approving the strategic decisions on risk management, as well as ensuring their compliance with the relevant laws and standards, but they do not have the authority or the expertise to make or implement them. The business process owner is the person who has the authority and accountability for a business process that supports or enables the organization’s objectives and functions. The business process owner may be involved in executing and reporting on the strategic decisions on risk management, as well as identifying and mitigating the risks related to their business process, but they do not have the perspective or the influence to make or communicate them. References = 1: Strategic Risk Management: Complete Overview (With Examples)2: [Risk Appetite and Tolerance - ISACA] 3: [Senior Management - Definition, Roles and Responsibilities] 4: Stanford Strategic Decision and Risk Management | Stanford Online5: A 7-Step Process for Strategic Risk Management — RiskOptics - Reciprocity6: [Chief Information Officer (CIO) - Gartner IT Glossary] 7: [Audit Committee - Overview, Functions, and Responsibilities] : [Business Process Owner - Gartner IT Glossary] : [Business Process Owner - Roles and Responsibilities] : [Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Concepts, pp. 17-19.]
Which of the following is the GREATEST concern when using a generic set of IT risk scenarios for risk analysis?
Quantitative analysis might not be possible.
Risk factors might not be relevant to the organization
Implementation costs might increase.
Inherent risk might not be considered.
According to the CRISC 351-400 topic3 Flashcards, the greatest concern when using a generic set of IT risk scenarios for risk analysis is that the risk factors might not be relevant to the organization. This is because generic risk scenarios are not tailored to the specific context, objectives, and environment of the organization, and they may not capture the unique threats, vulnerabilities, and impacts that the organization faces. Therefore, using generic risk scenarios may result in inaccurate or incomplete risk assessment and analysis, and may lead to ineffective or inappropriate risk responses. To avoid this, the organization should customize the risk scenarios to reflect its own situation and needs, and involve the relevant stakeholders and experts in the process. References = CRISC 351-400 topic3 Flashcards, Generic IT Risk Scenarios for Risk Analysis: The Greatest Concern
Which of the following MOST effectively limits the impact of a ransomware attack?
Cyber insurance
Cryptocurrency reserve
Data backups
End user training
The most effective way to limit the impact of a ransomware attack is to have data backups. Data backups are copies of the data that are stored in a separate location or device, and can be used to restore the data in case of a loss or corruption. Data backups can help to recover the data that is encrypted or deleted by the ransomware, and to avoid paying the ransom to the attackers. Data backups also help to reduce the downtime and disruption caused by the ransomware attack, and to maintain the business continuity and availability of the data. Cyber insurance, cryptocurrency reserve, and end user training are not the most effective ways to limit the impact of a ransomware attack, as they may not prevent or recover the data loss, and may incur additional costs or risks for the enterprise. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.1.1.1, page 2281
1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 657.
Which of the following is the PRIMARY responsibility of the first line of defense related to computer-enabled fraud?
Providing oversight of risk management processes
Implementing processes to detect and deter fraud
Ensuring that risk and control assessments consider fraud
Monitoring the results of actions taken to mitigate fraud
Computer-enabled fraud is the use of information technology (IT) to commit or conceal fraudulent activities, such as theft, manipulation, or unauthorized access of data, systems, or networks. Computer-enabled fraud can pose significant risks to an organization, such as financial loss, reputational damage, legal liability, or regulatory sanctions. Therefore, an organization should establish a comprehensive and effective framework to prevent, detect, and respond to computer-enabled fraud. The framework should involve three lines of defense, which are the roles and responsibilities of different functions within the organization to manage and control risks. The first line of defense consists of the business owners, whose role is to identify, assess, and manage risks, including computer-enabled fraud risks. The primary responsibility of the first line of defense related to computer-enabled fraud is to implement processes to detect and deter fraud. This means designing and executing controls that can prevent or reduce the occurrence of computer-enabled fraud, such as authentication, authorization, encryption, logging, or segregation of duties. This also means monitoring and reporting any suspicious or anomalous activities or transactions that may indicate computer-enabled fraud, such as unusual patterns, volumes, or frequencies of data or system access or usage. Implementing processes to detect and deter fraud can help the first line of defense to protect the organization’s assets, data, and reputation from computer-enabled fraud, and to comply with the organization’s policies and regulations. References = Three Lines of Defence, Roles of Three Lines of Defense for Information Security and Governance, THE THREE LINES OF DEFENSE IN EFFECTIVE RISK MANAGEMENT AND CONTROL, The Three Lines of Defense.
Before implementing instant messaging within an organization using a public solution, which of the following should be in place to mitigate data leakage risk?
A data extraction tool
An access control list
An intrusion detection system (IDS)
An acceptable usage policy
According to the CRISC Review Manual1, an acceptable usage policy is a document that defines the rules and guidelines for the appropriate and secure use of IT resources within an organization. It helps to mitigate data leakage risk by establishing the roles and responsibilities of users, the types and purposes of data that can be shared or transmitted, the authorized methods and channels of communication, the security controls and measures to protect data, and the consequences of non-compliance. An acceptable usage policy also educates and raises awareness among users about the potential risks and threats associated with instant messaging and other forms of online communication. Therefore, before implementing instant messaging within an organization using a public solution, an acceptable usage policy should be in place to mitigate data leakage risk. References = CRISC Review Manual1, page 237.
Which of the following would prompt changes in key risk indicator {KRI) thresholds?
Changes to the risk register
Changes in risk appetite or tolerance
Modification to risk categories
Knowledge of new and emerging threats
Key risk indicators (KRIs) are metrics that provide information on the level of exposure to a given operational risk1. KRIs have upper and lower acceptable risk limits (warning thresholds) that trigger actions when exceeded2. These thresholds are based on the organization’s risk appetite or tolerance, which is the amount and type of risk that the organization is willing to accept in pursuit of its objectives3. Therefore, changes in risk appetite or tolerance would prompt changes in KRI thresholds, as the organization would need to adjust its risk monitoring and response accordingly. The other options are not the primary factors that would prompt changes in KRI thresholds, although they may have some influence on the risk management process. References = Risk IT Framework; IT Risk Resources; ISACA Risk Starter Kit; Key Risk Indicators; Key Risk Indicators: A Practical Guide
Implementing which of the following will BEST help ensure that systems comply with an established baseline before deployment?
Vulnerability scanning
Continuous monitoring and alerting
Configuration management
Access controls and active logging
Configuration management is a process that establishes and maintains the consistency and integrity of the IT systems and applications throughout their lifecycle. Configuration management involves identifying, documenting, controlling, and auditing the configuration items, such as hardware, software, data, or services, that comprise the IT systems and applications. Configuration management also involves establishing and enforcing the configuration baselines, which are the approved and authorized states of the configuration items. Implementing configuration management will best help ensure that systems comply with an established baseline before deployment, as it will enable the enterprise to verify that the systems meet the specified requirements, standards, and policies, and to detect and correct any deviations or discrepancies. The other options are not as effective as configuration management, as they involve different aspects or outcomes of the IT systems and applications:
Vulnerability scanning is a process that identifies and analyzes the weaknesses or gaps in the IT systems and applications that could be exploited by threats. Vulnerability scanning helps to assess the security and compliance of the systems, but it does not ensure that the systems comply with an established baseline before deployment, as it may not cover all the aspects or components of the systems, or may not reflect the latest changes or updates of the systems.
Continuous monitoring and alerting is a process that tracks and reports the performance and status of the IT systems and applications on an ongoing basis. Continuous monitoring and alerting helps to identify and respond to any issues or incidents that affect the availability, integrity, or confidentiality of the systems, but it does not ensure that the systems comply with an established baseline before deployment, as it may not prevent or detect the unauthorized or unintended changes or modifications of the systems, or may not provide sufficient information or evidence to verify the compliance of the systems.
Access controls and active logging are processes that restrict and record the access and activities of the users or entities on the IT systems and applications. Access controls and active logging help to protect and audit the IT systems and applications, but they do not ensure that the systems comply with an established baseline before deployment, as they may not address the configuration or quality issues of the systems, or may not be consistent or comprehensive across the systems. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1.1, pp. 156-157.
Which of the following will BEST ensure that information security risk factors are mitigated when developing in-house applications?
Identify information security controls in the requirements analysis
Identify key risk indicators (KRIs) as process output.
Design key performance indicators (KPIs) for security in system specifications.
Include information security control specifications in business cases.
Information security risk factors are the sources of uncertainty that may affect the confidentiality, integrity, or availability of information assets within an organization. Information security risk factors can include threats, vulnerabilities, or impacts that may compromise the security of information assets. Information security risk factors should be mitigated when developing in-house applications, which are software applications that are designed, developed, and maintained by the organization itself, rather than by external vendors or providers. Mitigating information security risk factors when developing in-house applications can help prevent or reduce the occurrence or consequences of security incidents, such as data breaches, cyberattacks, unauthorized access, or data loss. The best way to ensure that information security risk factors are mitigated when developing in-house applications is to identify information security controls in the requirements analysis. The requirements analysis is the stage of the system development life cycle (SDLC) where the business needs and expectations of the application are defined and documented. The requirements analysis should include the functional and non-functional requirements of the application, such as the features, functions, performance, quality, reliability, and security of the application. Identifying information security controls in the requirements analysis can help ensure that the security requirements of the application are clearly specified and agreed upon by the stakeholders, and that they are aligned with the organization’s security policies, standards, and regulations. Identifying information security controls in the requirements analysis can also help ensure that the security requirements are integrated into the design, development, testing, and deployment of the application, and that they are verified and validated throughout the SDLC. Identifying information security controls in the requirements analysis can also help ensure that the security requirements are traceable, measurable, and manageable, and that they can be monitored and reviewed for effectiveness and efficiency. References = THE SYSTEM DEVELOPMENT LIFE CYCLE (SDLC), p. 2-3, System Development Life Cycle - GeeksforGeeks, 7.3: Systems Development Life Cycle - Engineering LibreTexts, What Is SDLC? 7 Phases of System Development Life Cycle - Intetics.
The annualized loss expectancy (ALE) method of risk analysis:
helps in calculating the expected cost of controls
uses qualitative risk rankings such as low. medium and high.
can be used m a cost-benefit analysts
can be used to determine the indirect business impact.
The annualized loss expectancy (ALE) method of risk analysis is a quantitative method that estimates the expected monetary loss that can result from a risk over a one year period. The ALE is calculated by multiplying the single loss expectancy (SLE), which is the monetary loss from a single occurrence of a risk, by the annualized rate of occurrence (ARO), which is the frequency of the risk occurring in a year. The ALE can be used in a cost-benefit analysis to compare the cost of implementing a control or a risk response with the expected benefit of reducing the loss. The ALE can help to justify the investment in risk management and to prioritize the risks based on their financial impact. The other options are not accurate descriptions of the ALE method of risk analysis, as they involve different aspects or methods of risk analysis. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.3.2.1, pp. 60-61.
A software developer has administrative access to a production application. Which of the following should be of GREATEST concern to a risk practitioner?
The administrative access does not allow for activity log monitoring.
The administrative access does not follow password management protocols.
The administrative access represents a deviation from corporate policy.
The administrative access represents a segregation of duties conflict.
According to the CRISC 351-400 topic3 Flashcards, the administrative access represents a segregation of duties conflict, which should be of greatest concern to a risk practitioner. Segregation of duties is a principle that aims to prevent fraud, errors, or abuse of power by ensuring that no single person can perform incompatible functions, such as development, testing, and production. By having administrative access to a production application, a software developer can potentially modify the code, bypass the testing and approval process, and deploy the changes without proper authorization or documentation. This can compromise the integrity, availability, and security of the application, and expose the organization to operational, financial, legal, or reputational risks. Therefore, the answer is D. The administrative access represents a segregation of duties conflict. *References
The MOST important reason to aggregate results from multiple risk assessments on interdependent information systems is to:
establish overall impact to the organization
efficiently manage the scope of the assignment
identify critical information systems
facilitate communication to senior management
The interdependency of information systems means that the failure or disruption of one system can affect the performance or availability of other systems. Therefore, it is important to aggregate the results from multiple risk assessments on interdependent information systems to understand the overall impact to the organization. By aggregating the results, the risk manager can identify the potential cascading effects, the cumulative consequences, and the worst-case scenarios of interdependent risks. This can help the organization to prioritize the risks, allocate the resources, and implement the risk response strategies accordingly. The other options are not as important as the overall impact to the organization, because they do not capture the full extent of the interdependency of information systems. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.3, page 99.
An internally developed payroll application leverages Platform as a Service (PaaS) infrastructure from the cloud. Who owns the related data confidentiality risk?
IT infrastructure head
Human resources head
Supplier management head
Application development head
Data confidentiality risk is the risk that the data may be accessed, disclosed, or modified by unauthorized parties, resulting in breaches of privacy, trust, or compliance1. Platform as a Service (PaaS) is a cloud computing model that provides a platform for developing, testing, and deploying applications, without requiring the users to manage the underlying infrastructure2. An internally developed payroll application is an application that is created and maintained by the organization itself, rather than by a third-party vendor, and that is used to process and manage the payroll data of the organization’s employees3. The owner of the data confidentiality risk is the person or entity that has the authority and accountability for the data and its protection, and that is responsible for identifying, assessing, and mitigating the risk. The owner of the data confidentiality risk related to an internally developed payroll application that leverages PaaS infrastructure from the cloud is the human resources head, as they are the person who oversees the human resources function and the payroll data of the organization. The human resources head has the best understanding of the sensitivity, value, and usage of the payroll data, and the potential impacts and implications of a data confidentiality breach. The human resources head also has the ability and responsibility to define and implement the policies, procedures, and controls that are necessary to protect the payroll data, and to monitor and report on the performance and compliance of the data confidentiality risk management. The IT infrastructure head, the supplier management head, and the application development head are not the best choices for owning the data confidentiality risk related to an internally developed payroll application that leverages PaaS infrastructure from the cloud, as they do not have the same level of authority and accountability as the human resources head. The IT infrastructure head is the person who oversees the IT infrastructure function and the PaaS infrastructure of the organization. The IT infrastructure head may be involved in providing input and feedback to the human resources head on the data confidentiality risk management, especially those related to the PaaS infrastructure, but they do not have the final say or the overall responsibility for the payroll data and its protection. The supplier management head is the person who oversees the supplier management function and the relationship with the cloud service provider that provides the PaaS infrastructure. The supplier management head may be involved in negotiating and enforcing the service level agreements and the security requirements with the cloud service provider, but they do not have the authority or the expertise to manage the data confidentiality risk of the payroll data. The application development head is the person who oversees the application development function and the development, testing, and deployment of the payroll application. The application development head may be involved in designing and implementing the security features and controls of the payroll application, but they do not have the perspective or the influence to manage the data confidentiality risk of the payroll data. References = 3: Payroll Software: What Is It & How Does It Work? | QuickBooks2: What is Platform as a Service (PaaS)? | IBM1: Data Confidentiality: Identifying and Protecting Assets Against Data … : [Risk Ownership - Risk Management] : [Human Resources and Payroll Security Policy - University of …] : [Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Concepts, pp. 17-19.] : [Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.1: Risk Identification, pp. 57-59.] : [Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.1: Control Design, pp. 233-235.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.2: Control Implementation, pp. 243-245.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.3: Control Monitoring and Maintenance, pp. 251-253.]
The GREATEST concern when maintaining a risk register is that:
impacts are recorded in qualitative terms.
executive management does not perform periodic reviews.
IT risk is not linked with IT assets.
significant changes in risk factors are excluded.
A risk register is a tool that records and tracks the identified risks, their causes, impacts, likelihood, responses, and owners. The greatest concern when maintaining a risk register is that significant changes in risk factors are excluded. Risk factors are the internal and external variables that influence the occurrence and impact of risks. Risk factors can change over time due to changes in the business environment, the IT landscape, the threat landscape, or the regulatory requirements. If the risk register does not reflect the significant changes in risk factors, it may not provide an accurate and current view of the enterprise’s risk profile and may not support effective risk management decisions and actions. The other options are not as concerning as the exclusion of significant changes in risk factors, as they involve different aspects of the risk register:
Impacts are recorded in qualitative terms means that the risk register uses descriptive scales, such as low, medium, and high, to measure the potential consequences of the risks. This may not be as precise or consistent as quantitative measures, such as monetary values or percentages, but it does not necessarily affect the validity or usefulness of the risk register.
Executive management does not perform periodic reviews means that the risk register is not regularly evaluated and updated by the senior leaders of the enterprise. This may indicate a lack of management commitment or oversight for risk management, but it does not directly affect the quality or completeness of the risk register.
IT risk is not linked with IT assets means that the risk register does not associate the identified risks with the specific IT resources, such as hardware, software, data, or services, that are affected by or contribute to the risks. This may limit the visibility and traceability of the risks, but it does not necessarily affect the identification or assessment of the risks. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.2.2, pp. 21-22.
Which of the following will BEST support management repotting on risk?
Risk policy requirements
A risk register
Control self-assessment
Key performance Indicators
Key performance indicators (KPIs) are metrics that measure the achievement of objectives and the effectiveness of processes. KPIs can help management report on risk by providing quantitative and qualitative information on the risk profile, the risk appetite, the risk response, and the risk outcomes. KPIs can also help monitor and communicate the progress and results of risk management activities, such as risk identification, assessment, mitigation, and reporting. KPIs can be aligned with the strategic, operational, and tactical goals of the organization, and can be tailored to the specific needs and expectations of different stakeholders. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Key Risk Indicators and Key Performance Indicators, p. 197-199.
Which of the following is MOST important when discussing risk within an organization?
Adopting a common risk taxonomy
Using key performance indicators (KPIs)
Creating a risk communication policy
Using key risk indicators (KRIs)
A common risk taxonomy is a framework that defines and categorizes the sources, types, and impacts of risks within an organization1. It helps to establish a consistent and shared understanding of risk across the organization, and to facilitate effective risk identification, assessment, reporting, and communication2. A common risk taxonomy also enables comparison and aggregation of risks at different levels and domains, and supports alignment of risk management with business objectives and strategies3. Using key performance indicators (KPIs) and key risk indicators (KRIs) are important for measuring and monitoring risk and performance, but they are not the most important factor when discussing risk within an organization. KPIs and KRIs should be derived from the common risk taxonomy and aligned with the organization’s risk appetite and tolerance4. Creating a risk communication policy is also important for ensuring that risk information is communicated to the right stakeholders at the right time and in the right format, but it is not the most important factor either. A risk communication policy should be based on the common risk taxonomy and the risk roles and responsibilities within the organization5. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.2: Risk Taxonomy, pp. 25-29.
Which of the following would be of GREATEST concern to a risk practitioner reviewing current key risk indicators (KRIs)?
The KRIs' source data lacks integrity.
The KRIs are not automated.
The KRIs are not quantitative.
The KRIs do not allow for trend analysis.
The greatest concern for a risk practitioner reviewing current key risk indicators (KRIs) is that the KRIs’ source data lacks integrity, as this means that the data is inaccurate, incomplete, inconsistent, or outdated, and therefore cannot provide reliable and valid information on the risk level and performance. The KRIs are metrics that measure and monitor the changes in the risk exposure and the effectiveness of the risk response over time. The KRIs’ source data should be collected and verified from credible and relevant sources, and should be updated and maintained regularly. The KRIs’ source data should also be aligned and integrated with the enterprise’s data governance and quality standards. The other options are not the greatest concerns for a risk practitioner reviewing current key risk indicators (KRIs), although they may pose some challenges or limitations. The KRIs are not automated is a concern for the efficiency and timeliness of the KRI reporting and analysis, but it does not affect the integrity of the KRI source data. The KRIs are not quantitative is a concern for the objectivity and comparability of the KRI measurement and prioritization, but it does not affect the integrity of the KRI source data. The KRIs do not allow for trend analysis is a concern for the usefulness and relevance of the KRI communication and decision making, but it does not affect the integrity of the KRI source data. References = Risk and Information Systems Control Study Manual, Chapter 5: Risk and Control Monitoring and Reporting, page 183.
An organization is measuring the effectiveness of its change management program to reduce the number of unplanned production changes. Which of the following would be the BEST metric to determine if the program is performing as expected?
Decrease in the time to move changes to production
Ratio of emergency fixes to total changes
Ratio of system changes to total changes
Decrease in number of changes without a fallback plan
The ratio of emergency fixes to total changes is the best metric to determine if the change management program is performing as expected, because it reflects the quality and stability of the changes that are implemented in the production environment. A high ratio of emergency fixes to total changes indicates that the change management program is not effective, as it means that many changes are causing problems or failures that require urgent correction. A low ratio of emergency fixes to total changes indicates that the change management program is effective, as it means that most changes are well-planned, tested, and approved, and do not cause significant disruptions or defects. The ratio of emergency fixes to total changes can also help identify the root causes of the problems, the gaps in the change management process, and the areas for improvement. For example, if the ratio of emergency fixes to total changes is high, it may indicate that the change management program has issues with the following aspects: - Change request and approval: The change management program may not have a clear and consistent process for requesting, reviewing, and approving changes, or the process may not be followed by all stakeholders. - Change impact analysis: The change management program may not have a comprehensive and systematic method for assessing the potential impact of the changes on the business processes, the IT systems, the users, and the customers. - Change testing and validation: The change management program may not have adequate testing and validation procedures to ensure that the changes meet the requirements and specifications, and do not introduce errors or vulnerabilities. - Change communication and training: The change management program may not have effective communication and training strategies to inform and educate the affected parties about the changes and their implications. - Change implementation and monitoring: The change management program may not have proper implementation and monitoring plans or tools to ensure that the changes are executed smoothly and successfully, and that any issues or incidents are detected and resolved promptly. Therefore, the ratio of emergency fixes to total changes is the best metric to determine if the change management program is performing as expected, as it can provide valuable feedback and insights for the change management program and its improvement. References = How to Measure Change Management Effectiveness: Metrics, Tools & Processes1, Metrics for Measuring Change Management2, Driving Value with Change Management Metrics3, Must-Know Organizational Change Management Metrics
Which of the following methods would BEST contribute to identifying obscure risk scenarios?
Brainstorming sessions
Control self-assessments
Vulnerability analysis
Monte Carlo analysis
Brainstorming sessions would best contribute to identifying obscure risk scenarios, as they allow participants to generate and share ideas without being constrained by conventional thinking or assumptions. Brainstorming sessions can help to identify risks that are not obvious, not well understood, or not covered by existing controls. Control self-assessments, vulnerability analysis, and Monte Carlo analysis are useful methods for evaluating and quantifying risks, but they are not designed to identify obscure risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Identification, page 59.
Which of the following is MOST important for developing effective key risk indicators (KRIs)?
Engaging sponsorship by senior management
Utilizing data and resources internal to the organization
Including input from risk and business unit management
Developing in collaboration with internal audit
Key risk indicators (KRIs) are metrics used by organizations to monitor and assess potential risks that may impact their objectives and performance. KRIs also provide early warning signals that help organizations identify, analyze, and address risks before they escalate into significant issues1. Effective KRIs are those that are relevant, measurable, predictable, comparable, and informational2. The most important factor for developing effective KRIs is including input from risk and business unit management, as they are the persons who have the best understanding of the risk environment, the risk appetite and tolerance, and the risk factors and impacts of the organization. By including input from risk and business unit management, the organization can ensure that the KRIs are aligned with the organization’s strategy, vision, and mission, and that they reflect the current and emerging risks and their potential consequences. Engaging sponsorship by senior management, utilizing data and resources internal to the organization, and developing in collaboration with internal audit are not the most important factors for developing effective KRIs, as they do not provide the same level of insight and relevance as including input from risk and business unit management. Engaging sponsorship by senior management is a factor that involves obtaining the support and approval of the senior leaders who have the authority and accountability for the organization’s performance and governance. Engaging sponsorship by senior management can help to promote the importance and value of KRIs, and to ensure their communication and implementation across the organization, but it does not ensure that the KRIs are appropriate and accurate for the organization’s risk profile. Utilizing data and resources internal to the organization is a factor that involves using the information and assets that are available within the organization to support or enable the development of KRIs. Utilizing data and resources internal to the organization can help to enhance the quality and reliability of KRIs, and to reduce the cost and complexity of obtaining external data and resources, but it does not ensure that the KRIs are comprehensive and consistent with the organization’s risk environment. Developing in collaboration with internal audit is a factor that involves working with the internal audit function that provides independent and objective assurance and advice on the adequacy and effectiveness of the organization’s risk management. Developing in collaboration with internal audit can help to improve the validity and compliance of KRIs, and to provide feedback and recommendations for improvement, but it does not ensure that the KRIs are relevant and realistic for the organization’s risk objectives and strategies. References = 1: Key Risk Indicators: A Practical Guide | SafetyCulture2: KRI Framework for Operational Risk Management | Workiva3: [Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.1: Key Risk Indicators, pp. 181-185.]
A risk practitioner is reviewing the status of an action plan to mitigate an emerging IT risk and finds the risk level has increased. The BEST course of action would be to:
implement the planned controls and accept the remaining risk.
suspend the current action plan in order to reassess the risk.
revise the action plan to include additional mitigating controls.
evaluate whether selected controls are still appropriate.
The best course of action when a risk practitioner finds that the risk level of an emerging IT risk has increased, despite having an action plan to mitigate it, is to evaluate whether the selected controls are still appropriate. This is because the increase in the risk level may indicate that the current controls are not effective or sufficient to reduce the impact or likelihood of the risk, or that the risk environment has changed and new threats or vulnerabilities have emerged. By evaluating the appropriateness of the selected controls, the risk practitioner can identify the gaps or weaknesses in the control design or implementation, and determine the need for corrective actions or improvements. The other options are not the best course of action, because they do not address the root cause of the problem, but rather assume or ignore the effectiveness of the controls, as explained below:
A. Implement the planned controls and accept the remaining risk is not the best course of action, because it assumes that the planned controls are adequate and aligned with the organization’s risk appetite, which may not be the case if the risk level has increased. Implementing the planned controls without evaluating their appropriateness may result in wasting resources, exposing the organization to more risk, or missing opportunities to enhance the risk mitigation effectiveness.
B. Suspend the current action plan in order to reassess the risk is not the best course of action, because it ignores the effectiveness of the current controls, which may still provide some level of risk mitigation, even if they are not optimal. Suspending the current action plan may also delay the risk response and increase the risk exposure, especially if the risk is time-sensitive or dynamic. Reassessing the risk without evaluating the appropriateness of the current controls may also lead to inaccurate or incomplete risk information and analysis.
C. Revise the action plan to include additional mitigating controls is not the best course of action, because it assumes that the current controls are ineffective or insufficient, which may not be the case if the risk level has increased due to other factors, such as changes in the risk environment or the organization’s objectives. Revising the action plan without evaluating the appropriateness of the current controls may result in overcompensating, duplicating, or conflicting the controls, which may affect the risk mitigation efficiency and performance. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.3, page 130. How to Mitigate Emerging Technology Risk - ISACA, Risk Mitigation Strategies: Types & Examples (+ Free Template), 5 Key Risk Mitigation Strategies (With Examples) | Indeed.com
A risk practitioner has been notified that an employee sent an email in error containing customers' personally identifiable information (Pll). Which of the following is the risk practitioner's BEST course of action?
Report it to the chief risk officer.
Advise the employee to forward the email to the phishing team.
follow incident reporting procedures.
Advise the employee to permanently delete the email.
The best course of action for the risk practitioner is to follow the incident reporting procedures established by the organization. This will ensure that the incident is properly documented, escalated, and resolved in a timely and consistent manner. Reporting the incident to the chief risk officer, advising the employee to forward the email to the phishing team, or advising the employee to permanently delete the email are not the best courses of action, as they may not comply with the organization’s policies and standards, and may not address the root cause and impact of the incident. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.2.1, page 193.
Which of the following provides The MOST useful information when determining a risk management program's maturity level?
Risk assessment results
A recently reviewed risk register
Key performance indicators (KPIs)
The organization's risk framework
Key performance indicators (KPIs) are measurable values that demonstrate how effectively an organization is achieving its key objectives. KPIs can be used to evaluate the progress and performance of a risk management program, as well as to identify the areas for improvement and alignment with the organization’s strategy. KPIs can provide the most useful information when determining a risk management program’s maturity level, because they can reflect the extent to which the program is integrated, consistent, proactive, and value-adding. KPIs can also be compared with industry benchmarks or best practices to assess the program’s maturity level relative to other organizations. The other options are not as useful as KPIs, because they do not provide a clear and comprehensive picture of the risk management program’s maturity level, but rather focus on specific aspects or outputs of the program. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, page 18.
The PRIMARY purpose of a maturity model is to compare the:
current state of key processes to their desired state.
actual KPIs with target KPIs.
organization to industry best practices.
organization to peers.
A maturity model is a tool that assesses the level of development and performance of key processes within an organization. A maturity model typically defines a set of criteria, standards, and best practices for each process, and assigns a rating or score based on the degree of compliance or achievement. A maturity model can help compare the current state of key processes to their desired state, by identifying the strengths, weaknesses, gaps, and opportunities for improvement. A maturity model can also help establish a roadmap for process improvement, by setting realistic and measurable goals and objectives, and monitoring the progress and results. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.4: IT Risk Scenarios, p. 49-50.
Which of the following conditions presents the GREATEST risk to an application?
Application controls are manual.
Application development is outsourced.
Source code is escrowed.
Developers have access to production environment.
The production environment is the environment where the application is deployed and used by the end users. The production environment should be protected from unauthorized or unintended changes that could compromise the availability, integrity, or confidentiality of the application and its data. Developers have access to the production environment presents the greatest risk to an application, as it could allow them to bypass the change management process, introduce errors or vulnerabilities, or manipulate the application or its data for malicious purposes. The other options are not as risky as developers having access to the production environment, as they involve different aspects of the application lifecycle:
Application controls are manual means that the application relies on human intervention to perform some functions or validations, such as data entry, reconciliation, or authorization. This could increase the risk of human error, fraud, or inefficiency, but it does not directly affect the production environment.
Application development is outsourced means that the application is developed by a third party, such as a vendor or a contractor. This could increase the risk of quality issues, contractual disputes, or intellectual property rights, but it does not directly affect the production environment.
Source code is escrowed means that the source code of the application is deposited with a trusted third party, such as a lawyer or a bank. This could provide assurance and continuity in case the original developer is unable or unwilling to maintain or support the application, but it does not directly affect the production environment. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.1.1.1, pp. 144-145.
Which