CRISC Certified in Risk and Information Systems Control Questions and Answers

 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.

According to the Guide to Implementing an IT Risk Management Framework, the first activity that should be performed when establishing IT risk management processes is to assess the goals and culture of the organization. This is because the goals and culture of the organization define the context and scope of the IT risk management process, and influence the risk appetite and tolerance of the organization. By assessing the goals and culture of the organization, the IT risk manager can align the IT risk management process with the organization’s strategy, vision, mission, values, and objectives. The IT risk manager can also identify the key stakeholders, roles, and responsibilities involved in the IT risk management process, and ensure that they have the necessary skills, knowledge, and resources to perform their tasks effectively. Additionally, the IT risk manager can establish the communication and reporting mechanisms for the IT risk management process, and ensure that they are consistent with the organization’s culture and expectations. References = Guide to Implementing an IT Risk Management Framework, An Overview of the Risk Management Process

Scenario analysis and stress testing are the best methods to enable an organization to determine whether external emerging risk factors will impact the organization’s risk profile, as they help to simulate and evaluate the potential outcomes and effects of various risk events and scenarios on the enterprise’s objectives and operations. Scenario analysis and stress testing can help to identify and assess the impact of external emerging risk factors, such as changes in the market, technology, regulation, or environment, and to measure the resilience and preparedness oftheenterprise to cope with these factors. Control identification and mitigation, adoption of a compliance-based approach, and prevention and detection techniques are not the best methods to enable an organization to determine whether external emerging risk factors will impact the organization’s risk profile, as they do not help to simulate and evaluate the potential outcomes and effects of various risk events and scenarios, but rather to manage and monitor the existing or known risks. References = CRISC: Certified in Risk & Information Systems Control Sample Questions, question 223.

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 applicationwith the business objectives. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

•Risk acceptance is a status quo risk response, where the risk owner acknowledges the risk exists but accepts it with minimal response1. Risk acceptance may be appropriate when the cost of other risk responses exceeds the value that would be gained, or when the risk is below the risk acceptance criteria2.

•Risk acceptance criteria are the criteria used as a basis for decisions about acceptable risk2. They should be established before conducting a risk assessment, and they may be influenced by factors such as utility, equality, technology, and risk perception2. Different organizations and countries may have different risk acceptance criteria, depending on their context and values3.

•In this scenario, the organization has conducted a risk assessment for regulatory compliance, and has identified only one possible mitigating control. However, the cost of the control is higher than the penalty of noncompliance, which implies that the risk is below the risk acceptancecriteria. Therefore, the best recommendation is to accept the risk with management sign-off, which means that the management agrees to take the risk and is accountable for the consequences.

•Ignoring the risk until the regulatory body conducts a compliance check (option B) is not a good recommendation, as it may expose the organization to legal, financial, or reputational damage. Moreover, ignoring the risk may violate the principle of risk reduction, which states that risks should be reduced wherever practicable2.

•Mitigating the risk with the identified control (option C) is not a good recommendation, as it may not be cost-effective or efficient for the organization. The cost of the control is higher than the penalty ofnoncompliance, which means that the organization would spend more resources than necessary to reduce the risk. Moreover, mitigating the risk may not be aligned with the principle of utility, which states that resources should be used as efficiently as possible for the society as a whole2.

•Transferring the risk by buying insurance (option D) is not a good recommendation, as it may not be feasible or beneficial for the organization. Transferring the risk means that the organization shifts the responsibility or burden of the risk to another party, such as an insurer, a contractor, or a partner1. However, transferring the risk does not eliminate the risk, and it may incur additional costs or complications for the organization. Moreover, transferring the risk may not be possible or acceptable for some types of regulatory compliance risks, such as those related to health, safety, or environmental standards3.

According to the CRISC Review Manual1, controls are the policies, procedures, practices, and organizational structures that are designed and implemented to manage risk. The most important factor when defining controls is to align them with the business objectives, as this helps to ensure that the controls support the achievement of the organization’s strategy, goals, and values. Aligning controls with business objectives also helps to optimize the benefits and costs of controls, and to prioritize and allocate resources for control implementation and maintenance. References = CRISC Review Manual1, page 202.

The operational risk associated with attacks on a web application should be owned by the individual in charge of the business function, because they are the primary stakeholder and beneficiary of the web application, and they are responsible for defining and achieving the business objectives and requirements that the web application supports or enables. Anoperational risk is a risk of loss or damage resulting from inadequate or failed internal processes, people, or systems, or from external events. An attack on a web application is a type of operational risk that involves a malicious or unauthorized attempt to compromise the confidentiality, integrity, or availability of the web application, such as a denial-of-service attack, a SQL injection attack, or a cross-site scripting attack. A web application is an application that runs on a web server and can be accessed or used through a web browser, such as an online shopping site, a social media platform, or a web-based email service. A business function is a set of activities or tasks that support or enable the organization’s vision, mission, and strategy, such as marketing, sales, or customer service. A risk owner is a person or role that has the authority and accountability to manage a specific risk, and to implement and monitor the risk response and controls. The individual in charge of the business function should be the risk owner, as they have the best understanding and interest of the web application and its business value and impact, and they have the ability and responsibility to manage the operational risk associated with the attacks on the web application. The individual in charge of network operations, the cybersecurity function, or application development are all possible candidates for the risk owner, but they are not the best choice, as they may not have the same level of stake and influence in the web application and its business objectives and requirements, and they may have different orconflicting priorities or perspectives on the operational risk and its management. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.1, page 101

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

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

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

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

Provide insights and perspectives on the nature and characteristics of the emerging threats, and their possible causes and consequences

Assess the likelihood and impact of the emerging threats, and their interactions and dependencies with other risks

Evaluate the suitability and effectiveness of the risk responses, and their alignment with the organization’s risk appetite and tolerance

Identify and recommend the best practices and lessons learned for managing the emerging threats, and for improving the risk management process45

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

Quantitative measures require reliable and sufficient data and information, which may not be available or accessible for the emerging threats

Quantitative measures rely on mathematical models and techniques, which may not be able to capture or reflect the complexity and uncertainty of the emerging threats

Quantitative measures may create a false sense of precision or accuracy, which may not be justified or warranted for the emerging threats

Quantitative measures may be influenced or manipulated by biases or assumptions, which may not be valid or appropriate for the emerging threats67

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

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

Qualitative Risk Analysis vs. Quantitative Risk Analysis - ISACA

Residual Risk - ISACA

Emerging Threats - ISACA

Expert Judgment - ISACA

Expert Judgment in Project Management: Narrowing the Theory-Practice Gap

Quantitative Risk Analysis - ISACA

Quantitative Risk Analysis: A Critical Review

[CRISC Review Manual, 7th Edition]

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 responseactivities, the level of the regulatory fines, and the duration of the incident containment and recovery. References = CRISC Review Manual, 7th Edition, page 159.

The criticality of the asset is the most important factor to consider when determining the value of an asset during the risk identification process, because it reflects the importance or significance of the asset to the organization’s objectives or functions, and the potential impact or consequence of losing or compromising the asset. An asset is a resource or capability that has value to the organization, such as data, systems, applications, infrastructure, or people. The value of an asset is a measure of the worth or benefit of the asset to the organization, and the cost or loss of the asset to the organization. The risk identification process is a process of systematically identifying the sources and types of risk that an organization faces, and estimating their likelihood and impact. The criticality of the asset is the most important factor, as it helps to prioritize and focus on the assets that have the highest value and impact, and to determine the appropriate level of protection and investment for the assets. The monetary value of the asset, the vulnerability profile of the asset, and the size of the asset’s user base are all possible factors to consider when determining the value of an asset, but they are not the most important factor, as they do not directly reflect the criticality of the asset to the organization’s objectives or functions. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 83

 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.

Identifying and assessing the risk scenarios associated with IT strategic initiatives is the best risk management approach for the strategic IT planning process, because it helps to understand and evaluate the potential or actual threats or opportunities that may affect the achievement or implementation of the IT strategic initiatives, and to determine the appropriate risk responses and controls. A risk scenario is a hypothetical situation or event that describes the source, cause, consequence, and impact of a risk. A risk scenario can be positive or negative, depending on whether it represents an opportunity or a threat. An IT strategic initiative is a project or program that supports or enables the IT strategy, which is a plan that defines how IT supports and aligns with the organization’s vision, mission, and strategy. The strategic IT planning process is a process of developing, implementing, and monitoring the IT strategy and its associated IT strategic initiatives. Identifying and assessing the risk scenarios is the best risk management approach, as it helps to anticipate and prepare for the potential or actual outcomes of the IT strategic initiatives, and to optimize the risk-reward balance and the value delivery of IT. Establishing key performance indicators (KPIs) to track IT strategic initiatives, reviewing the IT strategic plan by the chief information security officer (CISO) and enterprise risk management (ERM), and developing the IT strategic plan from the organization-wide risk management plan are all possible risk management approaches for the strategic IT planning process, but they are not the best approach, as they do not directly address the identification and assessment of the risk scenarios associated with IT strategic initiatives. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.1.1, page 37

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

 The 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 risk dashboard provides a visual, real-time overview of risk levels, trends, and key metrics, making it easier for executive management to understand and act upon. It integrates data from various sources, making it comprehensive.

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

The best practice to mitigate risk related to enterprise-wide ethical decision making in a multi-national organization is to provide ongoing awareness training to support a common risk culture. A common risk culture is a set of shared values, beliefs, and behaviors that influence how the organization identifies, analyzes, responds to, and monitors risks. Ongoing awareness training can help to promote a common risk culture by educating the employees about the enterprise’s risk management objectives, policies, procedures, roles, and responsibilities, as well as the ethical standards and expectations that apply to their work. Ongoing awareness training can also help to reinforce the benefits of ethical decision making and the consequences of unethical behavior. Customized regional training on local laws and regulations, policies requiring central reporting of potential procedure exceptions, and zero-tolerance policies for risk taking bymiddle-level managers are also useful practices, but they are not as effective as ongoing awareness training to support a common risk culture. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 37.

A key risk indicator (KRI) is a metric that measures the level of risk exposure or the likelihood of a risk event1. A KRI threshold is a predefined value or range that triggers an alert or action when the KRI reaches or exceeds it2. A data leakage incident is an unauthorized or accidental exposure of sensitive or confidential data to external parties3.

When a KRI threshold reaches the alert level, indicating that data leakage incidents are highly probable, the risk practitioner’s first course of action should be to review the incident handling procedures. Incident handling procedures are the plans and actions to be taken in the event of a data breach or security incident, such as data leakage4. Reviewing the incident handling procedures can help the risk practitioner to:

Verify the roles and responsibilities of the incident response team and other stakeholders

Confirm the communication and escalation channels and protocols

Identify the tools and resources available for incident detection, containment, analysis, eradication, recovery, and reporting

Evaluate the readiness and preparedness of the organization to respond to a data leakage incident

Update or revise the procedures as needed to reflect the current situation and risk level

Reviewing the incident handling procedures can help the risk practitioner to ensure that the organization can respond to a data leakage incident effectively and efficiently, minimizing the potential or expected impact on the organization’s operations, reputation, or objectives.

The other options are not the first course of action for the risk practitioner, although they may be relevant or necessary at later stages of the risk management process. Updating the KRI threshold, which means adjusting the value or range that triggers an alert or action, may be appropriate if the KRI threshold is too high or too low, but it does not address the imminent risk of data leakage or the response plan. Recommending additional controls, which means suggesting new or improved measures to prevent, detect, or mitigate data leakage, may be useful for reducing the risk exposure or impact, but it does not ensure that the organization is ready or capable to handle a data leakage incident. Performing a root cause analysis, which means finding and identifying the underlying factors that contributed to the risk event, may be helpful for learning from the incident and improving the risk management strategy, but it is usually done after the incident has occurred and resolved, not before.

References = Key Risk Indicators: Definition, Examples, and Best Practices, KRI Framework for Operational Risk Management | Workiva, What is Data Leakage? Definition, Causes, and Prevention, Incident Response Planning: Best Practices for Businesses

Being the first to market is a competitive advantage that can help an organization gain market share, customer loyalty, and brand recognition. However, this advantage can be lost if the projectis delayed and the competitors catch up or surpass the organization. Therefore, the project delivery time is of greatest concern to senior management, as it directly affects the strategic objective of the project. The other options are less critical, as they can be managed or mitigated by the project team. More time for testing can improve the quality and reliability of the product, a new project manager can bring fresh ideas and perspectives, and the cost overrun can be justified by the expected benefits and revenues of the product. References = Project Initiation: The First Step to Project Management [2023] • Asana, 12 Steps to Initiate and Plan a Successful Project

The primary consideration for determining recovery priorities in a disaster recovery situation is the impact of business disruption on the organization’s mission, objectives, and stakeholders. Business disruption can result in loss of revenue, reputation, customer satisfaction, market share, and competitive advantage. Therefore, the recovery priorities should be based on the criticality of the business processes and functions that support the organization’s value proposition and strategic goals. Data security (A), recovery costs (B), and recovery resource availability (D) are important factors, but they are secondary to the impact of business disruption. Data security should be ensured throughout the recovery process, but it does not determine the recovery order. Recovery costs should be balanced with the benefits of restoring the business operations, but they do not reflect the urgency of the recovery. Recovery resource availability should be assessed and allocated according to the recovery priorities, but it does not define the recovery sequence. (Risk and Information Systems Control Review Questions, Answers & Explanations Manual, 5th Edition, page 982)

According to the CRISC Review Manual, risk taxonomy is the system of classification and categorization of risks based on common characteristics and attributes. Risk taxonomy is necessary to enable an IT risk register to be consolidated with the rest of the organization’s risk register, because it helps to ensure consistency, comparability, and alignment of the risks across the organization. Risk taxonomy also helps to facilitate the communication, reporting, and aggregation of the risks. The other options are not the correct answers, because they are not essential for consolidating the risk registers. Risk response is the action taken to address the risk, which may vary depending on the risk level and strategy. Risk appetite is the amount and type of risk that an organization is willing to accept, which may differ across the organization’s units and functions. Risk ranking is the process of prioritizing the risks based on their impact and likelihood, which may change over time and context. References = CRISC Review Manual, 7th Edition, Chapter 2, Section 2.1.2, page 69.

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

The effectiveness of anti-malware software is the degree to which it can detect, prevent, and remove malicious software (malware) from the system or network. Malware is any software that is designed to harm, exploit, or compromise the functionality, security, or privacy of the system or network1. Some common types of malware are viruses, worms, Trojans, ransomware, spyware, adware, and rootkits2.

One of the best indicators of the effectiveness of anti-malware software is the number of successful attacks by malicious software, which means the number of times that malware has managed to bypass, evade, or disable the anti-malware software and cause damage or disruption to the system or network. The lower the number of successful attacks, the higher the effectiveness of the anti-malware software. This indicator can measure the ability of the anti-malware software to protect the system or network from known and unknown malware threats, and to respond and recover from malware incidents34.

The other options are not the best indicators of the effectiveness of anti-malware software, because:

Number of staff hours lost due to malware attacks is a measure of the impact or consequence of malware attacks on the productivity or performance of the staff. It does not directly reflect the ability of the anti-malware software to detect, prevent, or remove malware, as there may be other factors that affect the staff hours lost, such as the severity of the attack, the availability of backup or recovery systems, or the skills and awareness of the staff5.

Number of downtime hours in business critical servers is a measure of the impact or consequence of malware attacks on the availability or reliability of the servers. It does notdirectly reflect the ability of the anti-malware software to detect, prevent, or remove malware, as there may be other factors that affect the downtime hours, such as the type of the server, the configuration of the network, or the maintenance of the hardware6.

Number of patches made to anti-malware software is a measure of the maintenance or improvement of the anti-malware software. It does not directly reflect the ability of the anti-malware software to detect, prevent, or remove malware, as there may be other factors that affect the number of patches, such as the frequency of the updates, the quality of the software, or the compatibility of the system7.

References =

What is Malware? - Definition from Techopedia

Common Types of Malware and Their Impact - Techopedia

What is Anti-Malware? Everything You Need to Know (2023) - SoftwareLab

The 10 Best Malware Protection Solutions Compared for 2024 - Techopedia

The Cost of Malware Attacks - Security Boulevard

The Impact of Malware on Business - Kaspersky

What is Patch Management? - Definition from Techopedia

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

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.

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

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

Backups are the best control to mitigate the impact of a failed IT system upgrade project that has resulted in the corruption of an organization’s asset inventory database, as they allow theorganization to restore the data from a previous state and resume normal operations. Encryption, authentication, and configuration are not the best controls, as they do not address the data corruption issue, but rather the datasecurity, access, and quality issues, respectively. References = CRISC Review Manual, 7th Edition, page 153.

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

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

The data owner is responsible for ensuring that information is appropriately classified and protected. They are accountable for defining access controls and ensuring compliance with data protection policies, making them primarily accountable for risks associated with business information protection.

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

Policies and standards are the primary documents that define the organization’s expectations and requirements for information security and risk management. They provide the basis for establishing controls, procedures, roles, and responsibilities. Policies and standards should be updated following a change in legislation requiring notification to individuals impacted by data breaches, to ensure compliance with the new legal obligations and to align with the organization’s risk appetite and tolerance. Updating policies and standards can also help to communicate the changes to the relevant stakeholders and to provide guidance for implementing and monitoring the controls. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, p. 28-29

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

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.

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.

Key Control Indicators (KCIs) are metrics used to monitor the performance of controls. Their primary benefit is the early detection of control degradation, allowing organizations to take corrective actions before issues escalate into significant problems.

A review of business processes is crucial for identifying risk owners, as risk ownership is tied to specific processes within the organization. Risk owners are accountable for managing and mitigating risks within their respective areas. This ensures that risks are effectively addressed where they arise and aligns mitigation efforts with business objectives. Properly identifying risk owners supports better governance, accountability, and alignment with the organization's risk management strategy.

The greatest concern for a risk practitioner when process documentation is incomplete is the inability to identify the risk owner. The risk owner is the person or entity that has the authority and responsibility to manage a specific risk or a group of related risks. The risk owner helps to identify, assess, and respond to the risks, and to monitor and report on the risk performance and improvement. The risk owner also helps to communicate and coordinate the risk management activities with the relevant stakeholders, such as the board, management, business units, and IT functions. The risk owner is usually identified in the process documentation, which describes the roles, responsibilities, procedures, and resources for each process. The inability to identify the risk owner is a major concern for the risk practitioner, because it may affect the accountability, transparency, and effectiveness of the risk management process, and may lead to confusion, conflicts, or gaps in the risk management activities. The other options are not as concerning as the inability to identify the risk owner, although they may also pose some difficulties or limitations for the risk management process. Inability to allocate resources efficiently, inability to complete the risk register, and inability to identify process experts are all factors that could affect the quality and timeliness of the risk management process, but they do not necessarily affect the authority and responsibility of the risk management process. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 2-11.

Before acting, the risk practitioner mustevaluate the threat in the organizational context. This includes checking system exposure, current mitigations, and potential business impact. Only then can an informed decision (such as patching or mitigation) be made.

 The greatest benefit of identifying appropriate risk owners is that accountability is established for risk treatment decisions. Risk owners are the individuals or groups who are responsible and accountable formanaging a specific risk and its associated actions and outcomes. By identifying appropriate risk owners, the organization can ensure that the risk treatment decisions are made by the people who have the authority, knowledge, and interest in the risk. Stakeholders beingconsulted, risk owners being informed, and responsibility being established are other possible benefits, but they are not as great as accountability being established. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.

Continuous data backup controls are the best recommendation to further reduce the impact of ransomware attacks, as they enable the organization to restore the data that has been encrypted or deleted by the ransomware without paying the ransom or losing the data. Continuous data backup controls ensure that the data is regularly and automatically backed up to a secure and separate location, and that the backup data is tested and verified for integrity and availability. Two-factor authentication, encryption for data at rest, and encryption for data in motion are not the best recommendations to further reduce the impact of ransomware attacks, as they do not address the recovery of the data that has been compromised by the ransomware. These controls may help to prevent or mitigate ransomware attacks, butnot to reduce their impact. References = CRISC by Isaca Actual Free Exam Q&As, question 207; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 207.

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

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

Risk tolerance refers to the acceptable level of variation in outcomes related to specific risks that an organization is willing to withstand. It defines the boundaries within which the organization can operate safely and is often set by senior leadership to guide decision-making processes. In the context of integrating a new acquisition, allowing for variation in the level of risk-taking directly pertains to the organization's risk tolerance.

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

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.

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

 The best way to measure the effectiveness of the subsidiary’s IT systems controls is to review metrics and key performance indicators (KPIs), as they provide quantitative and qualitative measures of the performance and outcomes of the IT systems and processes, and how well they meet the predefined standards and expectations. Metrics and KPIs can help to evaluate the efficiency, reliability, security, and quality of the IT systems and controls, and to identify any gaps, weaknesses, or issues that need to be addressed. Metrics and KPIs can also help to compare and benchmark the subsidiary’s IT systems and controls with those of the parent organization or other similar entities. The other options are not the best ways to measure the effectiveness of the subsidiary’s IT systems controls, although they may be useful or complementary methods. Implementing IT systems in alignment with business objectives is a good practice, but it does not measure the effectiveness of the IT systems controls, as it focuses on the alignment andintegration of the IT systems with the business strategy and goals. Reviewing design documentation of IT systems can provide some information on the specifications and requirements of the IT systems, but it does not measure the effectiveness of the IT systems controls, as it does not reflect the actual implementation and operation of the IT systems. Evaluating compliance with legal and regulatory requirements can ensure that the subsidiary’s IT systems and controls meet the minimum standards and obligations of the foreign country, but it does not measure the effectiveness of the IT systems controls, as it does not consider the performance and outcomes of the IT systems and processes. References = Risk and Information Systems Control Study Manual, Chapter 5: Risk and Control Monitoring and Reporting, page 187.

Software as a service (SaaS) is a cloud computing model that provides software applications over the internet, without requiring the customer to install or maintain them on their own devices1. SaaS applicationscan offer many benefits, such as scalability, accessibility, and cost-efficiency, but they also pose security risks, such as data breaches, unauthorized access, and compliance violations2.

One of the best ways to protect an organization against breaches when using a SaaS application is to use data loss prevention (DLP) tools. DLP tools are software solutions that monitor, detect,and prevent the unauthorized transmission or leakage of sensitive data from an organization’s network or devices3. DLP tools can help an organization to:

Identify and classify sensitive data, such as personal information, intellectual property, or financial records, and apply appropriate policies and controls to protect them

Encrypt data in transit and at rest, and use secure protocols and encryption keys to ensure data confidentiality and integrity

Block or alert on suspicious or malicious data transfers, such as unauthorized uploads, downloads, or sharing of data to external sources or devices

Audit and report on data activities and incidents, and provide evidence for compliance with data protection regulations and standards, such as GDPR, HIPAA, or PCI-DSS4

References = What is SaaS?, Top 7 SaaS Security Risks (and How to Fix Them), What is Data Loss Prevention (DLP)?, Data Loss Prevention (DLP) for SaaS Applications

 The best way to validate whether controls to reduce user device vulnerabilities have been implemented according to management’s action plan is to rescan the user environment, as it provides an objective and reliable way to measure and verify the effectiveness and adequacy of the controls, and to detect any remaining or new vulnerabilities. Surveying device owners, requiring annual end user policy acceptance, and reviewing awareness training assessment results are not the best ways, as they may not provide sufficient assurance, evidence, or timeliness of the control validation, respectively. References = CRISC Review Manual, 7th Edition, page 154.

 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.

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

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

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

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

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

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

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

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 197

CRISC Practice Quiz and Exam Prep

Communicating risk assessments to senior management is crucial for ensuring that key decision-makers are aware of the organization's risk landscape. This awareness enables informed decision-making regarding risk responses, resource allocation, and strategic planning. It also fosters a risk-aware culture throughout the organization.

According to the CRISC Review Manual, a control owner is the person who is accountable for ensuring that specific control activities are performed. The control owner is responsible for defining, implementing, monitoring, and improving the control. Therefore, the control ownershould authorize changing the control threshold value, as it is part of their role to ensure that the control is effective and efficient. The other options are not the correct answers, because they are not directly involved in the control activities. The risk owner is the person who is accountable for the risk and its associated mitigation actions. The IT security manager is the person who is responsible for overseeing the IT security function and ensuring that the IT security policy is enforced. The IT system owner is the person who is responsible for the operation andmaintenance of the IT system and its associated data. References = CRISC Review Manual, 7th Edition, Chapter 3, Section 3.1.2, page 108.

The first thing that should be done from a governance perspective to secure the information assets of a newly incorporated enterprise is to establish an inventory of information assets. An inventory of information assets is a document that lists and categorizes all the information assets that the organization owns, uses, or manages, such as data, documents, systems, applications, and devices. An inventory of information assets helps to identify and classify the information assets based on their value, sensitivity, and criticality, and to determine the appropriate level of protection and control for each asset. An inventory of information assets also helps to support the development and implementation of other information security activities, such as risk assessment, policy formulation, awareness training, and incident response. The other options are not the first thing that should be done, although they may be important steps or components of the information security governance. Defining information retention requirements and policies, providing information security awareness training, and establishing security management processes and procedures are all activities that can help to secure the information assets, but theyrequire the prior knowledge and understanding of the information assets. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.1.1, page 3-3.

Thepercentage of critical systemsrecovered within the definedRTOdirectly reflects the organization’s ability to meet its recovery goals. It is a leading measure of the DR program's success.

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

The result of postponing the assessment and treatment of several risk scenarios is that the risk associated with these new entries has been accepted. Risk acceptance is a risk response strategy that involves acknowledging the existence of a risk and deciding not to take any action to reduce its likelihood or impact. By postponing the assessment and treatment of the risk scenarios, the organization is implicitly accepting the risk and its consequences. Risk mitigation, deferral, and transfer are other possible risk response strategies, but they are not applicable in this case. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 9; CRISC Review Manual, 6th Edition, page 137.

The best metric to verify adherence to the policy that requires critical security patches to be deployed in production within three weeks of patch availability is the maximum time gap between patch availability and deployment, as it measures the longest duration that the organization takes to apply the patches, and ensures that it does not exceed the policy limit. The other options are not the best metrics, as they may not reflect the actual or optimal compliance with the policy, or may not be relevant or measurable for the policy, respectively. References = CRISC Review Manual, 7th Edition, page 110.

Comprehensive and Detailed Explanation From Exact Extract:

A global policy that accommodates country-specific requirements balances consistency and compliance. It establishes a baseline of controls while allowing adaptation to local laws and cultural differences. Uniform application without adaptation risks non-compliance. Country-specific policies alone may lack global coherence. Therefore, accommodating local requirements within a global policy framework is best practice.

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

An independent review is typically sought to provide an objective assessment of the IT risk management program, ensuring that it aligns with the organization’s overall strategy andobjectives. The reviewer can identify areas where the program may not be effectively addressing the organization’s strategic goals or where improvements can be made to better manage IT risks.

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

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

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

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

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

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

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

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

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

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

The MOST critical requirement to include in the contract is the confidentiality of customer data, because it is a legal and ethical obligation of the bank to protect the privacy and security of its customers’ personal and financial information. Outsourcing the statement printing function to an external service provider exposes the customer data to potential unauthorized access, disclosure, or misuse by the service provider or its sub-contractors. Therefore, the contract should specify the terms and conditions for the handling, storage, and disposal of the customer data, as well as the penalties for any breach of confidentiality. The other options are not as critical as the confidentiality of customer data, because:

Option A: Monitoring of service costs is an important requirement to ensure that the service provider delivers the statement printing function within the agreed budget and scope, but it is not as critical as the confidentiality of customer data, which has legal and reputational implications for the bank.

Option B: Provision of internal audit reports is a useful requirement to verify that the service provider complies with the internal and external standards and regulations for the statement printing function, but it is not as critical as the confidentiality of customer data, which is a core value of the bank and its customers.

Option C: Notification of sub-contracting arrangements is a relevant requirement to ensure that the service provider does not delegate the statement printing function to another party without the bank’s consent and oversight, but it is not as critical as the confidentiality of customer data, which is the primary responsibility of the bank and its service provider. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 197.

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

A cost-benefit analysis is the best method to assist in justifying an investment in automated controls, as it helps to compare and evaluate the costs and benefits of the investment and to determine its feasibility and profitability. A cost-benefit analysis is a process of identifying, measuring, and comparing the expected costs and benefits of a project or a decision, such asinvesting in automated controls. A cost-benefit analysis can help to justify an investment in automated controls by providing the following benefits:

It enables a data-driven and evidence-based approach to decision making, rather than relying on subjective or qualitative judgments.

It facilitates a consistent and standardized way of assessing and communicating the value and impact of the investment across the organization and to the external stakeholders.

It supports the alignment of the investment with the organizational strategy and objectives, and helps to evaluate the achievement of the desired outcomes.

It helps to identify and prioritize the opportunities and challenges of the investment, and to develop and implement appropriate strategies and actions to address them.

It provides feedback and learning opportunities for the investment and its outcomes, and helps to foster a culture of continuous improvement and innovation.

The other options are not the best methods to assist in justifying an investment in automated controls. Alignment of investment with risk appetite is an important aspect of risk management, but it does not directly address the costs and benefits of the investment. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Alignment of investment with risk appetite helps to ensure that the investment is consistent with the organizational risk tolerance and preferences,and does not expose the organization to excessive or unacceptable risk. Elimination of compensating controls is a possible benefit of investing in automated controls, but it is not a method to justify the investment. Compensating controls are alternative or additional controls that are implemented to mitigate the risk when the primary or preferred controls are not feasible or effective. Elimination of compensating controls can help to reduce the complexity and costs of the control environment, and to improve the efficiency and reliability of the controls. Reduction in personnel costs is a possible benefit of investing in automated controls, but it is not a method to justify the investment. Personnel costs are the expenses related to the staff and employees involved in the processes or functions that are automated. Reduction in personnel costs can help to increase the profitability and productivity of the organization, and to allocate the resources more effectively and efficiently. References = Cost Benefit Analysis: An Expert Guide | Smartsheet, IT Risk Resources | ISACA, Automation - Efficiency, Cost-Savings, Robotics | Britannica

The business process owner is the stakeholder who is responsible for the business process that is supported by the IT system, such as the CRM system. The business process owner has the authority and accountability to manage the risk and its response associated with the business process and the IT system. The business process owner should own the risk of customer data leakage caused by insufficient IT security controls for the new system, as it directly affects the performance, functionality, and compliance of the business process. The other options are not the correct answer, as they involve different roles or responsibilities in the risk management process:

The chief information security officer is the senior executive who oversees the enterprise-wide information security program, and provides guidance and direction to the information security managers and practitioners. The chief information security officer may advise or support the business process owner in managing the risk of customer data leakage, but does not own the risk.

The chief risk officer is the senior executive who oversees the enterprise-wide risk management program, and provides guidance and direction to the risk managers and practitioners. The chief risk officer may advise or support the business process owner in managing the risk of customer data leakage, but does not own the risk.

The IT controls manager is the person who designs, implements, and monitors the IT controls that mitigate the IT risks, such as the IT security controls for the new system. The IT controls manager may advise or support the business process owner in managing the risk of customer data leakage, but does not own the risk. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.1.1.1, pp. 95-96.

Senior management involvement is a critical driver for the success of any risk management program. Without their engagement, there is a lack of strategic oversight, resource allocation, and prioritization of risk management initiatives, directly impacting the organization's ability to meet risk objectives. This is emphasized in theGovernance Principlesof CRISC.

When selecting a risk mitigation option, management should consider the cost of control implementation, as well as the benefits and residual risks. The cost of control implementation includes the direct costs of acquiring, installing, and maintaining the control, as well as the indirect costs of potential side effects, suchas reduced performance, increased complexity, or decreased user satisfaction. The cost of control implementation should be balanced with theexpected reduction in risk exposure and the alignment with the enterprise’s risk appetite and tolerance. The maturity of the enterprise architecture, the reliability of key performance indicators (KPIs), and the reliability of key risk indicators (KRIs) are relevant factors for risk identification and assessment, but not for risk response selection. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk Response, page 149.

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

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

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

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

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

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

References =

Change Management - CIO Wiki

Project Scope Management - CIO Wiki

Change Control - CIO Wiki

Change Impact Analysis - CIO Wiki

Change Approval - CIO Wiki

Change Evaluation - CIO Wiki

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 controland the frequency of failure of control are aspects of the risk assessment that may indicatethe 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

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

User Acceptance Testing (UAT):

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

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

Benefits:

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

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

 Zero Trust Model:

Zero Trust security model assumes that threats can exist both inside and outside the network. Every access request must be authenticated, authorized, and encrypted.

 Preventing Control Gaps:

A robust technical architecture ensures comprehensive and consistent security controls across the entire network.

It integrates various security measures, such as microsegmentation, strong authentication, continuous monitoring, and least privilege access, to create a unified defense strategy.

 Other Options:

Relying on Multiple Solutions:Can lead to fragmentation and inconsistencies in security controls.

Utilizing Rapid Development:May introduce vulnerabilities if security is not properly integrated.

Starting with a Large Initial Scope:Can be overwhelming and difficult to manage effectively, leading to potential gaps.

 References:

The CISSP Study Guide emphasizes the importance of a strong and cohesive technical architecture in implementing Zero Trust effectively (Sybex CISSP Study Guide, Chapter 8: Principles of Security Models, Design, and Capabilities) .

Review Assignments of Data Ownership for Key Assets:

Data Ownership: Ensuring that data ownership is clearly assigned helps establish accountability for data protection. Data owners are responsible for the classification, management, and protection of data.

Baseline Understanding: Reviewing data ownership assignments provides a baseline understanding of who is responsible for sensitive data and ensures that the responsibilities are clearly defined and understood.

Compliance and Control: Proper data ownership ensures that controls are in place and that there is compliance with data protection policies and regulations.

Comparison with Other Options:

Identify Staff Who Have Access to Sensitive Data: This is important but should follow the establishment of clear data ownership to ensure that access controls are appropriately applied.

Identify Recent and Historical Incidents Involving Data Loss: Reviewing incidents helps understand past issues but does not address current data ownership and accountability.

Review the Organization's Data Inventory: While important, a data inventory review is part of understanding data ownership and control but should not be the first step.

Best Practices:

Clear Documentation: Ensure that data ownership is clearly documented and communicated across the organization.

Regular Reviews: Conduct regular reviews of data ownership assignments to ensure they remain accurate and up-to-date.

Training and Awareness: Provide training to data owners on their roles and responsibilities regarding data protection and risk management.

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

Root cause analysis helps identify the fundamental reason for an incident, allowing the enterprise to implement controls that reduce the probability of recurrence.

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.

 Understanding the Question:

The question asks which method best enables timely detection of changes in the security control environment.

 Analyzing the Options:

A. Control self-assessment (CSA):Allows for continuous monitoring and quick detection of any changes or deficiencies in controls.

B. Log analysis:Useful for detecting security incidents but not as comprehensive as CSA for overall control environment changes.

C. Security control reviews:Typically periodic and might not be as timely.

D. Random sampling checks:Not as systematic or comprehensive as CSA.



Control Self-Assessment (CSA):CSA involves regular, structured evaluations by internal staff to ensure controls are working effectively. It promotes early detection of issues by those directly responsible for the controls.

Timeliness:CSA is an ongoing process, making it more timely in identifying changes compared to periodic reviews or random checks.

Providing encrypted access to organizational assets is the best method to mitigate the risk of inadvertent data leakage by remote workers. Encryption ensures that data remains secure, even if accessed over unsecured networks.

Residual risk is the level of risk that remains after applying controls or other risk treatments. A critical patch is a type of control that aims to reduce the risk of a known vulnerability being exploited by attackers. If the patch implementation fails, the control is ineffective and the risk is not reduced. Therefore, the residual risk is increased, as the organization is still exposed to the potential negative consequences of the vulnerability.

Conducting independent audits to verify that appropriate security controls are in place is the most effective way to mitigate the risk of data loss at a third-party provider. These audits provide assurance that the provider adheres to security best practices and complies with relevant standards and regulations. While contractual clauses and insurance can provide financial remedies post-incident, proactive verification of security controls helps prevent breaches from occurring in the first place.

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

 The 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.

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 oroperations. 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

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

When prioritizing IT risks, scenarios with thehighest impact on business objectivesshould be the primary focus. ISACA’s CRISC guidance notes that risks should be prioritized by considering both their likelihood and their potential impact on organizational goals. This ensures resources and attention are focused on the most significant threats.

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The MOST important thing to review when determining whether a potential IT service provider’s control environment is effective is an independent audit report, because it provides an objective and reliable assessment of the service provider’s controls and compliance with standards and regulations. The other options are not as important as an independent audit report, because:

Option B: Control self-assessment is a subjective and voluntary process that may not reflect the actual effectiveness of the service provider’s controls.

Option C: This option is incomplete and irrelevant to the question.

Option D: Service level agreements (SLAs) are contractual agreements that specify the expected performance and availability of the service provider, but they do not necessarily indicate the effectiveness of the service provider’s controls. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 195.

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 provideddirectly from the vendor, the risk associated with multiple control gaps being accepted, and the control owners disagreeing with the auditor’s recommendations are other possible issues, but they are not as critical as the recurring noncompliance. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

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

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

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

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

It enables a data-driven and evidence-based approach to risk management and reporting, rather than relying on subjective or qualitative judgments.

It facilitates a consistent and standardized way of measuring and communicating risk levels and exposure across the organization and to the external stakeholders.

It supports the development and implementation of effective and efficient risk response and mitigation strategies and actions that are aligned with the business risk appetite and objectives.

It provides feedback and learning opportunities for the risk management and control processes, and helps to foster a culture of continuous improvement and innovation.

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

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.

 A control is an action or measure that reduces the likelihood or impact of a risk to an acceptable level. A control issue is a problem or weakness that affects the effectiveness or efficiency of a control, such as a gap, deficiency, or failure. A control enhancement is an improvement or modification that increases the effectiveness or efficiency of a control, such as by adding, replacing, or updating the control. An external audit is an independent and objective examination of the enterprise’s activities, processes, or systems, such as the risk management program or thecontrol environment, by an external party, such as a regulator or a third-party auditor. The best way for a risk practitioner to verify that management has addressed control issues identified during a previous external audit is to observe the control enhancements in operation. This will enable the risk practitioner to evaluate the actual performance and outcome of the control enhancements, and to determine whether they have resolved or mitigated the control issues. The other options are not the best way to verify that management has addressed control issues, as they involve different methods or sources of verification:

Interview control owners means that the risk practitioner asks questions or collects feedback from the persons or groups who have the authority and accountability to manage the controls and their issues, such as the business process owners or the IT controls managers. This may provide some information or evidence on the control enhancements, but it may not be as reliable orobjective as observing the control enhancements in operation, as the control owners may have biases, conflicts, or gaps in their knowledge or perception of the control enhancements.

Inspect external audit documentation means that the risk practitioner reviews the reports or records of the external audit, such as the audit findings, recommendations, or opinions. This may provide some information or evidence on the control issues, but it may not be as current or relevant as observing the control enhancements in operation, as the external audit documentation may not reflect the latest or updated status or results of the control enhancements, or may not cover all the aspects or components of the control enhancements.

Review management’s detailed action plans means that the risk practitioner examines the documents that specify the actions to be taken by the management to address the control issues, such as the resources required, the timelines, the owners, and the expected outcomes. This may provide some information or evidence on the control enhancements, but it may not be as accurate or sufficient as observing the control enhancements in operation, as the management’s detailed action plans may not match the actual implementation or execution of the control enhancements, or may not account for the uncertainties or complexities of the control enhancements. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.3.3.1, pp. 62-63.

The observation from a third-party service provider review that would be of greatest concern to a risk practitioner is that the service level agreements (SLAs) have not been met over the last quarter, as it indicates a significant performance issue or breach that may affect the quality, functionality, or security of the outsourced services, and may require a remediation or escalation action. The other options are not the greatest concerns, as they may not indicate a performance issue or breach, but rather a contractual, personnel, or financial issue, respectively, that may not affect the outsourced services directly or significantly. References = CRISC Review Manual, 7th Edition, page 111.

The risk likelihood is the element of the risk register that should be updated to reflect the change of implementing encryption on all databases that host customer data. The risk likelihood is the probability or frequency of a risk event occurring, and it is one of the factors that determine the risk level and priority. By implementing encryption, the organization reduces the risk likelihood of unauthorized access, disclosure, or breach of the customer data, as encryption protects the data from being read or modified by anyone who does not have the decryption key. Therefore, the risk likelihood should be updated to reflect the lower probability of the risk event after applying the encryption control. The other options are not the elements that should be updated, as they are either not affected by or not related to the change of implementing encryption. The inherent risk is the level of risk before applying any controls or mitigation measures, and it does not change after implementing encryption. The risk appetite is the amount of risk that the organization is willing to accept in pursuit of its objectives, and it is not influenced by the change ofimplementing encryption. The risk tolerance is the acceptable variation between the risk thresholds and thebusiness objectives, and it is not determined by the change of implementing encryption. References = Risk Register: A Project Manager’s Guide with Examples [2023] • Asana; Risk Assessment in Project Management | PMI; Risk Assessment Process: Definition, Steps, and Examples; Risk Assessment - an overview | ScienceDirect Topics

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

B. Risk response costs

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

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

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

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

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

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

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

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

1: Data Processing - Wikipedia1

2: Data Processing: Definition, Steps, and Types2

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

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

5: Data Custodian - Wikipedia5

6: Data Custodian: Definition, Role & Responsibilities6

Data Owner - Wikipedia

Data Owner: Definition, Role & Responsibilities

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 toevaluate 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 toensure 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

When risk exceeds tolerance, the appropriate action is to engage the risk treatment process. This involves evaluating and implementing appropriate responses such as mitigation, transfer, or acceptance.

Cost-benefit analysis evaluates whether the benefits (e.g., risk reduction, efficiency) of implementing the new tool justify the costs (e.g., acquisition, maintenance). This analysis is critical for informed decision-making and resource optimization.

According to the definition of key control indicators (KCIs), they are metrics that provide information on the extent to which a given control is meeting its intended objectives in terms of loss prevention, reduction, etc.1 Therefore, option D is the correct answer, as it reflects the purpose and function of KCIs. The other options are not accurate descriptions of KCIs, as they do not directly relate to the performance or outcome of the control. Option A is more relevant to the efficiency or productivity of the control, not its effectiveness. Option B is more relevant to the role of key risk indicators (KRIs), which measure the level of risk exposure or potentialimpact of risk events2. Option C is also more related to KRIs, as they monitor changes in the likelihood or frequency of adverse events due to risk factors2.

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.

The best course of action to determine the root cause of the high number of policy exceptions approved by senior management is to interview the control owner. 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 provide insight into the reasons, circumstances, and impacts of the policy exceptions, and the effectiveness and efficiency of the controls. The control owner can also suggest possible improvements or alternatives to the policy or the controls. The other options are not as useful as interviewing the control owner, as they are related to the review, analysis, or testing of the policy or the controls, not the investigation or understanding of the policy exceptions. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.

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

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Risk exposure is the product of risk likelihood and risk impact ratings. It represents the potential loss or damage that may result from a risk event. After implementing countermeasures, the risk likelihood and/or impact ratings may change, depending on the effectiveness of the countermeasures. Therefore, the risk exposure must also change to reflect the updated risk ratings. The other components of the register, such as risk owner, risk impact rating, and risk likelihood rating, may or may not change depending on the nature and scope of the countermeasures. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.

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)

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

This can help to:

Ensure that the implemented measures are effective and efficient in reducing the risk level to an acceptable level, and that they are aligned with the risk appetite and tolerance of the organization2.

Identify and address any gaps, issues, or challenges that may arise from the deviation from the approved risk action plan, and recommend and implement appropriate improvement actions or contingency plans3.

Communicate and report the results and outcomes of the validation to the relevant stakeholders, such as the risk owner, the risk committee, or the chief risk officer, and obtain their feedback and approval4.

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

Reporting the observation to the chief risk officer (CRO) is not the best course of action, as it may not provide sufficient information or evidence to support the deviation from the approved risk action plan. The CRO may not be able to evaluate or approve the implemented risk mitigation measures without knowing their adequacy or impact on the risk level5.

Updating the risk register with the implemented risk mitigation actions is not the best course of action, as it may not reflect the current or accurate risk status or performance. The risk register is a document that records and summarizes the key information and data about the identified risks and the risk responses6. Updating the risk register without validating the adequacy of the implemented risk mitigation measures may create inconsistencies or inaccuracies in the risk register.

Reverting the implemented mitigation measures until approval is obtained is not the best course of action, as it may expose the organization to higher or unacceptable levels of risk. Reverting the implemented mitigation measures may undo or negate the benefits or outcomes of the risk mitigation, and may increase the likelihood or impact of the risk events7.

References =

ISACA Risk Starter Kit provides risk management templates and policies

Risk Appetite and Tolerance - CIO Wiki

Risk Monitoring and Review - The National Academies Press

Risk Reporting - CIO Wiki

Chief Risk Officer - CIO Wiki

Risk Register - CIO Wiki

Risk Mitigation - CIO Wiki

After entering a large number of low-risk scenarios into the risk register, it is most important for the risk practitioner to analyze changes to aggregate risk. Aggregate risk is the total amount and type of risk that the organization faces or accepts, considering all the individual and interrelated risk scenarios. Aggregate risk helps to measure and monitor the organization’s risk profile, riskappetite, and risk performance, and to support the risk decision-making and reporting processes. Analyzing changes to aggregate risk is important after entering a large number of low-risk scenarios, because even though the individual risk scenarios may have low likelihood or impact, they may still have a significant cumulative or combined effect on the organization’s objectives or operations. Analyzing changes to aggregate risk also helps to identify and prioritize the most critical or relevant risk scenarios, and to select the most appropriate and effective risk responses and strategies. The other options are not as important as analyzing changes to aggregate risk, although they may be part of or derived from the risk analysis process. Preparing a follow-up risk assessment, recommending acceptance of the risk scenarios, and reconfirming risk tolerance levels are all activities that can help to implement or update the risk management process, but they are not the most important after entering a large number of low-risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-25.

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.

= 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 theorganization, 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 backchanges 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 bythe 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

Several network user accounts were recently created without the required management approvals. This indicates that there is a risk of unauthorized access, use, disclosure, modification, or destruction of the network resources or data, which may affect the confidentiality, integrity, and availability of the network.

The best recommendation to address this situation is to investigate the root cause of noncompliance. This means that the risk practitioner should analyze the factors or reasons that led to the creation of the network user accounts without the required management approvals, such as human error, negligence, malice, system failure, process flaw, etc.

Investigating the root cause of noncompliance helps to identify and correct the source of the problem, prevent or reduce the recurrence of the problem, and improve the compliance and security of the network user accounts.

The other options are not the best recommendations to address this situation. They are either secondary or not effective for noncompliance.

The references for this answer are:

Risk IT Framework, page 31

Information Technology & Security, page 25

Risk Scenarios Starter Pack, page 23

A risk map, also known as a risk heat map, is a visual tool that helps an enterprise prioritize risk scenarios by plotting them on a matrix based on their likelihood and impact. A risk map can help to compare and contrast different risk scenarios, as well as to identify the most critical and urgent risks that require attention. A risk map can also help to communicate and report the risk profile and status to the stakeholders and decision makers. Therefore, the placement on the risk map would best help an enterprise prioritize risk scenarios. The other options are not the best ways to help an enterprise prioritize risk scenarios, although they may be relevant and useful. Industry best practices are the standards or guidelines that are widely accepted and followed by the organizations in a specific industry or domain. Industry best practices can help to benchmark and improve the risk management process and performance, but they may not reflect the specific risk context and needs of the enterprise. Degree of variances in the risk is the measure of the variability or uncertainty of the risk, which may affect the accuracy or reliability of the risk assessment and response. Degree of variances in the risk can help to adjust and refine the risk analysis and treatment, but it may not indicate the priority or importance of the risk. Cost of risk mitigation is the amount of resources or expenses that are required or allocated to implement the risk response actions, such as avoiding, transferring, mitigating, or accepting the risk. Cost of risk mitigation can help to evaluate and optimize therisk response options, but it may not determine the priority or urgency of the risk. References = CRISC Review Manual, pages 38-391; CRISC Review Questions, Answers & Explanations Manual, page 892

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

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 allexamples 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

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

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

Automated scanning tools continuously monitor the network, detecting unauthorized devices quickly and reliably.

Implementing an asset tiering model to establish the appropriate level of impact is best served by a quantitative risk assessment methodology. This approach provides a numeric value to the risk levels, which is crucial for accurately tiering assets.

Quantitative Risk Assessment:

Numeric Values:Quantitative methods assign numerical values to the probability and impact of risks, which allows for precise calculations of risk levels. This precision is essential when establishing tiers for assets based on their impact levels.

Data-Driven Decisions:These methods use statistical data and models to predict potential losses and the probability of various risk events, leading to more informed decision-making.

Asset Tiering Model:

Impact Assessment:Quantitative methods allow for detailed impact assessments. By using numeric values, it is easier to compare the potential impacts of different assets and categorize them into appropriate tiers.

Resource Allocation:Precise risk calculations help in the effective allocation of resources. Higher-tier assets (those with higher impact) can be allocated more resources for protection.

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

The most appropriate action for the risk manager to take after undertaking a risk assessment of a production system is to inform the process owner of the concerns and propose measures to reduce them, as the process owner has the authority and responsibility to manage the production system and its associated risks and controls, and to decide on the optimal risk response. Recommending a program that minimizes the concerns of that production system, informing the IT manager of the concerns and proposing measures to reduce them, and informing the development team of the concerns and together formulating risk reduction measures are not the most appropriate actions, as they may not involve the process owner, who is the key stakeholder and decision maker for the production system and its risks. References = CRISC Review Manual, 7th Edition, page 101.

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

Control effectiveness is best determined throughcontrol testing, which evaluates whether a control operates as intended over time. It includes functional and operational validation under real-world conditions, unlike documentation or design, which only indicate intent.

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

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

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 thosethat 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.]

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

The primary focus of management when key risk indicators (KRIs) begin to rapidly approach defined thresholds is to determine what has changed in the environment. KRIs are metrics that provide information and insight on the current level and trend of the risk exposure, and help to monitor and report the risk status and performance. Defined thresholds are the values or rangesof the KRIs that indicate the acceptable or unacceptable level of the risk exposure, and trigger the risk response actions. When KRIs begin to rapidly approach defined thresholds, it means that the risk exposure is increasing or decreasing significantly, and that the risk situation and status may have changed. Therefore, the primary focus of management is to determine what has changed in the environment, which is the internal or external context that influences or affects the risk exposure and impact. Determining what has changed in the environment helps to identify and analyze the causes, drivers, or factors of the risk change, and to evaluate the implications and consequences of the risk change. Determining what has changed in the environment also helps to update and adjust the risk assessment and response, and to communicate and escalate the risk change to the relevant stakeholders. Designing compensating controls, determining if KRIs have been updated recently, and assessing the effectiveness of the incident response plan are not the primary focus of management, as they are either the outputs or the inputs of the risk change analysis, and they do not address the primary need of understanding the risk change. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 50.

 Understanding the Question:

The question seeks to identify which source provides the most useful information for evaluating the effectiveness of existing controls.

 Analyzing the Options:

A. Previous audit reports:Provide historical data but might not reflect current risks.

B. Control objectives:These are standards to be achieved, not current evaluations.

C. Risk responses in the risk register:Useful but focused on specific responses rather than overall effectiveness.

D. Changes in risk profiles:Reflect current and emerging risks, providing a dynamic view of control effectiveness.



Risk Profiles:Evaluating changes in risk profiles helps understand how effective existing controls are against current threats. If risk levels are increasing, it may indicate that controls are insufficient or need updating.

Proactive Adjustment:By monitoring changes in risk profiles, organizations can proactively adjust their controls to address new or evolving risks.

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

The 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 helpto 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.

Peak bandwidth usage is the most helpful in defining an early-warning threshold associated with insufficient network bandwidth. Peak bandwidth usage is the maximum amount of data that istransferred over a network connection at a given time. It indicates the highest demand and stress on the network resources and capacity. By monitoring the peak bandwidth usage, the organization can identify the potential bottlenecks, slowdowns, and disruptions that may occur due to insufficient network bandwidth. The organization can also plan and allocate the network bandwidth accordingly to meet the peak demand and avoid service degradation. The other options are not as helpful as peak bandwidth usage, as they do not reflect the actual or potential network performance issues that may arise due to insufficient network bandwidth. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.3: Key Risk Indicators, page 197.

 When reporting risk assessment results to senior management, the most important information to include to enable risk-based decision making is the potential losses compared to treatment cost. This information helps to quantify the impact and likelihood of the risks, and to evaluate the cost and benefit of the risk responses. This information also helps to prioritize and allocate resources for the risk management program, and to align the risk management program with the enterprise’s objectives, strategy, and risk appetite. The other options are not as important as the potential losses compared to treatment cost, as they provide different types of information for the risk management process:

Risk action plans and associated owners are the documents that specify the actions to be taken to address the identified risks, the resources required, the timelines, the owners, and the expected outcomes. This information helps to implement and monitor the risk management program, and to assign the authority and accountability for the risk management activities.

Recent audit and self-assessment results are the outcomes of the independent and objective examination of the risk management program, such as by internal or external auditors, or by the risk owners or practitioners themselves. This information helps to provide assurance and feedback on the effectiveness and efficiency of the risk management program, and to identify the gaps or weaknesses that need to be addressed.

A list of assets exposed to the highest risk are the resources that have the most value for the enterprise, such as hardware, software, data, or services, and that are affected by or contribute to the highest risks. This information helps to identify and protect the critical assets of theenterprise, and to reduce the exposure and impact of the risks to the assets. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.3.1.1, pp. 58-59.

 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.

Risk owner approval ensures accountability and alignment of the changes with the enterprise’s risk management strategy. It reflects adherence to the principles ofRisk Ownership and Governance, critical for maintaining control over mitigation activities.

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 appetitedoes 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

The most significant factor that would impact management’s decision when conducting an operational risk assessment on an initiative to outsource the organization’s customer service operations overseas is the cross-border information transfer restrictions in the outsourcing country. Cross-border information transfer restrictions are the laws, regulations, standards, or contracts that govern the collection, processing, storage, or transmission of information across national or regional boundaries. Cross-border information transfer restrictions may affect the organization’s outsourcing initiative, because they may impose limitations, obligations, or penalties on the organization or the outsourcing company, such as requiring consent, notification, or authorization, or prohibiting or restricting certain types or categories of information. Cross-border information transfer restrictions may also create challenges or risks for the organization’s outsourcing initiative, such as compliance, legal, reputational, or operational risks, or conflicts orinconsistencies with the organization’s own policies, regulations, standards, or contracts. The other options are not as significant as the cross-border information transfer restrictions, although they may also pose some difficulties or limitations for the organization’s outsourcing initiative. Time zone difference of the outsourcing location, ongoing financial viability of the outsourcing company, and historical network latency between the organization and outsourcing location are all factors that could affect the efficiency and effectiveness of the outsourcing initiative, but they do not directly affect the legality or security of the outsourcing initiative. References = 3

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

IT risk scenarios are hypothetical situations or occurrences that illustrate the potential impact of IT-related threats or opportunities on the organization’s objectives, performance, or value creation12.

Business risk scenarios are hypothetical situations or occurrences that illustrate the potential impact of business-related threats or opportunities on the organization’s objectives, performance, or value creation34.

The best way for the risk practitioner to address the concerns of the business executives who question why they have been assigned ownership of IT-related risk scenarios is to describe IT risk scenarios in terms of business risk, which is a technique that involves translating and communicating the IT risk scenarios into the language and context of the business risk scenarios, and highlighting the linkages and dependencies between them56.

Describing IT risk scenarios in terms of business risk is the best way because it helps the business executives to understand and appreciate the relevance and importance of IT risk scenarios, andhow they affect the achievement of the organization’s goals and the delivery of value to the stakeholders56.

Describing IT risk scenarios in terms of business risk is also the best way because it helps the business executives to accept and fulfill their roles and responsibilities as the owners of IT risk scenarios, and to collaborate and coordinate with the IT team and other stakeholders in the risk management process56.

The other options are not the best ways, but rather possible alternatives or supplements that may support or enhance the description of IT risk scenarios in terms of business risk. For example:

Recommending the formation of an executive risk council to oversee IT risk is a way that involves establishing and empowering a group of senior leaders from different business units and functions to provide the strategic direction, guidance, and oversight for the IT risk managementprocess78. However, this way is not the best way because it does not directlyaddress the concerns of the business executives who question why they have been assigned ownership of IT risk scenarios, and it may not be feasible or effective without a clear and common understanding of IT risk scenarios among the council members78.

Providing an estimate of IT system downtime if IT risk materializes is a way that involves quantifying and communicating the potential loss or disruption of the IT systems or services that support the organization’s operations, if the IT risk scenarios occur9 . However, this way is not the best way because it does not fully capture or convey the impact of IT risk scenarios on the organization’s objectives, performance, or valuecreation, and it may not be relevant or meaningful for some IT risk scenarios that are not related to IT system downtime9 .

Educating business executives on IT risk concepts is a way that involves providing and delivering the knowledge and skills on the principles, frameworks, and techniques of IT risk management, and the roles and responsibilities of the IT risk owners and stakeholders . However, this way is not the best way because it does not specifically address the concerns of the business executives who question why they have been assigned ownership of IT risk scenarios, and it may not be sufficient or effective without a practical and contextual application of IT risk concepts to the organization’s situation and goals . References =

1: IT Scenario Analysis in Enterprise Risk Management - ISACA2

2: New Toolkit and Course From ISACA Help Practitioners Develop Risk Scenarios - ISACA1

3: Business Risk - Investopedia3

4: Business Risk: Definition, Types, Examples & How to Manage4

5: Risk IT Framework, ISACA, 2009

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

7: Executive Risk Council - ISACA5

8: Executive Risk Council: A Guide to Success6

9: IT System Downtime - ISACA7

IT System Downtime: Causes, Costs, and How to Prevent It8

IT Risk Education - ISACA9

IT Risk Education: A Guide to Success

The most important objective of an enterprise risk management (ERM) program is to create a comprehensive view of critical risk to the organization, as it enables the organization to identify, assess, and prioritize the key risks that may affect its objectives and strategy, and to implement appropriate risk responses and controls. A comprehensive view of critical risk also helps the organization to align its risk appetite and tolerance with its business goals and value creation, and to enhance its risk culture and governance. A comprehensive view of critical risk can be achieved by integrating risk management across all levels and functions of the organization, and by using consistent and reliable risk information and reporting. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 242. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 242. CRISC Sample Questions 2024, Question 242.

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

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

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

The vendor must host data in a specific geographic location to ensure that the data is protected by the applicable data protection laws of the EU or the country where the data originates. This is especially important for SaaS customers who transfer personal data from the EU to third countries, as they need to comply with the GDPR and the new Standard Contractual Clauses (SCCs) that regulate such transfers. The vendor must also provide adequate security measures and guarantees to protect the data from unauthorized access, disclosure, or loss. References = Risk and Information Systems Control Study Manual, Chapter 5: IT Risk Mitigation, Section 5.3: IT Risk Mitigation Strategies and Approaches, Page 253; Data Protection – New EU Standard Contractual Clauses - Bodle Law.

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

Key risk indicators (KRIs) are metrics that measure the exposure to a given risk at a particular time. They can also provide early warning signs of a potential change in risk level. By monitoring KRIs, risk practitioners can assess how quickly an exposure to a specific risk can affect the organization and take appropriate actions.

References

•Risk management at the speed of business - PwC

•Risk velocity measures how fast an exposure can affect an organization | Business Insurance

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

Comprehensive and Detailed Explanation From Exact Extract:

When regulatory conflicts arise, the best practice is to conduct a comprehensive risk assessment to understand the impact and develop appropriate mitigation strategies. Immediate termination may be premature without understanding options, and accepting risk without assessment may expose the organization to legal or compliance issues. Prioritizing compliance requires understanding the full scope of risks and controls necessary【5:35, 5:48†CRISC_SentenceinNOTE30.pptx】.

The effectiveness of an IT risk management function depends on how well it can identify, analyze, evaluate, and treat the IT-related risks that may affect the organization’s objectives and performance. To achieve this, the IT risk management function needs to have processes that are updated and monitored on a continuous basis, so that they can capture the changes in the IT environment, the business context, the risk appetite and tolerance, and the regulatory requirements. Updating and monitoring the IT risk management processes also helps to ensure that they are consistent, reliable, and efficient, and that they provide timely and accurate information for decision making and reporting12. Aligning the IT risk management processes to an industry-accepted framework is important, but not the most important factor for the effectiveness of the function. A framework provides a common language, structure, and methodology for IT risk management, but it does not guarantee that the processes are updated and monitored on a continuous basis. A framework also needs to be customized and adapted to the specific needs and context of theorganization3. Reviewing and approving the IT risk management processes by senior management is important, but not the most important factor for the effectiveness of the function. Senior management support and endorsement are essential for establishing the tone and culture of IT risk management, as well as for allocating the necessary resources and authority for the function. However, senior management review and approval alone do not ensure that the processes are updated and monitored on a continuous basis. Senior management also need to oversee and evaluate the performance and outcomes of the IT riskmanagement function4. Periodically assessing the IT risk management processes against regulatory requirements is important, but not the most important factor for the effectiveness of the function. Regulatory compliance is one of the objectives and drivers of IT risk management, and it requires the function to adhere to the applicable laws, rules, and standards. However, regulatory requirements are not the only source of IT risk, and they may not cover all the aspects and dimensions of IT risk management.Moreover, periodic assessment may not be sufficient to capture the dynamic and evolving nature of IT risk. Therefore, the IT risk management processes need to be updated and monitored on a continuous basis, not only to meet the regulatoryrequirements, but also to address the other sources and impacts of IT risk5. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.1: Risk Response Process, pp. 121-123.

Risk culture is the foundation upon which ERM is built. It dictates how employees perceive, communicate, and act on risk. A strong risk culture ensures consistency in risk behaviors, supports governance, and sustains long-term effectiveness of the ERM.

According to the three lines of defense model, the responsibility for managing risk and controls resides with the operational management, which forms the first line of defense. The operational management is the function that owns and manages risk as part of their accountability for achieving objectives. They are responsible for identifying, assessing, mitigating, and reportingon risks and controls within their areas ofoperation. They are also responsible for implementing and maintaining effective internal controls and ensuring compliance with policies, standards, and regulations.

Organizational objectives should be the primary input to determine risk tolerance, as they define the desired outcomes and performance of the organization, and guide the selection of the acceptable level of risk that the organization is willing to take to achieve those objectives. Regulatory requirements, annual loss expectancy (ALE), and risk management costs are not the primary inputs, as they are more related to the external or internal constraints or factors that affect the risk tolerance, rather than the drivers or determinants of the risk tolerance. References = CRISC Review Manual, 7th Edition, page 109.

 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.

Reporting to the Risk Committee:

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

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

Importance of Emerging IT Risk Scenarios:

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

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

Comparison with Other Options:

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

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

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

Best Practices:

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

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

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

Residual riskrefers to the risk that remains after mitigation measures have been applied. It represents the exposure that an organization decides to accept, transfer, or further address, aligning with its risk appetite and tolerance.

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 usefulinformation when determining which control deficiencies are most significant, because it does not indicate the level and priority of the risks that are associated with the control deficiencies, and the potential consequences or impacts that they may cause for the organization.

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

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

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

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

CRISC Practice Quiz and Exam Prep

 A governance, risk, and compliance (GRC) solution is an integrated system that supports the management of governance, risk, and compliance activities across the enterprise. A GRC solution can provide benefits such as improved efficiency, consistency, transparency, andaccountability. The best justification to invest in the development of a GRC solution is to facilitate risk-aware decision making by stakeholders. By providing a holistic view of the enterprise’s risk profile, a GRC solution can enable stakeholders to make informed decisions that are aligned with the enterprise’s objectives, risk appetite, and tolerance. A GRC solution can also help to monitor and report on the performance and outcomes of the risk management program, and provide feedback and assurance to the board of directors and senior management. The other options are not as compelling as the facilitation of risk-aware decision making, as they may not directly contribute to the achievement of the enterprise’s objectives or the management of its risks. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.1.2.1, pp. 12-13.

Assigning a data owner ensures accountability and responsibility for classifying and protecting data according to its sensitivity. This role is critical in implementing effectiveData Governance Practices.

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

The best approach for performing a business impact analysis (BIA) of a supply-chain management application is to interview groups of key stakeholders, as this allows the risk practitioner to obtain direct and detailed information on the business processes, dependencies, resources, and requirements that are supported by the application. The risk practitioner can also clarify any doubts, address any concerns, and validate any assumptions during the interviews. The BIA is a process of identifying and analyzing the potential effects of disruptive events on the critical business functions and objectives. The BIA helps to determine the recovery priorities, strategies, and targets for the business continuity plan. The other options are not the bestapproaches for performing a BIA, although they may be useful or complementary methods. Reviewing the organization’s policies and procedures can provide some background and context for the BIA, but it may not reflect the current or accurate situation of the business processes and the application. Circulating questionnaires to key internal stakeholders can be a convenient and efficient way to collect some data for the BIA, but it may not capture the complexity and nuances of the business processes and the application. Accepting IT personnel’s view of business issues can be biased and incomplete, as they may not have the full understanding or perspective of the business needs and expectations. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Identification, page 58.

Occurrences of specific events are the most likely to cause a key risk indicator (KRI) to exceed thresholds, as they represent the actual or potential realization of the risk. A KRI is a metric that measures the level of risk exposure and the effectiveness of risk response strategies, and it has predefined thresholds that indicate the acceptable or unacceptable risk status. When a specific event occurs that affects the risk, such as a security breach, a system failure, or a compliance violation, the KRI value may change and exceed the thresholds, triggering an alert or an action. A performance measurement, the risk tolerance level, and risk scenarios are not the most likely to cause a KRI to exceed thresholds, as they do not reflect the actual or potential occurrence of the risk, but rather the expected or desired outcome, limit, or simulation of the risk. References = [CRISC Review Manual (Digital Version)], page 121; CRISC by Isaca Actual Free Exam Q&As, question 217.

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

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

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 byvarious 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 technicalvulnerability. 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 thenature 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

The primary objective of aggregating the impact of IT risk scenarios and reflecting the results in the enterprise risk register is to ensure IT risk impact can be compared to the IT risk appetite, as it enables the organization to measure and evaluate the overall level and exposure of the IT risk, and to align and prioritize the IT risk response and strategy with the organizational objectives and regulations. The other options are not the primary objectives, as they are more related to the communication, assignment, or assessment of the IT risk scenarios, respectively, rather than the aggregation or reflection of the IT risk scenarios. References = CRISC Review Manual, 7th Edition, page 109.

Outsourcing IT security operations is a common practice that can provide benefits such as cost savings, access to specialized skills, and improved service quality12. However, outsourcing also introduces risks such as loss of control, dependency, contractual issues, and service failures12.

When an organization outsources its IT security operations to a third party, it does not transfer the accountability for the risk associated with the outsourced operations. Accountability is the obligation to answer for the execution of one’s assigned responsibilities34.

The organization’s management is ultimately accountable for the risk associated with the outsourced operations, as they are responsible for defining the organization’s risk appetite, strategy, and objectives, and for ensuring that the organization’s IT security operations are aligned with them34.

The organization’s management is also accountable for selecting, contracting, and overseeing the third party, and for ensuring that the third party meets the agreed service levels, standards, and compliance requirements34.

The organization’s management is also accountable for monitoring and reporting the risk associated with the outsourced operations, and for taking corrective actions when necessary34.

The other options are not ultimately accountable, but rather have different roles and responsibilities in relation to the outsourced operations. For example:

The third party’s management is responsible for delivering the IT security services according to the contract, and for managing the risk within their own organization34. They are accountable to the organization’s management, but not to the organization’s stakeholders.

The control operators at the third party are responsible for implementing and operating the IT security controls according to the service specifications, and for reporting any issues orincidents to the organization’s management34. They are accountable to the third party’s management, but not to the organization’s management or stakeholders.

The organization’s vendor management office is responsible for facilitating the relationship between the organization and the third party, and for supporting the organization’s management in the outsourcing process34. They are accountable to the organization’s management, but not for the risk associated with the outsourced operations. References =

1: Outsourcing IT Security: A Risk Management Perspective, ISACA Journal, Volume 2, 2019

2: The Cyber Security Risks Of Outsourcing, Cybersecurity Intelligence, January 4, 2022

3: Accountability for Information Security Roles and Responsibilities, Part 1, ISACA Journal, Volume 5, 2019

4: Risk IT Framework, ISACA, 2009

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.

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

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

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

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

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

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

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

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

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

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

 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

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. The most importantreason to monitor KRIs is to help management lessen the impact of realized risk, which is the actual or expected negative consequence of a risk event2. By monitoring KRIs, management can gain insight into the current and emerging risk exposures and trends, and evaluate their alignment with the organization’s risk appetite and tolerance3. This enables management to make informed and timely decisions and actions to mitigate or eliminate the risks, and to allocate resources and prioritize efforts where they are most needed. By lessening the impact of realized risk, management can also protect and enhance the organization’s reputation, performance, and value. Identifying early risk transfer strategies, analyzing the chain of risk events, and identifying the root cause of risk events are not the most important reasons to monitor KRIs, as they do not provide the same level of benefit and value as lessening the impact of realized risk. Identifying early risk transfer strategies is a process that involves finding and implementing ways to shift or share the risk or its impact to another party, such as through insurance, outsourcing, or hedging4. Identifying early risk transfer strategies can help to reduce the organization’s risk exposure and liability, but it does not necessarily lessen the impact of realized risk, as the risk or its impact may still occur or affect the organization indirectly. Analyzing the chain of risk events is a process that involves tracing and understanding the sequence and interconnection of the risk events that lead to a specific outcome or consequence5. Analyzing the chain of risk events can help to identify and address the root causes and contributing factors of the risk events, but it does not necessarily lessen the impact of realized risk, as the outcome or consequence may have already occurred or be unavoidable. Identifying the root cause of risk events is a process that involves finding and determining the underlying or fundamental source or reason of the risk events. Identifying the root cause of risk events can help to prevent or correct the recurrence or escalation of the risk events, but it does not necessarily lessen the impact of realized risk, as the impact may have already happened or be irreversible. References = 1: Key Risk Indicators: A Practical Guide | SafetyCulture2: Risk Impact - an overview | ScienceDirect Topics3: KRI Framework for Operational Risk Management | Workiva4: Risk Transfer - an overview | ScienceDirect Topics5: EventChainMethodology - Wikipedia : [Root Cause Analysis - an overview | ScienceDirect Topics] : [Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.1: Key Risk Indicators, pp. 181-185.]

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.

The second line (risk management, compliance) provides oversight and support to the first line (operations). It monitors risk-related activities, issues alerts, and helps ensure controls are properly designed and implemented, but does not own the risk.

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.

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

The best indicator of the condition of a risk management program is the amount of residual risk. Residual risk is the risk that remains after the implementation of risk responses. Residual risk reflects the effectiveness and efficiency of the risk management program in reducing the risk exposure to an acceptable level, and in aligning the risk profile with the risk appetite and tolerance of the enterprise. A low amount of residual risk indicates that the risk managementprogram is performing well, and that the controls are adequate and appropriate. A high amount of residual risk indicates that the risk management program is not functioning properly, and that the controls are insufficient or ineffective. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.2, page 191

According to the CRISC Review Manual1, the risk register is a tool that records the results of risk identification, analysis, evaluation, and treatment. The risk register should be populated as soon as possible in the risk management process, to capture and document the risks and their attributes. The best time for the risk practitioner to start populating the risk register is when identifying risk scenarios, as this is the first step in the risk identification process. Risk scenarios are hypothetical situations that describe the potential causes, impacts, and responses of a risk event. Identifying risk scenarios helps to generate a comprehensive and relevant list of risks that can be recorded in the risk register. References = CRISC Review Manual1, page 191, 206.

 The greatest concern with the situation of combining the second and third lines of defense in a new department that reports to a recently appointed C-level executive is that the independence of the internal third line of defense may be compromised. 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 third line of defense is the function that provides independent assurance of the risk management activities, such as the internal audit function. Combining the second and third lines of defense in a new department may compromise the independence of the internal third line of defense, as it may create a conflict of interest, bias, or influence among the functions, and impair the objectivity, credibility, and quality of the assurance activities. The independence of the internal third line of defense is essential for ensuring that the risk management activities are performed in a consistent and effective manner, and that the issues and gaps are identified and reported without fear or favor. The risk governanceapproach of the second and third lines of defense may differ, cost reductions may negatively impact the productivity of other departments, and the new structure may not be aligned to the organization’s internal control framework are also concerns, but they are not as great as the compromise of the independence of the internal third line of defense, as they do not directly affect the assurance and accountability of the risk management activities. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 36.

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

Log modification undermines data integrity, which is critical for accurate risk monitoring. Ensuring log integrity supports reliable KRI assessments, a key focus within theRisk Monitoring and Reportingframework.

Risk tolerance is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk tolerance is an important component of the corporate risk profile, as it defines the boundaries and limits of the acceptable risk exposure for the organization. Comparing the risk tolerance against the corporate risk profile can help to ensure that the organization’s risk strategy and objectives are aligned with its risk appetite and capacity, and that the organization is not taking on more risk than it can handle or afford. Comparing the risk tolerance against the corporate risk profile can also help to monitor and adjust the risk management process and controls, and to optimize the risk-return trade-off. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 249. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 249. CRISC Sample Questions 2024, Question 249. CRISC by Isaca Actual Free Exam Q&As, Question 9.

 Building Key Risk Indicators (KRIs):

KRIs are metrics used to provide an early signal of increasing risk exposure in various areas of an organization.

 Importance of Representative Data Sets:

To ensure KRIs are accurate and meaningful, it is critical that the data used is representative of the entire population or relevant subset of activities being monitored.

Representative data ensures that the KRIs reflect the true state of risk and are not biased or incomplete.

 Impact on KRIs:

Using representative data sets improves the reliability and validity of KRIs, enabling better risk detection and management.

It ensures that the KRIs provide a realistic view of potential risk trends and patterns.

 Comparing Other Data Sources:

Business Process Owners:While they provide valuable insights, data from them alone may not be representative.

Industry Benchmark Data:Useful for comparisons but not specific to the organization’s unique context.

Data Automation Systems:Helpful for efficiency but must ensure the data is representative.

 References:

The CRISC Review Manual emphasizes the importance of using representative data to build effective KRIs (CRISC Review Manual, Chapter 3: Risk Response and Mitigation, Section 3.11 Data Collection Aggregation Analysis and Validation) ​​.

The risk associated with an asset after controls are applied can be expressed as a function of the likelihood and impact, as it helps to measure and quantify the residual risk level and exposure. Residual risk is the risk that remains after the implementation of controls or risk treatments. Residual risk can be calculated by multiplying the likelihood and impact of a risk event, where likelihood is the probability or frequency of the risk event occurring, and impact is the consequence or severity of the risk event on the asset or objective. Residual risk can be expressed as:

ResidualRisk=Likelihood×Impact

Expressing the risk associated with an asset after controls are applied as a function of the likelihood and impact helps to provide the following benefits:

It enables a data-driven and evidence-based approach to risk assessment and reporting, rather than relying on subjective or qualitative judgments.

It facilitates a consistent and standardized way of measuring and communicating risk levels and exposure across the organization and to the external stakeholders.

It supports the alignment of risk management and control activities with the organizational strategy and objectives, and helps to evaluate the achievement of the desired outcomes.

It helps to identify and prioritize the areas for improvement and enhancement of the risk management and control processes, and guide the development and implementation of corrective or preventive actions.

It provides feedback and learning opportunities for the risk management and control processes, and helps to foster a culture of continuous improvement and innovation.

The other options are not the best ways to express the risk associated with an asset after controls are applied. A function of the cost and effectiveness of controls is a measure of the inputs or outputs of therisk management and control processes, but it does not indicate the risk level or exposure. The likelihood of a given threat is a component of the risk calculation, but it does not reflect the impact or consequence of the threat. The magnitude of an impact is a component of the risk calculation, but it does not reflect the likelihood or probability of the risk event.References=Risk Assessment and Analysis Methods: Qualitative and Quantitative,IT Risk Resources | ISACA,Residual Risk: Definition, Formula & Management - Video & Lesson …

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 doesnot 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 theorganization 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 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

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

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.

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

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 developing a new risk register, a risk practitioner should focus on risk identification. This is the process of finding, recognizing, and describing the risks that may affect the organization’s objectives, using various techniques, such as brainstorming, interviews, checklists, surveys, etc.

Risk identification helps to create a comprehensive and accurate list of the risks that need to be managed, and to provide the basis for the subsequent risk analysis and evaluation, risk response planning, and risk monitoring and control.

The other options are not the risk management activities that a risk practitioner should focus on when developing a new risk register. They are either subsequent or parallel to risk identification.

The references for this answer are:

Risk IT Framework, page 29

Information Technology & Security, page 23

Risk Scenarios Starter Pack, page 21

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

The 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 oroutcome 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

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

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.

 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 tobypass 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.

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1: Risk IT Framework, ISACA, 2009

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

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.

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 andacceptable, 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 identifyand address the risks that may affect the achievement of the organization’s goals and the delivery of value to the stakeholders, and to optimize the balance between risk and reward78.

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

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

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

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

1: Control Self Assessments - PwC1

2: Control self-assessment - Wikipedia2

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

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

5: Residual Risk - Definition and Examples5

6: Residual Risk: Definition, Formula & Management6

7: Risk IT Framework, ISACA, 2009

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

As part of business continuity planning, the most important thing to include in a business impact analysis (BIA) is an industry standard framework. A BIA is a process of identifying and analyzing the potential effects of disruptions to the critical business functions and processes. An industry standard framework is a set of best practices, guidelines, and methodologies that provide a consistent and comprehensive approach to conducting a BIA. An industry standard framework can help to ensure that the BIA is complete, accurate, and reliable, and that it covers all the relevant aspects, such as the scope, objectives, criteria, methods, data sources, and reporting. An industry standard framework can also help to benchmark the BIA results against the industry norms and expectations, and to align the BIA with the business continuity strategy and plan. The other options are not as important as an industry standard framework, as they are related to the specific steps, activities, or outputs of the BIA, not the overall structure and quality of the BIA. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.

The best indicator to senior management that IT processes are improving is the changes in the position in the maturity model. A maturity model is a framework that defines the levels of capability and performance of a process, such as IT processes, based on the criteria such as governance, management, control, measurement, and improvement. A maturity model can help to assess the current state and the desired state of the IT processes, and to identify the gaps, strengths, and opportunities for improvement. A maturity model can also help to communicate the progress and the value of the IT processes to the senior management, and to support the strategic alignment and integration of the IT processes with the business objectives. Changes in the position in the maturity model indicate that the IT processes are improving, as they show that the IT processes are moving from a lower level to a higher level of maturity, and that they are achieving higher standards of quality, efficiency, and effectiveness. Changes in the number of intrusions detected, changes in the number of security exceptions, and changes to the structure of the risk register are not as good as changes in the position in the maturity model, as they do not provide a comprehensive and consistent measure of the IT processes improvement, and they may not reflect the actual impact and performance of the IT processes. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 36.

The 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.

Annual loss expectancy (ALE) is a method to assign a monetary value to risk by multiplying the probability of a risk event by the potential loss associated with that event1. ALE can be used to compare the costs and benefits of different risk mitigation options and to determine the optimallevel of investment in riskmanagement2. Business impact analysis (BIA) is a process to identify and evaluate the potential effects of a disruption on the critical functions and processes of an organization3. BIA can help to forecast the impacts of a risk event, but it does not assign a monetary value to the risk itself. Cost-benefit analysis (CBA) is a technique to compare the costs and benefits of a project, decision, or action4. CBA can help to evaluate the feasibility and profitability of a risk mitigation option, but it does not assign a monetary value to the risk itself. Inherent vulnerabilities are the weaknesses or flaws in a system, process, or asset that expose it to potential threats5. Inherent vulnerabilities can increase the likelihood or impact of a risk event, but they do not assign a monetary value to the risk itself. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.2: Risk Analysis, pp. 77-81.

According to the CRISC Review Manual (Digital Version), monitoring key access control performance indicators is the best way to provide an early warning that network access of terminated employees is not being revoked in accordance with the service level agreement (SLA), as it measures the effectiveness and efficiency of the access control process and its alignment with the SLA objectives and requirements. The SLA is a contract that defines the expectations and responsibilities of the service provider and the service recipient in terms of the quality, availability, and scope of the service. Monitoring key access control performance indicators helps to:

Evaluate the extent to which the access control process has met the SLA targets and standards

Identify and report any deviations, errors, or breaches in the access control process and its compliance with the SLA

Recommend and implement corrective actions or improvement measures to address the issues or findings in the access control process

Communicate and coordinate the monitoring results and recommendations with the relevant stakeholders, such as the service provider, the service recipient, and the senior management

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

Appropriate resources contribute most to the effective implementation of risk responses. Resources include people, time, money, equipment, and materials that are needed to execute the risk responses. Without appropriate resources, the risk responses may not be implemented properly, timely, or efficiently, and may not achieve the desired outcomes. The other options are not as important as appropriate resources, as they are related to the understanding, comparison, or documentation of the risk responses, which are less critical than the execution of the riskresponses. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

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 tosupport or implement the user entitlement reviews, but they do not necessarily have the authority or responsibility to define, classify, or protect the data and resources. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.2.1, page 5-14.

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

Quantum computing threatens outdated algorithms and key lengths. The biggest concern is stale encryption standards—they directly relate to cryptographic resilience. ISACA materials underscore that encryption evaluation is foundational in emerging-threat risk assessments.

The most important action for the risk practitioner to take when a risk assessment has identified increased losses associated with an IT risk scenario is to update the risk rating. A risk rating is a measure of the overall level of risk, based on the combination of the probability and impact of the risk scenario. A risk rating helps to prioritize the risks, communicate the risk exposure, and monitor the risk response. Updating the risk rating is the most important action, because it reflects the current state and magnitude of the risk, and it triggers the review and revision of the risk response plan, if needed. Updating the risk rating also ensures that the risk register and the risk profile are accurate and complete, and that the risk management process is consistent and effective. The other options are not the most important action, although they may be related or subsequent steps in the risk management process. Reevaluating inherent risk is a part of the risk analysis process, which estimates the probability and impact of the risk scenario before considering the existing controls. Reevaluating inherent risk can help to identify the root causes and drivers of the risk, and to assess the effectiveness and efficiency of the controls, but it does not change the overall level of risk or the risk response plan. Developing new risk scenarios is a part of the risk identification process, which identifies and describes the potential events or situations that could affect the achievement of the objectives. Developing new risk scenarios can help to expand the scope and coverage of the risk management process, and to address the emerging or changing risks, but it does not update the existing risk scenarios or the risk response plan. Implementing additional controls is a part of the risk response process, which selects and executes the appropriate actions to reduce, avoid, share, or exploit the risk. Implementing additional controls can help to mitigate the risk and achieve the desired risk level, but it is not the first or the only option, as it depends on the risk appetite, tolerance, and capacity of the organization, and the cost-benefit analysis of the controls. References = Risk Register Template and Examples | Prioritize and Manage Risk, How to Write Strong Risk Scenarios and Statements - ISACA, IT Risk Resources | ISACA

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

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

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

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

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

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

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

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

1: IT Involvement in Employee Termination, A Checklist3

2: Best Practices to Ensure Departing Employees Retain No Access5

3: User Termination Best Practices - IT Security - Spiceworks2

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

The most helpful input to develop risk scenarios associated with hosting an organization’s key IT applications in a cloud environment is conducting a risk workshop with key stakeholders. A risk workshop is a facilitated session that involves brainstorming, discussing, and analyzing the potential risks and opportunities related to a specific topic or project. A risk workshop helps to identify and prioritize the most relevant and significant risk scenarios, as well as to explore the possible causes, impacts, and responses. A risk workshop also helps to engage and align the key stakeholders, such as the business owners, IT managers, cloud providers, and risk experts, and to leverage their knowledge, experience, and perspectives. The other options are not as helpful as conducting a risk workshop, although they may provide some inputor information for the risk scenario development. Reviewing the results of independent audits, performing a site visit to the cloud provider’s data center, and performing a due diligence review are all activities that can help to assess the current state and performance of the cloud environment, but they do not necessarily generate or evaluate the risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

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 ofthe 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 startupcompany 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]

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

Cross-business representation is most important to the effectiveness of a senior oversight committee for risk monitoring. Here’s a

Importance of Cross-business Representation:

Comprehensive Risk Perspective: Having representatives from different business units ensures that the committee has a comprehensive view of risks across the entire organization. This diverse representation helps in identifying and assessing risks that may impact various parts of the business differently.

Informed Decision-Making: Members from different business areas can provide unique insights and expertise, leading to more informed and balanced decision-making processes.

Improved Communication: Cross-business representation facilitates better communication and collaboration across the organization, ensuring that risk management practices are understood and implemented consistently.

Comparison with Other Options:

Key Risk Indicators (KRIs): While important for monitoring specific risks, KRIs alone do not ensure the effectiveness of the oversight committee without a diverse representation to interpret and act on these indicators.

Risk Governance Charter: A risk governance charter outlines the roles, responsibilities, and processes for risk management, but its effectiveness depends on the active participation of diverse business representatives.

Organizational Risk Appetite: Understanding the organizational risk appetite is crucial, but without cross-business representation, the risk appetite may not be appropriately reflected or acted upon across all business areas.

Best Practices:

Diverse Membership: Ensure that the oversight committee includes members from all key business units and functions to provide a holistic view of organizational risks.

Regular Meetings: Schedule regular meetings to review and discuss risk management activities, KRIs, and emerging risks with input from all representatives.

Clear Communication: Establish clear communication channels between the oversight committee and business units to ensure that risk management practices are effectively implemented and monitored.

Developing a risk treatment plan is the best way to facilitate the mitigation of identified gaps between current and desired risk environment states. A risk treatment plan is a document that outlines the actions and resources needed to implement the chosen risk response strategy for each risk scenario. A risk treatment plan should include the following elements:

Risk scenario description and risk ID

Risk owner and other stakeholders

Risk response strategy and objectives

Risk response actions and tasks

Resources, costs, and benefits

Roles and responsibilities

Timeline and milestones

Performance indicators and monitoring mechanisms

Contingency plans and triggers

A risk treatment plan helps to close the gaps between the current and desired risk environment states by providing a clear and comprehensive roadmap for risk mitigation. It also helps to ensure that the risk response actions are aligned with the organizational risk appetite, objectives, and priorities. A risk treatment plan also facilitates the communication, coordination, and collaboration among the risk owners and other stakeholders involved in the risk mitigation process.

The other options are not the best ways to facilitate the mitigation of identified gaps between current and desired risk environment states. Validating organizational risk appetite is an important step in establishing the risk criteria and thresholds for the risk assessment process, but it does not directly address the gaps between the current and desired risk environment states. Reviewing results of prior risk assessments can provide useful insights and lessons learned for the current risk assessment process, but it does not necessarily lead to the development and implementation of effective risk response actions. Including the current and desired states in the risk register can help to document and monitor the risk scenarios and their status, but it does not provide the details and guidance for risk mitigation. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4: Risk Response, Section 4.2: Risk Treatment, p. 189-191.

According to the CRISC Manual, developing IT risk scenarios must align with business objectives to ensure the scenarios are relevant and meaningful. A top-down approach driven by organizational objectives ensures scenarios are contextually appropriate and address what matters most to the enterprise. This ensures that risk management supports the enterprise’s ability to achieve its mission and goals.

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

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

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

The best answer is C. real-time monitoring of risk events and control exceptions. Real-time monitoring is a process of continuously collecting and analyzing data and information on the occurrence and impact of risk events and control exceptions, using automated tools and techniques, such as dashboards, alerts, or analytics12. Real-time monitoring can help to identify and respond to the risks and the issues as soon as they happen, and to prevent or mitigate the potential consequences. Real-time monitoring can also help to improve the efficiency and effectiveness of the risk management process, and to provide timely and accurate reporting and communication to the stakeholders. Real-time monitoring is the best answer, because itrepresents a leading-edge practice in risk monitoring, as it leverages the latest technology and innovation, and it enables a proactive and agile approach to risk management. The other options are not the best answer, although they may be useful or necessary for risk monitoring. Procedures to monitor the operation of controls are a part of the risk monitoring process, but they are not the same as or a substitute for real-time monitoring, as they may not be able to capture and address the risks and the issues in a timely manner, and they may rely on manual or periodic methods, rather than automated or continuous ones. A tool for monitoring critical activities and controls is a resource or a device that supports the risk monitoring process, but it is not the same as or a substitute for real-time monitoring, as it may not be able to collect and analyze the data and information in real time, and it may depend on the quality and reliability of the tool. Monitoring activities for all critical assets is a scope or a coverage of the risk monitoring process, but it is not the same as or a substitute for real-time monitoring, as it may not be able to identify and respond to the risks and the issues as soon as they happen, and it may require a lot of resources and efforts. Performing a controls assessment is a process of evaluating and testing the design and operation of the controls, but it is not the same as or a substitute for real-time monitoring, as it may not be able to detect and report the risks and the issues in real time, and it may follow a predefined or scheduled plan, ratherthan a dynamic or adaptive one. References = Real-Time Risk Monitoring - ISACA, Real-Time Risk Monitoring: A Case Study - ISACA

To help identify high-risk situations, an organization should continuously monitor the environment, as it can help to detect and respond to any changes or emerging risks that may affect the organization’s objectives and strategy. Continuous monitoring can also provide timely and relevant feedback and information to the decision-makers and stakeholders, and enable them to adjust the risk strategy and response actions accordingly. Continuous monitoring can also help to ensure that the risk management process is aligned with the organization’s risk appetite andtolerance, and supports the achievement of the organization’s goals and value creation. References = ISACA Certified in Risk and Information Systems Control (CRISC)Certification Exam Question and Answers, Question 243. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 243. CRISC Sample Questions 2024, Question 243.

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 orunacceptable. 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.

Determining the impact of the missing threat is the best course of action for a peer review of a risk assessment, as it helps to assess the potential consequences and severity of the threat on the information system and the business objectives. Determining the impact of the missing threat is a process of estimating and quantifying the possible harm or loss that could result from the occurrence of the threat event, such as data breach, system failure, or service disruption. Determining the impact of the missing threat can help to:

Identify and prioritize the critical assets, processes, and functions that could be affected by the threat

Evaluate and measure the extent and magnitude of the damage or disruption caused by the threat

Analyze and compare the current and residual risk levels and control effectiveness

Develop and implement appropriate risk response and mitigation strategies and actions

Communicate and report the risk exposure and status to the relevant stakeholders

Determining the impact of the missing threat is an essential step to ensure the completeness and accuracy of the risk assessment and to improve the quality and reliability of the risk management and control processes.

The other options are not the best courses of action for a peer review of a risk assessment. Asking the business to make a budget request to remediate the problem is a possible action to allocate the resources and costs for the risk mitigation, but it does not address the root cause or the severity of the problem. Building a business case to remediate the fix is a possible action to justify and support the risk mitigation, but it does not provide a clear and comprehensive analysis of the problem. Researching the types of attacks the threat can present is a possible action to understand and anticipate the threat scenarios andtechniques, but it does not evaluate the actual or potential impact of the threat. References = Risk Assessment and Analysis Methods: Qualitative and Quantitative, IT Risk Resources | ISACA, Peer Review Assessment Framework

The greatest security risk in this scenario is that data may be commingled with other tenants’ data on the public cloud infrastructure. Data commingling occurs when data from different sources or customers are mixed together without proper segregation or encryption. This may result in data leakage, unauthorized access, or loss of confidentiality and integrity. Data commingling is a common challenge in public cloud environments, where multiple customers share the same physical resources and network. System downtime, infrastructure management, and cloud provider certification are also potential risks in this scenario, butthey are not as great as data commingling. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.2.1.1, page 2451

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 638.

Risk assessment reports are tailored to the organization and identify specific vulnerabilities, threats, and potential impacts. They provide actionable insights into IT risk exposure that can be used for prioritization and mitigation.

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 canhelp 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.

According to the CRISC Review Manual1, access controls are the policies, procedures, practices, and technologies that are designed and implemented to prevent unauthorized or inappropriate access to IT resources and data. Access controls are essential for ensuring the confidentiality, integrity, and availability of data, especially personally identifiable information (Pll), which is any information that can be used to identify, locate, or contact an individual. Insufficient access controls are the greatest concern related to data privacy when implementing an Internet of Things (loT) solution that collects Pll, as they can expose the data to various risks and threats, such asdata leakage, theft, loss, corruption, manipulation, or misuse. Insufficient access controls can also cause legal, regulatory, ethical, or reputational issues for the organization, if the data privacy rights and expectations of the individuals are violated or compromised. References = CRISC Review Manual1, page 240, 253.

An IT risk threat analysis is best used to establish risk scenarios. A risk scenario is a description of a possible event or situation that may affect the achievement of the IT objectives. A riskscenario consists of three elements: a threat, a vulnerability, and an impact. A threat is a potential cause of an unwanted incident. A vulnerability is a weakness or flaw that can be exploited by a threat. An impact is the consequence or effect of the incident on the IT objectives. An IT risk threat analysis is a technique that identifies and evaluates the threats that may pose a risk to the IT assets and processes. An IT risk threat analysis can help to establish risk scenarios by providing the information and context for the threat element of the risk scenario. The other options are not as directly related to an IT risk threat analysis, as they are related to the outcomes, measures, or responsibilities of the IT risk management process, not the inputs or sources of the IT risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.

 The data owner is accountable for the confidentiality of the data that is outsourced to a third party with servers located in a foreign country. The data owner is the person or entity that has the authority and responsibility to classify, label, and protect the data according to the organization’s policies and standards. The data owner is also responsible for defining the data access rights and privileges, and for ensuring that the data is handled in compliance with the applicable laws and regulations. The data owner retains the accountability for the data even when it is outsourced to a third party, and must monitor and evaluate the security performance and compliance of the service provider. The third-party data custodian, the data custodian, and the regional office executive are not accountable for the confidentiality of the data, as they have different roles and responsibilities in the outsourcing process. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.2.1.2, page 2461

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 654.

According to the CRISC Review Manual1, impact analysis is the process of estimating and evaluating the potential effects of a risk event on the organization’s objectives, processes, resources, and risks. Impact analysis helps to quantify and qualify the severity and likelihood of the risk, and to identify the possible consequences and implications for the organization. Impact analysis is the first step that should be done when a risk practitioner learns about a new threat, as it helps to assess the current level of risk exposure and the urgency of the risk response. Impact analysis also helps to communicate and report the risk to the relevant stakeholders, and to facilitate risk-based decision making and action planning. References = CRISC Review Manual1, page 208.

Conducting social engineering testing is the best way to assess the effectiveness of the security awareness training, as it helps to measure and evaluate the actual behavior and response of the employees to simulated real-world attacks that exploit human vulnerabilities. Social engineering testing is a type of security testing that involves performing authorized and ethical hacking activities on the employees to manipulate them into revealing sensitive information, such as credentials, or performing malicious actions, suchas clicking on a phishing link or opening a malicious attachment. Social engineering testing can help to assess the effectiveness of the security awareness training by providing the following benefits:

It tests the employees’ knowledge and skills in recognizing and resisting social engineering attacks, such as phishing, vishing, baiting, or impersonation.

It identifies and measures the strengths and weaknesses of the employees’ security awareness and behavior, and the impact and severity of their actions on the security posture and risk exposure of the organization.

It provides feedback and learning opportunities for the employees to improve their security awareness and behavior, and to reinforce the key concepts and practices taught in the training.

It communicates and reports the results and findings of the testing to the management and the stakeholders, and supports the development and implementation of corrective or preventive actions.

The other options are not the best ways to assess the effectiveness of the security awareness training. Auditing security awareness training materials is a good practice to ensure that the training content is accurate, relevant, and up-to-date, but it does not measure or evaluate the employees’ security awareness and behavior. Administering an end-of-training quiz is a useful method to test the employees’ comprehension and retention of the training content, but it does not reflect or simulate the employees’ security awareness and behavior in real-world situations. Performing a vulnerability assessment is an important step to identify and analyze the potential vulnerabilities in the systems and software, but it does not assess or address the human vulnerabilities or the employees’ security awareness and behavior. References = 3 ways to assess the effectiveness of security awareness training …, IT Risk Resources | ISACA, Measuring the Effectiveness of Security Awareness Training - Hut Six

 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.

User acceptance testing (UAT) is a type of validation testing that ensures that the product meets the needs and expectations of the end users and the business stakeholders. UAT is usually conducted by the actual or representative users of the product, who perform various scenarios and tasks to verify that the product functions correctly and satisfies the business requirements. UAT is an important step in the software development life cycle, as it helps to identify and resolve any issues or gaps between the product and the requirements before the product is released.

If UAT is not conducted when implementing a new application, the greatest concern is that the application could fail to meet the defined business requirements, which could result in user dissatisfaction, loss of trust,reduced productivity, increased costs, and missed opportunities. The application may have technical defects, security vulnerabilities, or redundant processes, but these are not the primary purpose of UAT. UAT is focused on validating the business value and usability of the product, not the technical quality or security of the product. Therefore, the lack ofUAT could have a significant impact on the alignment of the product with the business objectives and user needs.

KRIs must be aligned to business processes to ensure they reflect actual risk conditions affecting critical operations. Misalignment can lead to inaccurate monitoring and ineffective response.

 The most important consideration when communicating the risk associated with technology end-of-life to business owners is the cost and benefit of the risk response options. Technology end-of-life is the situation when a technology product or service is no longer supported by the vendor or manufacturer, and may pose security, compatibility, or performance issues. The risk practitioner should communicate the cost and benefit of the possible risk responses, such as replacing, upgrading, or maintaining the technology, to the business owners, and help them to make informed and rational decisions. Security and availability, maintainability and reliability, and performance and productivity are other possible considerations, but they are not as important as the cost and benefit. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.

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

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

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

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

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

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

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

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

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

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

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

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

References =

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

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

What is shadow IT? - Article | SailPoint

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

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

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

Enterprise Architecture Governance - CIO Wiki

Determining the business purpose of the application is the first thing that a risk practitioner should do when a shadow IT application is identified in a business owner’s business impactanalysis (BIA), because it helps to understand the rationale and value of the application, and the potential risks and issues that it may introduce or affect. A shadow IT application is an IT system or application that is used by the business units or employees without the knowledge or approval of the IT department or management. A shadow IT application may offer benefits such as convenience, efficiency, or innovation, but it may also pose risks such as security breaches, data loss, compatibility issues, or regulatory non-compliance. 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 may reveal the existence of ashadow IT application, as it may be used to support or enable a critical business function or process. Determining the business purpose of the application is the first thing to do, as it helps to evaluate the necessity and suitability of the application, and to plan the appropriate actions to address the shadow IT application. Including the application in the business continuity plan (BCP), segregating the application from the network, and reporting the finding to management are all possible things to do after determining the business purpose of the application, but they are not the first thing to do, as they depend on the results of the evaluation of the application. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 143

Key risk indicators (KRIs) are metrics that provide information about the level of exposure to a specific risk or a group of risks.

The most important factor to the effective monitoring of KRIs is determining threshold levels. This means that the acceptable or unacceptable values or ranges of the KRIs are defined and agreed upon by the relevant stakeholders.

Determining threshold levels helps to evaluate the actual performance and impact of the risks, compare them with the risk appetite and tolerance of the organization, identify any deviations or breaches that may require attention or action, and report them to the appropriate parties for decision making or improvement actions.

The other options are not the most important factors to the effective monitoring of KRIs. They are either secondary or not essential for KRIs.

The references for this answer are:

Risk IT Framework, page 15

Information Technology & Security, page 9

Risk Scenarios Starter Pack, page 7

Risk appetite is defined as "the amount of risk that an organization is willing to accept in pursuit of its objectives, before action is deemed necessary to reduce the risk."1 It represents a balance between the potential benefits of innovation and the threats that change inevitably brings. Risk appetite reflects the organization’s risk attitude and its willingness to accept risk in specific scenarios, with a governance model in place for risk oversight. Risk appetite helps to guide the organization’s approach to risk and risk management, and to align its risk decisions with its business objectives and context. The other options are not the best descriptions of risk appetite, as they are either too vague (the effective management of risk and internal control environments), too narrow (acceptable variation between risk thresholds and business objectives), or confusing (the acceptable variation relative to the achievement of objectives). References = Risk Appetite vs. Risk Tolerance: What is the Difference?

It is most important that security controls for a new system be documented in the system requirements. The system requirements define the functional and non-functional specifications of the system, including the security controls that are needed to protect the system and its data. Documenting the security controls in the system requirements can help ensure that they are designed, developed, tested, and implemented as part of the system development life cycle. Testing requirements, the implementation plan, and the security policy are other documents that may include security controls, but they are not as important as the system requirements. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 5; CRISC Review Manual, 6th Edition, page 212.