Free and Premium Isaca CRISC Dumps Questions Answers

The risk practitioner’s best course of action when an organization has been made aware of a newly discovered critical vulnerability in a regulatory reporting system is to perform an impactassessment, as it involves estimating the potential consequences or damage that the vulnerability may cause to the system and its related business processes, and prioritizing the risk response accordingly. The other options are not the best courses of action, as they may not address the urgency or severity of the vulnerability, or may require the prior knowledge of the impact or risk level, respectively. References = CRISC Review Manual, 7th Edition, page 100.

The best way to mitigate an identified risk scenario is to execute a risk response plan. A risk response plan is a document that describes the actions and resources that are needed to address the risk scenario. A risk response plan can include one or more of the following strategies: avoid, transfer, mitigate, accept, or exploit. By executing a risk response plan, the organization can reduce the likelihood and/or impact of the risk scenario, or take advantage of the opportunities that the risk scenario may present. The other options are not as effective as executing a riskresponse plan, as they are related to the awareness, assessment, or monitoring of the risk scenario, not the actual treatment of the risk scenario. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.2: IT Risk Response Options, page 133.

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

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

Accepting risk is the only risk response strategy that could be applied to both positive and negative risk that has been identified. Accepting risk means taking no action to change the likelihood or impact of the risk, but being prepared to deal with the consequences if the risk occurs. Accepting risk is usually chosen when the risk is low, unavoidable, or outweighed by the benefits. For positive risks, accepting risk means taking advantage of the opportunities if they arise. For negative risks, accepting risk means setting aside contingency reserves or plans to copewith the threats. The other risk response strategies are specific to either positive or negative risks. Transfer, exploit, and mitigate are strategies for negative risks, while share, enhance, and avoid are strategies for positive risks. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.

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

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

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

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

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

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

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

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

1: Risk IT Framework, ISACA, 2009

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

3: IT Risk Register Template, ISACA, 2019

4: IT Risk Register Toolkit, ISACA, 2019

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

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

7: IT Audit and Assurance Standards, ISACA, 2014

8: IT Audit and Assurance Guidelines, ISACA, 2014

IT Project Management Framework, University of Toronto, 2017

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

Key risk indicators (KRIs) are metrics that provide information on the level of exposure to a given operational risk1. KRIs have upper and lower acceptable risk limits (warning thresholds) that trigger actions when exceeded2. These thresholds are based on the organization’s risk appetite or tolerance, which is the amount and type of risk that the organization is willing to accept in pursuit of its objectives3. Therefore, changes in risk appetite or tolerance would prompt changes in KRI thresholds, as the organization would need to adjust its risk monitoring and response accordingly. The other options are not the primary factors that would prompt changes in KRI thresholds, although they may have some influence on the risk management process. References = Risk IT Framework; IT Risk Resources; ISACA Risk Starter Kit; Key Risk Indicators; Key Risk Indicators: A Practical Guide

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.

The primary reason for a risk practitioner to report changes and trends in the IT risk profile to senior management is to ensure that IT risk is managed within acceptable limits, because it helps to inform and advise the senior management on the current state and direction of IT risk, and to support the risk-based decision making and prioritization. An IT risk profile is a summary of the key IT risks that an organization faces, and their implications for the organization’s objectives and strategy. An IT risk profile may change or evolve over time, due to factors such as newtechnologies, business initiatives, or external events. Reporting changes and trends in the IT risk profile to senior management is the primary reason, as it helps to ensure that the senior management is aware of and prepared for the IT risk challenges and opportunities, and that the IT risk is managed within the acceptable limits defined by the organization’s risk appetite and tolerance. To ensure risk owners understand their responsibilities, to ensure the organization complies with legal requirements, and to ensure the IT risk awareness program is effective are all possible reasons for reporting changes and trends in the IT risk profile, but they are not the primary reason, as they are not directly related to the management of IT risk within acceptable limits. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.3, page 91

A possible action that a risk practitioner should do next when an increased industry trend of external cyber attacks is identified is A. Conduct a threat and vulnerability analysis. A threat and vulnerability analysis is a process of identifying and assessing the potential sources and methodsof cyber attacks, as well as the weaknesses and gaps in the organization’s information systems and security controls12 By conducting a threat and vulnerability analysis, a risk practitioner can determine the level of exposure and risk that the organization faces from external cyber attacks, and prioritize the actions and resources needed to mitigate or prevent them3 A threat and vulnerability analysis can also help to update the risk impact rating and the key risk indicator in the risk register, as well as to notify senior management of the new risk scenario, but these are subsequent steps that follow after the analysis is completed. Therefore, the first action that a risk practitioner should do next is to conduct a threat and vulnerability analysis.

Frequent and well-documented testing of the DRP demonstrates the plan's effectiveness and readiness to handle real disruptions.

The best indicator of an effective IT security awareness program is the decreased success rate of internal phishing tests. Phishing is a type of social engineering attack that attempts to trick the users into revealing their personal or confidential information, or clicking on malicious links or attachments, by impersonating a legitimate entity or person. Internal phishing tests are simulated phishing attacks that are conducted by the enterprise to test the awareness and behavior of the employees in response to phishing emails. A decreased success rate of internal phishing tests means that fewer employees fall victim to the phishing attempts, and that they are more aware and vigilant of the phishing threats and techniques. A decreased success rate of internal phishing tests also implies that the IT security awareness program has effectively educated and trained the employees on how to recognize and report phishing emails, and how to protect themselves and the enterprise from phishing attacks. A decreased number of reported security incidents, a number of disciplinary actions issued for security violations, and a number of employees that complete security training are not as good indicators of an effective IT security awareness program as a decreased success rate of internal phishing tests, as they do not directly measure theawareness and behavior of the employees in relation to phishing, and may be influenced by otherfactors such as reporting mechanisms, enforcement policies, and training availability. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 220.

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

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

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

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

The business process owner should own the risk of customer data leakage caused by the service provider, as they have the responsibility and authority over the design, execution, and performance of the business process. The business process owner is also accountable for the risks and controls associated with their process, and they can provide valuable input and feedback on the likelihood and impact of customer data leakage on the process outcomes and objectives.

The other options are not the best choices for owning the risk of customer data leakage caused by the service provider. The service provider is responsible for delivering and supporting the billing function and ensuring the security and privacy of the customer data, but they may not have the full visibility or understanding of the business process and objectives. The vendor risk manager is responsible for managing and monitoring the vendor relationship and performance, but they may not have the direct involvement or influence on the business process and its risks and controls. The legal counsel is responsible for providing legal advice and guidance on the contractual and regulatory obligations and implications of the outsourcing arrangement, but they may not have the detailed knowledge or experience of the business process and its risks andcontrols. References = Guide to Vendor Risk Assessment | Smartsheet, IT Risk Resources | ISACA, Data Ownership: Considerations for Risk Management - ISACA

Deviation from a mitigation action plan’s completion date should be determined by the risk owner as determined by risk management processes, because the risk owner is the person or entity who has the accountability and authority to manage the risk and its associated mitigation actions. The risk owner should monitor and report the progress and status of the mitigation action plan, and determine if there is any deviation from the expected completion date, based on the risk management processes and criteria. The other options are not the ones who should determine the deviation, because:

Option A: Change management as determined by a change control board is a process that ensures that any changes to the project scope, schedule, cost, or quality are controlled and approved, but it does not determine the deviation from the mitigation action plan’s completion date, which is a risk management activity.

Option B: Benchmarking analysis with similar completed projects is a technique that compares the performance and practices of the current project with those of similar or successful projects, but it does not determine the deviation from the mitigation action plan’s completion date, which is a risk management activity.

Option C: Project governance criteria as determined by the project office is a set of rules and standards that define the roles, responsibilities, and authority of the project stakeholders, but it does notdetermine the deviation from the mitigation action plan’s completion date, which is a risk management activity. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 122.

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

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

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

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

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

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

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

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

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

1: Risk and control self-assessment - KPMG Global1

2: Control Self Assessments - PwC2

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

4: RISK MANAGEMENT SELF-ASSESSMENT TEMPLATE - Smartsheet5

5: Risk IT Framework, ISACA, 2009

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

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

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

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

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

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

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

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

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

1: Risk Assessment for the Production Process1

2: Risk Assessment for Industrial Equipment2

3: Risk IT Framework, ISACA, 2009

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

The primary concern for a risk practitioner in adopting innovative big data analytics is the potential re-identification of individuals from previously anonymized data. Advanced analytics techniques can inadvertently combine datasets in ways that reveal personal identities, leading to privacy breaches and regulatory non-compliance. This risk is heightened when data from multiple sources are aggregated, increasing the chance of re-identification.

The most significant risk to an organization when updating the incident response plan is the undefined assignment of responsibility. An incident response plan is a document that defines the roles, responsibilities, procedures, and resources for responding to an incident that could disrupt the normal operations of the organization, or compromise its assets, reputation, or compliance. An incident response plan should clearly assign the responsibility for each task and activity involved in the incident response process, such as detection, containment, analysis, eradication, recovery, and reporting. Undefined assignment of responsibility could lead to confusion, duplication, conflict, or omission among the stakeholders, and impair the effectiveness and efficiency of the incident response process. Undefined assignment of responsibility could also increase the risk of escalation, recurrence, or impact of the incident, and affect the accountability and performance of the organization. Obsolete response documentation, increased stakeholder turnover, and failure to audit third-party providers are also risks, but they are not as significant as undefined assignment of responsibility, as they do not directly affect the execution and outcome of the incident response process. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 130.

A good IT risk scenario must be aligned with a business objective. This alignment ensures that the risk scenario is relevant to the organization’s goals and can be effectively integrated into its risk management processes.

Alignment to Business Objective (Answer C):

Importance: Aligning risk scenarios with business objectives ensures that they are relevant and support the organization’s overall strategy.

Impact: This alignment helps in prioritizing risk management efforts and resources toward areas that directly affect the organization’s success.

Outcome: It leads to more effective risk management by focusing on risks that could impact key business outcomes.

Comparison with Other Options:

A. The scenario is aligned to business control processes:

Purpose: Control processes are important but secondary to business objectives.

B. The scenario is aligned to the organization’s risk appetite and tolerance:

Purpose: Important for overall risk management but not the primary characteristic of a good risk scenario.

D. The scenario is aligned to known vulnerabilities in information technology:

Purpose: While addressing vulnerabilities is important, the primary focus should be on how these vulnerabilities affect business objectives.

A business case will BEST communicate the importance of risk mitigation initiatives to senior management, because it provides a clear and concise justification of the objectives, benefits, costs, and risks of the proposed initiatives. A business case helps to align the risk mitigation initiatives with the enterprise’s strategy and goals, and to obtain the necessary approval and support from senior management. The other options are not as effective as a business case, because:

Option B: A balanced scorecard is a tool to measure and monitor the performance of the enterprise across four perspectives: financial, customer, internal process, and learning and growth. It does not communicate the importance of risk mitigation initiatives, but rather the outcomes and impacts of them.

Option C: Industry standards are benchmarks or best practices that define the minimum requirements or expectations for a certain domain or activity. They do not communicate the importance of risk mitigation initiatives, but rather the compliance or alignment of them with the external environment.

Option D: A heat map is a tool to visualize and prioritize the risks based on their likelihood and impact. It does not communicate the importance of risk mitigation initiatives, but rather the severity and distribution of the risks. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 118.

The best way is toassess the loss impactif information is compromised. This aligns with ISACA’s risk management approach, which prioritizes the potential impact on business objectives and regulatory compliance when valuing information assets.

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

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

The most important information to be communicated during security awareness training is management’s expectations. This will help to establish the security culture and behavior of the enterprise, and to align the staff’s actions with the enterprise’s objectives, policies, and standards. Management’s expectations also provide the basis for measuring and evaluating the effectiveness of the security awareness program. Corporate risk profile, recent security incidents, and the current risk management capability are also important information to be communicated during security awareness training, but they are not as important as management’s expectations. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.1.1.2, page 2291

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 642.

According to the CRISC Review Manual, the greatest benefit of analyzing logs collected from different systems is to detect developing threats earlier, because it helps to identify and correlate the patterns, trends, and anomalies that may indicate a potential attack or compromise. Log analysis is the process of examining and interpreting the log data generated by various systems, such as firewalls, servers, routers, and applications. Log analysis can provide valuable insights into the activities and events that occur on the systems, and can enable the timely detection and response to the emerging threats. The other options are not the greatest benefits of analyzing logs, as they are less proactive or less strategic than detecting developing threats earlier. Maintaining a record of incidents is a benefit of logging, but not of analyzing logs, as it involves storing and preserving the log data for future reference. Facilitating forensic investigations is a benefit of analyzing logs, but it is a reactive and tactical activity that occurs after an incident has happened. Identifying security violations is a benefit of analyzing logs, but it is a specific and operational activity that focuses on the compliance and enforcement of the security policies and standards. References = CRISC Review Manual, 7th Edition, Chapter 5, Section 5.3.2, page 263.

 Role of the System Owner:

The system owner is responsible for the overall operation and management of an application or system. This includes ensuring that technical controls are implemented and functioning as intended.

They have detailed knowledge of the system's architecture, the controls in place, and how those controls are applied within the system.

 Effectiveness of Technical Controls:

Assessing the effectiveness of a technical control requires understanding its implementation, configuration, and operational context.

The system owner is best positioned to provide this information as they manage and oversee the technical environment of the application.

 Comparing Other Roles:

Internal Auditor:While auditors review and evaluate the effectiveness of controls, they do so from an independent standpoint and might not have detailed, day-to-day operational insights.

Process Owner:The process owner focuses on business processes rather than technical controls specific to an application.

Risk Owner:The risk owner is responsible for managing risk but may not have the technical expertise or detailed operational knowledge of the system.

 Supporting Information:

According to the CRISC Review Manual, the system owner is often involved in the assessment and reporting of control effectiveness, especially regarding technical controls (CRISC Review Manual, Chapter 3: Risk Response and Mitigation, Section 3.1.3 Assessing Control Effectiveness) .

 An analysis of the security logs that illustrate the sequence of events is the most important information for the person responsible for managing the incident, as it can help to identify the source, scope, and impact of the security breach, and to determine the appropriate response actions. An analysis of the security logs can also provide evidence for forensic investigation and legal action, and help to prevent or mitigate future incidents by identifying the root causes and vulnerabilities. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 235. CRISC by Isaca Actual FreeExam Q&As, Question 9. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 235. CRISC Sample Questions 2024, Question 235.

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.

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

Comprehensive and Detailed Explanation From Exact Extract:

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

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.

The risk practitioner’s next step after identifying risk owners and responses for newly identified risk scenarios in a recent risk workshop is to update the risk register with the results, as it involves documenting and communicating the risk information and decisions, and maintaining the accuracy and completeness of the risk register. Preparing a business case for the response options, identifying resources for implementing responses, and developing a mechanism for monitoring residual risk are possible steps, but they are not the next step, as they require the prior update of the risk register with the new risk information and decisions. References = CRISC Review Manual, 7th Edition, page 109.

Comprehensive and Detailed Explanation From Exact Extract:

The risk management function acts as a consultant and facilitator in IT projects, helping the project team identify, assess, and respond to risks effectively. It does not directly control project status or costs but supports decision-making. Updating risk registers is an operational task often handled by the project team with guidance from risk management. Eliminating all risk is impractical; instead, risks are managed within appetite levels.

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 BIA identifies critical processes and interdependencies, enabling prioritization of recovery efforts based on business impact.

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

Acost-benefit analysisevaluates the financial implications of acquiring cyber insurance versus the potential loss exposure. This approach enables informed decision-making by comparing the insurance cost with the potential savings from covered risks.

According to the Risk Management Essentials, a risk profile is established to enhance senior management’s analysis and decision making related to priority setting and resource allocation. A risk profile is a description of a set of risks that an organization faces, and it helps to make the risks visible and understandable. By having a documented risk profile, an organization can identify the nature and level of the threats, assess the likelihood and impact of the risks, evaluate the effectiveness of the controls, and determine the risk appetite and tolerance. This information can help the organization to make well-informed decisions on how to manage the risks and achieve its objectives. References = Risk Management Essentials, Risk Profile: Definition, Importance for Individuals & Companies

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.

The risk associated with the leakage of confidential data is the possibility and impact of unauthorized disclosure, access, or use of sensitive information that may harm the organization or its stakeholders12.

The first step in managing the risk associated with the leakage of confidential data is to define and implement a data classification policy, which is a document that establishes the criteria, categories, roles, and responsibilities for identifying, labeling, and handling different types of data according to their sensitivity, value, and protection needs34.

Defining and implementing a data classification policy is the first step because it provides the foundation and framework for the data protection strategy, and enables the organization to prioritize and allocate the appropriate resources and controls for the most critical and confidential data34.

Defining and implementing a data classification policy is also the first step because it supports the compliance with the relevant laws and regulations, such as GDPR, HIPAA, or PCI-DSS, that require the organization to classify and protect the personal or financial data of its customers or clients34.

The other options are not the first step, but rather possible subsequent steps that may depend on or follow the data classification policy. For example:

Maintaining and reviewing the classified data inventory is a step that involves creating and updating a record of the data assets that have been classified, and verifying their accuracy and completeness over time34. However, this step is not the first step because it requires the data classification policy to provide the guidance and standards for the data inventory process34.

Implementing mandatory encryption on data is a step that involves applying a cryptographic technique that transforms the data into an unreadable format, and requires a key or a password to decrypt and access the data56. However, this step is not the first step because it requires the dataclassification policy to determine which data needs to be encrypted, and what level of encryption is appropriate56.

Conducting an awareness program for data owners and users is a step that involves educating and training the people who are responsible for or have access to the data, and informing them of their roles, obligations, and best practices for data protection78. However, this step is not the first step because it requires the data classification policy to define the data ownership and user rights, and the data protection policies and procedures78. References =

1: Top Four Damaging Consequences of Data Leakage | ZeroFox1

2: 8 Data Leak Prevention Strategies for 2023 | UpGuard2

3: Data Classification: What It Is, Why You Need It, and How to Do It3

4: Data Classification Policy Template - IT Governance USA4

5: Encryption: What It Is, How It Works, and Why You Need It5

6: Encryption Policy Template - IT Governance USA6

7: What Is Security Awareness Training and Why Is It Important? - Kaspersky7

8: Security Awareness Training - Cybersecurity Education Online | Proofpoint US8

A KRI is a measure used by an organization to measure the health of a particular risk. In this case, the risk practitioner is developing a metric to measure the risk associated with security threats that were not identified by antivirus software12.

References

1Standardized Scoring for Security and Risk Metrics - ISACA

2Key Performance Indicators for Security Governance, Part 1 - ISACA

 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

Implementing a data masking process is the best method to mitigate the risk of an unauthorized employee viewing confidential data in a database. Data masking is the process of replacing sensitive data with fictitious but realistic data, such as changing names, addresses, phone numbers, etc. Data masking protects the privacy and confidentiality of the data, while still allowing for testing, analysis, or training purposes. Implementing role-based access control, including sanctions in NDAs, and installing a DLP tool are also useful methods to reduce the risk of data exposure, but they are not as effective as data masking, which prevents the data from being accessed in the first place. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, page 3-21.

 The primary objective for requiring an independent review of an organization’s IT risk management process should be to assess gaps in IT risk management operations and strategicfocus, as this helps to identify the strengths and weaknesses of the current process, and to provide recommendations for improvement and alignment with the enterprise’s objectives and environment. An independent review is an objective and unbiased evaluation of the IT risk management process by a qualified and competent party that is not involved in the process. An independent review can help to ensure the quality, effectiveness, and efficiency of the IT risk management process, as well as to enhance the credibility and confidence of the process. Confirming that IT risk assessment results are expressed as business impact, verifying implemented controls to reduce the likelihood of threat materialization, and ensuring IT risk management is focused on mitigating potential risk are not the primary objectives for requiring an independent review of an organization’s IT risk management process, but rather the expected outcomes or benefits of the independent review. References = CRISC Certified in Risk and Information Systems Control – Question219; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 219.

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

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

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

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

The person who should be accountable for resolving the situation where a root cause analysis indicates a major service disruption due to a lack of competency of newly hired IT system administrators is the chief information officer (CIO). The CIO is the senior executive who is responsible for the overall management and governance of the IT function within the organization, including the IT strategy, objectives, policies, processes, and resources. The CIO is also accountable for the performance and value of the IT services and systems, and for ensuring that they meet the needs and expectations of the business and its stakeholders. The CIO should be accountable for resolving the situation, because it involves a major IT service disruption that could affect the organization’s operations and reputation, and because it is related to the IT staff competency and capability, which are under the CIO’s authority and responsibility. The other options are not as accountable as the CIO, although they may have some roles or involvement inthe situation. The HR training director, the business process owner, and the HR recruitment manager are not directly responsible for the IT function or the IT service delivery, and they may not have the authority or the expertise to resolve the situation. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.1.1, page 2-3.

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

Segregation of duties is a key control for preventing and detecting fraudulent transactions, especially in a large organization where there are many employees and transactions involved. Segregation of duties means that no single person has the authority or ability to initiate, approve, execute, and record a transaction without the involvement or oversight of another person. This reduces the opportunity and incentive for fraud, as well as the risk of errors or omissions. Segregation of duties also facilitates the detection of fraud by creating an audit trail and increasing the likelihood of whistleblowing.

The other options are not as effective as segregation of duties for mitigating risk related to fraudulent transactions. Monetary approval limits (B) are useful for controlling the amount and frequency of transactions, but they do not prevent unauthorized or fraudulent transactions from occurring. Clear roles and responsibilities © are important for defining the expectations and accountabilities of employees, but they do not ensure that employees comply with them or that their actions are monitored and verified. Password policies (D) are essential for securing access to systems and data, but they do not prevent fraudsters from exploiting weak or compromised passwords or from using legitimate passwords for fraudulent purposes.

 According to the CRISC Review Manual (Digital Version), the next course of action when an organization has determined a risk scenario is outside the defined risk tolerance level is to identify risk responses, which are the actions or measures taken to address the risk. Identifying risk responses helps to:

Reduce the likelihood and/or impact of the risk to an acceptable level

Align the risk response with the organization’s risk appetite and risk tolerance

Optimize the value and benefits of the risk response

Balance the costs and efforts of the risk response with the potential losses or damages caused by the risk

Coordinate and communicate the risk response with the relevant stakeholders

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.2: Risk Response Process, pp. 161-1621

 When a new security vulnerability is made public, the first step is to determine whether the affected technology is used within the organization. This will help to assess the impact and exposure of the vulnerability on the organization’s assets, processes, and objectives. If the affected technology is not used within the organization, then the vulnerability does not pose a direct threat and no further action is required. However, if the affected technology is used within the organization, then the next steps are to identify the systems and components that are vulnerable, evaluate the severity and likelihood of the vulnerability being exploited, and implement appropriate mitigating controls or remediation actions. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2.1, p. 240-241

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.

To ensure that new IT policies address the enterprise’s requirements, it is important to involve the business owners who are the primary stakeholders of the IT services and processes. Business owners can provide valuable input on the business objectives, risks, and expectations that the IT policies should align with and support. By involving business owners in the policy development process, the IT policies will be more relevant, realistic, and acceptable to the business units. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.

The BEST information when determining whether to accept residual risk of a critical system to be implemented is the potential business impacts are within acceptable levels, because it indicates that the residual risk, which is the risk that remains after the risk response actions, does not exceed the risk tolerance and appetite of the organization, and that it does not pose a significant threat or disruption to the business objectives and processes. The potential business impacts are the consequences or outcomes of the residual risk on the organization’s performance, reputation, and value. The other options are not as informative as the potential business impacts, because:

Option A: Single loss expectancy (SLE) is a measure of the monetary loss that is expected from a single occurrence of a risk event, but it does not provide the best information when determining whether to accept residual risk, because it does not consider the frequency or probability of the risk event, or the qualitative aspects of the risk impact, such as customer satisfaction, employee morale, or regulatory compliance.

Option B: Cost of the information system is a measure of the total expenditure that is required to acquire, develop, operate, and maintain the information system, but it does not provide the best information when determining whether to accept residual risk, because it does not reflect the value or benefit of the information system, or the risk exposure or variation that the information system may introduce or encounter.

Option C: Availability of additional compensating controls is a measure of the alternative or supplementary controls that can be implemented to reduce the residual risk, but it does not provide the best information when determining whether to accept residual risk, because it does not indicate the effectiveness or efficiency of the compensating controls, or the cost-benefitanalysis of implementing them. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 122.

Before assigning sensitivity levels to information, it is most important to define the information classification policy. The information classification policy is a document that establishes the criteria, categories, roles, responsibilities, and procedures for classifying information according to its sensitivity, value, and criticality. The information classification policy provides the basis, guidance, and consistency for assigning sensitivity levels to information, and ensures that the information is protected and handled appropriately. The other options are not as important as defining the information classification policy, as they are related to the specific steps, activities, or outputs of the information classification process, not the overall structure and quality of the information classification process. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.

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.

A penetration test is a simulated cyberattack on a web infrastructure to evaluate its security posture and identify any vulnerabilities or weaknesses that could be exploited by an attacker. A penetration test is the best indicator of how well a web infrastructure protects critical information from an attacker, as it mimics the real-world scenarios and techniques that an attacker would use, and measures the effectiveness of the existing security controls and countermeasures. A penetration test can also provide recommendations for improving the security of the web infrastructure and reducing the risk exposure. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 236. CRISC by Isaca Actual Free Exam Q&As, Question 9. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 236. Most Asked CRISC Exam Questions and Answers, Question 10.

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

User Acceptance Testing (UAT):

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

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

Benefits:

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

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

The 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.

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

According to the CRISC Review Manual, enterprise architecture (EA) is a comprehensive framework that defines the structure and operation of an organization, including its business processes, information systems, technology infrastructure, organizational structure, and strategic objectives2. An EA program is a set of principles, policies, standards, and guidelines that govern the development and implementation of the EA3. By having an approved EA program, an organization can ensure that its risk management is aligned with its goals and objectives, as the EA provides a clear and consistent vision of the desired state and direction of the organization, as well as the means to achieve and measure it4. The EA also helps to identify and prioritize the risks and opportunities that may affect the organization’s performance and resilience. The other options are not as effective or relevant as option D, as they do not directly relate to the alignment of risk management with organizational goals and objectives. Option A, having approved policies that provide operational boundaries, is more related to the governance and compliance of risk management, not its alignment. Option B, having organizational controls to manage risk appetite, is more related to the implementation and monitoring of risk management, not its alignment. Option C, continually evaluating environmental changes that impact risk, is more related to the identification and assessment of risk management, not its alignment.

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

Aggregating risk assessment results helps evaluate the total exposure and provides a consolidated view of risk, supporting enterprise-wide decision-making.

The primary objective of automating controls is to facilitate continuous control monitoring. Automation enables real-time or near-real-time oversight of control activities, allowing for prompt detection and response to control failures or anomalies. This continuous monitoring enhances the organization's ability to maintain compliance and manage risks effectively.

A risk heat map is a graphical tool that displays the level of risk for each risk area based on the impact and likelihood of occurrence. It also provides a summary of the risk assessment results, such as the number and severity of risks, the risk appetite and tolerance, and the risk response strategies. A risk heat map can help senior management to understand the risk profile of the organization, prioritize the risks that need attention, and allocate resources accordingly. A risk heat map is more effective than the other options because it can communicate complex information in a simple and visual way, and it can highlight the key risk areas and trends. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.2, page 97.

The RPO defines how much data loss is acceptable during system failure. If not clearly defined, restoration may skip key data, leading to incomplete recovery. ISACA guidelines highlight that alignment of RPO/RTO with business objectives is critical for viable DR planning

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

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

IT control status reporting is the process of collecting and analyzing data about the effectiveness and efficiency of IT controls. IT controls are the policies, procedures, and practices that ensure the confidentiality, integrity, and availability of IT resources and information. IT control status reporting helps to monitor the performance of IT controls against the predefined objectives and criteria, and to identify any gaps or issues that need to be addressed. IT control status reporting also provides information to the stakeholders about the current status and progress of IT control implementation and improvement.

The primary purpose of IT control status reporting is to facilitate the comparison of the current and desired states of IT controls. This means that IT control status reporting helps to evaluate the gap between the actual and expected performance of IT controls, and to determine the actions and resources needed to close the gap. IT control status reporting also helps to align the IT controls with the business goals and strategies, and to ensure that the IT controls are delivering value to the organization. By comparing the current and desired states of IT controls, IT control status reporting enables continuous improvement and optimization of IT control processes and outcomes.

The other options are not the primary purpose of IT control status reporting, but rather some of the benefits or outcomes of it. IT control status reporting can help to ensure compliance with IT governance strategy,but it is not the main reason for doing it. IT governance is the framework that defines the roles, responsibilities, and relationships among the stakeholders involved in ITdecision making and oversight. IT control status reporting can support IT governance by providing relevant and reliable information to the stakeholders, and by demonstrating the accountability and transparency of IT control activities. However, IT control status reporting is not the same as IT governance, and it is not the only way to ensure compliance with IT governance strategy.

IT control status reporting can also assist internal audit in evaluating and initiating remediation efforts, but it is not the main objective of it. Internal audit is an independent and objective assurance and consulting activity that evaluates the adequacy and effectiveness of IT controls, and provides recommendations for improvement. IT control status reporting can provide input and evidence to the internal audit process, and help to identify the areas of IT control that need further review or testing. IT control status reporting can also help to monitor and track the implementation of the audit findings and recommendations, and to verify the results of the remediation efforts. However, IT control status reporting is not the same as internal audit, and it is not the only source of information for internal audit.

Finally, IT control status reporting can benchmark IT controls with industry standards, but it is not the main goal of it. Industry standards are the best practices or guidelines that define the minimum requirements or expectations for IT control performance and quality. IT control status reporting can help to compare the IT controls with the industry standards, and to identify the areas of IT control that need to be enhanced or updated. IT control status reporting can also help to demonstrate the compliance or conformance of IT controls with the industry standards, and to provide assurance to the external parties or regulators. However, IT control status reporting is not the same as industry standards, and it is not the only way to benchmark IT controls. References =

Service Reporting in ITIL: Process, Objectives and Examples - KnowledgeHut

Anatomy of an effective status report - Project Management Institute

How to Create a Project Status Report [Template & Examples]

Communicating Document Control Progress on a Project

[CRISC Review Manual, 7th Edition]

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

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

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

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

Unauthorized modification of data by a database administrator is a security risk that involves altering, deleting, or inserting data on a database without proper authorization or approval, by a person who has privileged access to the database, such as a database administrator12.

The best control to detect unauthorized modification of data by a database administrator is to review database activity logs, which are records that capture and store the details and history ofthe transactions or activities that are performed on the database, such as who, what, when, where, and how34.

Reviewing database activity logs is the best control because it provides evidence and visibility of the database operations, and enables the detection and reporting of any deviations, anomalies, or issues that may indicate unauthorized modification of data by a database administrator34.

Reviewing database activity logs is also the best control because it supports the accountability and auditability of the database operations, and facilitates the investigation and resolution of any unauthorized modification of data by a database administrator34.

The other options are not the best controls, but rather possible measures or techniques that may supplement or enhance the review of database activity logs. For example:

Reviewing database access rights is a measure that involves verifying and validating the permissions and privileges that are granted or revoked to the users or roles who can access or modify the data on the database56. However, this measure is not the best control because it does not directly detect unauthorized modification of data by a database administrator, especially if the database administrator has legitimate access rights to the data56.

Comparing data to input records is a technique that involves matching and reconciling the data on the database with the original or source data that are entered or imported into the database, and identifying and correcting any discrepancies or errors78. However, this technique is not the best control because it does not directly detect unauthorized modification of data by a database administrator, especially if the input records are also modified or compromised78.

Reviewing changes to edit checks is a technique that involves examining and evaluating the modifications or updates to the edit checks, which are rules or validations that are applied to the data on the database to ensure their accuracy, completeness, andconsistency9 . However, this technique is not the best control because it does not directly detect unauthorized modification of data by a database administrator, especially if the edit checks are bypassed or disabled9 . References =

1: Database Security: Attacks and Solutions | SpringerLink2

2: Unauthorised Modification of Data With Intent to Cause Impairment3

3: Database Activity Monitoring - Wikipedia4

4: Database Activity Monitoring (DAM) | Imperva5

5: Database Access Control - Wikipedia6

6: Database Access Control: Best Practices for Database Security7

7: Data Reconciliation - Wikipedia8

8: Data Reconciliation and Gross Error Detection9

9: Edit Check - Wikipedia

Edit Checks: A Data Quality Tool

Conducting a risk assessment is a critical process that helps organizations identify, evaluate, and prioritize risks that could impact their objectives. The introduction of a new product line is most likely to trigger the need for a risk assessment due to the following reasons:

Introduction of a New Product Line (Answer D):

Significance: Launching a new product involves significant changes to business processes, technologies, and possibly market dynamics. It introduces new elements that could affect the organization's risk profile.

Complexity and Uncertainty: New products often come with unknown risks and uncertainties. Understanding these risks is crucial to ensure they are managed effectively.

Impact on Operations: A new product can impact various facets of the organization, including production, supply chain, IT infrastructure, and customer support. Assessing risks helps in planning and mitigating potential disruptions.

Compliance and Regulatory Considerations: New products might have to comply with new regulations or standards, necessitating a review of associated risks.

Comparison with Other Options:

A. An incident resulting in data loss:

Purpose: While incidents like data loss are serious and require immediate response and investigation, they typically trigger incident management and post-incident reviews rather than a full risk assessment.

B. Changes in executive management:

Purpose: Changes in leadership can influence the strategic direction and priorities of the organization, but they do not inherently introduce new operational risks that necessitate an immediate risk assessment.

C. Updates to the information security policy:

Purpose: Policy updates are often based on previously identified risks and aim to mitigate them. They are more about adjusting controls rather than reassessing the risk landscape completely.

The risk scenario chart shows the initial and residual risk ratings, and the project cost, for four projects named Sierra, Tango, Uniform, and Victor. The initial risk rating is the level of risk before applying any controls or mitigation measures, while the residual risk rating is the level of risk after applying the controls or measures. The project cost is the amount of resources required to implement the project. These three factors can be used to determine the relative positions of the projects on a risk map, which is a graphical tool for displaying the risks based on their impact and likelihood. The risk map can help to prioritize and compare the risks, and to select the most appropriate risk response strategy. The other options are not the best answers, as they are not directly shown or derived from the risk scenario chart. The risk treatment options are the possible actions that can be taken to address the risks, such as accept, avoid, mitigate, or transfer. The capability of enterprise to implement is the ability of the organization to execute the risk response plan,considering the available resources, skills, and constraints. The multiple risk factors addressed by a chosen response are the various elements that contribute to or affect the risk, such as the threat sources, events, vulnerabilities, assets, and impacts. These factors are not explicitly stated or measured in the risk scenario chart, and may require further analysis or information. References = How to Write Strong Risk Scenarios and Statements - ISACA; Identifying the Right Risk Scenarios to Measure with FAIR; How to write good risk scenarios and statements

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

A treatment plan status is a report that shows the current status and progress of the risk mitigation actions and activities that are implemented to reduce the risk exposure of the organization. A treatment plan status would provide the most useful information to a risk owner when reviewing the progress of risk mitigation, as it can help to monitor and evaluate the performance and effectiveness of the risk controls, and to identify and address any issues or gaps that may arise during the implementation. A treatment plan status can also provide feedback and information to the risk owners and stakeholders, and enable them to adjust the risk strategy and response actions accordingly. References = CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 257. CRISC Sample Questions 2024, Question 257. ISACACertified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 257. CRISC by Isaca Actual Free Exam Q&As, Question 9.

Key risk indicators (KRIs) are the metrics or measures that provide information and insight on the level and trend of the risks that may affect the organization’s objectives and operations. KRIscan help the organization to monitor and communicate the risks, and to support the decision making and planning for the risk management.

To implement the most effective monitoring of KRIs, one of the essential elements that needs to be in place is threshold definition, which is the process of establishing and specifying the acceptable or tolerable ranges or limits for the KRIs, based on the organization’s risk appetite and tolerance. Threshold definition can help the organization to monitor KRIs by providing the following benefits:

It can enable the comparison and evaluation of the actual or current values of the KRIs with the expected or desired values of the KRIs, and to identify and quantify the deviations or variations that may indicate the changes or developments in the risk level or performance.

It can trigger the alerts or notifications when the values of the KRIs exceed or fall below the thresholds, and to initiate the appropriate actions or responses to address or correct the risks and their impacts.

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

The other options are not the essential elements that need to be in place to implement the most effective monitoring of KRIs, because they do not address the main purpose and benefit of threshold definition, which is to establish and specify the acceptable or tolerable ranges or limits for the KRIs.

Escalation procedures are the processes and guidelines for communicating and sharing the information and status of the risks and their responses among the relevant stakeholders, and for escalating or transferring the risks and their responses to the appropriate levels orparties when necessary or required. Escalation procedures can help the organization to monitor KRIs by ensuring the awareness and involvement of the stakeholders, but they are not the essential elements that need to be in place, because they do not establish and specify the acceptable or tolerable ranges or limits for the KRIs.

Automated data feed is the process of using a software tool or system to collect and transmit the data or information that are related or relevant to the KRIs, and to ensure the accuracy, reliability, and timeliness of the data or information. Automated data feed can help the organization to monitor KRIs by providing the data or information that are necessary and relevant for the KRIs, but they are not the essential elements that need to be in place, because they do not establish and specify the acceptable or tolerable ranges or limits for the KRIs.

Controls monitoring is the process of verifying and validating the adequacy and effectiveness of the controls that are intended to ensure the confidentiality, integrity, availability, and reliabilityof the information systems and resources that are affected by the risks. Controls monitoring can help the organization to monitor KRIs by providing the assurance and evidence on the performance and compliance of the controls, but they are not the essential elements that need to be in place, because they do not establish and specify the acceptable or tolerable ranges or limits for the KRIs. 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 206

CRISC Practice Quiz and Exam Prep

A risk response is the action or plan that is taken to address a specific risk that has been identified, analyzed, and evaluated. It can be one of the following types: mitigate, transfer, avoid, or accept.

The highest priority when developing a risk response is to ensure that it aligns with the organization’s risk appetite, which is the amount and type of risk that the organization is willing to accept in pursuit of its goals. The risk appetite is usually expressed as a range or a threshold, and it is aligned with the organization’s strategy and culture.

Aligning the risk response with the organization’s risk appetite ensures that the risk response is consistent, appropriate, and proportional to the level and nature of the risk, and that it supports the organization’s objectives and values. It also helps to optimize the balance between risk and return, and to create and protect value for the organization and its stakeholders.

The other options are not the highest priority when developing a risk response, because they do not address the fundamental question of whether the risk response is suitable and acceptable for the organization.

The risk response addresses the risk with a holistic view means that the risk response considers the interrelationships and dependencies among the risk sources, events, impacts, and responses, and the potential secondary and residual effects of the risk response. This is important to ensure that the risk response is comprehensive and effective, and that it does not create new or unintended risks, but it is not the highest priority when developing a risk response, because it does not indicate whether the risk response is aligned with the organization’s risk appetite.

The risk response is based on a cost-benefit analysis means that the risk response compares the expected costs and benefits of implementing the risk response, and selects the risk response that provides the most favorable net outcome. This is important to ensure that the risk response is efficient and economical, and that it maximizes the return on investment, but it is not the highest priority when developing a risk response, because it does not indicate whether the risk response is aligned with the organization’s risk appetite.

The risk response is accounted for in the budget means that the risk response is included in the financial plan and allocation of resources for the organization or the project. This is important toensure that the risk response is feasible and realistic, and that it has the necessary funding and support, but it is not the highest priority when developing a risk response, because it does not indicate whether the risk response is aligned with the organization’s risk appetite. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 29-30, 34-35, 38-39, 44-45, 50-51, 54-55

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 147

Strategic decisions on risk management are the decisions that involve setting the direction, objectives, and priorities for risk management within an organization, as well as aligning them with the organization’s overall strategy, vision, and mission1. Strategic decisions on riskmanagement also involve defining the organization’s risk appetite and tolerance, which are the amount and level of risk that the organization is willing and able to accept to achieve its goals2. The responsibility for strategic decisions on risk management should belong to the executive management team, which is the group of senior leaders who have the authority and accountability for the organization’s performance and governance3. The executive management team has the best understanding of the organization’s strategic context, environment, and stakeholders, and can make informed and balanced decisions that consider the benefits and costsof risk-taking4. The executive management team also has the ability and responsibility to communicate and cascade the strategic decisions on risk management to the rest of the organization, and to monitor and evaluate their implementation and outcomes5. The chief information officer (CIO), the audit committee, and the business process owner are not the best choices for being responsible for strategic decisions on risk management, as they do not have the same level of authority and accountability as the executive management team. The CIO is the senior leader who oversees the organization’s information andtechnology strategy, resources, and systems6. The CIO may be involved in providing input and feedback to the executive management team on the strategic decisions on risk management, especially those related to IT risk, but they do not have the final say or the overall responsibility for them. The audit committee is a subcommittee of the board of directors that oversees the organization’s financial reporting, internal controls, and external audits7. The audit committee may be involved in reviewing and approving the strategic decisions on risk management, as well as ensuring their compliance with the relevant laws and standards, but they do not have the authority or the expertise to make or implement them. The business process owner is the person who has the authority and accountability for a business process that supports or enables the organization’s objectives and functions. The business process owner may be involved in executing and reporting on the strategic decisions on risk management, as well as identifying and mitigating the risks related to their business process, but they do not have the perspective or the influence to make or communicate them. References = 1: Strategic Risk Management: Complete Overview (With Examples)2: [Risk Appetite and Tolerance - ISACA] 3: [Senior Management - Definition, Roles andResponsibilities] 4: Stanford Strategic Decision and Risk Management | Stanford Online5: A 7-Step Process for Strategic Risk Management — RiskOptics - Reciprocity6: [Chief Information Officer (CIO) - Gartner ITGlossary] 7: [Audit Committee - Overview, Functions, and Responsibilities] : [Business Process Owner - Gartner IT Glossary] : [Business Process Owner - Roles and Responsibilities] : [Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Concepts, pp. 17-19.]

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

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.

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

A risk dashboard is a graphical tool that displays the key indicators and metrics of the organization’s IT risk profile, such as the risk level, status, trend, performance, etc., using charts, graphs, tables, etc. A risk dashboard can help the organization to monitor and communicate the IT risk profile, and to support the decision making and planning for the IT risk management.

A risk dashboard is the most effective tool in identifying trends in the IT risk profile, because it provides a visual and intuitive representation of the changes and variations in the IT risk profile over time, and highlights the most significant and relevant IT risks that need to be addressed or monitored. A risk dashboard can also help to compare and contrast the IT risk profile with the organization’s IT objectives and risk appetite, and to identify the gaps or opportunities for improvement.

The other options are not the most effective tools in identifying trends in the IT risk profile, because they do not provide the same level of visibility and clarity that a risk dashboard provides, and they may not be updated or aligned with the organization’s IT objectives and risk appetite.

A risk self-assessment is a process of identifying, analyzing, and evaluating the IT risks that may affect the organization’s objectives and operations, using the input and feedback from the individuals or groups that are involved or responsible for the IT activities or functions. A risk self-assessment can help the organization to understand and document the IT risk profile, and to align it with the organization’s IT strategy and culture, but it is not the most effective tool in identifying trends in the IT risk profile, because it may not reflect the current or accurate state and performance of the IT risk profile, and it may not cover all the relevant or emerging IT risks that may exist or arise.

A risk register is a document that records and tracks the information and status of the identified IT risks and their responses. It includes the IT risk description, category, source, cause, impact, probability, priority, response, owner, action plan, status, etc. A risk register can help the organization to identify, analyze, evaluate, and communicate the IT risks and their responses, and to align them with the organization’s IT strategy and culture, but it is not the most effective tool in identifying trends in the IT risk profile, because it may not provide a visual and intuitive representation of the changes and variations in the IT risk profile over time, and it may not highlight the most significant and relevant IT risks that need to be addressed or monitored.

A risk map is a graphical tool that displays the results of the IT risk analysis in a matrix format, using colors and symbols to indicate the level and priority of the IT risks. A risk map can show the distribution and comparison of the IT risks based on various criteria, such as likelihood, impact, category, source, etc. A risk map can help the organization to assess and prioritize the IT risks, and to design and implement appropriate controls or countermeasures to mitigate or prevent the IT risks, but it is not the most effective tool in identifying trends in the IT risk profile, because it may not provide a visual and intuitive representation of the changes and variations in the IT risk profile over time, and it may not reflect the organization’s IT objectives and risk appetite. 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 180

CRISC Practice Quiz and Exam Prep

After identifying new risk events during a project, the project manager’s next step should be to record the scenarios into the risk register, which is a document that records and tracks the identified risks, their causes, impacts, likelihood, responses, owners, and status. Recording the scenarios into the risk registerhelps to document and communicate the risks to the project team and stakeholders, and to facilitate the subsequent risk analysis and response processes. The other options are not the next steps, but rather the subsequent steps after recording the scenarios into the risk register. Determining if the scenarios need to be accepted or responded to is part of the risk evaluation and treatment process, which requires a prior risk analysis. Continuing with a qualitative or quantitative risk analysis is part of the risk assessment process, which requires a prior risk identification and documentation. References = Risk Register: A Project Manager’s Guide with Examples [2023] • Asana; Risk Identification in Project Management; 6.3. The 5 Steps of the Risk Management Process

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

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

Define the scope and boundaries of the IT risk scenarios, and ensure that they are relevant and realistic

Identify the critical assets, processes, or functions that are exposed or affected by the IT risks, and assess their value and importance to the organization

Determine the likelihood and methods of the threat events, and the existing or potential weaknesses or gaps in the IT control environment

Estimate the potential consequences and impacts of the IT risks, such as financial losses, operational disruptions, reputational damages, or compliance violations5

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

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

The most important component of effective security incident response is a documented communications plan. A communications plan defines the roles and responsibilities, channels and methods, frequency and timing, and content and format of the communications that take place during and after a security incident. A communications plan helps to ensure that the relevant stakeholders are informed and updated about the incident status and outcome, and that the incident response activities are coordinated and consistent. A communications plan also helps to manage the expectations and perceptions of the stakeholders, and to maintain the trust and reputation of the enterprise. Network time protocol synchronization, identification of attack sources, and early detection of breaches are also important components of effective security incident response, but they are not as important as a documented communications plan. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1.2, page 1931

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 660.

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

 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.

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

Clear Ownership:

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

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

Creating Metrics:

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

Hiring Subject Matter Experts:

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

Establishing a Budget:

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

Biased recommendations from AI models pose significant risks to decision-making and organizational ethics. Such biases can propagate systemic issues and impact regulatory compliance, emphasizing the need for robust controls in AI development and deployment underEmerging Technology Risks.

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

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

Prevent or minimize the recurrence of the incident by addressing the source of the problem, not just the symptoms or effects

Identify and implement corrective or preventive actions that can effectively resolve or mitigate the problem

Learn from the incident and improve the IT service, system, or network quality and reliability

Enhance the incident management and problem management processes and capabilities5

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

Internal audit reports provide the most useful information to assess the magnitude of identified deficiencies in the IT control environment. Internal audit reports are independent and objective evaluations of the design and operating effectiveness of the IT controls, as well as the compliance with policies, standards, and regulations. Internal audit reports also provide recommendations for improvement and follow-up actions for the control deficiencies. Internal audit reports can help measure the impact and severity of the control deficiencies, and prioritize the remediation efforts. Peer benchmarks, business impact analysis (BIA) results, and threat analysis results are not as directly related to the assessment of the control deficiencies, although they may provide some contextual or comparative information. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.4.1, page 1-19.

 IT risk scenarios are hypothetical situations that describe how IT-related events or incidents could adversely affect an organization’s objectives, assets, or operations. IT risk scenarios can help to identify, analyze, and prioritize IT risks, and to develop appropriate responses and controls1.

An enterprise-wide risk register is a document that records and tracks the significant risks that an organization faces across its various functions, processes, and activities. An enterprise-wide risk register can help to provide a comprehensive and consistent view of the organization’s risk profile, and to support the decision making and reporting of the risk management function2.

The best practice that facilitates the incorporation of IT risk scenarios into the enterprise-wide risk register is to develop IT risk scenarios in the context of organizational objectives. This means that IT risk scenarios should be aligned with and derived from the organization’s strategic goals, mission, vision, and values. IT risk scenarios should also consider the interdependenciesand interactions between IT and other business domains, and the potential impact of IT risks on the organization’s performance and reputation3.

By developing IT risk scenarios in the context of organizational objectives, the organization can ensure that the IT risk scenarios are relevant, realistic, and meaningful for the enterprise-wide risk management. The organization can also ensure that the IT risk scenarios are consistent and comparable with other types of risk scenarios, such as financial, operational, or reputational risk scenarios. This can facilitate the integration and consolidation of IT risk scenarios into the enterprise-wide risk register, and enable a holistic and balanced assessment and reporting of the organization’s risks4.

The other options are not as effective as developing IT risk scenarios in the context of organizational objectives for incorporating IT risk scenarios into the enterprise-wide risk register. Developing key risk indicators (KRIs) for key IT risk scenarios can help to monitor and measure the IT risk exposure and performance, but it does not ensure that the IT risk scenarios are aligned with the organizational objectives or integrated with other risk scenarios. Assessing IT risk scenarios by the enterprise risk management team can help to validate and prioritize the IT risk scenarios, but it does not ensure that the IT risk scenarios are derived from the organizational objectives or consistent with other risk scenarios. Approving risk appetites for IT risk scenarios by key business stakeholders can help to establish the acceptable level of IT risk taking andtolerance, but it does not ensure that the IT risk scenarios are based on the organizational objectives or comparable with other risk scenarios. References =

IT Risk Scenario Development - ISACA

Risk Register - ISACA

Identifying Risks and Scenarios Threatening the Organization as an Enterprise - A New Enterprise Risk Identification Framework

Risk Register 2021-2022 - UNECE

[CRISC Review Manual, 7th Edition]

According to the What Is Risk Management & Why Is It Important? article, risk management is the systematic process of identifying, assessing, and mitigating threats or uncertainties that can affect your organization. The primary goal of a risk management program is to help ensure objectives are met, by aligning the risk management process with the organization’s strategy, vision, mission, values, and objectives. By having a risk management program, an organization can identify potential problems before they occur and have a plan for addressing them, as well as monitor and report on the effectiveness of the risk responses. This can help the organization to achieve its desired outcomes and create value for its stakeholders. References = What Is Risk Management & Why Is It Important?

Zero-day malware is malware that exploits unknown and unprotected vulnerabilities. This novel malware is difficult to detect and defend against, making zero-day attacks a significant threat to enterprise cybersecurity1. The best way to detect zero-day malware on an end user’s workstation is to use file integrity monitoring, which is a technique that monitors and alerts on changes to files and directories that may indicate a malware infection or compromise2. By using fileintegrity monitoring, the end user can detect zero-day malware that may alter or damage the files or directories on their workstation, and take appropriate actions to remove or isolate the malware. File integrity monitoring can also help to prevent the spread of zero-day malware to other systems or networks, and to restore the integrity and availability of the affected files or directories. Antivirus program, database activity monitoring, and firewall log monitoring are not the best ways to detect zero-day malware on an end user’s workstation, as they are not as effective or reliable as file integrity monitoring. Antivirus program is a software that scans and removes known malware from a system or network3. Antivirus program can help to protect the end user’s workstation from common or known malware, but it may not be able to detect zero-day malware that does not have a signature or a pattern that matches the antivirus program’s database. Database activity monitoring is a technique that monitors and audits the activities and transactions on a database, such as queries, updates, or deletions4. Database activity monitoring can help to protect the end user’s database from unauthorized or malicious access or modification, but it may not be able to detect zero-day malware that does not target or affect the database. Firewall log monitoring is a technique that monitors and analyzes the logs generated by a firewall, which is a device or software that filters and controls the incoming and outgoing network traffic based on predefined rules. Firewall log monitoring can help to protect the enduser’s workstation from external or internal network attacks, but it may not be able to detect zero-day malwarethat bypasses or evades the firewall rules or that originates from the workstation itself. References = 1: What is Zero Day Malware? - Check Point Software2: File Integrity Monitoring - an overview | ScienceDirect Topics3: Antivirus Software - an overview | ScienceDirect Topics4: Database Activity Monitoring - an overview | ScienceDirect Topics : [Firewall Log Analysis - an overview | ScienceDirect Topics] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.1: Control Design, pp. 233-235.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.2: Control Implementation, pp. 243-245.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.3: Control Monitoring and Maintenance, pp. 251-253.] : [Zero-day attack detection: a systematic literature review | Artificial Intelligence Review] : [Zero-day Attacks Detection and Prevention Methods | Apriorit] 

An increase in system vulnerabilities directly correlates with an elevated exposure to potential threats. Identifying more vulnerabilities signals a need to re-evaluate the risk environment.

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

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

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

The most important consideration when identifying stakeholders to review risk scenarios developed by a risk analyst is that the reviewers are accountable for the affected processes. This is because the reviewers need to have a clear understanding of the business processes that are exposed to the risks, and the potential impact and consequences of the risk scenarios. The reviewers also need to have the authority and responsibility to implement the risk responses and monitor the risk performance. By involving the stakeholders who are accountable for the affected processes, the risk analyst can ensure that the risk scenarios are realistic, relevant, and comprehensive, and that the risk management process is aligned with the business objectives and expectations. The other options are not as important as the accountability for the affected processes, because they do not guarantee that the reviewers have the necessary knowledge, experience, and involvement in the risk management process, as explained below:

B. Members of senior management are not the most important consideration, because they may not have the detailed or operational knowledge of the business processes that are exposed to the risks, or the technical or practical aspects of the risk scenarios. Senior management may also have different or conflicting priorities or perspectives on the risk management process, which may affect the quality and validity of the review.

C. Authorized to select risk mitigation options are not the most important consideration, because they may not have the direct or regular involvement in the business processes that are exposed to the risks, or the specific or contextual understanding of the risk scenarios. The authority to select risk mitigation options may also depend on other factors, such as the risk appetite, the budget, or the organizational structure, which may limit or influence the review.

D. Independent from the business operations are not the most important consideration, because they may not have the sufficient or relevant knowledge of the business processes that are exposed to the risks, or the potential or actual impact and consequences of the risk scenarios. The independence from the business operations may also create a gap or disconnect between the risk management process and the business objectives and expectations, which may affect the effectiveness and efficiency of the review. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.1, page 45. A Stakeholder Approach to Risk Management, Module 2. Project risk management: stakeholders’ risks and the project manager’s role, What Is Risk Management Scenario Analysis?

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

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

According to the CRISC Review Manual1, data selection is the process of choosing the appropriate data sources and variables for data analysis. Data selection is the most critical step in data analytics, as it determines the quality and validity of the results and insights derived from the analysis. Incorrect data selection is the greatest risk associated with the use of data analytics, as it can lead to inaccurate, incomplete, irrelevant, or biased outcomes that can adversely affectthe decision making and performance of the organization. Incorrect data selection can also cause legal, regulatory, ethical, or reputational issues for the organization, if the data used for analysis is not authorized, reliable, or compliant. References = CRISC Review Manual1, page 255.

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

 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 …

A change management process is a set of procedures and activities that aim to ensure that changes in an organization’s IT systems and services are implemented in a controlled and coordinated manner. The effectiveness of a change management process can be measured by how well it reduces the risks and costs associated with changes, and how well it supports the business objectives and customer expectations. One of the best metrics to demonstrate the effectiveness of a change management process is the percent of unauthorized changes. Unauthorized changes are changes that are made without following the established change management process, such as obtaining approval, documenting the change, testing the change, and communicating the change. Unauthorized changes can introduce errors, defects, security breaches, and disruptions to the IT systems and services, and can negatively affect the business performance and customer satisfaction. Therefore, a low percent of unauthorized changes indicates that the change management process is effective in ensuring that changes are properly planned, approved, executed, and monitored. The other options are not the best metrics to demonstrate the effectiveness of a change management process, as they do not directly reflect the quality and control of the changes. An increase in the frequency of changes may indicate that the organization is agile and responsive to the changing business needs and customer demands, but it does not necessarily mean that the changes are well-managed and beneficial. An increase in the number of emergency changes may indicate that the organization is able to handle urgent and critical situations, but it may also suggest that the organization is reactive and lacks proper planning and analysis of the changes. The average time to complete changes may indicate the efficiency and speed of the change management process, but it does not measure the effectiveness and value of the changes. References = CRISC Review Manual, pages 156-1571; CRISC Review Questions, Answers & Explanations Manual, page 712

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.

Perform a Risk Assessment:

Immediate Action: The first step when discovering a non-compliant implementation is to understand the potential risks it poses to the organization. This involves identifying threats, vulnerabilities, and potential impacts of the non-fungible token (NFT) asset program.

Risk Identification and Evaluation: Assess the new program’s impact on the organization’s risk profile. Determine if it introduces significant security, compliance, or operational risks.

Documentation and Reporting: Document the findings and present them to senior management along with recommendations for mitigation or further action.

Comparison with Other Options:

Report the Infraction: Reporting is necessary but should follow the risk assessment to provide a clear understanding of the implications and necessary mitigations.

Conduct Risk Awareness Training: Training is preventive and should be part of a long-term strategy, not the immediate response to a specific incident.

Discontinue the Process: Discontinuing the process may be a necessary step after assessing the risk, but the assessment must come first to justify such an action.

Best Practices:

Comprehensive Risk Assessment: Ensure that the risk assessment covers all aspects, including financial, reputational, and regulatory risks.

Stakeholder Involvement: Involve relevant stakeholders in the assessment process to gather diverse perspectives and ensure a thorough evaluation.

Actionable Recommendations: Provide clear, actionable recommendations based on the risk assessment findings.

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

 In order to efficiently execute a risk response action plan, it is most important for the emergency response team members to understand their defined roles and responsibilities. This can help to ensure that the team members know what they are expected to do, how they should coordinate and communicate with each other, and how they should report the progress and outcome of therisk response. The system architecture in target areas, IT management policies and procedures, and business objectives of the organization are other important factors, but they arenot as important as the defined roles and responsibilities. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

The greatest 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.

The best risk response for an identified high probability risk scenario involving a critical, proprietary business function with an annualized cost of control higher than the annual loss expectancy is to accept the risk. Accepting the risk means acknowledging the risk but choosing not to take any specific action to address it. This strategy is suitable when the cost of implementing controls exceeds the potential loss, as in this scenario. The organization recognizes the risk, but the cost-benefit analysis suggests that the potential loss is acceptable given the higher cost of control. The other options are not the best risk responses, as they may not befeasible, practical, or cost-effective in this scenario. Mitigating the risk means reducing the risk by implementing controls or measures to minimize its potential impact, but this would increase the cost of control, which is already higher than the annual loss expectancy. Transferring the risk means shifting the risk to another party, typically through insurance or contracts, but this may not be possible or advisable for a critical, proprietary business function, and it may also increase the overall cost burden. Avoiding the risk means eliminating the risk entirely by not engaging in the activity that poses the risk, but this may disrupt essential business operations and potentially result in other adverse consequences. References = CRISC Exam:Best Risk Response for High Probability Risk Scenario; Risk Response Plan in Project Management: Key Strategies & Tips; Chapter 19: Summarizing Risk Management Concepts

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

 The best control to minimize the risk associated with scope creep in software development is an established process for project change management. Scope creep is the uncontrolled expansion of the project scope due to changes in requirements, specifications, or expectations. A project change management process can help to prevent or reduce scope creep by defining the procedures for requesting, reviewing, approving, and implementing changes in the project. Retention of test data and results, business management review of functional requirements, and segregation between development, test, and production are other possible controls, but they are not as effective as a project change management process. References = ISACA Certified in Riskand Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

 A control is an action or measure that reduces the likelihood or impact of a risk to an acceptable level. Controls can be classified into different types based on their purpose or function, such asdetective, compensating, corrective, or preventive. Performing a background check on a new employee candidate before hiring is an example of a preventive control. A preventive control is a control that aims to prevent the occurrence or manifestation of a risk, such as by avoiding, removing, or reducing the risk sources, causes, or drivers. A background check is a process that verifies the identity, qualifications, and history of a potential employee, and helps to ensure that the employee is suitable and trustworthy for the job. A background check can prevent the risk of hiring an unqualified, fraudulent, or malicious employee, who could compromise the performance, security, or compliance of the enterprise. The other options are not examples of preventive controls, as they involve different types of controls:

A detective control is a control that aims to detect the occurrence or manifestation of a risk, such as by monitoring, measuring, or reporting the risk events, indicators, or outcomes. An example of a detective control is a log review, which is a process that analyzes the records of the activities or transactions on the IT systems or applications, and helps to identify any anomalies, errors, or violations that could indicate a risk.

A compensating control is a control that aims to compensate for the weakness or deficiency of another control, such as by providing an alternative or additional level of protection or assurance. An example of a compensating control is a firewall, which is a device or software that filters the network traffic and blocks the unauthorized or malicious access to the IT systems or applications, and helps to compensate for the lack or failure of other security controls, such as encryption, authentication, or authorization.

A corrective control is a control that aims to correct the occurrence or manifestation of a risk, such as by restoring, repairing, or improving the affected assets, processes, or functions. An example of a corrective control is a backup, which is a copy or replica of the data or informationon the IT systems or applications, and helps to correct the loss or damage of the data or information due to a risk, such as a hardware failure, a software error, or a cyberattack. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.3.3.1, pp. 62-63.

According to the CRISC Review Manual (Digital Version), assessing changes in residual risk is the best approach for determining whether a risk action plan is effective, as it measures the impact and value of the risk response actions and controls on the risk level. Residual risk is the risk that remains after the risk response actions and controls have been implemented. Assessing changes in residual risk helps to:

Evaluate the extent to which the risk response actions and controls have reduced the likelihood and/or impact of the risk to an acceptable level

Identify and report any deviations, errors, or weaknesses in the risk response actions and controls and their performance

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

Monitor and measure the effectiveness and efficiency of the risk response actions and controls and their alignment with the organization’s risk appetite and risk tolerance

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 3: IT Risk Response, Section 3.2: Risk Response Process, pp. 161-1621

 According to the CRISC Review Manual (Digital Version), the best course of action when a risk assessment has identified that an organization may not be in compliance with industry regulations is to conduct a gap analysis against compliance criteria, which is a method of comparing the current state of compliance with the desired or required state of compliance. Conducting a gap analysis against compliance criteria helps to:

Identify and evaluate the differences or discrepancies between the compliance requirements and the actual compliance practices and capabilities

Assess the impact and severity of the compliance gaps on the organization’s objectives and performance

Prioritize the compliance gaps based on their urgency and importance

Develop and implement appropriate actions or measures to close or reduce the compliance gaps

Monitor and measure the effectiveness and efficiency of the actions or measures taken to address the compliance gaps

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.5: IT Risk Identification Methods and Techniques, pp. 34-351

The data owner is the person who has the authority and responsibility to classify, label, and protect the information assets of the organization. The data owner is accountable for the risk ofpotential loss of confidential information, as they are the ones who determine the level of protection and access required for the data. The risk manager is responsible for identifying, assessing, and mitigating the risks that may affect the organization, but they are not accountable for the data itself. The end user is the person who uses the information assets for their operational tasks, but they are not accountable for the data protection or classification. The IT department is responsible for providing the technical support and infrastructure for the information assets, but they are not accountable for the data ownership or risk management. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: Data Classification, p. 69-70.

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

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

 In an environment where reduced time-to-market for new software products is a top business priority, the risk practitioner’s greatest concern should be whether sufficient resources are assigned to IT development projects. Resources include human, financial, technical, and physical assets that are needed to plan, design, develop, test, and deliver high-quality software products in a timely manner. If the IT development projects are under-resourced, they may face challenges such as delays, errors, defects, rework, scope creep, or failure to meet customer expectations or requirements. These challenges can increase the risk of losing competitive advantage, market share, customer satisfaction, or reputation. The other options are less critical, as they are not directly related to the core business priority of reducing time-to-market for new softwareproducts. Customer support help desk staff training, email infrastructure rollback plans, and corporate email system phishing detection are important aspects of information security and customer service, but they are not the primary drivers of software product development anddelivery. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.2: Risk Response Options, p. 115-116.

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

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

According to the CRISC Review Manual (Digital Version), the right to audit the provider is the most important factor to help define the IT risk associated with outsourcing activity to a cloud-based service provider, as it enables the organization to verify the compliance and performance of the provider with the contractual obligations and service level agreements. The right to audit the provider helps to:

Assess the security, availability, confidentiality, integrity, and privacy of the data and processes hosted by the provider

Identify and evaluate the risks and controls related to the cloud-based services and the provider’s infrastructure

Monitor and measure the quality and effectiveness of the cloud-based services and the provider’s governance and management practices

Report and resolve any issues or incidents related to the cloud-based services and the provider’s operations

Ensure the alignment of the cloud-based services and the provider’s policies and standards with the organization’s objectives and requirements

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 176-1771

An effective risk management program is a systematic and consistent process of identifying, analyzing, evaluating, treating, monitoring, and communicating risks that may affect the achievement of the organization’s objectives12.

The best indication of an effective risk management program is that the residual risk, which is the risk remaining after risk treatment, is within the organizational risk appetite, which is the amount and type of risk that the organization is willing to accept in pursuit of its objectives12.

This indicates that the organization has successfully implemented appropriate risk responses that align with its risk strategy and criteria, and that the organization is able to balance the potential benefits and costs of taking risks12.

The other options are not the best indication, but rather components or outcomes of an effective risk management program. For example:

Risk action plans are approved by senior management is an outcome of an effective risk management program that demonstrates the commitment and accountability of the leadership for risk management12.

Mitigating controls are designed and implemented is a component of an effective risk management program that involves reducing the likelihood or impact of a risk event12.

Risk is recorded and tracked in the risk register is a component of an effective risk management program that involves documenting and updating the risk information and status12. References =

1: Risk IT Framework, ISACA, 2009

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

The best way to mitigate the risk to IT infrastructure availability is to establish a disaster recovery plan (DRP), because a DRP is a document that defines the procedures and resources needed to restore the IT infrastructure and resume the critical business functions in the event of a disaster or disruption. A DRP helps to minimize the downtime, data loss, and financial impact of a disaster, and ensures the continuity of operations and services. The other options are not the best ways to mitigate the risk to IT infrastructure availability, although they may also be helpful in supporting the DRP. Establishing recovery time objectives (RTOs), maintaining a current list of staff contact details, and maintaining a risk register are examples of planning or monitoring activities that aim to define the requirements, roles, and responsibilities for the disaster recovery process, but they do not address the actual implementation or execution of the DRP. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

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

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

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

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

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

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

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

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

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

CRISC Practice Quiz and Exam Prep

In a SaaS model, while the provider manages the infrastructure and application,data ownership and ultimate responsibilityfor its confidentiality remains with thecustomer's data owner, including due diligence and contractual safeguards.

The business application owner is accountable for business impact and must approve any change that affects application availability. ISACA’s CRISC emphasis on ownership roles indicates business owners should approve changes with risk implications.

The primary concern when IT decides to develop an in-house replacement application for a critical business application is that the business process owner is not an active participant. The business process owner is the person who has the authority and responsibility for the business process that is supported by the application, and who understands the business requirements, objectives, and expectations of the application. The business process owner should be involved in all stages of the application development lifecycle, from planning, analysis, design, testing, implementation, to maintenance, to ensure that the application meets the business needs and delivers value. Without the active participation of the business process owner, the application development project may face risks such as scope creep, miscommunication, user dissatisfaction, poor quality, or failure.

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

An information asset inventory is a list of all the information assets that an organization owns or uses. It includes information such as the asset name, description, owner, location, classification,value, and dependencies. The primary objective of maintaining an information asset inventory is to provide input to business impact analyses (BIAs), which are used to identify the criticality and recovery priorities of information assets in the event of a disruption. By having an updated and accurate information asset inventory, an organization can ensure that the BIAs reflect the current state and needs of the business processes that rely on the information assets. References = CRISC Review Manual, 7th Edition, page 74.

Control effectiveness is the degree to which a control achieves its intended objective and mitigates the risk that it is designed to address. It is measured by comparing the actual performance and outcome of the control with the expected or desired performance and outcome.

The best method for assessing control effectiveness is continuous monitoring, which is the process of collecting, analyzing, and reporting on the performance and outcome of the controls on an ongoing basis. Continuous monitoring provides timely and accurate information on the status and results of the controls, and enables the identification and correction of any issues or gaps in the control environment.

Continuous monitoring can be performed using various techniques, such as automated tools, dashboards, indicators, metrics, logs, audits, reviews, etc. Continuous monitoring can also be integrated with the risk management process, and aligned with the organization’s objectives and risk appetite.

The other options are not the best methods for assessing control effectiveness, because they do not provide the same level of timeliness, accuracy, and completeness of information on the performance and outcome of the controls.

Ad hoc control reporting is the process of collecting, analyzing, and reporting on the performance and outcome of the controls on an irregular or occasional basis. Ad hoc control reporting may be triggered by specific events, requests, or incidents, and it may not cover all the relevant or critical controls. Ad hoc control reporting may not provide sufficient or consistentinformation on the control effectiveness, and it may not enable the timely and proactive identification and correction of any issues or gaps in the control environment.

Control self-assessment is the process of allowing the control owners or operators to evaluate and report on the performance and outcome of their own controls. Control self-assessment can provide useful insights and feedback from the control owners or operators, and it can enhance their awareness and accountability for the control effectiveness. However, control self-assessment may not be objective, reliable, or independent, and it may not cover all the relevant or critical controls. Control self-assessment may not provide sufficient or consistent information on the control effectiveness, and it may not enable the timely and proactive identification and correction of any issues or gaps in the control environment.

Predictive analytics is the process of using statistical techniques and models to analyze historical and current data, and to make predictions or forecasts about future events or outcomes. Predictive analytics can provide useful insights and trends on the potential performance and outcome of the controls, and it can support the decision making and planning for the control effectiveness. However, predictive analytics may not be accurate, valid, or reliable, and it may not reflect the actual or current performance and outcome of the controls. Predictive analytics may not provide sufficient or consistent information on the control effectiveness, and it may not enable the timely and proactive identification and correction of any issues or gaps in the control environment. 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 150

CRISC Practice Quiz and Exam Prep

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

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

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

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

KRIs should be identified during the development of a risk monitoring process to ensure alignment with organizational objectives and effective risk tracking. This reflectsProactive Risk Monitoring.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Greatest Privacy Risk:

Jurisdictional Challenges: Processing personal data in an offshore location often involves dealing with different legal and regulatory requirements, which can complicate compliance with data privacy laws such as GDPR or CPRA.

Data Transfer Risks: Even with a data sharing agreement, the protection and enforcement of privacy rights can be less stringent in the offshore location compared to the home jurisdiction. This can lead to increased risks of data breaches and misuse.

Enforcement Difficulties: If privacy violations occur, enforcing legal actions across borders can be challenging, potentially leading to inadequate redress for affected individuals.

Comparison with Other Options:

Privacy Risk Awareness Training Not Conducted: This is a significant risk but can be mitigated relatively quickly with proper training programs.

Privacy Not Incorporated into Risk Management Framework: While critical, the risk can be managed by integrating privacy into the framework without immediate severe consequences.

Remote Work by Staff with Access to Personal Data: This introduces risks related to secure access and data protection but can be managed with proper security controls.

Best Practices:

Data Sovereignty Considerations: Ensure data is processed in jurisdictions with strong privacy laws that align with the organization's regulatory requirements.

Regular Audits and Assessments: Conduct regular audits of data processing practices in offshore locations to ensure compliance with data privacy agreements.

Legal Safeguards: Establish robust legal safeguards and contracts to enforce data protection standards across jurisdictions.

The primary reason for sharing risk assessment reports with senior stakeholders is to support decision-making for risk response. Risk assessment reports are documents that summarize the results of the risk assessment process, such as the risk sources, causes, impacts, likelihood, and levels. Risk assessment reports also provide recommendations for risk response options, such as avoiding, reducing, transferring, or accepting the risk. Sharing risk assessment reports with senior stakeholders helps to inform them of the current risk situation, and to solicit their input, feedback, or approval for the risk response actions. The other options are not the primary reason for sharing risk assessment reports, although they may be secondary reasons or outcomes. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

Business Impact Analysis (BIA):

Purpose: A BIA is a systematic process to evaluate the potential effects of an interruption to critical business operations as a result of a disaster, accident, or emergency.

Identification of Consequences: It identifies critical resources and the consequences of their loss, allowing an organization to determine the operational and financial impacts of such losses.

Steps Involved in BIA:

Identify Critical Functions: Determine which business functions and processes are essential to the organization's operations.

Assess Impact: Evaluate the impact of losing these functions on the organization’s ability to operate.

Estimate Downtime Tolerance: Determine the maximum allowable downtime for critical functions before significant harm occurs.

Identify Dependencies: Document dependencies between systems, processes, and resources to understand how disruptions to one part affect the whole.

Comparison with Other Options:

Risk Management Action Plans: These are detailed plans developed to address identified risks but do not specifically focus on the impact of losing critical resources.

What-if Technique: This is a brainstorming technique used to explore potential risks and their impacts but is not as structured as a BIA.

Tabletop Exercise Results: These exercises simulate disaster scenarios to test response plans but do not provide the comprehensive impact analysis that a BIA does.

Best Practices:

Regular Updates: Regularly update the BIA to reflect changes in the business environment and operational dependencies.

Integration with DR/BC Plans: Ensure that findings from the BIA are integrated into disaster recovery (DR) and business continuity (BC) plans to enhance overall preparedness.

 The most important consideration when selecting an external service provider for outsourcing the payroll function is the internal controls to ensure data privacy. The payroll function involves processing and storingsensitive personal and financial information of the employees, such as salaries, taxes, benefits, bank accounts, etc. This information needs to be protected from unauthorized access, disclosure, modification, or loss, as it may result in legal, regulatory, reputational, or financial consequences for the organization and the employees. Therefore, the external service provider should have adequate internal controls, such as encryption, access control, backup, logging, monitoring, etc., to ensure data privacy and compliance with the organization’s policies and standards. Disaster recovery plan, right to audit, and transparency ofKPIs are also important considerations when selecting an external service provider, but they are not as important as internal controls to ensure data privacy. 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 648.

The greatest concern for a risk practitioner when reviewing the findings of a security awareness program assessment is that the program uses non-customized training modules. Non-customizedtraining modules are generic and may not address the specific security needs, issues, and challenges of the organization. They may also fail to engage and motivate the employees to follow the security policies and procedures, and to enhance their security knowledge and skills. The program not decreasing threat counts, not considering business impact, or being significantly revised are other possible findings, but they are not as concerning as the program using non-customized training modules. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 7; CRISC Review Manual, 6th Edition, page 202.

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.

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

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

A spear phishing attack is a type of cyberattack that targets a specific individual or organization with a fraudulent email that appears to be from a trusted source, and attempts to trick the recipient into clicking amalicious link, opening a malicious attachment, or providing sensitive information. A spear phishing attack can compromise the security, confidentiality, integrity, or availability of the information systems and data of the individual or organization. The most effective way to mitigate the risk associated with spear phishing attacks is to implement a security awareness program, which is a program that educates and trains the employees and stakeholders of the organization about the security policies, procedures, and best practices, and the potential threats and risks that may affect the organization. A security awareness program can help to prevent or reduce the success of spear phishing attacks, as it can increase the knowledge and skills of the employees and stakeholders to recognize and avoid the fraudulent emails, and to report and respond to any suspicious or malicious activities. References = CRISC Review Manual, 7th Edition, page 181.

In addition to the risk register, which is a tool to document and monitor the risks that affect the organization, a risk practitioner should review the business objectives of the organization to develop an understanding of its risk profile. The risk profile is a description of the set of risks that the organization faces in relation to its goals and strategies. By reviewing the business objectives, the risk practitioner can identify the sources, drivers, and consequences of the risks, as well as the alignment, prioritization, and tolerance of the risks. The business objectives also provide the context and criteria for evaluating and managing the risks. The other options are not the best choices to review for developing an understandingof the organization’s risk profile, as they do not capture the full scope and nature of the risks. The control catalog is a list of the existing controls that are implemented to mitigate the risks, but it does not reflect the effectiveness, efficiency, or sufficiency of the controls. The asset profile is a description of the resources and capabilities that the organization possesses or relies on, but it does not indicate the value, vulnerability, or interdependency of the assets. The key risk indicators (KRIs) are metrics that measure the level and trend of the risks, but they do not explain the causes, impacts, orresponses to the risks. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.2, Page 49.

 AI in Heuristic Security Systems:

Heuristic security systems use artificial intelligence (AI) to identify and respond to potential threats by learning from data patterns and behaviors.

 Risk of Misclassification:

During the baselining process, AI systems establish what is considered normal behavior. If malicious activity is present during this period, it may be incorrectly classified as normal.

This misclassification can lead to undetected security breaches, as the system will not recognize these activities as threats in the future.

 Impact of Misclassification:

Misclassified malicious activities can lead to significant security risks, allowing attackers to operate undetected within the system.

It undermines the effectiveness of the heuristic system, reducing its ability to protect the organization from real threats.

 Comparing Other Risks:

Less Reliance on Human Intervention:This is a general concern but does not directly impact the accuracy of threat detection.

Difficulty in Risk Assessments:While a challenge, it is not the greatest risk compared to misclassification of malicious activity.

Outdated Patterns:While a concern, the primary risk lies in initial misclassification during baselining.

 References:

The CRISC Review Manual discusses the challenges of AI in security systems, particularly the risk of misclassification during the learning phase (CRISC Review Manual, Chapter 4: Information Technology and Security, Section 4.7.4 Artificial Intelligence) .

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

Comprehensive and Detailed Explanation From Exact Extract:

Data transmission across public networks is the greatest risk because public networks are inherently insecure and vulnerable to interception. Encryption is critical to protecting data confidentiality during transmission over such networks. Lack of encryption internally is less risky due to controlled environments. Classification helps but does not protect data in transit. Email encryption is important but less critical compared to public network transmission risks.

The next thing that the risk practitioner should do from a risk management perspective when the organization is considering the adoption of an aggressive business strategy to achieve desired growth is to identify new threats resulting from the new business strategy. A threat is a potentialcause of an unwanted incident that may affect the achievement of the objectives. An aggressive business strategy is a strategy that involves pursuing high-risk, high-reward opportunities or initiatives to gain a competitive advantage or a significant market share. An aggressive business strategy may introduce new threats or increase thelikelihood or impact of existing threats, such as market volatility, regulatory changes, customer dissatisfaction, or competitor retaliation. Therefore, the risk practitioner should identify the new threats resulting from the new business strategy, and assess their potential consequences and implications for the organization. The other options are not as immediate as identifying new threats resulting from the new business strategy, as they are related to the update, information, or measurement of the risk management process, not the identification or analysis of the risk. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.

The most important factor for successful incident response is the timeliness of attack recognition. Incident response is the process of detecting, analyzing, containing, eradicating, recovering, and reporting on security incidents that could affect the organization’s IT systems or data. The timeliness of attack recognition is the speed and accuracy with which the organization can identify and confirm that an attack has occurred or is in progress. The timeliness of attack recognition is crucial for successful incident response, as it affects the ability and effectiveness of the organization to respond to and mitigate the attack, and to minimize the damage and impact of the attack. The other options are not as important as the timeliness of attack recognition, although they may also contribute to or influence the incident response. The quantity of data logged by the attack control tools, the ability to trace the source of the attack, and the blocking of the attack route immediately are all factors that could help or hinder the incident response, but they are not the most important factor for successful incident response. References = CISA Review Manual, 27th Edition, Chapter 5, Section 5.4.1, page 5-32.

The primary reason for periodically monitoring key risk indicators (KRIs) is to detect changes in the risk profile of the enterprise. KRIs are metrics that provide information on the level of exposure to a specific risk or a group of risks. By monitoring KRIs, the enterprise can identifyany deviations from the expected risk level, and take appropriate actions to adjust the risk response or the risk appetite. Monitoring KRIs also helps to validate the effectiveness of risk mitigation controls and the accuracy of risk assessments. Rectifying errors in results of KRIs, reducing costs of risk mitigation controls, and continually improving risk assessments are possible benefits of monitoring KRIs, but they are not the primary reason. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.1.1.2, page 175.

Using a VPN ensures the secure transmission of sensitive data over a public network by encrypting the communication channel. This mitigates risks such as interception or unauthorized access, aligning withData Protection and Privacy Standards.

Defining recovery time objectives (RTOs) and acceptable data loss thresholds is critical for effective disaster response, ensuring recovery activities are aligned with business priorities. This supportsBusiness Continuity Planning.

Regular reviewshelp detect inappropriate, outdated, or excessive access rights. This is a fundamental part of access control governance and supports the principle of least privilege.

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

Control processes are the procedures and activities that aim to ensure the effectiveness and efficiency of the organization’s operations, the reliability of its information, and the compliance with its policies and regulations12.

The ongoing efficiency of control processes is the degree to which the control processes achieve their intended results with minimum resources, costs, or waste34.

The best way to determine the ongoing efficiency of control processes is to analyze key performance indicators (KPIs), which are quantifiable measures of progress toward an intended result, such as a strategic objective or a desired outcome56.

Analyzing KPIs is the best way because it provides a systematic and consistent method of evaluating the performance of the control processes, and identifying the areas of improvement or optimization56.

Analyzing KPIs is also the best way because it enables the organization to monitor and report the efficiency of the control processes to the relevant stakeholders, and to take corrective or preventive actions when necessary56.

The other options are not the best way, but rather possible sources of information or inputs that may support or complement the analysis of KPIs. For example:

Performing annual risk assessments is a way to identify and evaluate the risks that may affect the organization’s objectives, and to determine the adequacy and effectiveness ofthe control processes in mitigating those risks12. However, this way is not the best because it is periodic rather than continuous, and may not capture the changes or trends in the efficiency of the control processes12.

Interviewing process owners is a way to collect and verify the information and feedback from the people who are responsible for designing, implementing, and operating the control processes12. However, this way is not the best because it is subjective and qualitative, and may not provide reliable or comparable data on the efficiency of the control processes12.

Reviewing the risk register is a way to examine and update the documentation and status of the risks and the control processes that are associated with them12. However, this way is not the best because it is descriptive rather than analytical, and may not measure or evaluate the efficiency of the control processes12. References =

1: Risk IT Framework, ISACA, 2009

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

3: The Control Process | Principles of Management4

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

5: What is a Key Performance Indicator (KPI)? Guide & Examples - Qlik1

6: What is a Key Performance Indicator (KPI)? - KPI.org2

According to the ISACA Risk IT Framework, one of the key principles for effective risk management is to establish tone at the top and accountability. This means that senior management should set an example of ethical behavior and culture, and communicate the importance of ethics and compliance to the entire organization. Senior management should also ensure that the risk management process is aligned with the organization’s mission, vision, values, and code of conduct, and that ethical risks are identified, assessed, and treated appropriately. By demonstrating ethics in their day-to-day decision making, senior management can have the greatest positive impact on ethical compliance within the risk management process, as they can influence the attitudes, behaviors, and actions of all stakeholders.

An intrusion detection system (IDS) is a network security tool that monitors network traffic and devices for known malicious activity, suspicious activity or security policy violations1. An IDS can generate alerts when it detects any potential threats, but not all alerts are accurate or relevant. There are two types of errors that can affect the performance and reliability of an IDS: false positives and false negatives2.

A false positive is when an IDS incorrectly flags a benign or normal activity as malicious or suspicious. For example, an IDS may alert on a legitimate network scan or a harmless software update. False positives can reduce the credibility and efficiency of an IDS, as they can overwhelm the security team with unnecessary alerts, distract them from the real threats, and cause them to ignore or disable the IDS3.

A false negative is when an IDS fails to flag a malicious or suspicious activity as such. For example, an IDS may miss a stealthy or novel attack that does not match any known signatures or patterns. False negatives can compromise the security and integrity of the network, as they can allow attackers to bypass the IDS and cause damage or steal data without being detected4.

The risk practitioner should recommend to analyze the alerts to minimize the false positives, because this is the best way to improve the accuracy and usefulness of the IDS. By analyzing the alerts, the risk practitioner can:

Identify the sources and causes of the false positives, such as misconfigured or outdated IDS rules, network anomalies, or legitimate traffic that resembles malicious traffic5.

Adjust or fine-tune the IDS settings, such as the alert threshold, the sensitivity level, the detection method, or the rule base, to reduce the number of false positives without increasing the risk of false negatives.

Validate or verify the alerts with other sources of information, such as logs, network traffic analysis, or threat intelligence, to confirm or dismiss the alerts as true or false positives.

Prioritize or classify the alerts based on their severity, impact, or likelihood, to focus on the most critical or relevant alerts and avoid alert fatigue.

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

Resetting the alert threshold based on peak traffic is not a reliable or effective way to minimize the false positives, as it may also increase the risk of false negatives. The alert threshold is the level of activity or deviation that triggers an alert from the IDS. If the threshold is set too high, the IDS may miss some malicious or suspicious activity that occurs below the threshold. If the threshold is set too low, the IDS may generate too many alerts for normal or benign activity that exceeds the threshold. The optimal threshold depends on various factors, such as the network size, topology, traffic volume, and baseline. Peak traffic is not a good indicator of the optimal threshold, as it may vary depending on the time, day, or season, and it may not reflect the normal or expected network behavior.

Analyzing the traffic to minimize the false negatives is not the main issue or goal in this scenario, as the problem is the high number of alerts, not the low number of alerts. Analyzing thetraffic can help to identify the malicious or suspicious activity that the IDS may have missed, but it does not address the root cause of the false positives or improve the IDS performance. Moreover, analyzing the traffic can be time-consuming and resource-intensive, especially for large or complex networks, and it may require specialized tools or skills that the risk practitioner may not have.

Sniffing the traffic using a network analyzer is not a suitable or feasible option in this scenario, as it may violate the privacy or security policies of the network or the organization. Sniffing the traffic means capturing and inspecting the network packets that are transmitted or received by the devices on the network. A network analyzer is a tool that can perform this function and display the packet data in a readable format. However, sniffing the traffic can also expose sensitive or confidential information, such as passwords, usernames, or credit card numbers, that may be contained in the packets. Therefore, sniffing the traffic may require authorization or consent from the network owners or users, and it may be restricted or prohibited by law or regulation.

References =

What is an intrusion detection system (IDS)? - IBM

Intrusion detection system - Wikipedia

What Are Intrusion Detection Systems? - MUO

12 Best Intrusion Detection System (IDS) Software 2024 - Comparitech

What is an Intrusion Detection System (IDS)? - Fortinet

[False Positive and False Negative in Intrusion Detection System]

[False Positives and False Negatives in Intrusion Detection Systems]

[How to Reduce False Positives for Your IDS/IPS]

[How to Set the Right Alert Thresholds for Your IDS/IPS]

[Network Traffic Analysis: What It Is and How It Works]

[What is a Network Analyzer? - Definition from Techopedia]

Key Risk Indicators (KRIs) are metrics used by organizations to provide early warning signs of potential risks, including unauthorized data disclosure. By monitoring KRIs, organizations can proactively identify vulnerabilities and take corrective actions before a risk materializes. This proactive approach is essential in minimizing the potential impact of data breaches.​

According to ISACA's CRISC Review Manual, KRIs are defined as "metrics capable of showing that the enterprise is, or has a high probability of being, subject to a risk that exceeds the defined risk appetite." They are critical to the measurement and monitoring of risk and performance optimization. ​ISACA

While data backups (Option B) are vital for data recovery post-incident, they do not prevent unauthorized disclosures. An incident response plan (Option C) is reactive, focusing on responding after an incident has occurred. Cyber insurance (Option D) provides financial compensation post-incident but does not prevent the occurrence of data breaches.​

Therefore, implementing and monitoring KRIs is the most proactive approach to minimizing the potential impact of unauthorized data disclosure.

 According to the Data Roles and Responsibilities article, the business owner is the person who has authority over the business process that is supported by the data. The business owner is responsible for defining the access roles to protect the sensitive data within the application, as well as approving the access requests and ensuring the compliance with the data policies andstandards. The business owner may delegate this responsibility to a data steward, who is a person who acts on behalf of the business owner to manage the data quality, security, and usage. Therefore, the answer is D. Business owner. References = Data Roles and Responsibilities

The number of suspected malicious activities reported since the policy's implementation directly measures thepolicy's effectiveness in identifying and mitigating insider threats. This aligns withKey Performance Indicators (KPIs)used to evaluate control outcomes.

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

Role of the Business Manager:

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

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

Assessment of Data Loss Impact:

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

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

 The PRIMARY basis for selecting a security control is the ability to mitigate risk, because it is the measure of how well the control can prevent or reduce the occurrence or impact of the risk, and how effectively the control can achieve the desired level of security and protection for the system and the data. The ability to mitigate risk is the most important criterion for selecting a security control, as it directly relates to the purpose and value of the control. The other options are not the primary basis, because:

Option A: To achieve the desired level of maturity is a goal of selecting a security control, but not the primary basis. The desired level of maturity is the state or condition of the security control that reflects its quality, consistency, and reliability, and it should be aligned with the organization’s security objectives and standards. The desired level of maturity is a result of selecting a security control, not a reason for selecting it.

Option B: The materiality of the risk is a factor of selecting a security control, but not the primary basis. The materiality of the risk is the degree or extent of the risk that affects the organization’s performance, reputation, and value, and it should be considered when selecting a security control, but it is not the only or the most important factor. The materiality of the risk is an input to selecting a security control, not an output of selecting it.

Option D: The cost of the control is a constraint of selecting a security control, but not the primary basis. The cost of the control is the amount of resources and expenditure that are required to implement and maintain the control, and it should be balanced with the benefit and effectiveness ofthe control, but it is not the only or the most important constraint. The cost of the control is a limitation of selecting a security control, not a motivation for selecting it. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 211.

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

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

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

According to the CRISC Review Manual (Digital Version), the organization’s culture is the most important factor affecting risk management in an organization, as it influences the riskawareness, risk attitude, risk behavior and risk communication of all stakeholders. The organization’s culture is defined as the shared values, beliefs, norms and expectations that guide the actions and interactions of the members of the organization. The organization’s culture affects how risk management is perceived, supported, implemented and integrated within the organization. A strong risk culture is one that:

Aligns with the organization’s vision, mission, strategy and objectives

Promotes a common understanding of risk and its implications for the organization

Encourages the identification, assessment, response and monitoring of risks at all levels

Fosters a proactive, collaborative and transparent approach to risk management

Empowers and rewards the stakeholders for taking ownership and accountability of risks

Enables continuous learning and improvement of risk management capabilities and maturity

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.3: IT Risk Culture, pp. 23-251

 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.

Risk response options are the most important factor to determine as a result of a risk assessment, as they involve selecting the optimal strategy and actions to address the identified and assessed risks, and align them with the risk tolerance and appetite of the organization. Process ownership, risk appetite statement, and risk tolerance levels are not the most important factors, as they are more related to the governance, definition, or communication of the risk, respectively, rather than the response to the risk. References = CRISC Review Manual, 7th Edition, page 108.

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

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

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

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

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

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

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

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

Risk Register - ISACA

Risk Analysis - ISACA

Risk Register 2021-2022 - UNECE

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

[Risk Appetite and Risk Tolerance - ISACA]

[Enterprise Risk Assessment - ISACA]

[CRISC Review Manual, 7th Edition]

Conducting a risk assessment allows the organization to evaluate the exposure created by adopting the technology. This step ensures informed decision-making and aligns with the principles ofRisk Identification and Assessmentfor managing emerging risks effectively.

When assessing the likelihood that a recently discovered software vulnerability will be exploited, the most important consideration is the skill level required of a threat actor. Here's an explanation:

Skill Level of Threat Actors:

The skill level required to exploit a vulnerability determines how accessible the exploit is to potential attackers.

If a vulnerability requires advanced technical skills to exploit, it is less likely to be targeted by less sophisticated attackers.

Conversely, if the exploit can be easily executed with minimal skills, it increases the likelihood of widespread exploitation.

Factors Influencing Likelihood of Exploitation:

Availability of Exploit Tools:If automated tools or scripts are available to exploit the vulnerability, even less skilled attackers can take advantage of it.

Publication of Exploit Details:If the vulnerability and its exploitation method are widely published, it becomes more accessible to a broader range of attackers.

Assessment of Likelihood:

Security teams assess the skill level required by analyzing whether the exploit is straightforward or complex.

They also consider the presence of exploit kits in the wild that could lower the barrier to entry for potential attackers.

Comparison with Other Factors:

Amount of PII Disclosed:While important, it relates more to the impact rather than the likelihood of exploitation.

Ability to Detect and Trace:This is crucial for response but does not directly influence the likelihood of exploitation.

Amount of Data Exposed:Similar to PII, this factor pertains to the impact rather than the likelihood of exploitation.

Obfuscating customer information ensures data privacy by rendering sensitive details unintelligible to unauthorized parties, reducing the risk of exposure during transit or processing. This aligns withData Protection and Privacy Regulationsunder risk management frameworks, emphasizing safeguarding personally identifiable information.

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

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

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

Emerging technologies such as blockchain may introducenew risksthat were previously unaccounted for.Risk toleranceneeds to be reassessed to determine whether the organization is willing to accept the new potential impacts or if more robust controls or changes are necessary.

Residual riskrepresents the amount of risk remaining after controls have been applied. Tracking its reduction over time directly indicates whether controls are effectively reducing risk to withintolerance limits.

 The best person to own the unmitigated risk of the technology is the IT system owner. The IT system owner is the person or entity that has the authority and responsibility for the acquisition, development, maintenance, and operation of the IT system. The IT system owner is also responsible for ensuring that the IT system meets the business requirements, security standards, and compliance obligations of the enterprise. The IT system owner should own the unmitigated risk of the technology, as they are in the best position to understand the nature and impact of the risk, and to implement the appropriate risk responses to reduce the risk exposure to an acceptable level. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.3.1, page 251234

 Developing and communicating fraud prevention policies is the most effective way to reduce potential losses due to ongoing expense fraud because it creates a culture of integrity and accountability, sets clear expectations and consequences for employees, and deters fraudulent behavior. Implementing user access controls, performing regular internal audits, and conducting fraud prevention awareness training are also important controls, but they are more reactive and detective than preventive. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 4-26.

The product owner should own the associated risk when contracting with a cloud service provider to support the deployment of a new product. The product owner is the person who has the authority and responsibility for defining the product vision, requirements, and priorities. The product owner also has the accountability for the business value and outcomes of the product. Therefore, the product owner should be the one who identifies, assesses, and manages the risks related to the cloud service provider, such as security, compliance, performance, and quality. The product owner should also collaborate with the other stakeholders, such as the head of EA, the IT risk manager, and the information security manager, to ensure that the cloud service provider meets the organization’s standards and expectations. References = Risk and Information Systems Control Study Manual, Chapter 5: IT Risk Mitigation, Section 5.3: IT Risk Mitigation Strategies and Approaches, Page 254; Best Practices to Manage Risks in the Cloud - ISACA.

Data governanceprovides a structured framework for handling data access, classification, compliance, and security. It ensures accountability, roles, and control mechanisms—critical formanaging risk in big data environments.

Embedding risk management into day-to-day business processes reflects organizational maturity and integration. It ensures employees consider risk in operational decisions and continuously support the risk management framework.

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

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

 Role of the Control Owner:

The control owner is responsible for the design, implementation, and maintenance of a specific control.

They have detailed knowledge of the control’s purpose, its intended functionality, and its operational context within the organization.

 Responsibility for Remediation:

When a penetration testing team discovers an ineffectively designed access control, it is the control owner’s responsibility to ensure the design gap is remediated.

The control owner must assess the findings, determine the root cause of the ineffectiveness, and take necessary actions to redesign or enhance the control to address the identified weaknesses.

 Steps to Remediate Control Design Gap:

Assess the Findings:Understand the specific issues identified by the penetration testing team.

Redesign the Control:Modify the control design to address the identified gaps and ensure it meets security requirements.

Implement Changes:Apply the redesigned control and test its effectiveness.

Continuous Monitoring:Regularly review the control to ensure it remains effective over time.

 Comparing Other Roles:

Risk Owner:Manages overall risk but does not directly handle control design.

IT Security Manager:Oversees the security posture but delegates specific control responsibilities to control owners.

Control Operator:Operates the control but is not responsible for its design or remediation.

 References:

The CRISC Review Manual emphasizes the control owner's responsibility in maintaining and improving control effectiveness (CRISC Review Manual, Chapter 3: Risk Response and Mitigation, Section 3.7 Control Design and Selection)​​.

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.

The most important reason to validate that risk responses have been executed as outlined in the risk response plan is to ensure that the residual risk is at an acceptable level. Residual risk is the risk that remains after applying a risk response. The risk response plan is the document thatdescribes the actions and resources needed to address the risk. Validating the risk response execution is the process of verifying that the risk response actions have been performed as planned, and that they have achieved the desired results. Validating the risk response execution helps to measure and monitor the residual risk, and to ensure that it is within the risk tolerance of the organization and its stakeholders. The other reasons are not as important as ensuring that the residual risk is at an acceptable level, although they may be secondary benefits or outcomes of validating the risk response execution. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.

 The greatest concern for the risk practitioner when the potential vendor has offered to perform quarterly self-audits of its controls instead of having annual independent audits is that the controls may not be properly tested. Self-audits are audits that are performed by the vendor itself, without the involvement of an external or independent party. Self-audits may not be reliable, objective, or consistent, as the vendor may have biases, conflicts of interest, or lack of expertise in auditing its own controls. Self-audits may also not follow the same standards, criteria, or methodologies as independent audits, and may not provide sufficient assurance or evidence of the effectiveness of the controls. The other options are not as concerning as the possibility of improper testing of the controls, as they are related to the outcomes, expectations, or approaches of the controls, not the quality or validity of the controls. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: IT Control Assessment, page 6

 Controls are the mechanisms or procedures that ensure the security, reliability, and quality of an IT system or process. Controls can be preventive, detective, or corrective, and can be implemented at various levels, such as physical, logical, administrative, or technical. Controls should be defined during the design phase of system development because it is more cost-effective to determine controls in the early design phase. The design phase is the stage where the system requirements are translated into a detailed technical plan, which includes the system architecture, database structure, user interface, and system components. The design phase also defines the system objectives, goals, and performance criteria. Defining controls during the design phase can help ensure that the controls are aligned with the system requirements and objectives, and that they are integrated into the system design from the start. Defining controls during the design phase can also help avoid or reduce the costs and risks associated with implementing controls later in the development or operation phases, such as rework, delays, errors, failures, or breaches. References = THE SYSTEM DEVELOPMENT LIFE CYCLE (SDLC), p. 2-3, System Development LifeCycle - GeeksforGeeks, 7.3: Systems Development Life Cycle - Engineering LibreTexts, What Is SDLC? 7 Phases of System Development Life Cycle - Intetics.

A risk practitioner notices a trend of noncompliance with an IT-related control. This indicates that there is a risk of ineffective or inefficient implementation or operation of the control, which may expose the organization to potential threats or losses.

The best way to assist in making a recommendation to management is to assess the degree to which the control hinders business objectives. This means that the risk practitioner should analyze the impact of the control on the performance, productivity, quality, or customer satisfaction of the business processes or functions that are affected by the control.

Assessing the degree to which the control hinders business objectives helps to identify the root causes of noncompliance, the costs and benefits of compliance, and the potential alternatives or improvements for the control. It also helps to communicate the value and importance of the control to the management and the stakeholders, and to obtain their support and commitment for the control compliance.

The other options are not the best ways to assist in making a recommendation to management. They are either secondary or not essential for control compliance.

The references for this answer are:

Risk IT Framework, page 19

Information Technology & Security, page 13

Risk Scenarios Starter Pack, page 11

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

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

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

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

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

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

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

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

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

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

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

An increase in the number of security incidents is the most significant indicator of the need to perform a penetration test, because it suggests that the organization’s IT systems or networks are vulnerable to attacks and may not have adequate security controls in place. A penetration test is a simulated attack on an IT system or network to identify and exploit its weaknesses and evaluate its security posture. A penetration test can help to discover and remediate the vulnerabilities that may have caused or contributed to the security incidents, and to prevent or reduce the likelihood and impact of future incidents. An increase in the number of high-risk audit findings, an increase in the percentage of turnover in IT personnel, and an increase in the number of infrastructure changes are all possible indicators of the need to perform a penetration test, but they are not the most significant indicator, as they do not directly reflect the actual or potential occurrence of security incidents. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2, page 200

 Business Impact Assessment (BIA):

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

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

 Prioritizing Risk Mitigation:

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

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

 Comparing Other Factors:

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

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

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

 References:

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

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

•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.

 Information security policies are the foundation of an organization’s security program, as they define the objectives, roles, responsibilities, and standards for protecting the information assets and systems. However, information security policies are not static, and they need to be reviewed and updated regularly to reflect the changes in the organization’s environment, risk profile, and compliance requirements. Therefore, the best course of action when conducting an organization-wide risk assessment is to review the policies against current needs to determine adequacy. This means comparing the policies with the current threats, vulnerabilities, controls, and best practices, and identifying any gaps or weaknesses that need to be addressed. The other options are not the best course of action, as they do not consider the current needs of the organization. Reviewing and updating the policies to align with industry standards may not be sufficient, as the organization may have specific or unique needs that are not covered by the standards. Determining that the policies should be updated annually may not be realistic, as the frequency of updates may depend on the nature and complexity of the policies and the organization. Reporting that the policies are adequate and do not need to be updated frequently may not be accurate, as the policies may be outdated or ineffective, and may expose the organization to unnecessary risks. References = Risk Assessment and Analysis Methods: Qualitative and Quantitative - ISACA, Does Your Organization Need a Security Risk Assessment? - ISACA, SP 800-39, Managing Information Security Risk: Organization, Mission …

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 updated whenever there is a change in the risk profile, such as when a risk response is implemented or a new risk is identified. Updating the risk register allows the organization to monitor the current status of risks and the effectiveness of risk responses. Therefore, the next step for the risk practitioner after identifying a risk with high impact and very low likelihood that is covered by insurance is to update the risk register with the new information. References = CRISC Review Manual1, page 191.

The best course of action when a recent regulatory requirement has the potential to affect an organization’s use of a third party to supply outsourced business services is to conduct a gap analysis, as it involves comparing the current and desired states of compliance, and identifying any gaps or discrepancies that need to be addressed. Terminating the outsourcing agreement, identifying compensating controls, and transferring risk to the third party are not the best courses of action, as they may not be feasible, effective, or appropriate, respectively, and may require the prior knowledge of the compliance gaps and risks. References = CRISC Review Manual, 7th Edition, page 111.

Reevaluating the design of the key risk indicators (KRIs) is the best recommendation when a KRI is generating an excessive volume of events, because it helps to determine whether the KRI is relevant, reliable, and valid, and whether it needs to be modified or replaced. A KRI is a metric or indicator that helps to monitor and evaluate the likelihood or impact of a risk, or the effectiveness or efficiency of a control. A KRI can be quantitative or qualitative, and can be derived from internal or external sources. An event is an occurrence or incident that may indicate a change or trend in the risk level or performance. A KRI that generates an excessivevolume of events may indicate that the KRI is not well-designed or well-aligned with the risk objectives or criteria, and that it may produce false positives or negatives, or irrelevant or misleading information. Therefore, reevaluating the design of the KRIs is the best recommendation, as it helps to improve the quality and usefulness of the KRIs, and to avoid unnecessary or inappropriate actions or responses. Developing a corresponding key performance indicator (KPI), monitoring KRIs within a specific timeframe, and activating the incident response plan are all possible actions to perform after reevaluating the design of the KRIs, but they are not the best recommendation, as they do not address the root cause of the excessive volume of events. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.2, page 97

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

Periodically reviewing and updating a risk register with details on identified risk factors primarily helps to provide a current reference to stakeholders for risk-based decisions, which are the decisions that are made based on the consideration and evaluation of the risks and their responses. Providing a current reference to stakeholders for risk-based decisions helps to ensure that the decisions are consistent, appropriate, and proportional to the level and nature of the risks, and that they support the organization’s objectives and values. It also helps to optimize the balance between risk and return, and to create and protect value for the organization and its stakeholders.

The other options are not the primary benefits of periodically reviewing and updating a risk register with details on identified risk factors, because they do not address the main purpose and benefit of a risk register, which is to provide a current reference to stakeholders for risk-based decisions.

Minimizing the number of risk scenarios for risk assessment means reducing the scope and depth of risk analysis and reporting, and impairing the organization’s ability to identify and respond to emerging or changing risks. Periodically reviewing and updating a risk register with details onidentified risk factors does not necessarily minimize the number of risk scenarios for risk assessment, and it may not be a desirable or beneficial outcome for the organization.

Aggregating risk scenarios identified across different business units means combining or consolidating the risks that are identified by different parts or functions of the organization, and creating a holistic or integrated view of the organization’s risk profile. Periodically reviewing and updating a risk register with details on identified risk factors does not necessarily aggregate risk scenarios identified across different business units, and it may not be a sufficient or effective way to achieve a holistic or integrated view of the organization’s risk profile.

Building a threat profile of the organization for management review means creating or developing a summary or representation of the potential threats or sources of harm that may affect the organization’s objectives and operations, and presenting or reporting it to the senior management for their awareness and approval. Periodically reviewing and updating a risk register with details on identified risk factors does not necessarily build a threat profile of the organization for management review, and it may not be a comprehensive or reliable way to create or develop a summary or representation of the potential threats or sources of harm that may affect the organization. References =

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

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 172

CRISC Practice Quiz and Exam Prep

 A risk assessment is a process that identifies, analyzes, and evaluates the risks that an organization faces in relation to its objectives, assets, and operations. A risk assessment helps to determine the likelihood and impact of potential threats, as well as the adequacy and effectiveness of existing controls. A risk assessment also provides the basis for risk treatment, which involves selecting and implementing the appropriate risk responses, such as avoiding,transferring, mitigating, or accepting the risk. The client’s best course of action in this scenario is to perform their own risk assessment, rather than relying on the third-party service provider’s risk assessment. This is because the third-party service provider may have different risk criteria, assumptions, methods, or perspectives than the client, and may not fully understand or address the client’s specific risk context, needs, and expectations. The third-party service provider’s risk assessment may also be biased, outdated, or inaccurate, and may not reflect the current or future risk environment. By performing their own risk assessment, the client can ensure that the risk of their systems being hacked is properly identified, measured, and managed, and that the risk level is acceptable and aligned with their risk appetite and tolerance. The other options are not the best courses of action for the client, as they may expose the client to unnecessary or unacceptable risk. Implementing additional controls to address the risk may be costly, ineffective, or redundant, and may not be justified by the actual risk level. Accepting the risk based on the third-party service provider’s risk assessment may be risky, as the client may not have a clear or accurate understanding of the risk exposure or consequences. Performing an independent audit of the third party may be useful, but it may not be sufficient or timely to assess and address the risk of the client’s systems being hacked. References = CRISC Review Manual, pages 38-391; CRISC Review Questions, Answers & Explanations Manual, page 792

Comprehensive and Detailed Explanation From Exact Extract:

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

Requesting a formal risk acceptance sign-off is the most likely scenario when the residual risk in excess of the risk appetite cannot be mitigated, because it indicates that the organization is willing to tolerate a higher level of risk than it normally would, and that the risk owner has the authority and accountability to accept the risk and its consequences. Risk acceptance is a risk response strategy that involves acknowledging the existence ofa risk and deciding not to take any action to reduce it. Risk acceptance is usually chosen when the cost or effort of mitigating therisk outweighs the potential benefits, or when no feasible mitigation options are available. Residual risk is the risk that remains after applying controls or mitigating factors. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Inherent risk, cancellation of an initiative, change of risk appetite, and constant residual risk are all possible scenarios that may affect the risk management process, but they are not the most likely to cause a risk practitioner to request a formal risk acceptance sign-off, as they do not necessarily involve a risk owner accepting a higher level of risk than the organization’s risk appetite. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.2, page 103

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

Reviewing configuration settings is the best way for an organization to ensure that servers are compliant to security policy, because it helps to check and verify that the servers are configured and maintained according to the established security standards and guidelines, and that any deviations or violations are identified and corrected. A configuration setting is a parameter or option that defines the behavior or functionality of a server, such as a system, an application, or aservice. A security policy is a document that outlines the security objectives, principles, and rules that the organization and its employees must follow, and the consequences of non-compliance. Reviewing configuration settings is the best way, as it helps to ensure that the servers are secure and compliant, and that any security risks or issues are detected and resolved. Reviewing change logs, server access logs, and anti-malware compliance are all possible ways to ensure that servers are compliant to security policy, but they are not the best way, as they do not provide a comprehensive and consistent view of the configuration settings and their compliance status. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2, page 200

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

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 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 most important requirement for monitoring key risk indicators (KRIs) using log analysis is providing accurate logs in a timely manner, because this ensures that the risk data is reliable, relevant, and up-to-date. Logs are records of events or activities that occur in IT systems, such as network traffic, user actions, system errors, or security incidents. Log analysis is the process of reviewing and interpreting logs to identify and assess risks, such as performance issues,operational failures, compliance violations, or cyberattacks. By providing accurate logs in a timely manner, an organization can monitor the current status and trends of its KRIs, which are metrics that measure the level and impact of risks. Accurate logs mean that the logs are complete, consistent, and free of errors or anomalies that may distort the risk data. Timely logs mean that the logs are available as soon as possible after the events or activities occur, and that they are updated frequently to reflect the latest changes. Providing accurate logs in a timely manner can help an organization to detect and respond to risks promptly, and to support risk-based decision making and reporting. References = Risk IT Framework, ISACA, 2022, p. 22

Comprehensive and Detailed Explanation From Exact Extract:

Even if the residual risks are low, an ineffective key control warrants proposing additional mitigating controls to strengthen risk management. Accepting the risks without controls may expose the enterprise to unnecessary vulnerabilities. Targeted assessments may follow but addressing control weaknesses is the immediate priority. Risk tolerance is relevant but secondary in this context.

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

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

Codes of conduct or ethics

Policies or manuals

Training or awareness programs

Job descriptions or roles and responsibilities

Performance appraisals or incentives

Supervision or oversight

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

The most useful information to determine mitigating controls when a core data center went offline abruptly for several hours affecting many transactions across multiple locations is the root cause analysis. Root cause analysis is a technique that identifies the underlying factors or reasons that caused the problem or incident. Root cause analysis can help to understand the nature, scope,and impact of the problem or incident, and to prevent or reduce the recurrence or severity of the problem or incident in the future. Root cause analysis can also help to identify and prioritize the appropriate mitigating controls that address the root causes of the problem or incident. The other options are not as useful as root cause analysis, as they are related to the investigation, evaluation, or measurement of the problem or incident, not the resolution or prevention of the problem or incident. References = Risk and Information Systems ControlStudy Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.

 The key performance indicator (KPI) that best measures the effectiveness of an organization’s disaster recovery program is the percentage of critical systems recovered within the recovery time objective (RTO). The RTO is the acceptable timeframe within which a business process or system must be restored after a disruption. The percentage of critical systems recovered within the RTO indicates how well the disaster recovery program can meet the business continuity requirements and minimize the impact of the disruption. The other options are not as good as the percentage of critical systems recovered within the RTO, as they are related to the efficiency, quality, or scope of the disaster recovery program, not the effectiveness of the disaster recovery program. References = Risk and Information Systems Control StudyManual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Key Performance Indicators, page 183.

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

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

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.

Recovery time objectives (RTOs) are the maximum acceptable time frames for restoring the critical functions and processes after a disruption1. RTOs are derived from the business impact analysis (BIA) andreflect the organization’s risk appetite, which is the amount of risk that an organization is willing to accept to achieve its objectives2. Risk tolerance is the level of risk a company is willing to tolerate, and it is affected by a number of factors, including how much uncertainty or financial loss can be tolerated and where those losses will impact operations3. Risk tolerance is used to measure if the risk exposure is within the risk appetite and to implement controls to reduce the residual risk to an acceptable level2. If the majority of core IT application RTOs have exceeded the maximum time defined by the business application owners, it means that the organization is not meeting its risk appetite and is exposed to more risk than it can accept. Therefore, the most likely change as a result is to adjust the risk tolerance to reflect the current reality and to take actions to improve the recovery capabilities and reduce the risk exposure4. Risk forecasting is the process of estimating the potential outcomes and impactsof future events that may affect the organization’s objectives5. Risk forecasting may change as aresult of the RTOs exceeding the maximum time, but it is not the most likely change, as it does not directly address the gap between the risk appetite and the risk exposure. Risk likelihood is the probability of a risk event occurring5. Risk likelihood may change as a result of the RTOs exceeding the maximum time, but it is not the most likely change, as it does not directly measure the impact of the risk event on the organization’s objectives. Risk appetite is the amount of risk that an organization is willing to accept to achieve its objectives2. Risk appetite may change as a result of the RTOs exceeding the maximum time, but it is not the most likely change, as it is a strategic decision that reflects the organization’s vision and mission, and not a tactical response to a specific risk event. References = Risk and Information Systems Control Study Manual, Chapter 5: Risk Response and Mitigation, Section 5.3: Business Continuity Planning, pp. 227-238.

 Performing a post-implementation review is the best way to confirm whether appropriate automated controls are in place within a recently implemented system, as it helps to evaluate the effectiveness and efficiency of the system and its controls after they have been deployed and operationalized. A post-implementation review is a process of assessing and validating the system and its controls against the predefined criteria and objectives, such as functionality, performance, security, compliance, and user satisfaction. A post-implementation review can help to confirm whether appropriate automated controls are in place within a recently implemented system by providing the following benefits:

It verifies that the system and its controls meet the design specifications and standards, and comply with the relevant laws, regulations, and contractual obligations.

It identifies and measures the actual or potential benefits and value of the system and its controls, such as improved efficiency, reliability, or quality.

It detects and analyzes any issues, gaps, or weaknesses in the system and its controls, such as errors, inconsistencies, or vulnerabilities.

It provides recommendations and action plans to address the identified issues, gaps, or weaknesses, and to improve or enhance the system and its controls.

It communicates and reports the results and findings of the review to the relevant stakeholders, and solicits their feedback and suggestions.

The other options are not the best ways to confirm whether appropriate automated controls are in place within a recently implemented system. Conducting user acceptance testing is an important step to ensure that the system and its controls meet the user requirements and expectations, but it is usually performed before the system is implemented and operationalized, and it may not cover all aspects of the system and its controls. Reviewing the key performance indicators (KPIs) is a useful method to measure and monitor the performance of the system and its controls, but it may not provide a comprehensive or objective evaluation of the system and its controls. Interviewing process owners is a possible technique to collect and analyze information on the system and its controls, but it may not provide sufficient or reliable evidence to confirm the appropriateness of the system and its controls. References = Post-Implementation Review: The Key to a Successful Project, IT Risk Resources | ISACA, Post Implementation Review (PIR) - Project Management Knowledge

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

The organization’s information security manager is responsible for IT security controls that are outsourced to an external service provider. The information security manager is accountable for ensuring that the security policies and standards of the organization are followed by the service provider, and that the security objectives and requirements are met. The information security manager is also responsible for monitoring and evaluating the security performance and compliance of the service provider, and for managing the security risks and incidents that may arise from the outsourcing arrangement. The organization’s risk function, the service provider’s IT management, and the service provider’s information security manager are not responsible for IT security controls that are outsourced, 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 651.

Software as a Service (SaaS) is a cloud computing model that provides software applications over the internet, without requiring the users to install or maintain them on their own devices. SaaS vendors are responsible for hosting, managing, and updating the software applications, and providing technical support and security to the users. The key performance indicator (KPI) that would best measure the risk of a service outage when using a SaaS vendor is the frequency and duration of unplanned downtime, which is the amount and length of time that the software applications are unavailable or inaccessible due to unexpected events, such as network failures, server crashes, power outages, cyberattacks, etc. The frequency and duration of unplanned downtime indicate the reliability and availability of the SaaS vendor, and the potential impact of the service outage on the users’ business operations and productivity. References = 3

 According to the CRISC Review Manual (Digital Version), the main reason to continuously monitor IT-related risk is to ensure risk levels are within acceptable limits of the organization’srisk appetite and risk tolerance. The risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives, while the risk tolerance is the acceptable variation in outcomes related to specific performance measures linked to objectives. Continuous monitoring is a process that tracks the security state of an information system on an ongoing basis and maintains the security authorization for the system over time. Continuous monitoring helps to:

Provide ongoing assurance that the implemented security controls are operating effectively and efficiently

Detect changes in the risk profile of the information system and the environment of operation

Identify new or emerging threats and vulnerabilities that may affect the information system

Support risk-based decisions by providing timely and relevant risk information to stakeholders

Facilitate the implementation of corrective actions and risk mitigation strategies

Promote accountability and transparency in the risk management process

Enhance the security awareness and culture within the organization

References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.1: IT Risk Monitoring, pp. 213-2141

 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.

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.

Personal data is any information that relates to an identified or identifiable individual, such as name, address, email, phone number, etc. Processing personal data involves collecting, storing, using, disclosing, or deleting it. Processing personal data poses various risks to the privacy and security of the data subjects,such as unauthorized access, disclosure, modification, or loss. Therefore, processing personal data requires appropriate technical and organizational measures to safeguard the data and to comply with the relevant laws and regulations. One of the most effective practices to safeguard the processing of personal data is to use tokenization. Tokenization is a technique that replaces sensitive data elements with non-sensitive equivalents, called tokens, that have no meaning or value outside of a specific system or context. Tokenization reduces the risk of exposing personal data to unauthorized parties, as the tokens cannot be reversed or linked back to the original data without the proper key or algorithm. Tokenization also helps to minimize the amount of personal data that is stored or transmitted, and to limit the scope of compliance requirements. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2.2, p. 196-197

 According to the CRISC Review Manual (Digital Version), the most effective approach to mitigate the risk associated with data loss due to users sending sensitive information by email without using encryption is to block unencrypted outgoing emails which contain sensitive data. This is an example of a risk avoidance strategy, which aims to eliminate the risk by removing the source of the risk or the activity that causes the risk. Blocking unencrypted outgoing emails which contain sensitive data can prevent unauthorized access, disclosure, modification or destruction of the sensitive information, and thus protect the confidentiality, integrity and availability of the data. This approach can also deter users from violating the encryption policy and enforce compliance with the security standards and regulations.

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 167-1681

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

Reviewing KRIs is the most helpful way to determine the effectiveness of an organization’s IT risk mitigation efforts. This means that the organization monitors and evaluates the actual results and outcomes of the risk responses, compares them with the risk appetite and tolerance of the organization, identifies any deviations or breaches that may require attention or action, and reports them to the appropriate parties for decision making or improvement actions.

The other options are not the most helpful ways to determine the effectiveness of an organization’s IT risk mitigation efforts. They are either secondary or not essential for risk management.

The references for this answer are:

Risk IT Framework, page 15

Information Technology & Security, page 9

Risk Scenarios Starter Pack, page 7

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

The policy has not been approved by the organization’s board should be of most concern, as it indicates a lack of governance and oversight for the organization’s cybersecurity posture. The board is ultimately responsible for setting the strategic direction, objectives, and risk appetite of the organization, and for ensuring that the cybersecurity policy aligns with them. Without the board’s approval, the policy may not reflect the organization’s vision, mission, values, and culture, and may not be communicated, implemented, or enforced effectively. The board’s approval also demonstrates the commitment and support of the senior management for the cybersecurity program, and enhances the accountability and responsibility of the stakeholders involved.

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

 The effectiveness of a control monitoring program can be measured by how quickly it can detect and correct any control failures that may compromise the achievement of the organization’s objectives. A shorter time between control failure and failure detection means that the control monitoring program is able to identify and report the issues promptly, and initiate the remediation actions accordingly. This can reduce the impact and likelihood of the risks associated with the control failures, and enhance the performance and reliability of the controls. The other options are not as good indicators of the effectiveness of a control monitoring program, because they do not reflect the timeliness and responsiveness of the program, but rather the scope, effort, or frequency of the program. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.3, page 130.

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.

Avoiding the risk means eliminating the source of the risk or changing the likelihood or impact to zero. In this case, the source of the risk is the collection of customers’ personally identifiable information (Pll), which could be exposed to unauthorized parties and result in severe fines. Therefore, the best action to avoid the risk is to modify the business processes to stop collecting Pll, as this would eliminate the possibility of data leakage and the associated consequences. The other options are not as effective as modifying the business processes, because they do not avoid the risk, but rather mitigate or transfer the risk, as explained below:

A. Reduce retention periods for Pll data is a mitigation action, as it reduces the impact of the risk by minimizing the amount of data that could be leaked and the duration of exposure.

B. Move Pll to a highly-secured outsourced site is a transfer action, as it shifts the responsibility of protecting the data to a third party, but does not eliminate the risk of data leakage.

D. Implement strong encryption for Pll is a mitigation action, as it reduces the likelihood of the risk by making the data unreadable to unauthorized parties, but does not eliminate the risk of data leakage. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.2, page 40.

 According to the CRISC Review Manual1, single sign-on (SSO) is a method of authentication that allows a user to access multiple systems or applications with a single set of credentials. SSO can improve user convenience and productivity, but it also introduces some security risks. The greatest concern as a result of a single sign-on implementation is that unauthorized access may be gained to multiple systems, as this can compromise the confidentiality, integrity, and availability of the data and resources stored on those systems. If an attacker obtains the SSO credentials of a user, either by phishing, malware, or other means, they can Laccess all the systems or applications that the user is authorized for, without any additional authentication or verification. This can expose the organization to various threats, such as data leakage, theft, loss, corruption, manipulation, or misuse2345. References = CRISC Review Manual1, page 240, 253.

The next step for the risk practitioner after identifying risk owners and responses for newly identified risk scenarios is to update the risk register with the results. The risk register is a document that records the details of the risks, such as their sources, causes, consequences, likelihood, impact, and responses. By updating the risk register with the results of the risk workshop, the risk practitioner can ensure that the risk information is current, accurate, and complete, and that the risk owners and responses are clearly defined and communicated. Developing a mechanism for monitoring residual risk, preparing a business case for the response options, and identifying resources for implementing responses are possible steps that may follow the updating of the risk register, but they are not the next step. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

Conducting phishing exercises would best help minimize the risk associated with social engineering threats, because they can help to raise awareness and educate employees about the common techniques and tactics used by social engineers, such as sending deceptive emails or text messages that ask for sensitive information or direct users to malicious websites. Phishing exercises are simulated attacks that test the employees’ ability to recognize and respond to social engineering attempts, and provide feedback and guidance on how to improve their security behavior. By conducting phishing exercises, the organization can measure and improve the employees’ level of security awareness and resilience, and reduce the likelihood and impact of falling victim to social engineering attacks. The other options are less effective ways to minimize the risk associated with social engineering threats. Enforcing employees’ sanctions can help to deter and punish employees who violate the security policies or procedures, but it may not prevent or reduce the occurrence of social engineering attacks, as they may target employees who are unaware, careless, or coerced by the attackers. Enforcing segregation of duties can help to prevent or limit the damage caused by social engineering attacks, by restricting the access and authority of employees to perform certain tasks or functions, but it may not address the root cause or source of the attacks, which is the human factor. Reviewing the organization’s risk appetite can help to define and communicate the amount and type of risk that the organization is willing to accept in pursuit of its objectives, but it may not directly affect or influence the employees’ behavior or attitude toward social engineering threats, which may depend on their individual or situational factors. References = How to Prevent and Mitigate Social Engineering Attacks 1

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

Ongoing availability of data is the most important consideration when selecting key risk indicators (KRIs) to monitor risk trends over time, as it ensures that the KRIs can provide timely and reliable information on the current and future risk status and performance. KRIs are metrics that measure the level of risk exposureand the effectiveness of risk response strategies, and they should be aligned with the enterprise’s risk appetite and objectives. Ongoing availability ofdatameans that the data sources and collection methods for the KRIs are consistent, accessible, and sustainable, and that the data quality and integrity are maintained and verified. Ability to aggregate data, ability to predict trends, and availability of automated reporting systems are not the most important considerations, as they do not affect the validity and usefulness of the KRIs, but rather the presentation and analysis of the KRI data. References = CRISC Certified in Risk and Information Systems Control – Question213; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 213.

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

 The PRIMARY objective of the board of directors periodically reviewing the risk profile is to help ensure that the risk strategy is appropriate, because the risk strategy defines the enterprise’s risk appetite, tolerance, and objectives, and guides the risk management process and activities. The board of directors should review the risk profile to ensure that it reflects the current internal and external environment, and that it aligns with the enterprise’s strategy and goals. The other options are not the primary objective, because:

Option B: KRIs and KPIs are aligned is a desirable outcome of the risk strategy, but not the primary objective of the board of directors reviewing the risk profile. KRIs and KPIs are indicators that measure and monitor the risk exposure and performance of the enterprise, respectively, and they should be consistent with the risk strategy and objectives.

Option C: Performance of controls is adequate is a result of the risk response, but not the primary objective of the board of directors reviewing the risk profile. Performance of controls is the degree to which the controls are effective and efficient in mitigating the risks, and it should be evaluated and reported by the risk management function and the internal audit function.

Option D: The risk monitoring process has been established is a prerequisite for the risk profile, but not the primary objective of the board of directors reviewing the risk profile. The risk monitoring process is the process of tracking and reporting the risk status and performance, and it should be implemented and executed by the risk management function and the business process owners. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 119.

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

The most comprehensive information for developing a risk profile for a system is the risk assessment results. A risk assessment is a process that identifies, analyzes, and evaluates the risks that could affect the system’s objectives or operations. A risk assessment provides comprehensive information for developing a risk profile, because it helps to determine the likelihood and impact of the risks, and to prioritize them based on their severity and relevance. Arisk assessment also helps to select the most appropriate and effective controls to minimize the risks, such as avoiding, reducing, transferring, or accepting the risks. A risk profile is a document that summarizes the key risks that the system faces or accepts, and their likelihood, impact, and priority. A risk profile helps to identify and prioritize the most critical or relevant risks, and to align them with the system’s objectives, strategy, and risk appetite. The other options are not as comprehensive as the risk assessment results, although they may be part of or derived from the risk profile. Results of a business impact analysis (BIA), a mapping of resources to business processes, and key performance indicators (KPIs) are all factors that could affect the system’s performance and improvement, but they do not necessarily identify, analyze, or evaluate the risks that could affect the system. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

When using a third party to perform penetration testing, the most important control to minimize operational impact is to clearly define the project scope. This means specifying the objectives,boundaries, methods, and deliverables of the testing, as well as the roles and responsibilities of the parties involved. A clear project scope helps to avoid misunderstandings, conflicts, and disruptions that could compromise the security, availability, or integrity of the systems undertest. It also helps to ensure that the testing is aligned with the organization’s risk appetite and compliance requirements. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.3.2, Page 137.

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

A high-risk vulnerability in an application is a system flaw or weakness in the application’s code that can be exploited by a malicious actor, potentially leading to a security breach. The risk associated with a high-risk vulnerability in an application is the possibility and impact of such a breach occurring. The risk owner of a high-risk vulnerability in an application is the person or entity who has the authority and responsibility for managing the risk. The risk owner should be able to define the risk appetite, assess the risk level, select and implement the risk response, monitor and report the risk status, and ensure the risk alignment with the business objectives and strategy. The risk owner of a high-risk vulnerability in an application is the business unit, which is the organizational unit that operates the application and derives value from it. The businessunit understands the business needs and expectations of the application, and the potential consequences of a security breach. The business unit also has the resources and incentives to address the risk effectively and efficiently. Therefore, the business unit is the most appropriate risk owner of a high-risk vulnerability in an application. References = Why Assigning a Risk Owner is Important and How to Do It Right, CRISC 351-400 topic3, Foundations of Project Management : Week 2.

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

 A vulnerability is a system flaw or weakness that can be exploited by a threat actor, potentially leading to a security breach or incident. A vulnerability that has been exploited means that a threat actor has successfully taken advantage of the vulnerability and compromised the system or network. Implementing controls can help reduce the impact of a vulnerability that has been exploited, by limiting or preventing the damage or loss caused by the security breach or incident. Controls are the mechanisms or procedures that ensure the security, reliability, and quality of an IT system or process. Controls can be classified into different types, depending on their purpose and function. The four types of controls mentioned in the question are:

Detective control: A control that monitors and detects the occurrence or attempt of a security breach or incident, and alerts the appropriate personnel or system. For example, a log analysis tool that identifies and reports any unauthorized access or activity on the system or network.

Deterrent control: A control that discourages or prevents a threat actor from exploiting a vulnerability or performing a malicious action, by increasing the perceived difficulty, risk, or cost of doing so. For example, a warning message that informs the user of the legal consequences of unauthorized access or use of the system or network.

Preventive control: A control that blocks or stops a threat actor from exploiting a vulnerability or performing a malicious action, by eliminating or reducing the vulnerability or the opportunity.Forexample, a firewall that filters and blocks any unwanted or malicious traffic from entering or leaving the system or network.

Corrective control: A control that restores or repairs the system or network to its normal or desired state, after a security breach or incident has occurred, by fixing or removing the vulnerability or the impact. For example, a backup and recovery tool that restores the data or functionality of the system or network that has been corrupted or lost due to the security breach or incident.

The best type of control for reducing the impact of a vulnerability that has been exploited is the corrective control, because it directly addresses the damage or loss caused by the security breach or incident, and restores the system or network to its normal or desired state. Corrective controls can help minimize the negative consequences of a security breach or incident, such as downtime, data loss, reputational harm, legal liability, or regulatory sanctions. Corrective controls can also help prevent or reduce the recurrence of the security breach or incident, by fixing or removing the vulnerability that has been exploited. References = Types of Security Controls, Security Controls: What They Are and Why You Need Them, Security Controls: Definition, Types & Examples.

According to the CRISC Review Manual1, the application owner is the person who has the authority and accountability for the achievement of the application objectives and the management of the associated risks. The application owner is responsible for defining the level of resiliency needed for the application, which is the ability of the application to recover from disruptions and continue to operate. The application owner is also responsible for accepting or rejecting the residual risks after the implementation of the disaster recovery controls, which are the measures to restore the application functionality and data in the event of a disaster. Therefore, the risk owner in this scenario is the application owner, as they are the ones who will be affected by the potential impact of the disaster on the application and its objectives. References = CRISC Review Manual1, page 194.

The most appropriate action when a tolerance threshold is exceeded is to communicate the potential impact to the decision makers. A tolerance threshold is the acceptable level of variation or deviation from the expected or planned performance or outcome of a risk response. When a tolerance threshold is exceeded, it means that the risk response is not effective or efficient enough to reduce the risk to an acceptable level, and that the enterprise is exposed to unacceptable levels of risk that could impair its ability to achieve its objectives. Therefore, the potential impact of the risk should be communicated to the decision makers, such as senior management, risk owners, or risk committee, who have the authority and responsibility to decide on the appropriate actions to address the risk situation. Communicating the potential impact can help to raise the awareness and urgency of the risk issue, and to facilitate the risk-based decision making process. Researching the root cause of similar incidents, verifying the response plan isadequate, and increasing human resources to respond in the interim are not as appropriate as communicating the potential impact, as they do not address the primary need of informing and involving the decision makers, and may not be feasible or effective in resolving the risk issue. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 41.

 Testing a disaster recovery plan is essential to ensure its effectiveness and identify any gaps or weaknesses that might hinder the recovery process. Without testing, the organization may face longer service interruptions than anticipated, which could result in loss of revenue, customer dissatisfaction, reputational damage, and regulatory penalties. Some of the best practices for disaster recovery testing are1:

Test many scenarios

Test regularly

Document everything

Keep everyone updated

Define metrics

Evaluate the results

Test your disaster recovery plan

References = Best Practices For Disaster Recovery Testing | Snyk

 A primary function of the risk register is to provide supporting information for the development of an organization’s risk profile, which is a comprehensive and structured representation of therisks that the organization faces. The risk profile helps the organization to understand its risk exposure, appetite, and tolerance, and to align its risk management strategy with its business objectives and context. The risk register is a document that records and tracks the identified risks, their causes, impacts, likelihood, responses, owners, and status. The risk register is anessential input for creating and updating the risk profile, as it provides the data and analysis of the risks that need to be prioritized and addressed. The other options are not the primary function of the risk register, although they may be related to it. The risk strategy is the plan and approach for managing the risks, and it is based on the risk profile. The risk process is the set of activities and tasks for identifying, assessing, responding, and monitoring the risks, and it is facilitated by the risk register. The risk map is a graphical tool for displaying the risks based on their impact and likelihood, and it is derived from the risk register. References = Risk Register: A Project Manager’s Guide with Examples [2023] • Asana; Purpose of a risk register: Here’s what a risk register is used for; Risk Register: Definition, Importance, and Elements! - Bit Blog; What is a Risk Register? A Complete Guide | Capterra; Risk Registers: What Are They, When Should You Use Them, and Why?

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.

Monitoring the average time to complete tasks and monthly reporting of the findings during the month-end close process aligns with the definition of a Key Performance Indicator (KPI).

Understanding KPIs:

Performance Measurement:KPIs are used to measure how effectively a company is achieving its key business objectives. Monitoring the average time to complete tasks during the month-end close process provides a performance metric.

Tracking Efficiency:By reporting these findings monthly, management can track the efficiency and performance of the system load capabilities.

Specific Measure:

Task Completion Time:The average time to complete tasks is a specific, measurable indicator of performance. It helps in understanding how well the system handles load and identifies areas for improvement.

Continuous Improvement:Regular monitoring and reporting encourage continuous improvement, which is a core aspect of using KPIs.

Whose risk tolerance matters most when making a risk decision depends on the context and the perspective of the decision-maker. However, in general, the business process owner of the exposed assets is the most important stakeholder to consider, as they are accountable for the risks and the outcomes of the risk decisions. The business process owner has the authority, responsibility, and knowledge to manage the risks that affect their business objectives, performance, and reputation. The business process owner also has the best understanding of the risk appetite and tolerance of the organization, and how to align the risk decisions with the organizational strategy and context. The other options are not the most important stakeholders to consider, although they may have some influence or interest in the risk decisions. Customers who would be affected by a breach are external stakeholders who may have different risk preferences and expectations than the organization, and who may not be fully aware of the risk exposure or mitigation options. Auditors, regulators, and standards organizations are alsoexternal stakeholders who may impose some requirements or constraints on the risk decisions, but who may not have the same level of involvement or impact as the business process owner. The information security manager is an internal stakeholder who may provide some technical expertise or guidance on the risk decisions, but who may not have the same level of authority or accountability as the business process owner. References = Risk Appetite vs. Risk Tolerance: What is the Difference?; Principles of risk decision-making; Risk Tolerance - Overview, Factors, and Types of Tolerance; Five Factors to Consider When Establishing Risk Tolerance; Risk Tolerance - Overview, Factors, and Types of Tolerance

 Robust organizational communication channels are the best way to support ethical IT risk management practices, as they enable transparent and consistent sharing of risk information anddecisions among all stakeholders. Ethical IT risk management requires that the risk management process and outcomes are aligned with the enterprise’s values, objectives, and obligations, and that the risk management activities are conducted with integrity, accountability, and respect. Robust organizational communication channels facilitate these aspects by ensuring that the risk management roles and responsibilities are clearly defined and communicated, that the risk management policies and procedures are widely disseminated and understood, that the risk management performance and results are regularly reported and reviewed, and that the risk management feedback and improvement suggestions are solicited and addressed. Mapping of key risk indicators (KRIs) to corporate strategy, capability maturity models integrated with risk management frameworks, and rigorously enforced operational service level agreements (SLAs) are not directly related to ethical IT risk management practices, but rather to the effectiveness and efficiency of the risk management process. References = CRISC Certified in Risk and Information Systems Control – Question201; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 201.

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

The best way to determine the potential organizational impact of emerging privacy regulations is to conduct a privacy impact assessment (PIA). A PIA is a systematic process of identifying, analyzing, and evaluating the privacy risks and impacts of a new or existing system, process, program, or initiative that involves the collection, use, storage, or disclosure of personal information. A PIA can help to ensure that the enterprise complies with the emerging privacyregulations, and that the privacy rights and expectations of the individuals are respected and protected. A PIA can also help to identify the gaps, weaknesses, and opportunities for improvement in the enterprise’s privacy policies, procedures, and controls. Evaluating the security architecture maturity, mapping the new requirements to the existing control framework, and chartering a privacy steering committee are not as comprehensive and effective as conducting a PIA, as they do not address the specific privacy risks and impacts of the enterprise’s activities. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 192.

Identifying potential sources of risk is the first step in the risk identification process, which is essential for developing a thorough understanding of risk scenarios. Sources of risk can be internal or external, and can include factors such as people, processes, technology, environment, regulations, and events. Identifying potential sources of risk can help to generate a comprehensive list of risk scenarios that can affect the organization’s objectives and operations. Identifying potential sources of risk can also help to raise risk awareness among the employees and to foster a risk culture within the organization. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, p. 66-67

Mitigating technology risk to acceptable levels means that the organization implements and maintains appropriate controls to reduce the likelihood and impact of potential threats or losses that may arise from the use of technology, such as IT systems, applications, networks, devices, etc.

The primary factor that should guide the mitigation of technology risk is the organizational risk appetite. This means that the organization defines and communicates the amount and type of risk that it is willing to accept or pursue in order to achieve its objectives and strategy.

The organizational risk appetite helps to determine the risk tolerance and thresholds for different risk categories and scenarios, prioritize the risks, select the most suitable risk responses, allocate the resources and budget for risk management, and monitor and report the risk performance and outcomes.

The other options are not the primary factors that should guide the mitigation of technology risk. 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 Manual, a root cause analysis is a technique that identifies the underlying causes of an event or a problem. It helps to determine the most effective actions to prevent or mitigate the recurrence of the event or problem. A root cause analysis is the best approach for the risk practitioner to take in this scenario, because it will help to understand why the number of emergency changes has increased substantially and what can be done to address the issue. The other options are not the best approaches, because they do not address the underlying causes of the problem. Temporarily suspending emergency changes may disrupt the business operations and create more risks. Documenting the control deficiency in the risk register is a passive action that does not resolve the problem. Continuing monitoring change management metrics is an ongoing activity that does not provide any insight into the problem. References = CRISC Review Manual, 7th Edition, Chapter 3, Section 3.2.4, page 130.

Key performance indicators (KPIs) are metrics that provide information about the achievement of specific goals or objectives.

Prior to selecting KPIs, it is most important to ensure that measurement objectives are defined. This means that the desired outcomes and targets of the goals or objectives are clearly stated and aligned with the organization’s strategy and vision.

Defining measurement objectives helps to select the most relevant and meaningful KPIs that can accurately reflect the progress and performance of the goals or objectives. It also helps to establish the criteria and standards for evaluating and reporting the results and outcomes of the KPIs.

The other options are not the most important things to ensure prior to selecting KPIs. They are either secondary or not essential for KPIs.

The references for this answer are:

Risk IT Framework, page 16

Information Technology & Security, page 10

Risk Scenarios Starter Pack, page 8