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

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

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

The most useful tool when measuring the progress of a risk response action plan is an up-to-date risk register, which is a document that records and tracks the significant risks that the organization faces, and the responses and actions that are taken to address them34.

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

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

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

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

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

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

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

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

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

4: Risk Register Examples for Cybersecurity Leaders4

5: Risk Scenarios Toolkit, ISACA, 2019

6: Risk Scenarios Starter Pack, ISACA, 2019

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

8: Annualized Loss Expectancy (ALE) Calculator6

Project Budgeting: How to Estimate Costs and Manage Budgets7

Project Budget Template - Download Free Excel Template8

The risk of terminated employee accounts maintaining access is that the former employees or unauthorized parties may use the accounts to access or manipulate the organization’s information systems or resources, and cause harm or damage to the organization and its stakeholders, such as data loss, data breach, system failure, fraud, etc.

The first step to address the risk of terminated employee accounts maintaining access is to disable user access, which means to revoke or remove the permissions or privileges that allow the accounts to access or use the organization’s information systems or resources. Disabling user access can help the organization to address the risk by providing the following benefits:

It can prevent or stop the former employees or unauthorized parties from accessing or using the organization’s information systems or resources, and reduce or eliminate the potential harm or damage that they may cause for the organization and its stakeholders.

It can ensure the confidentiality, integrity, availability, and reliability of the organization’s information systems or resources, and protect them from unauthorized access or manipulation.

It can provide useful evidence and records for the verification and validation of the organization’s access control function, and for the compliance with the organization’s access control policies and standards.

The other options are not the first steps to address the risk of terminated employee accounts maintaining access, because they do not provide the same level of urgency and effectiveness that disabling user access provides, and they may not be sufficient or appropriate to address the risk.

Performing a risk assessment is a process of measuring and comparing the likelihood and impact of various risk scenarios, and prioritizing them based on their significance and urgency. Performing a risk assessment can help the organization to understand and document the risk of terminated employee accounts maintaining access, but it is not the first step to address the risk, because it does not prevent or stop the former employees or unauthorized parties from accessing or using the organization’s information systems or resources, and it may not be timely or feasible to perform a risk assessment before disabling user access.

Developing an access control policy is a process of defining and describing the rules or guidelines that specify the expectations and requirements for the organization’s access control function, such as who can access what, when, how, and why. Developing an access control policy can help the organization to establish and communicate the boundaries and objectives for the organization’s access control function, but it is not the first step to address the risk, because it does not prevent or stop the former employees or unauthorized parties from accessing or using the organization’s information systems or resources, and it may not be relevant or applicable to the existing or emerging risk scenarios that may affect the organization’s access control function.

Performing a root cause analysis is a process of identifying and understanding the underlying or fundamental causes or factors that contribute to or result in a problem or incident that has occurred or may occur in the organization. Performing a root cause analysis can help the organization to address and correct the risk of terminated employee accounts maintaining access, and prevent or reduce its recurrence or impact, but it is not the first step to address the risk, because it does not prevent or stop the former employees or unauthorized parties from accessing or using the organization’s information systems or resources, and it may not be timely or feasible to perform a root cause analysis before disabling user access. 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 207

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

Risk responses are the actions or strategies that are taken to address the risks that may affect the organization’s objectives, performance, or value creation12.

The most effective way to increase the likelihood that risk responses will be implemented is to assign ownership, which is the process of identifying and appointing the individuals or groups who are responsible and accountable for the execution and monitoring of the risk responses34.

Assigning ownership is the most effective way because it ensures the clarity and commitment of the roles and responsibilities for the risk responses, and avoids the confusion or ambiguity that may arise from the lack of ownership34.

Assigning ownership is also the most effective way because it enhances the communication and collaboration among the stakeholders involved in the risk responses, and provides the feedback and input that are necessary for the improvement and optimization of the risk responses34.

The other options are not the most effective way, but rather possible steps or tools that may support or complement the assignment of ownership. For example:

Creating an action plan is a step that involves defining and documenting the specific tasks, resources, timelines, and deliverables for the risk responses34. However, this step is not the most effective way because it does not guarantee the implementation of the risk responses, especially if there is no clear or agreed ownership for the action plan34.

Reviewing progress reports is a tool that involves collecting and analyzing the information and data on the status and performance of the risk responses, and identifying the issues or gaps that need to be addressed34. However, this tool is not the most effective way because it does not ensure the implementation of the risk responses, especially if there is no ownership for the progress reports or the corrective actions34.

Performing regular audits is a tool that involves conducting an independent and objective assessment of the adequacy and effectiveness of the risk responses, and providing the findings and recommendations for improvement56. However, this tool is not the most effective way because it does not ensure the implementation of the risk responses,especially if there is no ownership for the audit results or the follow-up actions56. References =

1: Risk IT Framework, ISACA, 2009

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

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

4: ProjectManagement.com - How to Implement Risk Responses2

5: IT Audit and Assurance Standards, ISACA, 2014

6: IT Audit and Assurance Guidelines, ISACA, 2014

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Social engineering is a technique that involves manipulating or deceiving people into performing actions or divulging information that may compromise the security of an organization or its data12.

Entry into an organization’s secured physical premises is a form of physical access that allows an unauthorized individual to access, steal, or damage the organization’s assets, such as equipment, documents, or systems34.

The best way to prevent future occurrences of social engineering entry into an organization’s secured physical premises is to conduct security awareness training, which is an educational program that aims to equip the organization’s employees with the knowledge and skills they need to protect the organization’s data and sensitive information from cyber threats, such as hacking, phishing, or other breaches56.

Security awareness training is the best way because it helps the employees to recognize and resist the common and emerging social engineering techniques, such as tailgating,impersonation, or pretexting, that may be used by the attackers to gain physical access to the organization’s premises56.

Security awareness training is also the best way because it fosters a culture of security and responsibility among the employees, and encourages them to follow the best practices and policies for physical security, such as locking the doors, verifying the identity of visitors, or reporting any suspicious activities or incidents56.

The other options are not the best way, but rather possible measures or controls that may supplement or enhance the security awareness training. For example:

Employing security guards is a measure that involves hiring or contracting professional personnel who are trained and authorized to monitor, patrol, and protect the organization’s premises from unauthorized access or intrusion78. However, this measure is not the best way because it may not be sufficient or effective to prevent or deter all types of social engineering attacks, especially if the attackers are able to bypass, deceive, or coerce the security guards78.

Installing security cameras is a control that involves using electronic devices that capture and record the visual images of the organization’s premises, and provide evidence or alerts of any unauthorized access or activity . However, this control is not the best way because it is reactive rather than proactive, and may not prevent or stop the social engineering attacks before they cause any harm or damage to the organization .

Requiring security access badges is a control that involves using physical or electronic cards that identify and authenticate the employees or authorized visitors who are allowed to enter the organization’s premises, and restrict or deny the access to anyone else . However, this control is not the best way because it may not be foolproof or reliable to prevent or detect the social engineering attacks, especially if the attackers are able to steal, forge, or clone the security access badges . References =

1: What is Social Engineering? | Types & Examples of Social Engineering Attacks1

2: Social Engineering: What It Is and How to Prevent It | Digital Guardian2

3: What is physical Social Engineering and why is it important? - Integrity3603

4: What Is Tailgating (Piggybacking) In Cyber Security? - Wlan Labs4

5: What Is Security Awareness Training and Why Is It Important? - Kaspersky5

6: Security Awareness Training - Cybersecurity Education Online | Proofpoint US6

7: Security Guard - Wikipedia7

8: Security Guard Services - Allied Universal8

Security Camera - Wikipedia

Security Camera Systems - The Home Depot

Access Badge - Wikipedia

Access Control Systems - HID Global

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

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

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

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

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

The organization’s risk appetite and tolerance are the most important topics to cover in a risk awareness training for senior management. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk tolerance is the level of variation from the risk appetite that the organization is prepared to accept. Senior management plays a key role in defining and communicating the risk appetite and tolerance, as well asensuring that they are aligned with the organization’s strategy, culture, and values. By covering these topics in the training session, the risk practitioner can help senior management understand and articulate the risk preferences and boundaries of the organization, as well as monitor and adjust them as needed. The other options are not the most important topics to cover in a risk awareness training for senior management, although they may be relevant and useful. The organization’s strategic risk management projects are specific initiatives or activities that aim to identify, assess, and treat risks that may affect the organization’s objectives. Senior management roles and responsibilities are the duties and expectations that senior management has in relation to risk management, such as providing leadership, oversight, and support. Senior management allocation of risk management resources is the process of assigning and prioritizing the human, financial, and technical resources that are needed to implement and maintain risk management activities. These topics are more operational and tactical than strategic and may vary depending on the context and scope of the risk management function. References = CRISC Review Manual, pages 40-411; CRISC Review Questions, Answers & Explanations Manual, page 732

A threat risk assessment will best quantify the risk associated with malicious users in an organization, because it focuses on identifying and evaluating the potential sources of harm or damage to the organization’s assets, such as data, systems, or networks. A malicious user is a person who intentionally and unauthorizedly accesses, modifies, destroys, or steals the organization’s information or resources, for personal gain, revenge, espionage, or sabotage. A threat risk assessment can help the organization to estimate the likelihood and impact of malicious user attacks, based on factors such as the user’s motivation, capability, opportunity, and access level. A threat risk assessment can also help the organization to determine the appropriate risk response strategies, such as prevention, detection, mitigation, or transfer, to reduce the risk exposure and impact of malicious user attacks. References = Risk IT Framework, ISACA, 2022, p. 141

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

An organization’s account provisioning process is the process of creating, modifying, or deleting user accounts and access rights for the organization’s information systems and resources. It involves defining the access requirements, policies, and standards, and implementing and enforcing them across the organization.

The best evidence of the effectiveness of an organization’s account provisioning process is entitlement reviews, which are the periodic or regular reviews and validations of the user accounts and access rights that are granted or assigned to the users or entities that interact with the organization’s information systems and resources. Entitlement reviews can provide assurance and verification that the account provisioning process is accurate, consistent, and compliant, and that it meets the organization’s security and business objectives and requirements.

Entitlement reviews can be performed using various techniques, such as automated tools, reports, audits, surveys, etc. Entitlement reviews can also be integrated with the organization’s governance, risk management, and compliance functions, and aligned with the organization’s policies and standards.

The other options are not the best evidence of the effectiveness of an organization’s account provisioning process, because they do not provide the same level of assurance and verification that the account provisioning process is accurate, consistent, and compliant, and that it meets the organization’s security and business objectives and requirements.

User provisioning is the process of creating, modifying, or deleting user accounts and access rights for a specific user or entity, based on their identity, role, or function in the organization. User provisioning is an important part of the account provisioning process, but it is not the best evidence of the effectiveness of the account provisioning process, because it does not indicate whether the user accounts and access rights are appropriate and authorized, and whether they comply with the organization’s policies and standards.

Role-based access controls are the controls that grant or restrict user accounts and access rights based on the predefined roles or functions that the users or entities perform or assume in the organization. Role-based access controls are an important part of the account provisioningprocess, but they are not the best evidence of the effectiveness of the account provisioning process, because they do not indicate whether the roles or functions are defined and assigned correctly and consistently, and whether they comply with the organization’s policies and standards.

Security log monitoring is the process of collecting, analyzing, and reporting on the security events or activities that are recorded or logged by the organization’s information systems and resources. Security log monitoring is an important part of the account provisioning process, but it is not the best evidence of the effectiveness of the account provisioning process, because it does not indicate whether the security events or activities are legitimate or authorized, and whether they comply with the organization’s policies and standards. References =

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

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 173

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The risk associated with malicious functionality in outsourced application development is that the vendor may introduce unauthorized or harmful code into the enterprise’s system, which could compromise its security, integrity, or performance.

To mitigate this risk, the enterprise should perform an in-depth code review with an expert who can verify that the code meets the specifications, standards, and quality requirements, and that it does not contain any malicious or unwanted functionality.

A code review is a systematic examination of the source code of a software program, which can identify errors, vulnerabilities, inefficiencies, or deviations from best practices. A code review can also ensure that the code is consistent, readable, maintainable, and well-documented.

An expert is someone who has the knowledge, skills, and experience to perform the code review effectively and efficiently. An expert may be an internal or external resource, depending on the availability, cost, and independence of the reviewer.

A code review should be performed before the code is deployed to the production environment, and preferably at multiple stages of the development life cycle, such as design, testing, and integration.

A code review can also be complemented by other techniques, such as automated code analysis, testing, and scanning tools, which can detect common or known issues in the code. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, p. 143

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 143

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

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

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

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

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

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

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

The security risk associated with wearable technology in the workplace is the possibility and impact of unauthorized access, disclosure, or use of the data or information that are collected, stored, or transmitted by the wearable devices, such as smartwatches, fitness trackers, or glasses, that are worn or used by the employees12.

The first step in managing the security risk associated with wearable technology in the workplace is to identify the potential risk, which is the process of recognizing and describing the sources,causes, and consequences of the risk, and the potential impacts on the organization’s objectives, performance, and value creation34.

Identifying the potential risk is the first step because it provides the basis and input for the subsequent steps of the risk management process, such as assessing, treating, monitoring, and communicating the risk34.

Identifying the potential risk is also the first step because it enables the organization to understand and prioritize the risk, and to allocate the appropriate resources and controls for the risk management process34.

The other options are not the first step, but rather possible subsequent steps that may depend on or follow the identification of the potential risk. For example:

Monitoring employee usage is a step that involves collecting and analyzing data and information on the frequency, duration, and purpose of the wearable devices that are used by the employees, and detecting and reporting any deviations, anomalies, or issues that may indicate a security risk5 . However, this step is not the first step because it requires theidentification of the potential risk to provide the guidance and standards for the monitoring process5 .

Assessing the potential risk is a step that involves estimating and evaluating the likelihood and impact of the risk, and the level of risk exposure or tolerance for the organization34. However, this step is not the first step because it requires the identification of the potential risk to provide the information and data for the assessment process34.

Developing risk awareness training is a step that involves educating and training the employees and other stakeholders on the security risks and best practices associated with the wearable technology, and informing them of their roles, obligations, and responsibilities for the risk management process . However, this step is not the first step because it requires the identification of the potential risk to provide the content and objectives for the training process . References =

1: Wearable Devices in the Workplace: Security Threats and Protection1

2: 10 security risks of wearables | CSO Online2

3: Risk IT Framework, ISACA, 2009

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

5: Continuous Monitoring - ISACA3

Continuous Monitoring: A New Approach to Risk Management - ISACA Journal4

What Is Security Awareness Training and Why Is It Important? - Kaspersky5

Security Awareness Training - Cybersecurity Education Online | Proofpoint US

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

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

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

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

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

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

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

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

CRISC Practice Quiz and Exam Prep

A risk heat map is a tool that shows the likelihood and impact of different risks on a matrix, using colors to indicate the level of risk. A risk heat map is most commonly used as part of an IT risk analysis to facilitate risk assessment, which is the process of estimating the probability and consequences of the risks, and comparing them against the risk criteria1. A risk heat map can help to visualize, communicate, and prioritize the risks, as well as to evaluate the effectiveness of the risk response actions2. The other options are not the best choices for describing the purpose of a risk heat map, as they are either less specific or less relevant than risk assessment. Risk communication is the process of sharing and exchanging information about the risks among the stakeholders3. A risk heat map can support risk communication by providing a clear and concise representation of the risks, but it is not the main objective of the tool. Riskidentification is the process of finding, recognizing, and describing the risks that may affect the organization4. A risk heat map can help to identify the risks by categorizing them into different domains or sources, but it is not the primary function of the tool. Risk treatment is the process of selecting and implementing the appropriate measures to modify the risk5. A risk heat map can help to guide the risk treatment by showing the risk ratings and thresholds, but it is not the core purpose of the tool. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.1, Page 47.

Key risk indicators (KRIs) are metrics that help organizations monitor and evaluate the level of risk they are exposed to. They provide early warning signals of potential issues that could affect the achievement of organizational goals12.

The most important data source for monitoring KRIs is automated logs collected from different systems, which are records that capture and store the details and history of the transactions or activities that are performed by the organization’s processes, systems, or controls34.

Automated logs collected from different systems are the most important data source because they provide timely and accurate data and information on the performance and status of the organization’s operations, and enable the detection and reporting of any deviations, anomalies, or issues that may indicate a risk event34.

Automated logs collected from different systems are also the most important data source because they support the accountability and auditability of the organization’s operations, and facilitate the investigation and resolution of any risk event34.

The other options are not the most important data sources, but rather possible inputs or factors that may influence or affect the KRIs. For example:

Directives from legal and regulatory authorities are documents that provide the expectations and obligations of the external authorities or bodies that govern or oversee the organization’s activities and operations, such as laws, regulations, standards, or contracts5 . However, these documents are not the most important data source becausethey do not directly measure or monitor the level of risk exposure, but rather provide the criteria or framework for risk compliance5 .

Audit reports from internal information systems audits are documents that provide the findings and recommendations of the independent and objective assessment of the adequacy and effectiveness of the organization’s information systems, processes, and controls . However, these documents are not the most important data source because they do not directly measure or monitor the level of risk exposure, but rather provide the assurance or improvement for risk management .

Trend analysis of external risk factors is a technique that involves analyzing and forecasting the changes and impacts of the external factors that influence the organization’s operations, such as technology, competition, regulation, or customer behavior . However, this technique is not themost important data source because it does not directly measure or monitor the level of risk exposure, but rather provide the insight or prediction for risk identification . References =

1: Key Risk Indicators: A Practical Guide | SafetyCulture1

2: Key risk indicator - Wikipedia2

3: Database Activity Monitoring - Wikipedia3

4: Database Activity Monitoring (DAM) | Imperva4

5: Regulatory Compliance - Wikipedia5

Regulatory Compliance Management Software | MetricStream

IT Audit and Assurance Standards, ISACA, 2014

IT Audit and Assurance Guidelines, ISACA, 2014

Trend Analysis - Investopedia

Trend Analysis: A Definition and Examples

 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

 The best way to support risk-based decisions by senior management would be to map findings to objectives, because this would help them understand how the identified risks affect the achievement of the organization’s goals and priorities. Mapping findings to objectives would also help senior management evaluate the trade-offs between different risk responses and allocate resources accordingly. By linking risks to objectives, the risk practitioner can communicate the value and impact of risk management in a clear and relevant way. References = Risk IT Framework, ISACA, 2022, p. 17

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

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

An IT risk register is a document that records and tracks the IT-related risks that an organization faces, as well as the information and actions related to those risks, such as the risk description, assessment, response, status, and owner. An IT risk register is a valuable tool for managing andcommunicating IT risks and their impact on the organization’s objectives and operations. However, an IT risk register may also contain sensitive or confidential information that should not be disclosed or shared with unauthorized or irrelevant parties, as it may compromise the security, privacy, or reputation of the organization or its stakeholders. Therefore, the risk manager’s best approach to the request from the head of a business operations department to review the entire IT risk register is to determine the purpose of the request before sharing the register. This is a technique to understand and evaluate the reason and the need for the request, as well as the scope and the level of access that the requester requires or expects. By determining the purpose of therequest, the risk manager can ensure that the request is legitimate, appropriate, and relevant, and that the requester has a clear and valid interest or stake in the IT risk register. The risk manager can also ensure that the request is aligned with the organization’s policies, procedures, and standards for IT risk management and information sharing. The risk manager can also use the purpose of the request to decide what and how much information to share with the requester, and what conditions or restrictions to apply, such as confidentiality, accuracy, or timeliness. The other options are not the best approaches to the request from the head of a business operations department to review the entire IT risk register, as they may be premature, unnecessary, or ineffective. Escalating to senior management is a technique to involve or inform the higher-level authorities or decision makers about the request, which may be useful or required in some cases, but it may not be the first or the best step to take, as it may delay or complicate the process, or undermine the risk manager’s authority or responsibility. Requiring a nondisclosure agreement is a technique to protect the confidentiality and integrity of the information in the IT risk register by legally binding the requester to not disclose or misuse the information. However, a nondisclosure agreement may not be needed or appropriate in every case, and it may not prevent or address other issues or risks related to the information sharing, such as relevance, accuracy, or timeliness. Sanitizing portions of the register is a technique to remove or redact the sensitive or confidential information from the IT risk register before sharing it with the requester, which may be necessary or prudent in some cases, but it may not be sufficient or satisfactory, as it may affect the completeness, usefulness, or validity of the information, or raise questions or concerns from the requester.

 Risk impact is the potential loss or damage that a risk event can cause to an organization. Risk impact can be expressed in qualitative or quantitative terms, such as financial, reputational, operational, or legal. A risk register is a tool that records and tracks the key information about the identified risks, such as their description, likelihood, impact, response, and status. A risk register helps an organization to monitor and manage its risks effectively and efficiently. When there is a change in the external or internal environment that affects the organization’s risks, such as new regulations, the risk register should be updated to reflect this change. The most important element of the risk register to update in this case is the risk impact, because the new regulations have significantly increased the penalties for data breaches, which means that the potential loss or damage that a data breach can cause to the organization has also increased. By updating the risk impact, the organization can reassess the severity and priority of the data breach risk, and adjust its risk response accordingly. The other elements of the risk register are less important toupdate in this case. The risk trend shows the direction and rate of change of the risk over time, which may or may not be affected by the new regulations. The risk appetite is the amount and type of risk that the organization is willing to accept in pursuit of its objectives, which is unlikely to change due to the new regulations. The risk likelihood is the probability of a risk event occurring, which is also independent of the new regulations. References = Risk IT Framework, ISACA, 2022, p. 131

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

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

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

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

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

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

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

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

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

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

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

According to the Risk and Information Systems Control documents, implementing record retention tools and techniques is the best solution in this scenario. Record retention involves managing the lifecycle of records, including their creation, usage, storage, and disposal. By implementing record retention policies, organizations can define how long emails and other data should be retained before being deleted. This helps in efficiently managing storage space and reducing unnecessary storage costs.

Establishing e-discovery and data loss prevention (DLP) (Option B) focuses more on legal and compliance aspects and may not directly address the issue of reducing storage costs. Sending notifications when near storage quota (Option C) is a reactive approach and may not prevent the exponential increase in storage costs. Implementing a bring your own device (BYOD) policy (Option D) is unrelated to the issue of email storage costs.

References = Risk and Information Systems Control Study Manual

According to the CRISC Review Manual (Digital Version), a vulnerability is a flaw or weakness in an asset’s design, implementation, or operation and management that could be exploited by a threat. A delayed removal of employee access is a vulnerability, as it allows former employees to retain access to the organization’s IT assets and processes, which could lead to unauthorized disclosure, modification, or destruction of data or resources. A delayed removal of employee access could be caused by poor personnel management, lack of security awareness, or inadequate access control policies and procedures.

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.5: IT Risk Identification Methods and Techniques, pp. 32-331

 Business process owners would provide the most important input when identifying IT risk scenarios. IT risk scenarios are the situations or events that may affect the organization’s objectives, operations, or performance due to the use of information andtechnology1. Identifying IT risk scenarios means finding,recognizing, and describing the IT risks that the organization faces, as well as their sources, drivers, consequences, and responses2. Business process owners are the persons or entities who are responsible for the design, implementation, and operation of the business processes that support the organization’s goals and values3. Business process owners would provide the most important input when identifying IT risk scenarios, because they can:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 Strong authentication is the most effective measure against external threats to an organization’s confidential information. Confidential information is any data or information that is sensitive, proprietary, or valuable to the organization, and that should not be disclosed to unauthorized parties1. External threats are malicious actors outside the organization who attempt to gain unauthorized access to the organization’s networks, systems, and data, using various methods such as malware, hacking, or social engineering2. Strong authentication is a method of verifying the identity and legitimacy of a user or device before granting access to the organization’s resources or data3. Strong authentication typically involves the use of multiple factors or methods of authentication, such as passwords, tokens, biometrics, orcertificates4. Strong authentication can prevent or reduce the risk of external threats to the organization’s confidential information, by making it more difficult and costly for the attackers to compromise the credentials or devices of the authorized users, and by limiting the access to the data or resourcesthat are relevant and necessary for the users’ roles and responsibilities5. The other options are not the most effective measures against external threats to the organization’s confidential information, as they are either less secure or less relevant than strong authentication. Single sign-on is a method of allowing a user to access multiple systems or applications with a single set of credentials, without having to log in separately for each system or application6. Single sign-on can improve the user experience and convenience, as well as reduce the administrative burden and cost of managing multiple accounts and passwords. However, single sign-on is not the most effective measure against external threats to the organization’s confidential information, as it can also increase the risk of credential compromise or misuse, and create a single point of failure or attack for the attackers to access multiple systems or data. Data integrity checking is a method of ensuring that the data or information is accurate, complete, and consistent, and that it has not been altered or corrupted by unauthorized parties or processes. Data integrity checking can involve the use of techniques such as checksums, hashes, digital signatures, or encryption. Data integrity checking can enhance the quality and reliability of the data or information, as well as detect and prevent any unauthorized or malicious changes or tampering. However, data integrity checking is not the most effective measure against external threats to the organization’s confidential information, as it does not prevent or reduce the risk of data theft or leakage, and it does not verify the identity or legitimacy of the users or devices accessing the data. Intrusion detection system is a system that monitors the network or system activities and events, and detects and alerts any suspicious or malicious behaviors or anomalies that may indicate an attempted or successful breach or attack. Intrusion detection system can help to identify and respond to external threats to the organization’s networks, systems, and data, by providing visibility and awareness of the network or system status and activities, and by enabling timely and appropriate actions or countermeasures. However, intrusion detection system is not the most effective measure againstexternal threats to the organization’s confidential information, as it is a reactive or passive system that does not prevent or block the attacks, and it may generate false positives or negatives that can affect its accuracy and efficiency. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1, Page 189.

A cyber intrusion is an unauthorized or malicious access to a computer system or network by an attacker. A cyber intrusion can compromise the confidentiality, integrity, or availability of the system or network, as well as the data and services that it hosts. A cyber intrusion can also cause damage, disruption, or theft to the organization or its stakeholders. One of the best ways toprevent cyber intrusion is to strengthen vulnerability remediation efforts, which means to identify and fix the weaknesses or flaws in the system or network that can be exploited by the attackers. Vulnerability remediation efforts can include conducting regularvulnerability assessments, applying security patches and updates, configuring security settings and policies, and implementing security controls and measures. By strengthening vulnerability remediation efforts, the organization can reduce the attack surface and the likelihood of cyber intrusion, as well as enhance the resilience and protection of the system or network. The other options are not the best recommendations for preventing cyber intrusion, although they may be helpful and complementary. Establishing a cyber response plan is a technique to prepare for and respond to a cyber incident, such as a cyber intrusion, by defining the roles, responsibilities, procedures, and resources that are needed to manage and recover from the incident. However, a cyber response plan is a reactive and contingency measure, while strengthening vulnerability remediation efforts is a proactive and preventive measure. Implementing data loss prevention (DLP) tools is a technology that tries to detect and stop sensitive data breaches, or data leakage incidents, in an organization. DLP tools can help to protect the data from being disclosed to an unauthorized person, whether it is deliberate or accidental. However, DLP tools do not prevent cyber intrusion itself, as they only focus on the data, not the system or network. Implementing network segregation is a method to divide a network into smaller segments or subnetworks, each with its own security policies and controls. Network segregation can help to isolate and contain the impact of a cyber intrusion, as well as to limit the access and movement of the attackers within the network. However, network segregation does not prevent cyber intrusion from occurring, as it does not address thevulnerabilities or flaws in the system or network. References = CRISC Review Manual, pages 164-1651; CRISC Review Questions, Answers & Explanations Manual, page 902; What Are Security Controls? - F53; Assessing Security Controls: Keystone of the Risk Management … - ISACA4

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

A root cause analysis is a process of identifying and understanding the underlying or fundamental causes or factors that contribute to or result in a problem or incident that has occurred or may occur in the organization. A root cause analysis can provide useful insights and solutions on the origin and nature of the problem or incident, and prevent or reduce its recurrence or impact.

Performing a root cause analysis is the risk practitioner’s best recommendation when the number of tickets to rework application code has significantly exceeded the established threshold, because it can help the organization to address the following questions:

Why did the application code require rework?

What were the errors or defects in the application code?

How did the errors or defects affect the functionality or usability of the application?

Who was responsible or accountable for the application code development and testing?

When and how were the errors or defects detected and reported?

What were the costs or consequences of the rework for the organization and its stakeholders?

How can the errors or defects be prevented or minimized in the future?

Performing a root cause analysis can help the organization to improve and optimize the application code quality and performance, and to reduce or eliminate the need for rework. It can also help the organization to align the application code development and testing with the organization’s objectives and requirements, and to comply with the organization’s policies and standards.

The other options are not the risk practitioner’s best recommendations when the number of tickets to rework application code has significantly exceeded the established threshold, because they do not address the main purpose and benefit of performing a root cause analysis, which is to identify and understand the underlying or fundamental causes or factors that contribute to or result in the problem or incident.

Performing a code review is a process of examining and evaluating the application code for its quality, functionality, and security, using the input and feedback from the peers, experts, or tools. Performing a code review can help the organization to identify and resolve the errors or defects in the application code, but it is not the risk practitioner’s best recommendation, because it doesnot indicate why the application code required rework, and how the errors or defects affected the organization and its stakeholders.

Implementing version control software is a process of using a software tool to manage and track the changes and modifications to the application code, and to ensure the consistency and integrity of the application code. Implementing version control software can help theorganization to control and monitor the application code development and testing, but it is not the risk practitioner’s best recommendation, because it does not indicate why the application code required rework, and how the errors or defects affected the organization and its stakeholders.

Implementing training on coding best practices is a process of providing and facilitating the learning and development of the skills and knowledge on the principles, guidelines, and standards for the application code development and testing. Implementing training on coding best practices can help the organization to enhance the competence and performance of the application code developers and testers, but it is not the risk practitioner’s best recommendation, because it does not indicate why the application code required rework, and how the errors or defects affected the organization and its stakeholders. References =

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

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 189

CRISC Practice Quiz and Exam Prep

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

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

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

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

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

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

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

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

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

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

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

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

CRISC Practice Quiz and Exam Prep

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

Detailed Explanation:Risk transferinvolves shifting the responsibility for managing specific risks to a third party. By outsourcing the security function, the organization transfers the associated risk to a vendor specializing in security management.

According to the CRISC Review Manual (Digital Version), the security management function is responsible for ensuring that effective cybersecurity controls are established and maintained. The security management function should:

Define the cybersecurity strategy and objectives aligned with the enterprise’s risk appetite and business goals

Establish and maintain the cybersecurity policies, standards, procedures and guidelines

Implement and monitor the cybersecurity controls and processes

Coordinate and communicate with other stakeholders, such as risk owners, IT management, enterprise risk function, internal and external auditors, regulators and third parties

Report on the cybersecurity performance and risk posture to senior management and the board

Continuously improve the cybersecurity capabilities and maturity

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.4: IT Risk Management Roles and Responsibilities, pp. 29-301

Residual risk is the risk that remains after applying controls to mitigate the inherent risk. Inherent risk is the risk that exists before considering the controls. Key risk indicators (KRIs) are metricsthat measure the level and impact of risks. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. The failure of the data loss prevention (DLP) system to detect outgoing emails containing credit card data would most impact the residual risk, because it would increase the likelihood and impact of data leakage, data loss, and data exfiltration incidents. These incidents could cause financial, reputational, legal, and regulatory damages to the organization. The failure of the DLP system would also affect the KRIs, as they would show a higher level of risk exposure and a lower level of control effectiveness. However, the KRIs are not the risk itself, but rather the indicators of the risk. The failure of the DLP system would not directly impact the inherent risk or the risk appetite, as they are independent of the controls. The inherent risk would remain the same, as it is based on the nature and value of the data and the threats and vulnerabilities that exist. The risk appetite would also remain the same, as it is based on the organization’s culture, strategy, and stakeholder expectations. Therefore, the most impacted factor would be the residual risk, as it reflects the actual risk level that the organization faces after applying the controls. References = Risk IT Framework, ISACA, 2022, p. 131

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

Events exceeding risk thresholds are situations or occurrences that result in the actual level of risk exceeding the acceptable or tolerable level of risk, as defined by the organization’s risk appetite, criteria, and objectives12.

The most effective way to enable a business operations manager to identify events exceeding risk thresholds is to implement continuous monitoring, which is a process that involves collecting and analyzing data and information on the performance and status of the business processes, systems, and controls, and detecting and reporting any deviations, anomalies, or issues that may indicate a risk event34.

Continuous monitoring is the most effective way because it provides timely and accurate visibility and insight into the risk landscape, and enables the business operations manager to identify and respond to the events exceeding risk thresholds before they escalate or cause significant harm or damage to the organization34.

Continuous monitoring is also the most effective way 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 effective ways, but rather possible tools or techniques that may complement or enhance the continuous monitoring. For example:

A control self-assessment is a technique that involves engaging and empowering the business process owners and operators to evaluate and report on the effectiveness and efficiency of the controls that are designed and implemented to mitigate the risks56. However, this technique is not the most effective way because it is periodic rather than continuous, and it may not capture or communicate the events exceeding risk thresholds in a timely or consistent manner56.

Transaction logging is a tool that involves recording and storing the details and history of the transactions or activities that are performed by the business processes or systems, and providing an audit trail for verification or investigation purposes78. However, this tool is not the most effective way because it is passive rather than active, and it may not detect or report the events exceeding risk thresholds unless they are analyzed or queried78.

Benchmarking against peers is a technique that involves comparing and contrasting the performance and practices of the business processes or systems with those of the similar or leading organizations in the same or related industry, and identifying the gaps or opportunities for improvement . However, this technique is not the most effective way because it is external rather than internal, and it may not reflect or align with the organization’s specific risk appetite, criteria, and objectives . References =

1: Risk IT Framework, ISACA, 2009

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

3: Continuous Monitoring - ISACA1

4: Continuous Monitoring: A New Approach to Risk Management - ISACA Journal2

5: Risk and control self-assessment - KPMG Global3

6: Control Self Assessments - PwC4

7: Transaction Log - Wikipedia5

8: Transaction Logging - IBM6

Benchmarking - Wikipedia7

Benchmarking: Definition, Types, Process, Advantages & Examples

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

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

After a risk has been identified, the risk owner is in the best position to select the appropriate risk treatment option. The risk owner is the person or entity with the accountability and authority to manage a risk1. The risk owner is responsible for evaluating the risk, choosing the most suitable risk treatment option, implementing the risk treatment plan, and monitoring and reviewing the risk and its treatment2. The risk owner has the most knowledge and stake in the risk and its impact on the objectives and activities of the organization. The other options are not the best choices for selecting the risk treatment option, as they do not have the same level of accountability and authority as the risk owner. The risk practitioner is the person or entity with the knowledge and skills to perform the risk management activities1. The risk practitioner can assist the risk owner in identifying, analyzing, evaluating, and treating the risk, but the final decision and responsibility lies with the risk owner. The business process owner is the person or entity with the accountability and authority to manage a business process3. The business process owner may be affected by the risk or involved in the risk treatment, but the risk owner is the one who has the overall responsibility for the risk. The control owner is the person or entity with the accountability and authority to ensure that the controls are properly designed, implemented, and operated4. The control owner can provide input and feedback on the effectiveness and efficiency of the controls, but the risk owner is the one who decides which controls are needed and how they are applied. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.3, Page 51.

The risk landscape is the set of internal and external factors and conditions that may affect the organization’s objectives and operations, and create or influence the risks that the organization faces. The risk landscape is dynamic and complex, and it may change over time due to various drivers or events, such as technological innovations, market trends, regulatory changes, customer preferences, competitor actions, environmental issues, etc.

The best way to identify changes to the risk landscape is threat modeling, which is the process of identifying, analyzing, and prioritizing the potential threats or sources of harm that may exploit the vulnerabilities or weaknesses in the organization’s assets, processes, or systems, and cause adverse impacts or consequences for the organization. Threat modeling can help the organization to anticipate and prepare for the changes in the risk landscape, and to design and implement appropriate controls or countermeasures to mitigate or prevent the threats.

Threat modeling can be performed using various techniques, such as brainstorming, scenario analysis, attack trees, STRIDE, DREAD, etc. Threat modeling 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 ways to identify changes to the risk landscape, because they do not provide the same level of proactivity, comprehensiveness, and effectiveness of identifying and addressing the potential threats or sources of harm that may affect the organization.

Internal audit reports are the documents that provide the results and findings of the internal audits that are performed to assess and evaluate the adequacy and effectiveness of the organization’s governance, risk management, and control functions. Internal audit reports can provide useful information and recommendations on the current state and performance of the organization, and identify the issues or gaps that need to be addressed or improved, but they are not the best way to identify changes to the risk landscape, because they areusually retrospective and reactive, and they may not cover all the relevant or emerging threats or sources of harm that may affect the organization.

Access reviews are the processes of verifying and validating the access rights and privileges that are granted to the users or entities that interact with the organization’s assets, processes, orsystems, and ensuring that they are appropriate and authorized. Access reviews can provide useful information and feedback on the security and compliance of the organization’s access management, and identify and revoke any unauthorized or unnecessary access rights or privileges, but they are not the best way to identify changes to the risk landscape, because they are usually periodic and specific, and they may not cover all the relevant or emerging threats or sources of harm that may affect the organization.

Root cause analysis is the process of identifying and understanding the underlying or fundamental causes or factors that contribute to or result in a problem or incident that has occurred or may occur in the organization. Root cause analysis can provide useful insights and solutions on the origin and nature of the problem or incident, and prevent or reduce its recurrence or impact, but it is not the best way to identify changes to the risk landscape, because it is usually retrospective and reactive, and it may not cover all the relevant or emerging 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 167

CRISC Practice Quiz and Exam Prep

A critical patch is a software update that fixes a security vulnerability or a bug that may affect the performance, functionality, or reliability of a system or a network. A critical patch implementation is a process that applies the software update to the system or network in a timely and effective manner. The failure of a critical patch implementation is a situation where the software update is not applied or not applied correctly, which may expose the system or network to various threats, such as data theft, data corruption, data leakage, or denial of service. The failure of a critical patch implementation would be reflected in an organization’s risk profile by increasing the residual risk. Residual risk is the risk that remains after the risk response, which means the risk that is not avoided, transferred, or mitigated by the existing controls or measures. The failure of a critical patch implementation would increase the residual risk, as it would reduce the effectiveness or efficiency of the existing controls or measures that are supposed to address the security vulnerability or the bug. The failure of a critical patch implementation would also increase the likelihood or impact of the potential threats, as well as the exposure or consequences of the system or network. The other options are not the correct changes that would be reflected in an organization’s risk profile after the failure of a critical patch implementation, although they may be affected or related. Risk tolerance is the degree of variation from the risk appetite that the organization is not willing to accept. Risk tolerance may be decreased by the failure of a critical patch implementation, as the organization may become more cautious or conservative in accepting the risk, but it is not a direct or immediate change in the risk profile. Inherent risk is the risk that exists in the absence of any controls or measures, which means the risk that is inherent to the system or network or the environment. Inherent risk may be increased by the failure of a critical patch implementation, as the system or network may become more vulnerable or susceptible to the threats, but it is not a change in the risk profile, as the risk profile considers the existing controls or measures. Risk appetite is the amount and type of risk that the organization is willing to accept in pursuit of its objectives. Risk appetite may be decreasedby the failure of a critical patch implementation, as the organization may become less willing orable to accept the risk, but it is not a change in the risk profile, as the risk profile reflects the actual or current risk level, not the desired or expected risk level. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 972; What is a Critical Patch? - Definition from Techopedia3; What is Residual Risk? - Definition from Techopedia4

The best way to ensure that identified risk scenarios are addressed is to review the implementation of the risk response. The risk response is the action or plan that is taken to reduce, avoid, transfer, or accept the risk, depending on the chosen risk treatment option1. Reviewing the implementation of the risk response means checking whether the risk response actions are executed as planned, whether they are effective and efficient in mitigating the risk, and whether they are aligned with the organization’s objectives and risk appetite2. Reviewing the implementation of the risk response helps to monitor and control the risk, identify any gaps or issues, and make any necessary adjustments or improvements. The other options are not the best ways to ensure that identified risk scenarios are addressed, as they are either less comprehensive or less specific than reviewing the implementation of the risk response. Creating a separate risk register for key business units is a way of documenting and tracking the risks that affect different parts of the organization. However, this is not the same as addressing the risk scenarios, as it does not indicate how the risks are treated or resolved. Performing real-time monitoring of threats is a way of detecting and responding to any changes or events that may increase the likelihood or impact of the risks. However, this is not the same as addressing the riskscenarios, as it does not measure the effectiveness or efficiency of the risk response actions. Performing regular risk control self-assessments is a way of evaluating and testing the design and operation of the controls that are implemented to mitigate the risks. However, this is not the same as addressing the risk scenarios, as it does not cover the other aspects of the risk response, such as risk avoidance, transfer, or acceptance. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.7, Page 59.

The audit planning process is the process of defining and describing the scope, objectives, and approach of the internal audit that is performed to assess and evaluate the adequacy and effectiveness of the organization’s governance, risk management, and control functions. The audit planning process involves identifying and prioritizing the audit areas, topics, or issues, and allocating the audit resources, time, and budget.

The most important information for a risk practitioner to provide to the internal audit department during the audit planning process is the annual risk assessment results, which are the outcomes or outputs of the risk assessment process that measures and compares the likelihood and impact of various risk scenarios, and prioritizes them based on their significance and urgency. The annual risk assessment results can help the internal audit department to plan the audit by providing the following information:

The level and priority of the risks that may affect the organization’s objectives and operations, and the potential consequences or impacts that they may cause for the organization if they materialize.

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

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

The other options are not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because they do not provide the same level of detail and insight that the annual risk assessment results provide, and they may not be relevant or actionable for the internal audit department.

Closed management action plans from the previous audit are the actions or plans that have been implemented or completed by the management to address or correct the findings or recommendations from the previous internal audit that was performed. Closed management action plans from the previous audit can provide useful information on the progress and performance of the management in improving and optimizing the organization’s governance, risk management, and control functions, but they are not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because they do not indicate the current or accurate state and performance of the organization’s risk profile, and they may not cover all the relevant or emerging risks that may exist or arise.

An updated vulnerability management report is a report that provides the information and status of the vulnerabilities or weaknesses in the organization’s assets, processes, or systems that can be exploited or compromised by the threats or sources of harm that may affect the organization’s objectives or operations. An updated vulnerability management report can provide useful information on the existence and severity of the vulnerabilities, and the actions or plans to mitigate or prevent them, but it is not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because it does not indicate the likelihood and impact of the risk scenarios that are associated with the vulnerabilities, and the potential consequences or impacts that they may cause for the organization.

A list of identified generic risk scenarios is a list that contains the descriptions or representations of the possible or hypothetical situations or events that may cause or result in a risk for the organization, without specifying the details or characteristics of the risk source, event, cause, or impact. A list of identified generic risk scenarios can provide useful information on the types or categories of the risks that may affect the organization, but it is not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because it does not indicate the level and priority of the risks, and the potential consequences or impacts that they may cause for the organization. References =

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

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 188

CRISC Practice Quiz and Exam Prep

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

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

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

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

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

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

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

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

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

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

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

CRISC Practice Quiz and Exam Prep

Compensating controls are additional or alternative controls that are implemented when the existing controls are found to be ineffective or do not meet the required standards. Compensating controls are designed to reduce the risk exposure to an acceptable level and ensure that the organization can still comply with the relevant regulations and industry best practices. For an organization that processes credit cards, compensating controls may include enhanced encryption, monitoring, auditing, or authentication mechanisms. By having compensating controls in place, the organization can maintain an effective overall control environment despitethe deficiencies in the existing controls. The other options are not correct because they do not ensure that the overall control environment is effective. A control mitigation plan is a document that outlines the actions and resources needed to address the control deficiencies, but it does not guarantee that the compensating controls will be implemented or effective. Risk management is a process that involves identifying, analyzing, evaluating, and treating risks, but it does not directly affect the control environment. Residual risk is the risk that remains after the risk treatment, and it may or may not be acceptable depending on the risk appetite of the organization. References = CRISC Review Manual, pages 153-1541; CRISC Review Questions, Answers & Explanations Manual, page 632

Global standards related to risk management are documents that provide the principles, guidelines, and best practices for managing risk in a consistent, effective, and efficient manner across different organizations, sectors, and regions12.

The primary reason for a risk practitioner to use global standards related to risk management is to continuously improve risk management processes, which are the activities and tasks that enable the organization to identify, analyze, evaluate, treat, monitor, and communicate the risks that may affect its objectives, performance, and value creation34.

Continuously improving risk management processes is the primary reason because it helps the organization to enhance its risk management capabilities and maturity, and to adapt to the changing risk environment and stakeholder expectations34.

Continuously improving risk management processes is also the primary reason because it supports the achievement of the organization’s goals and the delivery of value to the stakeholders, which are the ultimate purpose and outcome of risk management34.

The other options are not the primary reason, but rather possible benefits or objectives that may result from using global standards related to risk management. For example:

Building an organizational risk-aware culture is a benefit of using global standards related to risk management that involves creating and maintaining a shared understanding, attitude, and behavior towards risk among the organization’s employees and leaders, and fostering a culture of accountability, transparency, and learning34. However, this benefit is not the primary reason because it is an enabler and a consequence of continuously improving risk management processes, rather than a driver or a goal34.

Complying with legal and regulatory requirements is an objective of using global standards related to risk management that involves meeting and exceeding the expectations and obligations of the external authorities or bodies that govern or oversee the organization’s activities and operations, such as laws, regulations, standards, or contracts34. However, thisobjective is not theprimary reason because it is a constraint and a challenge of continuously improving risk management processes, rather than a motivation or a benefit34.

Identifying gaps in risk management practices is an objective of using global standards related to risk management that involves assessing and comparing the current and desiredstate of the organization’s risk management processes, and identifying the areas or aspects that need to be improved or addressed34. However, this objective is not the primary reason because it is a step and a tool of continuously improving risk management processes, rather than a reason or a result34. References =

1: ISO - ISO 31000 — Risk management1

2: Risk Management Standards2

3: Risk IT Framework, ISACA, 2009

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

A baseline assessment is the first step in assessing the maturity of an organization’s internal control environment. A baseline assessment is a comprehensive evaluation of the current state of the internal control structure, processes, and activities across the organization. A baseline assessment helps to identify the strengths and weaknesses of the existing internal controls, as well as the gaps and opportunities for improvement. A baseline assessment also provides a reference point for measuring the progress and effectiveness of the internal control improvement initiatives. The other options are not the first steps in assessing the maturity of an internal control environment, although they may be part of the subsequent steps. Validating control process execution is a technique to verify that the internal control activities are performed as designed and intended. Determining if controls are effective is a process to evaluate the adequacy and efficiency of the internal controls in achieving the desired outcomes and mitigating the risks. Identifying key process owners is a task to assign the roles and responsibilities for the internal control design, implementation, and monitoring to the appropriate individuals or groups within theorganization. References = CRISC Review Manual, pages 153-1541; CRISC Review Questions, Answers & Explanations Manual, page 742

The primary reason to perform ongoing risk assessments is that the risk environment is subject to change. The risk environment is the external and internal factors that influence the level and nature of the risks that the organization faces1. These factors include economic, political, social, technological, legal,and environmental aspects, as well as the organization’s objectives, strategies, culture, and resources2. The risk environment is dynamic and unpredictable, and may change due to various events, trends, ordevelopments that create new or modify existing risks3. Therefore, it is important to perform ongoing risk assessments to identify, analyze, and evaluate the changes in the risk environment, and to adjust the risk response and management accordingly. Ongoing risk assessments help to ensure that the organization’s risk profile is up to date and reflects the current reality, and that the organization’s risk appetite and tolerance are aligned with the changing risk environment4. The other options are not the primary reason to perform ongoing risk assessments, as they are either less comprehensive or less relevant than the changing risk environment. Emerging risk must be continuously reported to management. This option is a consequence or outcome of performing ongoing risk assessments, not a reason for doing so. Emerging risk is a new or evolving risk that has the potential to affect the organization’s objectives, operations, or performance5. Ongoing risk assessments can help to identify and monitor emerging risks, and to report them to management for decision making and action. However, this is not the main reason for performing ongoing risk assessments, as it does not cover the existing or modified risks that may also change due to the risk environment. New system vulnerabilities emerge at frequent intervals. This option is a specific or narrow example of a changing risk environment, not a general or broad reason for performing ongoing risk assessments. System vulnerabilities are weaknesses or flaws in the design, implementation, or operation of information systems that can be exploited by threats to cause harm or loss6. Ongoing risk assessments can help to discover and assess new system vulnerabilities that may emerge due to technological changes, cyberattacks, or human errors. However, this is not the primary reason for performing ongoing risk assessments, as it does not encompass the other types or sources of risks that may also change due to the risk environment. The information security budget must be justified. This option is a secondary or incidental benefit of performing ongoing risk assessments, not a primary or essential reason for doing so. The information security budget is the amount of money that the organization allocates for implementing and maintaining information security measures and controls7. Ongoing risk assessments can help tojustify the information security budget by demonstrating the value and effectiveness of the security measures and controls in reducing the risks, and by identifying the gaps or needs for additional or improved security measures and controls. However, this is not the main reason for performing ongoing risk assessments, as it does not address the purpose or objective of risk assessment, which is to identify, analyze, and evaluate the risks and their impact on the organization. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.1, Page 47.

 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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

A decision tree is a technique that can be used during a risk assessment to demonstrate to stakeholders that all known alternatives were evaluated. A decision tree is a graphical tool that shows the possible outcomes and consequences of different choices or actions in a sequential and hierarchical manner. A decision tree can help to compare and contrast the alternatives based on their expected values, costs, benefits, and risks, as well as to identify the optimal or preferred alternative that maximizes the value or minimizes the risk. A decision tree can also help to communicate and explain the rationale and assumptions behind the decision-making process to the stakeholders. The other options are not the best techniques to demonstrate to stakeholders that all known alternatives were evaluated, although they may be useful and complementary. A control chart is a technique that monitors the performance and quality of a process or activity over time by plotting the data points and the control limits. A control chart can help to detect and analyze the variations or deviations from the expected or desired results, as well as to identify and correct the causes or sources of the variations. A sensitivity analysis is a technique that measures the impact ofchanges in one or more variables or parameters on the outcome or result of a model or a system. A sensitivity analysis can help to assess the uncertainty or variability of the outcome or result, as well as to determine the most influential or critical variables or parameters that affect the outcome or result. A trend analysis is a technique that examines the patterns or movements of data or information over time by using statistical or graphical methods. A trend analysis can help to forecast or predict the future behavior or direction of the data or information, as well as to identify and explain the factors or drivers that influence the data or information. References = CRISC Review Manual, pages 38-391; CRISC Review Questions, Answers &Explanations Manual, page 922; Risk Assessment and Analysis Methods: Qualitative and Quantitative - ISACA3; Risk Assessment: Process, Examples, & Tools | SafetyCulture4

The business process owner should be the risk owner for the risk exposure due to weak technical controls in a newly implemented HR system, because they are responsible for the performance and outcomes of the HR business process, and they understand the business requirements, expectations, and impact of the HR system. The business process owner can also evaluate the trade-offs between the potential benefits and costs of the HR system, and the potential risks and consequences of a failure or breach of the system. The business process owner can also communicate and justify their risk acceptance or mitigation decision to the senior management and other stakeholders, and ensure that the risk is monitored and reviewed regularly. The other options are less appropriate to be the risk owner for this risk exposure. The chief risk officer is responsible for overseeing the enterprise-wide risk management framework and process, which includesensuring the identification, assessment, and reporting of risks. However, they are not the owner of the HR system or the HR business process, and they may not have the full knowledge or authority to accept or mitigate the risk on behalf of the business. The project manager is responsible for managing the implementation of the HR system, which includes ensuring the delivery of the system within the scope, time, and budget constraints. However, they are not the owner of the HR system or the HR business process, and they may not have the full knowledge or authority to accept or mitigate the risk on behalf of the business. The chief information officer is responsible for managing the IT function and resources, which includes providing the technical support and security for the HR system. However, they are not the owner of the HRsystem or the HR business process, and they may not have the full knowledge or authority to accept or mitigate the risk on behalf of the business. References = Getting risk ownership right 1

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 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.

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

Detailed Explanation: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.

Detailed Explanation:When prioritizing risk treatment plans under budget constraints, the focus should be onresidual risk relative to appetite and tolerance. This ensures that resources are allocated to risks that exceed the organization’s risk appetite, aligning treatment efforts with strategic objectives and minimizing critical exposure.

 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

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

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

According to the CRISC Review Manual (Digital Version), threat analysis would be the most helpful when estimating the likelihood of negative events, as it involves identifying and evaluating the sources and causes of potential harm or loss to the IT assets and processes. Threat analysis helps to:

Determine the frequency and probability of occurrence of different types of threats, such as natural disasters, human errors, malicious attacks, system failures, etc.

Assess the impact and severity of the threats on the confidentiality, integrity and availability of the IT assets and processes

Prioritize the threats based on their likelihood and impact

Develop appropriate risk response strategies to prevent, mitigate, transfer or accept the threats

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.5: IT Risk Identification Methods and Techniques, pp. 35-361

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 technical vulnerability is a weakness or flaw in the design or implementation of an information system or resource that can be exploited or compromised by a threat or source of harm that may affect the organization’s objectives or operations. A technical vulnerability may be caused byvarious factors, such as human error, system failure, process inefficiency, resource limitation, etc.

A vulnerability assessment is a process of identifying and evaluating the technical vulnerabilities that exist or may arise in the organization’s information systems or resources, and determining their severity and impact. A vulnerability assessment can help the organization to assess and prioritize the risks, and to design and implement appropriate controls or countermeasures to mitigate or prevent the risks.

The best response to the scenario of a recently discovered technical vulnerability being actively exploited is to conduct a vulnerability assessment, because it can help the organization to address the following questions:

What is the nature and extent of the technical vulnerability, and how does it affect the functionality or security of the information system or resource?

How is the technical vulnerability being exploited or compromised, and by whom or what?

What are the potential consequences or impacts of the exploitation or compromise of the technical vulnerability for the organization and its stakeholders?

How can the technical vulnerability be detected and reported, and what are the available or feasible options or solutions to address or correct it?

Conducting a vulnerability assessment can help the organization to improve and optimize the information system or resource quality and performance, and to reduce or eliminate the technical vulnerability. It can also help the organization to align the information system or resource with the organization’s objectives and requirements, and to comply with the organization’s policies and standards.

The other options are not the best responses to the scenario of a recently discovered technical vulnerability being actively exploited, because they do not address the main purpose and benefit of conducting a vulnerability assessment, which is to identify and evaluate the technical vulnerability, and to determine its severity and impact.

Assessing the vulnerability management process is a process of evaluating and verifying the adequacy and effectiveness of the process that is used to identify, analyze, evaluate, and communicate the technical vulnerabilities, and to align them with the organization’s objectives and requirements. Assessing the vulnerability management process can help the organization to improve and optimize the process, and to reduce or eliminate the gaps or weaknesses in the process, but it is not the best response to the scenario, because it does not indicate the nature and extent of the technical vulnerability, and how it affects the organization and its stakeholders.

Conducting a control self-assessment is a process of evaluating and verifying the adequacy and effectiveness of the controls that are intended to ensure the confidentiality, integrity, availability, and reliability of the information systems and resources, using the input and feedback from the individuals or groups that are involved or responsible for the information systems activities or functions. Conducting a control self-assessment can help the organization to identify and document the control deficiencies, and to align them with the organization’s objectives and requirements, but it is not the best response to the scenario, because it does not indicate thenature and extent of the technical vulnerability, and how it affects the organization and its stakeholders.

Reassessing the inherent risk of the target is a process of reevaluating and recalculating the amount and type of risk that exists in the absence of any controls, and that is inherent to the nature or characteristics of the target, which is the information system or resource that is affected by the technical vulnerability. Reassessing the inherent risk of the target can help the organization to understand and document the risk exposure or level, and to align it with the organization’s risk appetite and tolerance, but it is not the best response to the scenario, because it does not indicate the nature and extent of the technical vulnerability, and how it affects the organization and its stakeholders. References =

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

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 195

CRISC Practice Quiz and Exam Prep

 According to the CRISC Review Manual (Digital Version), an effective control environment is best indicated by controls that manage risk within the organization’s risk appetite, as this reflects the alignment of thecontrol objectives and activities with the organization’s strategic goals and risk preferences. The risk appetite is the amount and type of risk that the organization is willing to accept in pursuit of its objectives. Managing risk within the organization’s risk appetite helps to:

Balance the potential benefits and costs of risk-taking and risk response

Optimize the use of the organization’s resources and capabilities

Enhance the value and performance of the organization

Foster a risk-aware culture that supports the organization’s vision and mission

References = CRISC Review Manual (Digital Version), Chapter 2: IT Risk Assessment, Section 2.3: IT Risk Assessment Process, pp. 93-941

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

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

 A control self-assessment (CSA) is a technique that allows managers and work teams directly involved in business units, functions, or processes to participate in assessing the organization’s risk management and control processes. The main purpose of conducting a CSA is to gain a better understanding of the control effectiveness in the organization, which means how well the controls are designed, implemented, and operated to achieve the desired outcomes and mitigate the risks. A CSA can help to identify the strengths and weaknesses of the existing controls, as well as the gaps and opportunities for improvement. A CSA can also help to enhance the awareness, ownership, and accountability of the control environment among the managers and staff. The other options are not the main purpose of conducting a CSA, although they may be related or beneficial. Gaining a better understanding of the risk in the organization is a result of conducting a CSA, but it is not the primary goal. The primary goal is to evaluate the controls that address the risks, not the risks themselves. Adjusting the controls prior to an external audit is a possible action that may follow a CSA, but it is not the reason for conducting a CSA. The reasonfor conducting a CSA is to improve the control effectiveness, not to prepare for an audit. Reducing the dependency on external audits is a potential benefit of conducting a CSA, but it is not the objective of conducting a CSA. The objective of conducting a CSA is to enhance the internal control assurance, not to replace the external audit assurance. References = CRISC Review Manual, pages 153-1541; CRISC Review Questions, Answers & Explanations Manual, page 802

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

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

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

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

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

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

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

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

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

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

CRISC Practice Quiz and Exam Prep

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

A risk profile is a summary or representation of the organization’s exposure or level of risk, based on the results of the risk assessment and evaluation. A risk profile can show the distribution and comparison of the risks based on various criteria, such as likelihood, impact, category, source, etc. A risk profile can also indicate the organization’s risk appetite and tolerance, and the gaps or opportunities for improvement.

The primary benefit of maintaining an up-to-date risk register is that it helps to build a risk profile for management review, because it provides the data and information that are necessary and relevant for creating and updating the risk profile, and for communicating and reporting the risk profile to the management. Maintaining an up-to-date risk register can help to build a risk profile for management review by providing the following benefits:

It can ensure that the risk profile reflects the current and accurate state and performance of the organization’s risk management function, and that it covers all the relevant and significant risks that may affect the organization’s objectives and operations.

It can provide useful references and benchmarks for the identification, analysis, evaluation, and communication of the risks and their responses, and for the alignment and integration of the risks and their responses with the organization’s strategy and culture.

It can support the decision making and planning for the risk management function, and for the allocation and optimization of the resources, time, and budget for the risk management function.

The other options are not the primary benefits of maintaining an up-to-date risk register, because they do not address the main purpose and benefit of building a risk profile for management review, which is to summarize and represent the organization’s exposure or level of risk, and to communicate and report it to the management.

Implementing uniform controls for common risk scenarios means applying and enforcing the same or similar controls or countermeasures for the risks that have the same or similar characteristics or features, such as source, cause, impact, etc. Implementing uniform controls for common risk scenarios can help to ensure the consistency and efficiency of the risk management function, but it is not the primary benefit of maintaining an up-to-date risk register, because it does not summarize or represent the organization’s exposure or level of risk, and it may not be relevant or appropriate for the organization’s objectives and needs.

Ensuring business unit risk is uniformly distributed means ensuring that the risks that are associated with the different business units or divisions of the organization are balanced or equalized, and that they do not exceed or fall below the organization’s risk appetite and tolerance. Ensuring business unit risk is uniformly distributed can help to optimize the performance and profitability of the organization, but it is not the primary benefit of maintaining an up-to-date risk register, because it does not summarize or represent the organization’s exposure or level of risk, and it may not be feasible or realistic for the organization.

Quantifying the organization’s risk appetite means measuring and expressing the amount and type of risk that the organization is willing and able to accept or take, in pursuit of its objectives and goals. Quantifying the organization’s risk appetite can help to establish and communicate the boundaries and expectations for the organization’s risk management function, but it is not the primary benefit of maintaining an up-to-date risk register, because it does not summarize or represent the organization’s exposure or level of risk, and it may not be consistent or compatible with the organization’s strategy and culture. References =

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

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 201

CRISC Practice Quiz and Exam Prep

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

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

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

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

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

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

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

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.

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

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

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

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

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

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

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

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

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

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

1: IT Risk Scenarios - Morland-Austin3

2: Risk Scenarios Toolkit, ISACA, 2019

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

4: Risk Register Examples for Cybersecurity Leaders4

5: Risk IT Framework, ISACA, 2009

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

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

8: Security Incident Reporting and Response, ISACA, 2019

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

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

The Control Process | Principles of Management2

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

According to the CRISC Review Manual (Digital Version), the next course of action when there is a gap between the acceptable downtime and the actual recovery time of an application is to prepare a cost-benefit analysis of alternatives available to reduce the gap. The cost-benefit analysis should compare the costs of implementing different risk response options, such as avoidance, mitigation, transfer or acceptance, with the benefits of reducing the impact and likelihood of the risk. The cost-benefit analysis should also consider the alignment of the risk response options with the enterprise’s risk appetite, business objectives and strategy. The cost-benefit analysis should help the application owner and the risk owner to select the most appropriate risk response option that optimizes the value of the application and minimizes the residual risk.

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.2: Risk Response Process, pp. 162-1631

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

CRISC Practice Quiz and Exam Prep

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

CRISC Practice Quiz and Exam Prep

 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

A data loss prevention (DLP) control is a technology that tries to detect and stop sensitive data breaches, or data leakage incidents, in an organization. A DLP control is used to prevent sensitive data, such as credit card numbers, from being disclosed to an unauthorized person, whether it is deliberate or accidental1. The best way to help ensure the effectiveness of a DLP control that has been implemented to prevent the loss of credit card data is to test the transmission of credit card numbers. This is a technique to verify that the DLP control can successfully identify and block the credit card data when it is sent or received through various channels, such as email, messaging, or file transfers. Testing the transmission of credit card numbers can help to evaluate the accuracy and reliability of the DLP control, as well as to identify and correct any false positives or false negatives. The other options are not the best ways to help ensure the effectiveness of a DLP control that has been implemented to prevent the loss of credit card data, although they may be helpful and complementary. Reviewing logs for unauthorized data transfers is a technique to monitor and analyze the DLP control activities and incidents, such as who, what, when, where, and how the data was transferred. However, reviewing logs is a reactive and passive approach, while testing the transmission is a proactive and active approach. Configuring the DLP control to block credit card numbers is a technique to set up the DLP control rules and policies, such as defining the data patterns, the detection methods, and the response actions. However, configuring the DLP control is a prerequisite and a preparation step, while testing the transmission is a validation and a verification step. Testing the DLP rule change control process is a technique to ensure that the DLP control rules and policies are updated and maintained in a controlled and coordinated manner, such as obtaining approval, documenting the changes, testing the changes, and communicating the changes. However, testing the DLP rule change control process is a quality and governance step, while testing the transmission is a performance and functionality step. References = What is Data Loss Prevention (DLP)? | Digital Guardian1; CRISC Review Manual, pages 164-1652; CRISC Review Questions, Answers & Explanations Manual, page 833

A key risk indicator (KRI) is a metric that measures the level and trend of a risk that may affect the organization’s objectives, operations, or performance1. A KRI threshold is a predefined value or range that indicates the acceptable or tolerable level of risk for the organization2. Theorganization’s risk appetite is the amount and type of risk that it is willing to take in order to meet its strategic goals3. Therefore, the most likely reason for senior management’s response is that the KRI threshold needs to be revised to better align with the organization’s risk appetite. This means that the current threshold is either too low or too high, resulting in false alarms or missed signals. By adjusting the threshold to reflect the organization’s risk appetite, senior management can ensure that the KRI provides relevant and actionable information for risk management and decision making. The other options are not the most likely reasons for senior management’s response, as they imply that the KRI is faulty, irrelevant, or misunderstood. The underlying data source for the KRI is using inaccurate data and needs to be corrected. This option assumes that the KRI is based on erroneous or unreliable data, which would affect its validity and reliability. However, this is not the most likely reason, as senior management would be expected to verify the data quality and accuracy before using the KRI for risk monitoring and reporting. The KRI is not providing useful information and should be removed from the KRI inventory. This option assumes that the KRI is not aligned with the organization’s objectives, strategies, or risk profile, which would affect its usefulness and value. However, this is not the most likely reason, as senior management would be expected to review and update the KRI inventory periodically to ensure that the KRIs are relevant and meaningful for risk management. Senior management does not understand the KRI and should undergo risk training. This option assumes that senior management lacks the knowledge or skills to interpret and use the KRI for risk management, which would affect their competence and confidence. However, this is not the most likely reason, as senior management would be expected to have sufficient risk awareness and education to understand and apply the KRI for risk management. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.4, Page 53.

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

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

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

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

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

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

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

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

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

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

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

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

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

Documenting user IDs and passwords in procedure manuals is a vulnerability that exposes the organization to unauthorized access, data breaches, and other security risks. A vulnerability is a weakness or flaw in a system, process, or control that can be exploited by a threat. A threat is a potential cause of an unwanted incident that may harm the system or organization. A risk is the combination of the likelihood and impact of a threat exploiting a vulnerability. A policy violation is an act of non-compliance with a rule or standard that is established by the organization. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 67.

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

The 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.

The greatest concern for a risk practitioner with the use of a vulnerability scanning tool is the inaccurate reporting of results. A vulnerability scanning tool is a software that scans the network or system for known vulnerabilities and generates a report of the findings. However, the tool may produce false positives (reporting vulnerabilities that do not exist) or false negatives (missing vulnerabilities that do exist). This can lead to incorrect risk assessment, ineffective risk response, and wasted resources. Increased time to remediate vulnerabilities, increased number of vulnerabilities, and network performance degradation are other possible concerns, but they are not as critical as the inaccurate reporting of results. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 7; CRISC Review Manual, 6th Edition, page 202.

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

The 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 that describes 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.

Granting remote access to a system containing sensitive data to an overseas third party poses various risks to the organization, such as data breaches, unauthorized access, data loss, compliance violations, or reputational damage. The greatest concern to management when granting remote access to a third party is the lack of monitoring over vendor activities, meaning that the organization may not be able to control or verify how the third party is accessing, using, storing, or transferring the sensitive data. The lack of monitoring over vendor activities can increase the risk exposure and uncertainty of the organization, as well as reduce the accountability and transparency of the third party. Therefore, the organization should implement appropriate measures to monitor and audit the vendor activities, such as logging, reporting, reviewing, or testing, and to ensure that the vendor complies with the contractual obligations and the security policies and standards of the organization. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2.1, p. 243-244

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 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.

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

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

The most important factor to the effectiveness of key performance indicators (KPIs) is relevance. KPIs are metrics that measure the achievement of the objectives or the performance of the processes. Relevance means that the KPIs are aligned with and support the strategic goals and priorities of the organization, and that they reflect the current and desired state of the outcomes or outputs. Relevance also means that the KPIs are meaningful and useful for the decision makers and stakeholders, and that they provide clear and actionable information for improvement or optimization. The other options are not as important as relevance, as they are related to the approval, review, or automation of the KPIs, not the quality or value of the KPIs. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Key Performance Indicators, page 183.

The most effective way to help ensure accountability for managing risk is to assign process owners to key risk areas. Process owners are the persons or entities that have the authority andresponsibility to manage a specific process or a group of related processes. Process owners help to identify, assess, and respond to the risks associated with the process, and to monitor and report on the process performance and improvement. Process owners also help to communicate and coordinate the process management activities with the relevant stakeholders, such as the board, management, business units, and IT functions. Assigning process owners to key risk areas helps to ensure accountability for managing risk, because it helps to define and clarify the roles and responsibilities of the process owners, and to establish and enforce the expectations and standards for the process owners. Assigning process owners to key risk areas also helps to measure and evaluate the effectiveness and efficiency of the process owners, and to identify and address any issues or gaps in the process management activities. The other options are not as effective as assigning process owners to key risk areas, although they may be related to the risk management process. Obtaining independent risk assessments, assigning incident response action plan responsibilities, and creating accurate process narratives are all activities that can help to support or improve the risk management process, but they do not necessarily ensure accountability for managing risk. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 2-11.

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

The greatest challenge to managing an organization’s end-user devices is having an incomplete end-user device inventory. An end-user device inventory is a document that records and tracks all the devices that are owned, used, or managed by the organization’s end-users, such as laptops, tablets, smartphones, etc. An end-user device inventory helps to identify and classify the devices based on their type, model, location, owner, status, etc. An end-user device inventory also helps to monitor and control the devices, such as enforcing security policies, applying patches and updates, detecting and resolving issues, etc. Having an incomplete end-user device inventory could lead to a lack of visibility and accountability for the devices, which could increase the risk of data loss, theft, or compromise, as well as the cost and complexity of device management. The other options are not as challenging as having an incomplete end-user device inventory, although they may also pose some difficulties or limitations for the device management. Unsupported end-user applications, incompatible end-user devices, and multiple end-user device models are all factors that could affect the functionality and compatibility of the devices, but they do not necessarily affect the visibility and accountability of the devices. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.

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.

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

 The best method of creating risk awareness in an organization is to ensure senior management commitment to risk training. Senior management plays a vital role in setting the tone and direction of the risk culture and governance in the organization. By demonstrating their support and participation in risk training, they can influence and motivate the employees to follow the risk policies and procedures, and to enhance their risk knowledge and skills. Marking the risk register available to project stakeholders, providing regular communication to risk managers, and appointing the risk manager from the business units are other methods of creating risk awareness, but they are not as effective as ensuring senior management commitment to risk training. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

Key risk indicators (KRIs) are metrics that provide an early warning of increasing risk exposure in various areas of the organization. They help to monitor changes in the level of risk and enable timely actions to mitigate the risk. The most useful information for developing KRIs is the possible causes of materialized risk, which are the factors or events that trigger or contribute to the occurrence of a risk. By identifying the possible causes of materialized risk, an organization can design KRIs that measure the likelihood and impact of the risk, and alert the management when the risk exceeds the acceptable level. References = CRISC Review Manual, 7th Edition, page 101.

The greatest concern for an IT risk practitioner when an employee transfers to another department is that unnecessary access permissions have not been removed. Unnecessary access permissions are the access rights or privileges that are no longer needed, relevant, or appropriate for the employee’s new role or responsibility. If these access permissions are not removed, they may pose a significant security risk, as the employee may be able to access, modify, or delete sensitive or critical data and systems that are not related to their current function. This may result in data leakage, fraud, sabotage, or compliance violations. The other options are not as concerning as unnecessary access permissions, as they are related to the organizational, operational, or knowledge aspects of the employee transfer, not the security or risk aspects of the employee transfer. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

The most important information to review when developing plans for using emerging technologies is the organizational strategic plan. The organizational strategic plan is a document that defines the vision, mission, goals, and objectives of the organization. It also outlines the strategies, actions, and resources that are needed to achieve them. The organizational strategic plan provides the direction, alignment, and guidance for the use of emerging technologies, and ensures that they are aligned with and support the organizational needs and priorities. The other options are not as important as the organizational strategic plan, as they are related to the current state, specific area, or potential issues of the use of emerging technologies, not the overall purpose and value of the use of emerging technologies. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.2: IT Risk Identification Methods, page 19.

The board of directors’ response to identified risk factors is the best indicator of the risk appetite of an organization. The board of directors is the highest governing body of the organization, and it is responsible for setting the strategic direction, objectives, and risk appetite of the organization. The board of directors should also oversee the risk management process, and ensure that the risks are aligned with the organization’s goals and values. The board of directors’ response to identified risk factors reflects how much and what type of risk the organization is willing to pursue, retain, or take in order to achieve its objectives. The regulatory environment, the risk management capability, and the importance assigned to IT are not direct indicators of the risk appetite, although they may influence or constrain it. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.1, page 1-8.

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.

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

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

The best way to determine whether system settings are in alignment with control baselines is to perform configuration validation. Configuration validation is the process of verifying that the system settings and parameters are consistent with the predefined standards and requirements, and that they reflect the current and desired state of the system. Configuration validation helps to ensure that the system is configured correctly and securely, and that it complies with the relevant policies, regulations, and bestpractices. Configuration validation also helps to identify and correct any deviations or errors in the system settings, and to prevent or mitigate any potential risks or issues. The other options are not as effective as configuration validation, although they may provide some input or information for the system alignment. Control attestation, penetration testing, and internal audit review are all activities that can help to assess or evaluate the system alignment, but they do not necessarily determine or validate the system settings. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.

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

The best indication that key risk indicators (KRIs) should be revised is a decrease in the number of critical assets covered by risk thresholds. KRIs are metrics that provide information on the level of exposure to a given risk. Risk thresholds are the predefined values or ranges that indicate the acceptable or unacceptable level of risk exposure. Critical assets are the assets that are essential or vital for the achievement of the objectives or the continuity of the operations. A decrease in the number of critical assets covered by risk thresholds means that the KRIs are not capturing or reflecting the current and relevant risk exposure of the organization, and that they may not provide sufficient or accurate information for risk management decisions. Therefore, the KRIs should be revised to ensure that they cover all the critical assets and their risk thresholds.The other options are not as indicative as a decrease in the number of critical assets covered by risk thresholds, as they are related to the outcomes, impacts, or activities of the KRIs, not thescope or quality of the KRIs. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Key Performance Indicators, page 183.

Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite is influenced by various factors, such as the organization’s mission, vision, values, culture, stakeholders, resources, capabilities, etc. However, the factor that has the greatest influence on the organization’s risk appetite is the business objectives and strategies, which are the desired outcomes and the plans to achieve them. The business objectives and strategies define the direction and scope of the organization, and the risk appetite reflects the level of risk that the organization is prepared to take to accomplish them. The risk appetite should be aligned with the business objectives and strategies, andshould provide guidance for the risk management activities and decisions. References = CRISC Review Manual, 7th Edition, page 61.

 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 are not 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.

When performing a risk assessment of a new service to support a core business process, the first step is to identify the conditions that may cause disruptions to the service or the process. This involves identifying the sources and causes of potential risk events, such as natural disasters, cyberattacks, human errors, equipment failures, power outages, etc. that may affect the availability, integrity, or confidentiality of the service or the process. By identifying the conditions that may cause disruptions, the risk practitioner can then analyze the probability and impact of the risk events, evaluate the risk exposure, and determine theappropriate risk responses to ensure the continuity of operations. References = CRISC Review Manual, 7th Edition, page 66.

The greatest concern when establishing key risk indicators (KRIs) is using ineffective methods to assess risk. KRIs are metrics that measure the likelihood and impact of risks, and help monitor and prioritize the most critical risks. To establish effective KRIs, the risk assessment methods should be reliable, valid, consistent, and timely. Ineffective methods to assess risk could lead to inaccurate or misleading KRIs, which could result in poor risk management decisions and outcomes. The other options are not as significant as using ineffective methods to assess risk, although they may also affect the quality and usefulness of KRIs. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.1, page 4-36.

The most important thing for mitigating ethical risk when establishing accountability for control ownership is to ensure that the performance metrics balance business goals with risk appetite. Performance metrics are the measures that evaluate the achievement of the objectives or the performance of the processes or controls. Business goals are the desired or expected outcomes or results of the business activities or processes. Risk appetite is the amount and type of risk that the organization is willing and able to take. Ethical risk is the risk that arises from the violation or breach of the ethical principles or standards of the organization or the profession. To mitigate ethical risk, the performance metrics should balance business goals with risk appetite, meaning that they should not encourage or reward excessive or inappropriate risk-taking or unethical behavior, but rather promote and support responsible and ethical risk management and decision making. The other options are not as important as ensuring performance metrics balance business goals with risk appetite, as they are related to the documentation, communication, or monitoring of the processes or controls, not the evaluation or alignment of the performance metrics. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Key Performance Indicators, page 183.

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

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 step when developing risk scenarios using a list of generic scenarios based on industry best practices is to validate the generic risk scenarios for relevance. The generic risk scenarios may not be applicable or suitable for the specific context, objectives, and environment of the organization. Therefore, the risk practitioner should validate the relevance of the generic risk scenarios by comparing them with the organization’s risk profile, risk appetite, and risk criteria. Assessing generic risk scenarios with business users, selecting the maximum possible risk scenarios from the list, and identifying common threats causing generic risk scenarios are other steps that may be useful, but they are not as important as validating the relevance of the generic risk scenarios. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

An 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.

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

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

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

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

The best way to mitigate the security risk associated with the inappropriate use of enterprise applications on the BYOD devices is to implement BYOD mobile device management (MDM) controls. MDM controls are software tools or services that allow the organization to remotely manage, monitor, and secure the BYOD devices and the enterprise applications and data on them. MDM controls can help to enforce security policies, restrict unauthorized access, encrypt sensitive data, wipe data in case of loss or theft, and update or patch applications. The other options are not as effective as implementing MDM controls, as they are related to the review, awareness, or recovery of the BYOD devices and applications, not the prevention or protection of the security risk. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

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

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

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

The greatest concern of maintaining independent departmental risk registers that are not automatically aggregated is that management may be unable to accurately evaluate the risk profile. The risk profile is the overall view of the risks that the organization faces and their impact on the organization’s objectives. It helps management to prioritize and allocate resources for risk management and to align the risk appetite and strategy. If the departmental risk registers are not aggregated, management may not have a complete and consistent picture of the risks across the organization. They may miss some important risks, overestimate or underestimate some risks, or have conflicting or redundant risk information. This may lead to poor risk management decisions and outcomes. The other options are also concerns, but they are not ascritical as the inability to evaluate the risk profile. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.2: IT Risk Analysis, page 63.

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

The next step for the risk practitioner when a key external technology supplier refuses to provide control design and effectiveness information is to review the supplier’s contractual obligations. The contract between the organization and the supplier should specify the terms and conditions for the provision of the service or function, including the requirements for control design and effectiveness information. By reviewing the contract, the risk practitioner can determine if the supplier is breaching the contract and take appropriate actions to enforce the contract or terminate the relationship. Escalating the non-cooperation to management, excluding applicable controls from the assessment, and requesting risk acceptance from the business process owner are other possible steps, but they are not as effective as reviewing the supplier’s contractual obligations. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

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

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

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.

 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.

The most important information to cover in a business continuity awareness training program for all employees of the organization is the communication plan. A communication plan is a document that defines the roles, responsibilities, procedures, and resources for communicating with the internal and external stakeholders before, during, and after a business continuity event. A communication plan helps to ensure that the relevant and accurate information is delivered to the appropriate parties in a timely and consistent manner, and that the feedback and responses are received and addressed accordingly. A communication plan also helps to maintain the trust, confidence, and reputation of the organization, and to comply with the legal or regulatory requirements. A communication plan is the most important information to cover in a business continuity awareness training program, because it helps to prepare and educate the employees on how to communicate effectively and efficiently in a business continuity event, and how to avoid or minimize the communication errors, gaps, or conflicts that could affect the business continuity performance and recovery. The other options are not as important as the communication plan, although they may also be covered in a business continuity awareness training program. Recovery time objectives (RTOs), segregation of duties, and critical asset inventory are all factors that could affect the business continuity planning and implementation, but they are not the most important information to cover in a business continuity awareness training program. References = 6

The best indicator of executive management’s support for IT risk mitigation efforts is the number of executives attending IT security awareness training. This shows that the executives are committed to enhancing their knowledge and skills on IT security issues, and that they are setting a positive example for the rest of the organization. The number of stakeholders involved in IT risk identification workshops, the percentage of corporate budget allocated to IT risk activities, and the percentage of incidents presented to the board are other possible indicators, but they are not as strong as the number of executives attending IT security awareness training. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 7; CRISC Review Manual, 6th Edition, page 202.

The management action that will most likely change the likelihood rating of a risk scenario related to remote network access is implementing multi-factor authentication. Multi-factor authentication is a technique that requires the user to provide two or more pieces of evidence to verify their identity, such as a password, a token, or a biometric factor. Multi-factor authentication can help to reduce the likelihood of unauthorized or malicious access to theremote network, as it adds an extra layer of security and makes it harder for the attackers to compromise the user credentials. The other options are not as likely to change the likelihood rating of the risk scenario, as they are related to the update, creation, or maintenance of the remote network access, not the verification or protection of the remote network access. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

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

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.

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

 A risk register is a tool that records and tracks the information about the identified risks, such as the risk description, category, owner, probability, impact, response strategy, status, and action plan. Reviewing the risk register is the best way to help an organization gain insight into its overall risk profile, which is the summary of the nature and level of risk that the organization faces. By reviewing the risk register, the organization can obtain a comprehensive and holistic view of the sources, causes, and consequences of the risks, their likelihood and impact, their interrelationships and dependencies, and their alignment with therisk appetite and tolerance. The risk register can also help the organization to prioritize the risks, allocate the resources, select the risk responses, monitor the risk performance, and evaluate the risk outcomes. References = CRISC Review Manual, 7th Edition, page 99.

 The control environment is the set of standards, processes, and structures that provide the basis for carrying out internal control across the organization. The control environment is most effective when the controls perform as intended, meaning that they achieve their objectives, mitigate the risks, and comply with the policies and regulations. The other options are desirable attributes of the controls, but they do not necessarily indicate the effectiveness of the control environment. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: IT Control Assessment, page 69.

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

If preventive controls cannot be implemented due to technology limitations, the first step to reduce risk is to evaluate alternative controls. Alternative controls are those that can achieve the same or similar objectives as the original preventive controls, but using different methods or technologies. For example, if a firewall cannot be installed due to hardware compatibility issues, an alternative control could be a network segmentation or a proxy server. Evaluating alternative controls requires assessing their feasibility, effectiveness, efficiency, and cost-benefit. Redefining the business process, developing a plan to upgrade technology, and defining a process for monitoring risk are also possible actions to reduce risk, but they are not the first step, and they may not be feasible or desirable in some situations. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.

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

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.

The conditional approval of the CIO’s proposal indicates the organization’s risk appetite. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. By setting a limit for expenditures before final approval, senior management is expressing their willingness to take a calculated risk with the new technology, but also their desire to control the potential loss or harm. Risk capacity, management capability, and treatment strategy are other possible factors, but they are not as relevant as risk appetite. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97

When assessing the potential risk exposure of a loss event involving personal data, the most important factor to determine is the composition and number of records in the information asset. The composition refers to the type and sensitivity of the personal data, such as name, address, phone number, email, social security number, health information, financial information, etc. The number of records refers to the quantity and scope of the personal data that is affected by the loss event. The composition and number of records in the information asset determine the severity and impact of the loss event, as they indicate the extent of the harm and damage that can be caused to the data subjects, the organization, and other stakeholders.The composition and number of records in the information asset also influence the cost of the incident response activities, the level of the regulatory fines, and the duration of the incident containment and recovery. References = CRISC Review Manual, 7th Edition, page 159.

The most important step to ensure regulatory requirements are adequately addressed within an organization is to develop a policy framework that addresses regulatory requirements. A policy framework is a set of principles, rules, and standards that guide the organization’s actions and decisions. By developing a policy framework that addresses regulatory requirements, the organization can establish a clear and consistent direction, expectation, and accountability for complying with the relevant laws and regulations. Obtaining necessary resources, performing a gap analysis, and employing IT solutions are other possible steps, but they are not as important as developing a policy framework. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.

 The best way to provide information to management about emergency changes that may not be approved is to use key risk indicators (KRIs). KRIs are metrics that measure the likelihood and impact of risks, and help monitor and prioritize the most critical risks. KRIs help to provide information to management about emergency changes, because they help to alert and inform management about the potential risks and consequences of the changes, and to support the risk decision-making and reporting processes. KRIs also help to provide information to management about emergency changes, because they help to track and evaluate the effectiveness and performance of the changes, and to identify and address any issues or gaps that may arise from the changes. The other options are not the best way to provide information to management about emergency changes, although they may be part of or derived from the KRIs. Change logs, change management meeting minutes, and key control indicators (KCIs) are all examples of documentation or communication tools, which may help to record or report the details and status of the changes, but they do not necessarily measure or monitor the risks and outcomes of the changes. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.5.1, page 4-38.

The situation that presents the greatest challenge to creating a comprehensive IT risk profile of an organization is having inaccurate documentation of enterprise architecture (EA). EA is the blueprint that describes the structure and operation of an organization, including its business processes, information systems, technology infrastructure, and governance. EA helps to align the IT strategy and objectives with the business strategy and objectives, and to identify and manage the IT risks and opportunities. Having inaccurate documentation of EA could lead to incomplete, inconsistent, or misleading information about the organization’s IT environment, which could affect the quality and reliability of the IT risk profile. The other situations are not as challenging as having inaccurate documentation of EA, although they may also pose some difficulties or limitations for the IT risk profile. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 2-12.

 The primary reason to report the information about the new risk scenarios identified after the implementation of Internet of Things (IoT) devices to risk owners is to confirm the impact to the risk profile. The risk profile is a summary of the level and nature of the risks that the organization faces or may face in the future. The risk profile reflects the risk appetite, tolerance, and capacity of the organization, and guides the risk management decisions and actions. The implementation of IoT devices may introduce new risks or increase the likelihood or impact of existing risks, such as data privacy, security, or interoperability issues. Therefore, the information about the new risk scenarios should be reported to the risk owners, who have the authority and responsibility for managing the risks and their responses, to confirm the impact to the risk profile and to determine the appropriate risk treatment plans. The other options are not as primary as confirming the impact to the risk profile, as they are related to the reevaluation, mitigation, or recommendation of the IoT devices, not the confirmation or assessment of the risk profile. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.2: IT Risk Register, page 19.

The most useful information for a risk practitioner when planning response activities after risk identification is the risk priorities. Risk priorities are the order or ranking of the risks based on their level of importance or urgency. Risk priorities help the risk practitioner to focus on the most critical risks, and allocate the resources and efforts accordingly. Risk priorities are usually determined by using a combination of factors, such as the likelihood and impact of the risks, the risk appetite and tolerance of the organization, and the cost and benefit of the risk responses. Theother options are not as useful as the risk priorities, although they may provide some input or context for the risk response planning. The risk register is the document that records the details of all identified risks, but it does not necessarily indicate the risk priorities. The risk appetite is the amount and type of risk that the organization is willing to pursue, retain, or take, but it does not specify the risk priorities. The risk heat maps are graphical tools that display the risk level of each risk based on the likelihood and impact, but they do not show the risk priorities. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.

The first step for the risk practitioner to address the situation of extended network outages that have exceeded tolerance is to recommend a root cause analysis of the incidents. A root cause analysis is a process of identifying and resolving the underlying causes of a problem or an event. By performing a root cause analysis, the risk practitioner can determine why the network outages occurred, what factors contributed to them, and how they can be prevented or reduced in the future. Recommending additional controls, updating the risk tolerance level, and updating the incident-related risk trend are possible steps that may follow the root cause analysis, but they are not the first step. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.

Open communication of risk reporting is the most important factor for promoting a risk-aware culture, because it fosters trust, transparency, and accountability among all stakeholders. It also enables timely and informed decision-making, feedback, and learning from risk events. Regular testing of risk controls, communication of audit findings, and procedures for security monitoring are all important aspects of risk management, but they do not necessarily create a risk-aware culture, which requires a shared understanding and commitment to risk management across the organization. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.2, page 1-9.

The internal auditor is the best suited to provide objective input when updating residual risk to reflect the results of control effectiveness. The internal auditor is an independent and impartial function that evaluates the adequacy and effectiveness of the internal controls and reports on the findings and recommendations. The internal auditor can provide an unbiased and reliable assessment of the residual risk, which is the risk that remains after the controls are applied. The other options are not as objective as the internal auditor, as they may have vested interests or conflicts of interest in the control environment. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.

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.

 The best way to facilitate the implementation of data classification requirements is to assign a data owner. A data owner is a person who has the authority and responsibility for defining, classifying, and protecting the data. A data owner can help to facilitate the implementation of data classification requirements by providing the criteria, categories, roles, and procedures for classifying the data according to its sensitivity, value, and criticality. A data owner can also ensure that the data is handled and stored appropriately, and that the data classification policy is enforced and monitored. The other options are not as effective as assigning a data owner, as they are related to the prevention, audit, or control of the data, not the classification or protection of the data. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.

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

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

 The best evidence of an effective internal control environment is the independent audit results. Independent audit results are the outcomes or findings of an external or independent party that evaluates the design, implementation, and operation of the internal controls. Independent audit results can provide an objective, reliable, and consistent assessment of the internal control environment, and identify the strengths, weaknesses, gaps, or issues of the internal controls. Independent audit results can also provide assurance, recommendations, or improvement opportunities for the internal control environment. The other options are not as good as independent audit results, as they are related to the inputs, processes, oroutputs of the internal control environment, not the evaluation or verification of the internal controlenvironment. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: IT Control Assessment, page 69.

 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

The most important factor for senior management to review during an acquisition is the risk appetite and tolerance of the target organization. The risk appetite and tolerance reflect the amount and type of risk that an organization is willing to accept in pursuit of its objectives. By reviewing the risk appetite and tolerance of the target organization, senior management can determine if they are compatible with their own, and if the acquisition will create any significant risk exposure or opportunity for the acquiring organization. Risk framework and methodology, key risk indicator (KRI) thresholds, and risk communication plan are other factors that may be reviewed, but they are not as important as the risk appetite and tolerance. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.

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

The main benefit of using a top-down approach to develop risk scenarios is that it establishes the relationship between risk events and organizational objectives. A top-down approach is a method of risk identification and analysis that starts with the organization’s strategic objectives and then identifies the potential risk events that could affect or prevent the achievement of those objectives. A top-down approach helps to establish the relationship between risk events and organizational objectives, because it links the risk scenarios to the organization’s mission, vision, values, and strategy, and it prioritizes the risk scenarios based on their impact and relevance to the organization’s objectives. A top-down approach also helps to align and communicate the risk scenarios with the organization’s stakeholders, such as the board, management, and business units, and to facilitate the risk response and monitoring activities. The other options are not the main benefit of using a top-down approach, although they may be part of or derived from the top-down approach. Describing risk events specific to technology used by the enterprise, using hypothetical and generic risk events specific to the enterprise, and helping management and the risk practitioner to refine risk scenarios are all activities or outcomes that could be performed or achieved by using a top-down approach, but they are not the primary purpose or result of the top-down approach. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

The best way to enable a risk practitioner to understand management’s approach to organizational risk is to know the risk appetite and risk tolerance of the organization. Risk appetite is the amount and type of risk that an organization is willing to pursue, retain, or take in order to achieve its objectives. Risk tolerance is the amount and type of risk that an organization is willing to accept in relation to specific performance measures, such as availability, reliability, or security. Risk appetite and risk tolerance reflect the management’s attitude, preferences, and expectations towards risk, and guide the risk management process, such as risk identification, assessment, response, and monitoring. The other options are not as effective as knowing the risk appetite and risk tolerance, although they may provide some input or context for understanding the management’s approach to organizational risk. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.1, page 1-8.

 A control is a measure or action that is implemented to reduce the likelihood or impact of a risk event, or to enhance the benefits or opportunities of a risk event. A control owner is a person who is assigned the responsibility and authority for the design, implementation, operation, and maintenance of a control. The most appropriate person to be assigned ownership of a control is the individual accountable for monitoring control effectiveness, which is the process of measuring and evaluating the performance and compliance of the control. By assigning the control ownership to the individual accountable for monitoring control effectiveness, the organization can ensure that the control is aligned with the risk objectives, operates as intended, and delivers the expected results. References = 4

The risk practitioner’s most important action related to the decision to commit to a business activity with the knowledge that the risk exposure is higher than the risk appetite is to document formal acceptance of the risk. Formal acceptance of the risk means that the organization acknowledges and agrees to bear the risk and its potential consequences. Formal acceptance of the risk should be documented and approved by the appropriate authority level, such as senior management or the board of directors. Formal acceptance of the risk should also include the rationale, assumptions, and conditions for accepting the risk, as well as the monitoring and reporting mechanisms for the risk. Formal acceptance of the risk provides evidence and accountability for the risk management decision and helps to avoid disputes or misunderstandings in the future. The other options are not as important as documenting formal acceptance of the risk, as they are related to the alternatives, adjustments, or rejections of the risk, not the actual acceptance of the risk. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.2: IT Risk Response Options, page 133.

 Risk tolerance is the best term to describe the situation where an organization has agreed to a 99% availability for its online services and will not accept availability that falls below 98.5%. Risk tolerance is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk tolerance defines the acceptable variation in outcomes related to specific performance measures, such as availability, reliability, or security. Risk tolerance is usually expressed as a range, such as 99% +/- 0.5%. Risk mitigation, risk evaluation, and risk appetite are not the correct terms to describe this situation, because they refer to different aspects of risk management, such as reducing, assessing, or pursuing risk, respectively. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.1, page 1-8.

 The control owner should be responsible for evaluating the residual risk after a compensating control has been implemented. A compensating control is a control that provides an alternative or additional measure of protection when the primary or preferred control is not feasible or effective. A residual risk is the risk that remains after the risk response or mitigation has beenapplied. The control owner is the person who has the authority and responsibility for designing, implementing, and monitoring the controls that enforce the policy. The control owner can assess the impact and effectiveness of the compensating control on the residual risk, and report the results and recommendations to the risk owner or the risk practitioner. The other options are not as responsible as the control owner, as they are related to the compliance, ownership, or management of the risk, not the evaluation of the control. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.

A control is a measure or action that is implemented to reduce the likelihood or impact of a risk event, or to enhance the benefits or opportunities of a risk event. A control owner is a person who is assigned the responsibility and authority for the design, implementation, operation, and maintenance of a control. A risk register is a tool that records and tracks the information about the identified risks, such as the risk description, category, owner, probability, impact, response strategy, status, and action plan. When an information security audit identified a risk resulting from the failure of an automated control, the person who is responsible for ensuring the risk register is updated accordingly is the control owner. The control owner should update the risk register with the information about the failed control, such as the cause, consequence, status, and action plan. The control owner should also monitor the performance and compliance of the control, and recommend any improvements or adjustments as needed.

The best way to ensure data is properly sanitized while in cloud storage is to cryptographically scramble the data. Cryptographic scrambling is the process of transforming data into an unreadable form using a secret key or algorithm. Cryptographic scrambling protects the data from unauthorized access, modification, or deletion, even if the cloud storage provider or a third party gains access to the data. Cryptographic scrambling also ensures that the data can be restored to its original form using the same key or algorithm, if needed. The other options are not as effective as cryptographic scrambling, because they either do not completely remove the data, or they make it impossible to recover the data. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, page 3-21.

The best course of action for a risk practitioner when senior management is deciding whether to share confidential data with the organization’s business partners is to submit a report to senior management containing the possible risk and suggested mitigation plans. A risk practitioner is a professional who is responsible for identifying, assessing, and managing the risks that could affect the organization’s objectives or operations. A risk practitioner should provide senior management with the information and guidance they need to make informed and effective decisions regarding the sharing of confidential data. A risk practitioner should submit a report that outlines the possible risk scenarios, such as data loss, theft, or compromise, and their likelihood and impact. A risk practitioner should also suggest mitigation plans, such as encryption, access control, monitoring, or contractual agreements, that could reduce or transfer the risk. The other options are not as effective as submitting a report containing the possible risk and suggested mitigation plans, although they may be part of or derived from the report. Designing controls to encrypt the data to be shared, developing a project plan for classification of the data, and summarizing the data protection and privacy legislation are all activities or outcomes that could be included or referenced in thereport, but they are not the best course of action for a risk practitioner. References = CISA Review Manual, 27th Edition, Chapter 2, Section 2.3.1, page 2-23

The asset owner is the best suited to assist a risk practitioner in developing a relevant set of risk scenarios. The asset owner is the person who has the authority and responsibility for the IT assets that support the business processes. The asset owner can provide valuable information on the business objectives, requirements, and expectations that the IT assets should meet. The asset owner can also help identify the potential threats, vulnerabilities, and impacts that may affect the IT assets and the business processes. The asset owner can also suggest possible risk responses and mitigation strategies to address the risk scenarios. The other options are not as relevant as the asset owner, as they may not have the same level of knowledge, interest, or involvement in the IT assets and the business processes. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.

The most important factor to have in place to ensure the effectiveness of risk and security metrics reporting is an organizational reporting process. An organizational reporting process is a set of procedures that defines the roles, responsibilities, frequency, format, and distribution of the risk and security metrics reports. An organizational reporting process helps to ensure that the risk and security metrics are relevant, accurate, consistent, and timely, and that they provide useful information for decision making and performance improvement. An organizational reporting process also helps to align the risk and security metrics reporting with the enterprise’s objectives, strategies, and policies, and to communicate the risk and security status and issues to the appropriate stakeholders. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.3.2, page 2421

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

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

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

The best recommendation for a risk practitioner when an employee lost a personal mobile device that may contain sensitive corporate information is to initiate a remote data wipe. A remote data wipe is a process of erasing the data stored on a device remotely, using a command sent over anetwork or a wireless connection. A remote data wipe can help to prevent the unauthorized access, use, disclosure, or theft of the sensitive corporate information, and to minimize the potential impact of the loss on the enterprise’s reputation, operations, and compliance. A remote data wipe can also help to comply with the data breach notification laws and regulations, and to reduce the legal liability and penalties. Conducting a risk analysis, invoking the incident response plan, and disabling the user account are not as immediate and effective as initiating a remote data wipe, as they do not address the primary risk of data exposure and loss. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

According to the CRISC Review Manual, a risk owner is the person who is accountable for the risk and its associated mitigation actions. The risk owner is responsible for monitoring the risk, reporting the risk status, and implementing the risk response. Therefore, the most appropriate risk owner would be the individual who is accountable for loss if the risk materializes, as it implies that they have the authority and the incentive to manage the risk effectively. The other options are not the most appropriate risk owners, as they are not directly accountable for the risk or its consequences. The person who is in charge of information security is responsible for overseeing the IT security function and ensuring that the IT security policy is enforced, but they may not have the authority or the resources to manage the risk. The person who is responsible for enterprise risk management (ERM) is responsible for establishing and maintaining the ERM framework and processes, but they may not have the knowledge or the involvement to manage the risk. The person who can implement remediation action plans is responsible for executing the risk response, but they may not have the decision-making power or the accountability to manage the risk. References = CRISC Review Manual, 7th Edition, Chapter 3, Section 3.1.2, page 108.

The primary benefit of conducting continuous monitoring of access controls is the ability to identify possible noncompliant activities that lead to data disclosure. Continuous monitoring of access controls is a process that involves collecting, analyzing, and reporting on the performance and effectiveness of the access controls on a regular basis. Continuous monitoring of access controls helps to detect and prevent any unauthorized or inappropriate access to information assets, and to ensure that the access controls arealigned with the enterprise’s security policies and standards. Continuous monitoring of access controls also helps to identify possible noncompliant activities that lead to data disclosure, such as data leakage, data theft, data tampering, or data breach. By identifying these activities, the enterprise can take timely and appropriate actions to mitigate the risk and protect the confidentiality, integrity, and availability of the information assets. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.3.2, page 1411

A risk scenario is a hypothetical situation that describes how a risk event could adversely affect an organization’s objectives, assets, or operations. A risk scenario can be used for risk analysis,which is the process of estimating the likelihood and impact of the risk event, and evaluating the effectiveness and efficiency of the risk response1.

One of the essential components of a risk scenario is the threat type, which is the source or cause of the risk event. The threat type can be classified into various categories, such as natural, human, technical, environmental, or legal. The threat type can help to define the characteristics, motivations, capabilities, and methods of the risk event, and to identify the potential vulnerabilities and exposures of the organization. The threat type can also help to determine the frequency and severity of the risk event, and to select the appropriate risk response strategies and controls23.

The other options are not the components of a risk scenario, but rather the outcomes or inputs of risk analysis. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite can help to guide the risk analysis by providing a high-level statement of the desired level of risk taking and tolerance4. Risk tolerance is the acceptable variation in the outcomes related to specific objectives or risks. Risk tolerance can help to measure the risk analysis by providing quantitative or qualitative indicators of the acceptable range of risk exposure and performance4. Residual risk is the remaining risk after the risk response has been implemented. Residual risk can help to monitor the risk analysis by providing feedback on the effectiveness and efficiency of the risk response and the need for further action. References =

Risk Analysis - ISACA

Threat - ISACA

Threat Modeling - ISACA

Risk Appetite and Risk Tolerance - ISACA

[Residual Risk - ISACA]

[CRISC Review Manual, 7th Edition]

The business process owner is the person or entity that has the accountability and authority to manage a business process and its outcomes. The business process owner would be the most appropriate owner of the risk associated with an IT control gap in a key process, as they are responsible for ensuring that the process meets its objectives and delivers value to the enterprise. The business process owner should also ensure that the process is aligned with the enterprise’s strategy and risk appetite, and that the process risks are identified, assessed, and mitigated effectively. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 247. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 247. CRISC Sample Questions 2024, Question 247. CRISC by Isaca Actual Free Exam Q&As, Question 9.

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

Low-probability, high-impact events are those that have a low chance of occurring but would cause significant harm if they do. These events are often difficult to predict and quantify, but they can have a major impact on the organization’s objectives, reputation, or operations. By including these events in a risk assessment, the organization can develop understandable and realistic risk scenarios that reflect the potential consequences of different outcomes1. This can help the organization to prioritize its risk management activities and allocate its resources accordingly.

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

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

The most important factor to consider when assessing the residual risk of implementing encryption for data at rest is the key management. Key management is the process of generating, storing, distributing, using, and destroying the cryptographic keys that are used to encrypt anddecrypt the data. Key management is essential for ensuring the security, availability, and integrity of the encrypted data, as well as for complying with the legal and regulatory requirements. Poor key management could result in the loss, theft, compromise, or corruption of the keys, which could lead to unauthorized access, data breach, data loss, or data recovery failure. Therefore, key management must be considered to assess the residual risk, which is the risk that remains after the risk treatment, such as encryption, is applied. Data retention requirements, data destruction requirements, and cloud storage architecture are not as important as key management, as they do not directly affect the encryption and decryption of the data, and they may not introduce significant residual risk. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

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

The primary purpose of using a framework for risk analysis is to improve consistency. A framework for risk analysis is a set of principles, standards, methods, and tools that guide and govern the risk analysis process. Risk analysis is the process of estimating the impact and likelihood of the risk events, and determining the level and nature of the risk exposure. A framework for risk analysis helps to improve consistency, which is the degree of uniformity and agreement among the risk analysis results and practices. Improving consistency helps to ensure that the risk analysis is performed in a systematic and structured way, and that the risk analysis results are comparable and reliable. Improving consistency also helps to reduce the bias, uncertainty, and variability in the risk analysis process, and to enhance the quality and accuracy of the risk analysis results. Improving accountability, helping define risk tolerance, and helping develop risk scenarios are not the primary purposes of using a framework for risk analysis, as they are either the benefits or the objectives of the risk analysis process, and they do not addressthe primary need of improving the quality and reliability of the risk analysis results. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 49.

According to the GDPR, personal data shall be collected for specified, explicit and legitimate purposes and not further processed in a manner that is incompatible with those purposes1. This means that a business unit can only use personal information for a different purpose if it has obtained the consent of the data subject, or if it has a clear legal basis or obligation to do so2. Therefore, informed consent should be the first consideration when a business unit wants to use personal information for a purpose other than for which it was originally collected.

References = GDPR Article 5 (1) (b) and Article 6 (4)1, ICO Principle (b): Purpose limitation2

The likelihood rating in the risk register is a measure of how probable it is that a risk event will occur, given the current conditions and controls. The risk practitioner should change the likelihood rating if there is a significant change in the effectiveness of the controls that are implemented to prevent or reduce the risk. For example, if a control becomes obsolete, ineffective, or bypassed, the likelihood rating should increase, as the risk event becomes more likely to happen. Conversely, if a control becomes more efficient, reliable, or robust, the likelihood rating should decrease, as the risk event becomes less likely to happen. The other options are not likely to cause a change in the likelihood rating, as they are not directly related to the probability of the risk event. Risk appetite is the amount of risk that an organization is willing to accept in pursuit of its objectives. Control cost is the amount of resources that are required to implement and maintain a control. Risk tolerance is the acceptable level of variation that an organization is willing to allow for a risk to deviate from its desired level or expected outcome. These factors may influence the risk response or the risk acceptance, but not the likelihood rating. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.4: Risk Register, p. 25-26.

The best tool for communicating strategic risk priorities is a heat map. A heat map is a graphical representation of the risk profile of an enterprise, showing the likelihood and impact of various risks on a matrix. A heat map can help to highlight the most significant risks that require attention, as well as the risk appetite and tolerance levels of the enterprise. A heat map can also facilitate the comparison of risks across different business units, processes, or objectives, and enable the communication of risk information to stakeholders in a clear and concise manner. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.3.1, page 240.

The percentage of unpatched IT assets is a KPI that measures the effectiveness of the IT asset management process in ensuring that the IT assets are updated with the latest security patches and are protected from vulnerabilities. This KPI reflects the compliance of the IT assets with the enterprise’s security policy and standards, and the ability of the IT asset management process to identify and remediate any gaps or risks in the IT asset inventory. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 5. CRISC by Isaca Actual Free Exam Q&As, Question 4. Most Asked CRISC Exam Questions and Answers, Question 10. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 4.

Risk limits, thresholds, and indicators provide the most useful information to determine risk exposure following control implementations, as they help to measure and monitor the current and residual risk levels and compare them with the desired and acceptable risk levels. Risk limits, thresholds, and indicators are defined as follows:

Risk limits are the maximum amount of risk that an organization is willing to accept for a given activity, process, or objective. Risk limits are derived from the organizational risk appetite and tolerance, and they help to guide the risk response and control selection.

Risk thresholds are the points or levels at which the risk or performance is acceptable or unacceptable. Risk thresholds are used to trigger alerts, actions, or escalation when the risk or performance deviates from the expected or planned range.

Risk indicators are metrics or measures that provide information on the current or potential risk exposure or performance. Risk indicators can be classified into key risk indicators (KRIs), which measure the likelihood and impact of risk events, and key performance indicators (KPIs), which measure the effectiveness and efficiency of controls and processes.

Risk limits, thresholds, and indicators help to determine risk exposure following control implementations by providing quantitative and qualitative data and feedback on the risk and control environment. They also help to identify and prioritize the areas for improvement and enhancement of the risk and control environment. Risk limits, thresholds, and indicators also facilitate the communication, collaboration, and accountability among the stakeholders involved in the risk management and control processes.

The other options are not the most useful information to determine risk exposure following control implementations. Strategic plan and risk management integration is the process of aligning the organizational strategy and objectives with the risk management framework and activities, but it does not provide specific information on the risk exposure or control effectiveness. Risk escalation and process for communication is the process of reporting and escalating the risk issues and incidents to the appropriate authority and stakeholders, but it doesnot provide comprehensive information on the risk exposure or control performance. Policies, standards, and procedures are the documents that define the principles, rules, and guidelines for the risk management and control processes, but they do not provide actual information on the risk exposure or control implementation. References = Risk Limits, Thresholds and Indicators - ISACA, IT Risk Resources | ISACA, Risk Management: Risk Indicators and Risk Appetite

 The best course of action for a newly hired risk practitioner who finds that the risk register has not been updated in the past year is to identify changes in risk factors and initiate risk reviews. This would help the risk practitioner to update the risk register with the current and relevant information on the risks facing the enterprise, such as their sources, drivers, indicators, likelihood, impact, and responses. It would also help the risk practitioner to evaluate the effectiveness of the existing controls, and to identify any new or emerging risks that need to be addressed. Identifying changes in risk factors and initiating risk reviews would enable the risk practitioner to maintain the accuracy and completeness of the risk register, and to provide valuable input for the risk management process. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.1.1, page 2271

The risk manager’s best course of action when discovering significant vulnerabilities in a commercial off-the-shelf software product is to review the risk of implementing versus postponing with stakeholders. This means that the risk manager should assess the potential impact and likelihood of the vulnerabilities being exploited, as well as the benefits and costs of using the software product. The risk manager should also consult with the relevant stakeholders, such as the business owners, the IT department, the security team, and the vendor, to understand their perspectives, expectations, and requirements. Based on this analysis, the risk manager should decide whether to proceed with the implementation, delay it until the next release,or look for alternative solutions. The risk manager should also document and communicate the decision and the rationale behind it, and monitor the situation for any changes or new developments.

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

Running vulnerability testing tools to independently verify the vulnerabilities is a useful step to confirm the existence and severity of the vulnerabilities, but it is not sufficient to address the risk. The risk manager still needs to evaluate the trade-offs between implementing and postponing the software product, and involve the stakeholders in the decision-making process.

Reviewing the software license to determine the vendor’s responsibility regarding vulnerabilities is an important step to understand the contractual obligations and liabilities of the vendor, but it is not enough to mitigate the risk. The risk manager still needs to consider the impact and likelihood of the vulnerabilities, and the benefits and costs of the software product, and consult with the stakeholders to decide the best course of action.

Requiring the vendor to correct significant vulnerabilities prior to installation is an unrealistic and impractical option, as the vendor has already stated that the vulnerabilities will not be corrected until the next release. The risk manager cannot force the vendor to change their schedule or priorities, and may risk damaging the relationship with the vendor. The risk manager should instead work with the vendor to understand the nature and scope of the vulnerabilities, and the expected timeline and features of the next release, and use this information to inform the risk assessment and decision-making process.

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 and controls. References = Guide to Vendor Risk Assessment | Smartsheet, IT Risk Resources | ISACA, Data Ownership: Considerations for Risk Management - ISACA

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

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

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

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

Develop and implement appropriate risk response and mitigation strategies and actions

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

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

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

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

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

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

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

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

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

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

Data Leakage - ISACA

Hard Drive Shredding Services | Hard Drive Destruction & Disposal

Hard Drive Shredding and Destruction Service | CompuCycle

Electronic Destruction & Recycling | Shred Nations

Degaussing - ISACA

Encryption - ISACA

Certificate of Destruction - ISACA

[CRISC Review Manual, 7th Edition]

Unavailability of critical IT systems poses the greatest risk to an organization’s operations during a major IT transformation, because it can disrupt the business continuity, productivity, and performance of the organization. Unavailability of critical IT systems can also cause financial, reputational, or legal damages to the organization, and affect the quality and delivery of products or services to the customers. The other options are not the greatest risks, although they may also pose some challenges or threats to the organization during a major IT transformation. Lack of robust awareness programs, infrequent risk assessments of key controls, and rapid changes in IT procedures are examples of management or process risks that can affect the planning, execution, or monitoring of the IT transformation, but they do not have the same impact or severity as the unavailability of critical IT systems. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

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

 Risk culture is the system of values and behaviors present in an organization that shapes risk decisions of management and employees1. Risk culture influences how the organization perceives, responds to, and manages the risks that may affect its objectives, operations, or assets2.

The scenario described in the question best demonstrates an organization’s risk culture, because it shows how the management team’s attitude and actions towards risk are driven by the organization’s values and goals. In this case, the organization’s risk culture is characterized by:

A high risk appetite and tolerance, which means that the organization is willing to take and accept significant risks in order to achieve its strategic objectives of launching a new product and penetrating new markets

A low risk awareness and sensitivity, which means that the organization does not pay enough attention or consideration to the potential IT risk factors, threats, and vulnerabilities that may affect its product development and market entry

A weak risk governance and control, which means that the organization does not have adequate or effective policies, procedures, or mechanisms to identify, assess, respond, or monitor the IT risks and their impacts

References = Risk Culture of Companies | ERM - Enterprise Risk Management Initiative …, Taking control of organizational risk culture | McKinsey

A balanced scorecard is a strategic management tool that helps to measure and communicate the performance of an organization or a program against its goals and objectives. A balanced scorecard typicallyconsists of four perspectives: financial, customer, internal process, and learning and growth. Each perspective has a set of key performance indicators (KPIs) that reflect the critical success factors and desired outcomes of the organization or the program1.

A balanced scorecard is most useful for reporting on the overall status and effectiveness of the IT risk management program, because it can provide a comprehensive and balanced view of the program’s performance across multiple dimensions. A balanced scorecard can help to align the IT risk management program with the business strategy and vision, and to demonstrate the value and impact of the program to the stakeholders. A balanced scorecard can also help to identify the strengths and weaknesses of the IT risk management program, and to monitor and improve the program’s processes and outcomes2.

The other options are not as useful as a balanced scorecard for reporting on the overall status and effectiveness of the IT risk management program. A capability maturity level is a measure of the maturity and quality of a process or a practice, based on a predefined set of criteria andstandards. A capability maturity level can help to assess and benchmark the IT risk management program’s processes and practices, but it does not provide a holistic view of the program’s performance and results3. An internal audit plan is a document that outlines the scope, objectives, and methodology of an internal audit activity. An internal audit plan can help to evaluate and verify the IT risk management program’s controls and compliance, but it does not provide a strategic view of the program’s goals and outcomes4. A control self-assessment (CSA) is a technique that involves the participation of the process owners and the staff in assessing the effectiveness and efficiency of their own controls. A CSA can help to enhance the awareness and ownership of the IT risk management program’s controls, but it does not provide an objective and independent view of the program’s performance and impact. References =

Balanced Scorecard Basics - Balanced Scorecard Institute

Using the Balanced Scorecard to Measure and Manage IT Risk

Capability Maturity Model Integration (CMMI) Overview

Internal Audit Planning: The Basics - The IIA

[Control Self-Assessment - ISACA]

Risk assessment is a key process that identifies, analyzes, and evaluates the risks associated with the implementation of an emerging technology. It helps to determine the potential impact and likelihood of the risks, as well as the appropriate risk responses and controls. Lack of risk assessment can lead to poor decision making, inadequate risk mitigation, and unexpected consequences. Therefore, it should be of greatest concern to a risk practitioner reviewing the implementation of an emerging technology. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.2.1, p. 226-227

 IT asset inventory is the process of tracking and managing the financial, physical, licensing, and contractual aspects of IT assets throughout their life cycle1. IT assets include hardware, software, and network components that an organization values and uses to achieve its objectives2. A complete and accurate IT asset inventory can help an organization to optimize its IT budget, reduce security risks, ensure compliance, and improve performance3.

One of the best controls to enable an organization to ensure a complete and accurate IT asset inventory is performing network scanning for unknown devices. Network scanning is the process of identifying and collecting information about the devices connected to a network, such as their IP addresses, operating systems, open ports, services, and vulnerabilities4. Network scanning can help an organization to:

Discover and inventory all the IT assets on the network, including those that are unauthorized, unmanaged, or hidden

Detect and remove any rogue or malicious devices that may pose a threat to the network security or performance

Update and verify the asset inventory data regularly and automatically, and alert on any changes or discrepancies

Support the asset lifecycle management and maintenance activities, such as patching, upgrading, or retiring assets5

References = IT Asset Valuation, Risk Assessment and Control Implementation Model, ITAM: The ultimate guide to IT asset management, Navigating Security Threats with IT Inventory Management, Network Scanning - Wikipedia, 8 Best IT Asset Management Software (2024)

 Enterprise IT risk management is the process of identifying, analyzing, evaluating, and treating the IT-related risks that may affect the organization’s objectives, operations, or assets1. Enterprise IT risk management should be aligned with the organization’s overall riskmanagement framework and strategy, and support the organization’s value creation and protection2.

When evaluating enterprise IT risk management, it is most important to confirm the organization’s risk appetite and tolerance. Risk appetite is the amount and type of risk that an organization is willing to take in order to meet its strategic objectives3. Risk tolerance is the acceptable level of variation that an organization is willing to accept around its risk appetite4. By confirming the organization’s risk appetite and tolerance, the evaluation can:

Ensure that the enterprise IT risk management is consistent and compatible with the organization’s risk culture and vision

Provide clear and measurable criteria and boundaries for assessing and prioritizing the IT risks and their impacts

Guide the selection and implementation of the appropriate risk responses and controls that balance the costs and benefits of risk mitigation

Enable the monitoring and reporting of the IT risk performance and outcomes, and the adjustment of the IT risk strategy and objectives as needed5

References = Enterprise IT Risk Management - ISACA, Enterprise Risk Management - Wikipedia, Risk Appetite - COSO, Risk Tolerance - COSO, Risk Appetite and Tolerance - IRM

 IT risk management is the process of identifying, assessing, and mitigating the risks related to the use of information technology (IT) in the organization. IT risk management aims to ensure the confidentiality, integrity, and availability of IT resources and information, and to support the IT governance and strategy of the organization1.

The best indicator of the effectiveness of IT risk management processes is the time between when IT risk scenarios are identified and the enterprise’s response. This indicator can help to measure how quickly and efficiently the organization can detect and respond to the IT risks, and how well the organization can prevent or minimize the negative impacts of the IT risks. The time between when IT risk scenarios are identified and the enterprise’s response can include:

The time taken to identify and report the IT risk scenarios, using various methods and sources, such as risk assessments, audits, monitoring, alerts, or incidents

The time taken to analyze and evaluate the IT risk scenarios, using various tools and techniques, such as risk matrices, risk registers, risk indicators, or risk models

The time taken to select and implement the IT risk responses, using various strategies and controls, such as avoidance, mitigation, transfer, or acceptance

The time taken to review and improve the IT risk management processes, using various feedback and learning mechanisms, such as lessons learned, best practices, or benchmarks23

The other options are not the best indicators of the effectiveness of IT risk management processes, but rather some of the inputs or outputs of IT risk management processes. Percentage of business users completing risk training is an indicator of the awareness and competence of the IT users and providers, which can affect the IT risk management performance, but it does not measure the IT risk management processes directly. Percentage of high-risk scenarios for which risk action plans have been developed is an indicator of the completeness and coverage of the IT risk management activities, which can affect the IT risk management outcomes, but it does not measure the IT risk management processes directly. Number of key risk indicators (KRIs) defined is an indicator of the scope and complexity of the IT risk management objectives, which can affect the IT risk management resources and capabilities, but it does not measure the IT risk management processes directly. References =

IT Risk Management - ISACA

Risk Management Process - ISACA

Risk Response - ISACA

[CRISC Review Manual, 7th Edition]

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

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

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

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.

The most important element of an organization’s risk register to update following the commissioning of a new financial reporting system is the risk rating of affected financial processes. A risk rating is a measure of the level and nature of the risk exposure, based on the impact and likelihood of the risk events. A risk rating can help to prioritize and respond to the risks, and to monitor and report the risk status. A new financial reporting system may introduce new or different risks, or change the existing risks, that could affect the financial processes of the organization, such as data quality, accuracy, timeliness, compliance, or security. Therefore, the risk rating of affected financial processes should be updated to reflect the current risk situation and to ensure that the risk register is accurate and complete. Key risk indicators (KRIs), the owner of the financial reporting process, and the list of relevant financial controls are not asimportant as the risk rating of affected financial processes, as they are not directly affected by the commissioning of a new financial reporting system, and they do not measure the risk exposure and impact of the financial processes. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 48.

Information security metrics are quantitative or qualitative measures that indicate the performance and effectiveness of the information security processes, controls, and objectives. The primary goal of developing information security metrics is to enable continuous improvement of the information security program and to align it with the business goals and strategy. Information security metrics can help to identify the strengths and weaknesses of thesecurity program, to monitor and report on the progress and outcomes of the security initiatives, to evaluate the return on investment and value of the security activities, and to provide feedback and guidance for improvement actions. Information security metrics should be relevant, reliable, consistent, and actionable. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.2, p. 116-117

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

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

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

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

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

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

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

The most important thing to include in a risk assessment of an emerging technology is the impact and likelihood ratings of the risks associated with the technology. Impact and likelihood ratings are the measures of the potential consequences and probabilities of the risk events that could affect the achievement of the enterprise’s objectives. Impact and likelihood ratings can help to evaluate the level andnature of the risk exposure, and to prioritize the risks for further analysis and response. Impact and likelihood ratings can also help to communicate the risk profile and appetite of the enterprise, and to support the risk-based decision making. Risk response plans, risk and control ownership, and key controls are not as important as impact and likelihood ratings, as they are the outputs or outcomes of the risk assessment process, and not the inputs or components of the risk assessment process. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 49.

The first step to ensure continuity of operations when performing a risk assessment of a new service to support a new business process is to identify the conditions that may cause disruptions to the service or the process. This is because identifying the potential sources, causes, and scenarios of disruptions helps to determine the impact and likelihood of the risks, and to select the appropriate risk responses and recovery strategies. The other options are not the first steps, although they may also be part of the risk assessment process. Reviewing incident response procedures, evaluating the probability of risk events, and defining metrics for restoring availability are examples of subsequent steps that depend on the identification of the conditions that may cause disruptions. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

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

The first step in risk assessment is asset identification, which is the process of identifying and documenting the assets that are relevant and valuable to the organization, such as people, information, systems, processes, or infrastructure1. Asset identification can help to:

Establish the scope and boundaries of the risk assessment, and ensure that all the assets within the scope are considered and covered2.

Determine the criticality and priority of the assets, and assign them appropriate values or ratings based on their importance and contribution to the organization’s objectives3.

Identify the potential threats and vulnerabilities that may affect the assets, and assess their likelihood and impact on the assets4.

The other options are not the first step in risk assessment, because:

Review risk governance is not the first step, but rather a prerequisite or a foundation for risk assessment. Risk governance is the system of principles, policies, roles, and responsibilities that guide and oversee the risk management activities and initiatives of the organization5. Reviewing risk governance can help to ensure that the risk assessment is aligned with the organization’s riskstrategy, culture, and appetite, and that the risk assessment process is consistent, effective, and efficient6.

Identify risk factors is not the first step, but rather a subsequent or a parallel step to asset identification. Risk factors are the elements or conditions that influence or contribute to the occurrence or outcome of a risk event7. Identifying risk factors can help to understand the causes and sources of the risks, and to analyze and evaluate the risks based on their probability and severity.

Inherent risk identification is not the first step, but rather a later or a dependent step on asset identification and risk factor identification. Inherent risk is the level of risk that exists before the implementation of risk responses. Identifying inherent risk can help to measure the exposure or uncertainty of the assets, and to determine the need and extent of the risk responses.

References =

Risk Governance - CIO Wiki

Risk Governance Framework - CIO Wiki

Asset Identification - CIO Wiki

Asset Identification and Valuation - ISACA

Asset Criticality - CIO Wiki

Threat and Vulnerability Assessment - CIO Wiki

Risk Factor - CIO Wiki

[Risk Factor Analysis - CIO Wiki]

[Inherent Risk - CIO Wiki]

[Inherent Risk Assessment - CIO Wiki]

[Risk Assessment - CIO Wiki]

A change management process is a set of procedures and activities that ensure that any changes to the IT systems or applications are planned, approved, tested, implemented, and documented in a consistent and controlled manner.

A change management process has recently been updated with new testing procedures. This means that the process has been improved or modified to include new or additional steps or methods for verifying and validating the changes before they are deployed to the production environment.

The next course of action after updating the change management process with new testing procedures is to communicate to those who test and promote changes. This means that the change management team or function should inform and educate the people who are involved or affected by the changes, such as the developers, testers, users, customers, etc., about the new testing procedures, their purpose, benefits, requirements, and expectations.

Communicating to those who test and promote changes helps to ensure that the new testing procedures are understood and followed by all the parties, that the changes are tested and promoted in accordance with the process standards and criteria, and that the changes are delivered with the expected quality and performance.

The other options are not the next courses of action after updating the change management process with new testing procedures. They are either secondary or not essential for change management.

The references for this answer are:

Risk IT Framework, page 27

Information Technology & Security, page 21

Risk Scenarios Starter Pack, page 19

The best way to mitigate the risk associated with infrastructure updates is to implement a change control process. A change control process is a set of procedures that ensures that any changes to the infrastructure are planned, approved, tested, implemented, and documented in a consistent and controlled manner. A change control process helps to reduce the risk of errors, conflicts, disruptions, or security breaches that could result from infrastructure updates. A change controlprocess also helps to monitor and evaluate the impact and effectiveness of the changes, and to ensure that they align with the enterprise’s objectives and requirements. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.3.1, page 1391

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

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

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

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

The best way to help an enterprise define and communicate its risk appetite is to use a risk register, which is a document that records and summarizes the key information and data about the identified risks and the risk responses1. A risk register can help to:

Define the risk appetite, which is the amount and type of risk that the enterprise is willing to accept or pursue in order to achieve its objectives2. The risk register can include the risk appetite statement, which is a clear and concise expression of the enterprise’s risk preferences and boundaries3.

Communicate the risk appetite, which is the process of sharing and informing the risk appetite to the relevant stakeholders, such as the board, the management, the employees, or the customers4. The risk register can be used as a communication tool, which can provide a consistent and transparent view of the enterprise’s risk profile and performance5.

The other options are not the best ways to help an enterprise define and communicate its risk appetite, because:

Gap analysis is a technique that compares the current state and the desired state of a process, system, or organization, and identifies the gaps or differences between them6. Gap analysis can help to assess the alignment or misalignment of the enterprise’s risk appetite with its risk level, but it does not help to define or communicate the risk appetite itself.

Risk assessment is a process that estimates the probability and impact of the risks, and prioritizes the risks based on their significance and urgency. Risk assessment can help to identify andanalyze the risks that may affect the enterprise’s objectives, but it does not help to define or communicate the risk appetite itself.

Heat map is a graphical representation that uses colors to indicate the level or intensity of a variable, such as risk. Heat map can help to visualize and compare the risks based on their probability and impact, but it does not help to define or communicate the risk appetite itself.

References =

Risk Register - CIO Wiki

Risk Appetite - CIO Wiki

Risk Appetite Statement - CIO Wiki

Risk Communication - CIO Wiki

Risk Reporting - CIO Wiki

Gap Analysis - CIO Wiki

[Risk Assessment - CIO Wiki]

[Heat Map - CIO Wiki]

[Risk and Information Systems Control documents and learning resources by ISACA]

 Discussing and managing risk as a team is the greatest benefit for an organization with a strong risk awareness culture, as it enables the organization to share and communicate the risk information and knowledge among all the stakeholders, and to collaborate and coordinate the risk management activities and responsibilities. Discussing and managing risk as a team can also help to foster a positive and proactive attitude toward risk, and to align the risk management process with the organization’s strategy and objectives. Discussing and managing risk as a team can also enhance the risk governance and accountability, and support the risk learning and improvement. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 252. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 252. CRISC by Isaca Actual Free Exam Q&As, Question 9.

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

 The percentage of relevant threats mitigated is the best key control indicator (KCI) to determine the effectiveness of an intrusion prevention system (IPS), because it measures how well the IPS is performing its intended function of preventing unauthorized access or attacks. The percentageof system uptime is not a good KCI, because it does not reflect the quality or accuracy of the IPS. The total number of threats identified is not a good KCI, because it does not indicate how many of those threats were actually prevented by the IPS. The reaction time of the system to threats is not a good KCI, because it does not measure the impact or severity of the threats that were prevented or not prevented by the IPS. References = CRISC: Certified in Risk & Information Systems Control Sample Questions2

 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 software products. 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.

Measurability and consistency are the most essential attributes of an effective key control indicator (KCI), because they ensure that the KCI can be quantified, compared, and reported over time. A KCI should be able to measure the performance or effectiveness of a control in mitigating a risk and provide consistent results across different periods, sources, and methods. The other options are not the most essential attributes, although they may also be desirable for a KCI. Flexibility and adaptability are not the most essential attributes, because they may compromise the reliability and comparability of the KCI. Robustness and resilience are not the most essential attributes, because they are more relevant for the control itself, not the KCI. Optimal cost and benefit are not the most essential attributes, because they are more related to the value and feasibility of the KCI, not the quality and accuracy of the KCI. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers

The best way to ensure the effective decision-making of an IT risk management committee is to enroll key stakeholders as members. Key stakeholders are the individuals or groups who have an interest or influence in the IT risk management process, such as business owners, senior management, IT managers, auditors, regulators, customers, and suppliers. By involving key stakeholders in the IT risk management committee, the committee can benefit from their diverse perspectives, expertise, and experience, and ensure that the IT risk management decisions are aligned with the business objectives, priorities, and expectations. Key stakeholders can also provide valuable input, feedback, and support for the IT risk management activities, and help communicate and implement the IT risk management decisions across the organization. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 36.

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

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

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

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

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

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

Anatomy of an effective status report - Project Management Institute

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

Communicating Document Control Progress on a Project

[CRISC Review Manual, 7th Edition]

User accounts provisioning is the process of creating, managing, and modifying user accounts within a system or an application, based on the user’s roles, responsibilities, and requirements. User accounts provisioning is an essential part of identity and access management (IAM), which aims to ensure the confidentiality, integrity, and availability of the system or the application, and the information or resources that it handles or supports1.

The best key performance indicator (KPI) for monitoring adherence to an organization’s user accounts provisioning practices is the percentage of accounts without documented approval, because it can help to measure how well the organization follows the policies, standards, and procedures for user accounts provisioning, and how effectively the organization controls andaudits the user accounts provisioning activities. The percentage of accounts without documented approval can indicate:

The level of compliance and accountability of the user accounts provisioning process, and the extent to which the user accounts provisioning requests and actions are authorized and verified by the appropriate parties, such as managers, IT staff, or security officers

The level of risk and exposure of the user accounts provisioning process, and the likelihood and impact of unauthorized or inappropriate user accounts provisioning, such as granting excessive or unnecessary access privileges, creating duplicate or fraudulent accounts, or violating legal or regulatory requirements

The level of quality and efficiency of the user accounts provisioning process, and the ability and capacity of the organization to manage and maintain the user accounts provisioning records and documents, such as forms, logs, or reports23

The other options are not the best KPIs for monitoring adherence to an organization’s user accounts provisioning practices, but rather some of the factors or outcomes of it. User accounts with default passwords are user accounts that have not changed their passwords from the initial or default values that are assigned by the system or the application. User accounts with default passwords are a factor that can increase the risk of unauthorized or malicious access to the system or the application, as the default passwords may be easily guessed or compromised by attackers. Active accounts belonging to former personnel are user accounts that have not been deactivated or deleted after the users have left the organization. Active accounts belonging to former personnel are an outcome of ineffective or inefficient user accounts deprovisioning, which is the process of revoking or removing the user accounts and access privileges when they are no longer needed or valid. Accounts with dormant activity are user accounts that have not been used or accessed for a long period of time. Accounts with dormant activity are an outcome of poor or inconsistent user accounts management, which is the process of updating or modifying the user accounts and access privileges according to the changes or needs of the users or the organization4. References =

User Provisioning for SaaS Apps: Top 10 Best Practices | Resmo

Top Identity and Access Management Metrics

KPI-driven approach to Identity & Access Management - Elimity

[CRISC Review Manual, 7th Edition]

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

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

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

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

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

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

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

Encryption - ISACA

Cloud Encryption: Using Data Encryption in The Cloud

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

Field-Level Encryption - ISACA

[CRISC Review Manual, 7th Edition]

The drawback in the use of quantitative risk analysis is that it requires more resources than other methods. Quantitative risk analysis is a method of risk analysis that assigns numeric values to the exposures of assets, the impact and likelihood of risk events, and the cost and benefit of risk responses. Quantitative risk analysis can provide more precise and objective results, and support the risk-based decision making process. However, quantitative risk analysis also requires more resources than other methods, such as data, time, expertise, and tools, to collect, validate, and analyze the quantitative information, and to perform the complex calculations and simulations. Quantitative risk analysis may also be limited by the availability, reliability, and accuracy of the data, and the assumptions and models used. Assigning numeric values to exposures of assets, producing the results in numeric form, and being based on impact analysis of information assets are not drawbacks, but characteristics of quantitative risk analysis. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 49.

Data archival processes should be the primary focus of a risk practitioner when ensuring that organization records are being retained for a sufficient period of time to meet legal obligations, because data archival processes ensure that records are stored securely, reliably, and accessibly for as long as they are needed. Data archival processes also help to manage the storage capacity, retention policies, and disposal procedures of records. Data duplication processes are not the primary focus, because they are mainly used for backup and recovery purposes, not for long-term retention. Data anonymization processes are not the primary focus, because they are mainly used for privacy and confidentiality purposes, not for legal compliance. Data protection processes are not the primary focus, because they are mainly used for security and integrity purposes, not for retention requirements. References = Free ISACA CRISC Sample Questions and Study Guide

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

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

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

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

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

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

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

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

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. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 257. CRISC by Isaca Actual Free Exam Q&As, Question 9.

The potential loss to the business due to non-performance of the asset is the most helpful information for asset owners when classifying organizational assets for risk assessment, because it reflects the value and criticality of the asset to the business objectives and processes. The potential loss can be measured in terms of financial, operational, reputational, or legal impacts.The known emerging environmental threats are not relevant for asset classification, because they are external factors that affect the risk level, not the asset value. The known vulnerabilities published by the asset developer are not relevant for asset classification, because they are internal factors that affect the risk level, not the asset value. The cost of replacing the asset with a new asset providing similar services is not relevant for asset classification, because it does not reflect the business impact of losing the asset functionality or availability. References = CRISC Sample Questions 2024

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.

A gap analysis is the best approach to identify information systems control deficiencies, as it helps to compare and evaluate the current and desired states of the information systems and their controls, and to identify and prioritize the gaps or weaknesses that need to be addressed. A gap analysis is a process of assessing and measuring the difference between the actual and expected performance or outcomes of a system or a process, such as an information system or a control process. A gap analysis can help to identify information systems control deficiencies by providing the following benefits:

It enables a data-driven and evidence-based approach to information systems control assessment and improvement, rather than relying on subjective or qualitative judgments.

It facilitates a consistent and standardized way of measuring and communicating information systems control performance and quality across the organization and to the external stakeholders.

It supports the alignment of information systems and their controls with the organizational strategy and objectives, and helps to evaluate the achievement of the desired outcomes.

It helps to identify and prioritize the root causes and contributing factors of information systems control deficiencies, and to develop and implement appropriate strategies and actions to address them.

It provides feedback and learning opportunities for the information systems and their controls, and helps to foster a culture of continuous improvement and innovation.

The other options are not the best approaches to identify information systems control deficiencies. Countermeasures analysis is a method of identifying and evaluating the potential countermeasures or solutions to mitigate or eliminate a specific threat or risk, but it does not directly address the information systems control deficiencies. Best practice assessment is a method of comparing and benchmarking the information systems and their controls against the industry standards or best practices, but it does not provide a comprehensive or customized analysis of the information systems control deficiencies. Risk assessment is a method of identifying and analyzing the potential risks and their impacts on the information systems and their objectives, but it does not measure or evaluate the information systems control performance or quality. References = Gap Analysis: A Practical Guide | Smartsheet, IT Risk Resources | ISACA, How to Perform a Gap Analysis: Step-By-Step Guide & Template

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

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

The maturity of organizational risk management refers to the degree to which risk management is embedded and integrated into the organization’s culture, processes, and decision-making1. A higher level of maturity implies that the organization has a clear and consistent understanding of its risk appetite and tolerance, and that it can effectively identify, assess, respond, monitor, and communicate risks2.

The best way to address the issue of participants focusing on the financial cost to mitigate risk rather than choosing the most appropriate response is to raise the maturity of organizational risk management. This can help to:

Ensure that risk management is aligned with the organization’s strategic objectives and values, and that risk responses are based on the potential impact and likelihood of risks, not just on the cost of mitigation

Foster a risk-aware culture that encourages proactive and collaborative risk management, and that recognizes and rewards good risk management practices

Provide adequate training and guidance for risk management roles and responsibilities, and ensure that risk management skills and competencies are developed and maintained

Implement a robust and consistent risk management framework, methodology, and tools that support the risk management process and enable continuous improvement and learning

Enhance the quality and reliability of risk information and reporting, and ensure that risk management performance and outcomes are measured and evaluated3

References = Risk Maturity Model - Wikipedia, Risk Maturity Model - ISACA, Risk Maturity Model - IRM

 The number of projects going live without a security review is the best key control indicator (KCI) to indicate whether security requirements are identified and managed throughout a project life cycle, because it measures the compliance and effectiveness of the security review process. A security review is a process that ensures that the security requirements are defined, implemented, tested, and verified for each project, and that any security risks or issues are identified and resolved before the project is deployed. The number of projects going live without a security review should be minimized or eliminated, as it indicates afailure or weakness of the security review process. The other options are not the best KCIs, because they do not directly measure the identification and management of security requirements. The number of employees completing project-specific security training, the number of security projects started in core departments, and the number of security-related status reports submitted by project managers areexamples of input or output indicators that measure the activities or results of the project, but not the security requirements. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

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

Key risk indicators (KRIs) are metrics that provide information on the level of exposure to a given risk. Key control indicators (KCIs) are metrics that measure the performance or effectiveness of a control in mitigating a risk. KCIs provide input for KRIs, because they help to assess the residual risk after applying the control. For example, if the KRI is the number of security incidents, and the KCI is the percentage of incidents detected by the intrusion prevention system (IPS), then the KCI provides input for the KRI by showing how well the IPS is reducing the risk of security breaches. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

A vulnerability report for the IT infrastructure is a document that identifies and evaluates the weaknesses or gaps in the IT systems, networks, or devices that could be exploited by threats or cause incidents. By analyzing the latest vulnerability report, one can conclude the existence and extent of control weaknesses in the IT infrastructure, because control weaknesses are the deficiencies or failures of the controls that are supposed to prevent, detect, or correct the vulnerabilities. The other options are not the correct answers, because they are not directly concluded by analyzing the latest vulnerability report. The likelihood of a threat, the impact of technology risk, and the impact of operational risk are examples of risk factors or consequences that depend on the vulnerability and the threat, but they are not determined by the vulnerability report alone. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

A risk event is an occurrence or situation that has a negative impact on the objectives, operations, or resources of an enterprise. A data breach at the company to be acquired is a risk event for the acquiring organization, because it can affect the value, reputation, or performance of the acquisition. A risk event can also trigger other risks or consequences that may require further actions or responses. The other options are not the correct answers, because they do not describe the situation accurately. A threat event is an occurrence or situation that exploits a vulnerability or causes harm to an asset or process. An inherent risk is the risk that exists before applying any controls or treatments. A security incident is an event that violates the security policies or procedures of an enterprise. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

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

Key control indicators (KCIs) are metrics that measure the performance and effectiveness of the controls that are implemented to mitigate the risks. KCIs can help to monitor the status and health of the controls, as well as to identify any issues or gaps that need to be addressed. The primary reason to adopt KCIs in the risk monitoring and reporting process is to provide assessments of mitigation effectiveness, meaning that they can help to evaluate how well the controls are reducing the risk exposure and achieving the desired outcomes. KCIs can also help to support the risk management decision making and improvement actions, as well as to demonstrate the value and benefits of the controls. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1.2, p. 115-116

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

Production data is the data that is used in the actual operation of a system or application, such as customer information, financial records, transactions, etc.

Test data is the data that is used in the testing or development of a system or application, such as dummy data, sample data, simulated data, etc.

A risk practitioner has become aware of production data being used in a test environment. This indicates that there is a risk of unauthorized access, use, disclosure, modification, or destruction of the production data, which may affect the confidentiality, integrity, and availability of the data.

The primary concern of the risk practitioner in this situation is the sensitivity of the data. This means that the risk practitioner should assess how valuable, critical, or confidential the data is, and what would be the impact or consequence if the data is compromised or lost.

The sensitivity of the data helps to determine the level of protection and control that is needed to safeguard the data, and the priority and urgency of the risk response actions.

The other options are not the primary concerns of the risk practitioner in this situation. They are either secondary or not essential for data protection.

The references for this answer are:

Risk IT Framework, page 32

Information Technology & Security, page 26