IT-Risk-Fundamentals Exam Dumps : IT Risk Fundamentals Certificate Exam

A top-down approach to risk scenario development starts at the strategic level, with senior management defining the overall risk appetite and identifying key risks to the organization's objectives. A key benefit of this approach is that the focus at the enterprise level makes it easier to achieve management support (A). When senior management is involved from the beginning, they are more likely to understand and support the risk management process.

A top-down approach, by definition, considers risks across the enterprise, not just I&T (B). While it can inform risk ownership (C), that's not the primary benefit.

 Definition and Purpose:

A Business Continuity Plan (BCP) is a document that outlines how a business will continue operating during an unplanned disruption in service. It focuses on the processes and procedures necessary to ensure that critical business functions can continue.

 BCP Components:

The BCP typically includes Business Impact Assessments (BIAs), which identify critical functions and the impact of a disruption.

It also encompasses risk assessments, recovery strategies, and continuity strategies for critical business functions.

 Explanation of Options:

A methodical plan detailing the steps of incident response activities describes more of an Incident Response Plan (IRP).

B a document of controls that reduce the risk of losing critical processes could be part of a BCP but is more characteristic of a risk management plan.

C accurately reflects the BCP’s focus on identifying and mitigating risks to business functions through BIAs, making it the most comprehensive and accurate description.

 Conclusion:

Therefore, C correctly identifies a BCP as a document that focuses on BIAs to manage risks to critical business processes.

A risk scenario is an example of a tangible and assessable representation of risk. Here’s the breakdown:

Enterprise Risk Policy: This is a document that outlines the organization's approach to risk management. While important, it is not a specific, tangible representation of risk.

Risk Treatment Plan: This outlines the actions to mitigate identified risks. It is a strategy rather than a representation of specific risks.

Risk Scenario: This provides a detailed and concrete representation of potential risk events, their causes, and impacts. It allows for assessment and preparation, making it a tangible and assessable representation of risk.

Therefore, a risk scenario is the best example of a tangible and assessable representation of risk.

References:

ISA 315 Anlage 5 and 6: Understanding risks, scenarios, and their impacts on IT systems and business objectives​​​​.

ISO-27001 and GoBD guidelines on risk management and identification​​​​.

These references provide a comprehensive understanding of the concepts and principles involved in IT risk and audit processes.