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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.