Isaca Certification Changed CRISC Questions

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