Isaca CRISC Actual Questions

Risk exposure is the potential loss or negative impact that may result from a risk. Expressing risk exposure in business terms means translating the technical or quantitative aspects of risk into meaningful and understandable information for the risk owner and other stakeholders. This canhelp the risk owner to make risk-aware decisions, as it can provide a clear and consistent basis for comparing and prioritizing risks, evaluating the cost-benefit of risk responses, and aligning the risk management strategy with the business objectives and value. The other options are not as helpful as risk exposure expressed in business terms, because they do not provide a comprehensive and relevant view of the risk, but rather focus on specific or partial aspects of the risk. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.1, page 45.

The most helpful input to develop risk scenarios associated with hosting an organization’s key IT applications in a cloud environment is conducting a risk workshop with key stakeholders. A risk workshop is a facilitated session that involves brainstorming, discussing, and analyzing the potential risks and opportunities related to a specific topic or project. A risk workshop helps to identify and prioritize the most relevant and significant risk scenarios, as well as to explore the possible causes, impacts, and responses. A risk workshop also helps to engage and align the key stakeholders, such as the business owners, IT managers, cloud providers, and risk experts, and to leverage their knowledge, experience, and perspectives. The other options are not as helpful as conducting a risk workshop, although they may provide some inputor information for the risk scenario development. Reviewing the results of independent audits, performing a site visit to the cloud provider’s data center, and performing a due diligence review are all activities that can help to assess the current state and performance of the cloud environment, but they do not necessarily generate or evaluate the risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

A risk dashboard provides a visual, real-time overview of risk levels, trends, and key metrics, making it easier for executive management to understand and act upon. It integrates data from various sources, making it comprehensive.

 A compensating control is a temporary or alternative control that is implemented when the primary control for mitigating a risk is not feasible or available. A compensating control should provide a similar level of protection and assurance as the primary control, and should be aligned with the risk appetite and tolerance of the organization. The risk practitioner’s best course of action when a compensating control needs to be applied is to obtain the risk owner’s approval. The risk owner is the person who has the authority and accountability for managing a specific risk, and who is responsible for ensuring that the risk is within the acceptable level. The risk practitioner should consult with the risk owner to explain the situation, proposethe compensating control, and seek their approval before implementing it. This way, the risk practitioner can ensure that the compensating control is appropriate, effective, and acceptable for the risk owner, and that the risk owner is aware of and agrees with the change in the risk treatment. The other options are not the best course of action, as they do not involve the risk owner’s approval or input. Recording the risk as accepted in the risk register implies that the risk is not treated or reduced, which may not be the case with a compensating control. Informing senior management may be a good practice, but it does not ensure that the risk owner is involved or agrees with the compensating control. Updating the risk response plan may be a necessary step after implementing the compensating control, but it does not require the risk owner’s approval or consultation. References = 5 Key Risk Mitigation Strategies (With Examples), Risk Management 101: Process, Examples, Strategies