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Classifying IT assets during a risk assessment is a process of assigning values to the IT assets based on their importance, sensitivity, and criticality to the enterprise. The best reason to classify IT assets is todetermine the appropriate level of protection that each IT asset requires, based on its value and the potential impact of its loss or compromise. This helps the enterprise to allocate resources and implement controls that are proportional to the risk exposure of the IT assets, and to optimize the cost and benefit of risk mitigation. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 233. CRISC by Isaca Actual Free Exam Q&As, Question 9. CRISC Sample Questions 2024, Question 233. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 233.

IT risk scenarios are hypothetical situations or occurrences that illustrate the potential impact of IT-related threats or opportunities on the organization’s objectives, performance, or value creation12.

Business risk scenarios are hypothetical situations or occurrences that illustrate the potential impact of business-related threats or opportunities on the organization’s objectives, performance, or value creation34.

The best way for the risk practitioner to address the concerns of the business executives who question why they have been assigned ownership of IT-related risk scenarios is to describe IT risk scenarios in terms of business risk, which is a technique that involves translating and communicating the IT risk scenarios into the language and context of the business risk scenarios, and highlighting the linkages and dependencies between them56.

Describing IT risk scenarios in terms of business risk is the best way because it helps the business executives to understand and appreciate the relevance and importance of IT risk scenarios, andhow they affect the achievement of the organization’s goals and the delivery of value to the stakeholders56.

Describing IT risk scenarios in terms of business risk is also the best way because it helps the business executives to accept and fulfill their roles and responsibilities as the owners of IT risk scenarios, and to collaborate and coordinate with the IT team and other stakeholders in the risk management process56.

The other options are not the best ways, but rather possible alternatives or supplements that may support or enhance the description of IT risk scenarios in terms of business risk. For example:

Recommending the formation of an executive risk council to oversee IT risk is a way that involves establishing and empowering a group of senior leaders from different business units and functions to provide the strategic direction, guidance, and oversight for the IT risk managementprocess78. However, this way is not the best way because it does not directlyaddress the concerns of the business executives who question why they have been assigned ownership of IT risk scenarios, and it may not be feasible or effective without a clear and common understanding of IT risk scenarios among the council members78.

Providing an estimate of IT system downtime if IT risk materializes is a way that involves quantifying and communicating the potential loss or disruption of the IT systems or services that support the organization’s operations, if the IT risk scenarios occur9 . However, this way is not the best way because it does not fully capture or convey the impact of IT risk scenarios on the organization’s objectives, performance, or valuecreation, and it may not be relevant or meaningful for some IT risk scenarios that are not related to IT system downtime9 .

Educating business executives on IT risk concepts is a way that involves providing and delivering the knowledge and skills on the principles, frameworks, and techniques of IT risk management, and the roles and responsibilities of the IT risk owners and stakeholders . However, this way is not the best way because it does not specifically address the concerns of the business executives who question why they have been assigned ownership of IT risk scenarios, and it may not be sufficient or effective without a practical and contextual application of IT risk concepts to the organization’s situation and goals . References =

1: IT Scenario Analysis in Enterprise Risk Management - ISACA2

2: New Toolkit and Course From ISACA Help Practitioners Develop Risk Scenarios - ISACA1

3: Business Risk - Investopedia3

4: Business Risk: Definition, Types, Examples & How to Manage4

5: Risk IT Framework, ISACA, 2009

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

7: Executive Risk Council - ISACA5

8: Executive Risk Council: A Guide to Success6

9: IT System Downtime - ISACA7

IT System Downtime: Causes, Costs, and How to Prevent It8

IT Risk Education - ISACA9

IT Risk Education: A Guide to Success

Emerging technologies such as blockchain may introducenew risksthat were previously unaccounted for.Risk toleranceneeds to be reassessed to determine whether the organization is willing to accept the new potential impacts or if more robust controls or changes are necessary.

Residual riskrepresents the amount of risk remaining after controls have been applied. Tracking its reduction over time directly indicates whether controls are effectively reducing risk to withintolerance limits.