CRISC Exam Dumps - Isaca Certification Questions and Answers

The MOST effective way to help ensure an organization’s current risk scenarios are relevant is to involve the stakeholders in the risk assessment process, because they are the ones who have the knowledge, experience, and interest in the risk scenarios that affect their domains and objectives. The involvement of stakeholders can help to identify and validate the risk scenarios, to provide input and feedback on the risk analysis and evaluation, and to ensure the alignment andintegration of the risk scenarios with the business processes and goals. The other options are not as effective as the involvement of stakeholders, because:

Option A: Adoption of industry best practices is a good way to improve the quality and consistency of the risk scenarios, but it does not ensure their relevance to the organization’s specific context and environment. Industry best practices are general and standardized guidelines that may not reflect the organization’s unique risks and needs.

Option C: Review of risk scenarios by independent parties is a useful way to verify and enhance the accuracy and reliability of the risk scenarios, but it does not ensure their relevance to the organization’s internal and external stakeholders. Independent parties are objective and impartial reviewers who may not have the same knowledge, experience, and interest as the stakeholders.

Option D: Documentation of potential risk in business cases is a helpful way to communicate and justify the importance and value of the risk scenarios, but it does not ensure their relevance to the organization’s current and future state. Business cases are concise and persuasive documents that may not capture all the aspects and dimensions of the risk scenarios. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 104.

The best way to ensure key risk indicators (KRIs) provide value to risk owners is to provide timely notification of the changes in the risk exposure. KRIs are metrics that provide an early warning of increasing risk exposure in various areas of the organization. By providing timely notification of the KRI values, the risk owners can be alerted of the risk situation and take appropriate actions to manage the risk. Ongoing training, return on investment (ROI), and cost minimization are other possible ways to ensure KRIs provide value, but they are not as effective as timely notification. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 10; CRISC Review Manual, 6th Edition, page 140.

The GREATEST concern associated with business end users developing their own applications on end user spreadsheets and database programs is:

B. Controls are not applied to the applications.

When end users create their own applications, there is often a lack of formal controls that would typically be applied in a structured development environment. This can lead to issues with data integrity, security vulnerabilities, and non-compliance with organizational policies and standards.

According to the CRISC Review Manual1, cost of controls is the amount of money or resources that an organization is willing to spend to implement and maintain risk responses. Cost of controls is one of the factors that influences the risk appetite of an organization, as it reflects thetrade-off between the benefits and costs of risk responses. Cost of controls helps to determine the optimal level of risk that an organization can accept in pursuit of its objectives, and to align the risk responses with the organization’s strategy, goals, and culture. References = CRISC Review Manual1, page 193.

Identifying specific risk events provides the foundational input for creating relevant and actionable risk scenarios. These scenarios form the basis of assessing potential impacts and determining effective controls. This is a key step in theRisk Identification and Assessmentprocess.

 Enterprise Risk Management (ERM):

ERM involves a comprehensive approach to identifying, assessing, managing, and monitoring risks across an organization. Effective governance of organizational assets is a key component.

 Importance of a Risk Profile:

Developing a detailed risk profile is the first step in supporting ERM implementation. It provides a clear understanding of the organization's risk landscape, including the types of risks, their potential impact, and likelihood.

A risk profile helps in prioritizing risks, allocating resources, and establishing appropriate risk management strategies.

 Steps to Develop a Risk Profile:

Identify all organizational assets and their importance to business operations.

Assess the vulnerabilities and threats associated with each asset.

Determine the potential impact and likelihood of risk events.

Document the findings to create a comprehensive risk profile.

 Supporting Implementation:

A detailed risk profile informs decision-makers and supports the development of policies, controls, and procedures to mitigate identified risks.

It serves as a foundation for continuous monitoring and improvement of the risk management program.

 Other Options:

Hiring experienced resources, scheduling internal audits, and conducting risk assessments are essential actions but come after establishing a detailed risk profile. The risk profile provides the necessary information to guide these activities effectively.

 References:

The CRISC Review Manual emphasizes the importance of developing a detailed risk profile as a foundational step in the ERM process (CRISC Review Manual, Chapter 1: Governance, Section 1.6.5 Asset Valuation)​​.

Verifying the deficiency and then notifying the business process owner is the best response when a potential IT control deficiency has been identified. This is because verifying the deficiency can help confirm the existence, nature, and extent of the deficiency, as well as its root causes and impacts. Notifying the business process owner can help ensure that the deficiency is communicated to the person who is responsible for the process and its outcomes, and who has the authority and accountability to take appropriate actions to address the deficiency. According to the CRISC Review Manual 2022, one of the key risk response techniques is to report the risk to the relevant stakeholders, such as the business process owners1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, verifying the deficiency and then notifying the business process owner is the correct answer to this question2.

Remediating and reporting the deficiency to the enterprise risk committee or senior executive management are not the best responses when a potential IT control deficiency has been identified. These are possible actions that can be taken after the deficiency has been verified and notified to the business process owner, but they are not the first or immediate responses. Remediating the deficiency without verifying it can lead to ineffective or inappropriate solutions, as well as wasted time and resources. Reporting the deficiency to the enterprise risk committee or senior executive management without notifying the business process owner cancreate confusion, conflict, or delay in the risk response process, as well as undermine the ownership and accountability of the business process owner.

An independent review is typically sought to provide an objective assessment of the IT risk management program, ensuring that it aligns with the organization’s overall strategy andobjectives. The reviewer can identify areas where the program may not be effectively addressing the organization’s strategic goals or where improvements can be made to better manage IT risks.

When risk exceeds tolerance, the appropriate action is to engage the risk treatment process. This involves evaluating and implementing appropriate responses such as mitigation, transfer, or acceptance.

To help ensure all applicable risk scenarios are incorporated into the risk register, it is most important to review the risk assessment results, which are the outputs of the process of identifying, analyzing, and evaluating the risks that affect a project or an organization. The riskassessment results provide information on the sources, causes, impacts, likelihood, and severity of the risks, as well as the existing controls and their effectiveness. The risk assessment results help to determine the risk level and priority of each risk scenario, and to select the most appropriate risk response strategy. The risk assessment results are the basis for creating and updating the risk register, which is a document that records and tracks theidentified risks, their characteristics, responses, owners, and status12. The other options are not the most important factors to review, as they are either derived from or dependent on the risk assessment results. The risk mitigation approach is the plan and actions to reduce the impact or likelihood of the risks, and it is based on the risk assessment results. The cost-benefit analysis is the comparison of the costs and benefits of implementing the risk response strategy, and it is influenced by the risk assessment results. The vulnerability assessment results are the identification and measurement of the weaknesses or gaps in the information systems or resources, and they are part of the risk assessment results. References = Risk Assessment in Project Management | PMI; RiskAssessment Process: Definition, Steps, and Examples; Risk Assessment - an overview | ScienceDirect Topics; Risk Register: A Project Manager’s Guide with Examples [2023] • Asana; What Is a Risk Register? | Smartsheet

Showing projected residual risk is the most helpful way to respond to the request of explaining how existing risk treatment plans would affect risk posture at the end of the year. Residual risk is the level of risk that remains after the implementation of risk responses1. Projected residual risk is the estimated level of risk that will remain at a future point in time, based on the assumptions and expectations of the risk responses2. By showing projected residual risk, the risk practitioner can:

Demonstrate the effectiveness and efficiency of the risk treatment plans, and how they reduce the risk level from the inherent risk (the risk before the risk responses) to the residual risk3.

Compare the projected residual risk with the risk appetite and tolerance, which are the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives4. This can help to determine whether the projected residual risk is acceptable or not, and whether the risk treatment plans are consistent and proportional to the risk level5.

Identify and address any gaps, issues, or challenges that may affect the achievement of the projected residual risk, and recommend and implement appropriate improvement actions or contingency plans6.

The other options are not the most helpful ways to respond to the request, because:

Assessing risk with no controls in place is not the most helpful way, as it does not reflect the current or future risk posture of the organization. Controls are the measures or actions that are implemented to modify the risk, such as prevent, detect, correct, or mitigate the risk7. Assessing risk with no controls in place can help to measure the inherent risk, but it does not show the impact or outcome of the risk treatment plans.

Providing peer benchmarking results is not the most helpful way, as it does not reflect the specific or unique risk profile of the organization. Peer benchmarking is the process ofcomparing the organization’s risk level and performance with its peers or competitors, based on a common set of criteria or indicators8. Providing peer benchmarking results can help to provide a reference or a standard for the risk posture, but it does not show the effect or result of the risk treatment plans.

Assessing risk with current controls in place is not the most helpful way, as it does not reflect the future or projected risk posture of the organization. Assessing risk with current controls in place can help to measure the current residual risk, but it does not show the expected or estimated residual risk at the end of the year.

References =

Residual Risk - CIO Wiki

Projected Residual Risk - CIO Wiki

Risk Treatment Plan - CIO Wiki

Risk Appetite and Tolerance - CIO Wiki

Risk Appetite: What It Is and Why It Matters - Gartner

Risk Monitoring and Review - The National Academies Press

Control - CIO Wiki

Benchmarking - CIO Wiki

[Risk Treatment - CIO Wiki]

An IT risk awareness program shouldprimarily ensure that employees and stakeholders understand and comply with the organization's risk and information security policies. ISACA highlights that an awareness program must reinforce policy understanding to drive compliant and secure behavior across the organization.

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 The performance of a client-facing application is the measure of how well the application meets the expectations and requirements of the clients who use it. The performance of a client-facing application can be affected by various factors, such as functionality, usability, reliability, availability, security, and scalability. Continuously monitoring the performance of a client-facing application is the process of collecting, analyzing, and reporting on the performance data and metrics of the application over time. Continuously monitoring the performance of a client-facing application can help identify and resolve issues, improve quality, optimize resources, and enhance client satisfaction. The most important thing to ensure when continuously monitoring the performance of a client-facing application is that the objectives are confirmed with the business owner. The business owner is the person or entity who has the authority and responsibility for the business value and outcomes of the application. The business owner defines the objectives, goals, and requirements of the application, and sets the performance criteria and targets. Confirming the objectives with the business owner can help ensure that the performance monitoring is aligned with the business needs and expectations, and that the performance data and metrics are relevant, accurate, and meaningful. References = Risk and Information SystemsControl Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.3: Continuous Monitoring, p. 203-205.

The most useful information for a risk practitioner when planning response activities after risk identification is the risk priorities. Risk priorities are the order or ranking of the risks based on their level of importance or urgency. Risk priorities help the risk practitioner to focus on the most critical risks, and allocate the resources and efforts accordingly. Risk priorities are usuallydetermined by using a combination of factors, such as the likelihood and impact of the risks, the risk appetite and tolerance of the organization, and the cost and benefit of the risk responses. Theother options are not as useful as the risk priorities, although they may provide some input or context for the risk response planning. The risk register is the document that records the details of all identified risks, but it does not necessarily indicate the risk priorities. The risk appetite is the amount and type of risk that the organization is willing to pursue, retain, or take, but it does not specify the risk priorities. The risk heat maps are graphical tools that display the risk level of each risk based on the likelihood and impact, but they do not show the risk priorities. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.

 The most important thing for an organization to have in place when developing a risk management framework is a strategic approach to risk including an established risk appetite, as this provides the direction, scope, and objectives of the risk management process, and defines the level of risk that the organization is willing to accept or avoid in pursuit of its goals. A strategic approach to risk aligns the risk management framework with the organization’s vision, mission, values, and strategy, and ensures that the risk management activities support the achievement of the desired outcomes. An established risk appetite sets the boundaries and criteria for risk decision making, and guides the selection and implementation of risk responses. The other options are not the most important things for an organization to have in place when developing a risk management framework, although they may be useful or necessary components of it. A risk-based internal audit plan is a tool that helps to evaluate and improve the effectiveness of the risk management framework, but it does not define or drive the risk management process. A control function within the risk management team is a role that helps to implement and monitor the risk controls, but it does not determine or influence the risk strategy or appetite. An organization-wide risk awareness training program is a method that helps to enhance the risk culture and competence of the organization, but it does not establish or communicate the risk approach or appetite. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, page 23.

The best course of action for the risk practitioner upon learning that the number of failed back-up attempts continually exceeds the current risk threshold is to inquire about the status of any planned corrective actions. This would help the risk practitioner to understand the root causes of the problem, the progress of the remediation efforts, and the expected timeline for resolution. It would also help the risk practitioner to provide guidance and support to the responsible parties, and to escalate the issue if necessary. Inquiring about the status of any planned corrective actions would demonstrate the risk practitioner’s proactive and collaborative approach to riskmanagement, and ensure that the risk exposure is reduced to an acceptable level as soon as possible. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.2.3, page 2371

According to the CRISC Review Manual1, a cable lock is a physical security device that attaches a laptop to a fixed object, such as a desk or a wall, to prevent unauthorized removal or theft. A cable lock is the best option to reduce the probability of laptop theft, as it acts as a deterrent and a barrier for potential thieves. A cable lock also helps to protect the confidentiality, integrity, andavailability of the data stored on the laptop, as well as the laptop itself. References = CRISC Review Manual1, page 253.

TheRecovery Point Objective (RPO)specifies the maximum tolerable period in which data might be lost due to an incident. In this case, the organization is indicating that it cannot afford to lose more than three hours of data, defining its RPO.

Biased recommendations from AI models pose significant risks to decision-making and organizational ethics. Such biases can propagate systemic issues and impact regulatory compliance, emphasizing the need for robust controls in AI development and deployment underEmerging Technology Risks.

Key performance indicators (KPIs) are metrics or measures that provide information on the progress and performance of an organization or a team toward an intended result orobjective. KPIs can help to monitor and evaluate the achievement of strategic, operational, or tactical goals, and to support the decision making and improvement of the organization or the team1.

Key control indicators (KCIs) are metrics or measures that provide information on the status and effectiveness of the controls or safeguards that are implemented to manage the risks or threats that an organization or a team faces. KCIs can help to identify and assess the strengths and weaknesses of the controls or safeguards, and to ensure the compliance and accountability of the organization or the team2.

The statement that best illustrates the relationship between KPIs and KCIs is that KPIs and KCIs both contribute to understanding of control effectiveness, because they can help to:

Measure and compare the actual and expected outcomes and impacts of the controls or safeguards, and to determine the gaps or deviations

Analyze and understand the causes and consequences of the gaps or deviations, and to identify the root problems or issues

Evaluate and report the performance and compliance of the controls or safeguards, and to communicate the results and feedback to the stakeholders

Improve and optimize the design and implementation of the controls or safeguards, and to enhance the efficiency and effectiveness of the risk management process34

The other statements do not illustrate the relationship between KPIs and KCIs accurately, but rather some of the differences or misconceptions between them. KPIs measure manual controls, while KCIs measure automated controls is a difference between KPIs and KCIs, but not a general one. KPIs and KCIs can measure both manual and automated controls, depending on the type and nature of the controls or safeguards.A robust KCI program will replace the need to measure KPIs is a misconception about KPIs and KCIs, as they are not mutually exclusive or substitutable. KPIs and KCIs complement and support each other, as they provide different but related information on the performance and risk management of the organization or the team. KCIs are applied at the operational level while KPIs are at the strategic level is a difference between KPIs and KCIs, but not a universal one. KPIs and KCIs can be applied at different levels of the organization or the team, depending on the scope and purpose of the measurement and evaluation. References =

Key Performance Indicator (KPI): Definition, Types, and Examples

Key Control Indicators - ISACA

Key Control Indicators: What They Are and How to Use Them

Key Performance Indicators vs. Key Control Indicators: What’s the Difference?

[CRISC Review Manual, 7th Edition]

The issue of greatest concern when evaluating existing controls during a risk assessment is the presence of successive assessments with the same recurring vulnerabilities. This indicates that the controls are ineffective or inadequate in addressing the identified risks, and that the risk management process is not functioning properly. Recurring vulnerabilities expose the enterprise to potential losses, breaches, or incidents that could harm its objectives, reputation, or compliance. Therefore, it is essential to identify the root causes of the recurring vulnerabilities, implement corrective actions, and monitor the effectiveness ofthe controls on a regular basis. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.2, page 183.

The most comprehensive resource for prioritizing the implementation of information systems controls is the risk register. The risk register is a document that records the identified risks, their analysis, and their responses. The risk register provides a holistic and systematic view of the risk profile and the risk treatment of the organization. The risk register can help to prioritize the implementation of information systems controls by providing the information on the likelihood, impact, and exposure of the risks, the effectiveness and efficiency of the controls, and the gaps or issues of the control environment. The other options are not as comprehensive as the risk register, as they are related to the specific aspects or components of the information systems controls, not the overall assessment and evaluation of the information systems controls. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.

The operational risk associated with attacks on a web application should be owned by the individual in charge of the business function, because they are the primary stakeholder and beneficiary of the web application, and they are responsible for defining and achieving the business objectives and requirements that the web application supports or enables. Anoperational risk is a risk of loss or damage resulting from inadequate or failed internal processes, people, or systems, or from external events. An attack on a web application is a type of operational risk that involves a malicious or unauthorized attempt to compromise the confidentiality, integrity, or availability of the web application, such as a denial-of-service attack, a SQL injection attack, or a cross-site scripting attack. A web application is an application that runs on a web server and can be accessed or used through a web browser, such as an online shopping site, a social media platform, or a web-based email service. A business function is a set of activities or tasks that support or enable the organization’s vision, mission, and strategy, such as marketing, sales, or customer service. A risk owner is a person or role that has the authority and accountability to manage a specific risk, and to implement and monitor the risk response and controls. The individual in charge of the business function should be the risk owner, as they have the best understanding and interest of the web application and its business value and impact, and they have the ability and responsibility to manage the operational risk associated with the attacks on the web application. The individual in charge of network operations, the cybersecurity function, or application development are all possible candidates for the risk owner, but they are not the best choice, as they may not have the same level of stake and influence in the web application and its business objectives and requirements, and they may have different orconflicting priorities or perspectives on the operational risk and its management. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.1, page 101

The most important consideration is that the risk framework and policies are adaptable and suitable for emerging technologies. This ensures that the organization's approach to risk management remains effective and relevant as new technologies are adopted, helping to mitigate potential risks associated with these technologies.

A root cause analysis is a systematic process of identifying the underlying factors that caused the noncompliant conditions during the review of a control procedure. A root cause analysis can help to prevent the recurrence of the noncompliance, improve the effectiveness of the control procedure, and enhance the risk management process. A root cause analysis can be performed using various tools and techniques, such as the 5 whys, fishbone diagram, Pareto chart, or fault tree analysis. The other options are not as appropriate as a root cause analysis, because they do not address the source of the problem, but rather the symptoms or consequences of the noncompliance. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.3, page 130.

 Cost-benefit analysis is the most helpful tool to show risk reduction based on when developing risk treatment alternatives for a business case, because it compares the expected costs and benefits of each alternative and helps to select the most optimal and feasible one. Cost-benefit analysis also helps to justify the investment and resources required for the risk treatment plan and to demonstrate the value and return of the risk reduction. The other options are not the most helpful tools, although they may also be considered when developing risk treatment alternatives. Risk appetite, regulatory guidelines, and control efficiency are examples of factors or criteria that influence the selection of risk treatment alternatives, but they do not show the risk reduction based on the alternatives. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

The conditional approval of the CIO’s proposal indicates the organization’s risk appetite. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. By setting a limit for expenditures before final approval, senior management isexpressing their willingness to take a calculated risk with the new technology, but also their desire to control the potential loss or harm. Risk capacity, management capability, and treatment strategy are other possible factors, but they are not as relevant as risk appetite. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97

Avoiding the risk means eliminating the source of the risk or changing the likelihood or impact to zero. In this case, the source of the risk is the collection of customers’ personally identifiable information (Pll), which could be exposed to unauthorized parties and result in severe fines. Therefore, the best action to avoid the risk is to modify the business processes to stop collecting Pll, as this would eliminate the possibility of data leakage and the associated consequences. The other options are not as effective as modifying the business processes, because they do not avoid the risk, but rather mitigate or transfer the risk, as explained below:

A. Reduce retention periods for Pll data is a mitigation action, as it reduces the impact of the risk by minimizing the amount of data that could be leaked and the duration of exposure.

B. Move Pll to a highly-secured outsourced site is a transfer action, as it shifts the responsibility of protecting the data to a third party, but does not eliminate the risk of data leakage.

D. Implement strong encryption for Pll is a mitigation action, as it reduces the likelihood of the risk by making the data unreadable to unauthorized parties, but does not eliminate the risk of data leakage. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.2, page 40.

Conducting interviews with senior management is the best method for determining an enterprise’s current appetite for risk, because it helps to obtain the direct and qualitative input and feedback from the senior management on their expectations and preferences regarding thelevel and type of risk that the enterprise is willing to accept or pursue, in relation to its objectives and strategy. Risk appetite is the amount and nature of risk that an enterprise is willing to take in order to achieve its objectives and create value. Risk appetite is influenced by factors such as the enterprise’s culture, values, vision, mission, and strategy, as well as the externalenvironment and stakeholders. Risk appetite may vary depending on the context and situation, and may change over time. Conducting interviews with senior management is the best method, as it helps to understand and capture the current and explicit risk appetite of the enterprise, and to align the risk management process and activities with the senior management’s risk vision and direction. Conducting comparative analysis of peer companies, reviewing brokerage firm assessments, and performing trend analysis using prior annual reports are all possible methods for determining an enterprise’s current appetite for risk, but they are not the best method, as they may provide only indirect, quantitative, or historical information, and may not reflect the current and specific risk appetite of the enterprise. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 45

 Continuity planning is the process of developing strategies and plans to ensure the continuity of critical business functions and processes in the event of a disruption or disaster. Continuity planning involves identifying the risks, impacts, and recovery options for various scenarios, as well as testing and updating the plans regularly. The primary advantage of involving end users in continuity planning is that they have a better understanding of specific business needs, such as the operational requirements, the customer expectations, and the dependencies and interdependencies of the business processes. End users can provide valuable input and feedback on the continuity plans, as well as participate in the testing and validation of the plans. End users can also help to ensure the alignment of the continuity plans with the business objectives and priorities, as well as the compliance with the relevant standards and regulations. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.1, p. 204-205

The data privacy manager is the best person to an application system used to process employee personal data, because they are responsible for ensuring that the organization complies with the applicable data protection laws and regulations, and that the personal data of employees are collected, stored, processed, and disposed of in a secure and ethical manner. The data privacy manager is also responsible for establishing and maintaining the data privacy policies, procedures, and controls, and for conducting data privacy impact assessments and audits. The compliance manager, the system administrator, and the human resources (HR) manager are all involved in the of the application system, but they are not the best person to it, as they do not have the primary accountability and expertise for data privacy. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158

A gap analysis is the best approach to identify information systems control deficiencies, as it helps to compare and evaluate the current and desired states of the information systems and their controls, and to identify and prioritize the gaps or weaknesses that need to be addressed. A gap analysis is a process of assessing and measuring the difference between the actual and expected performance or outcomes of a system or a process, such as an information system or a control process. A gap analysis can help to identify information systems control deficiencies by providing the following benefits:

It enables a data-driven and evidence-based approach to information systems control assessment and improvement, rather than relying on subjective or qualitative judgments.

It facilitates a consistent and standardized way of measuring and communicating information systems control performance and quality across the organization and to the external stakeholders.

It supports the alignment of information systems and their controls with the organizational strategy and objectives, and helps to evaluate the achievement of the desired outcomes.

It helps to identify and prioritize the root causes and contributing factors of information systems control deficiencies, and to develop and implement appropriate strategies and actions to address them.

It provides feedback and learning opportunities for the information systems and their controls, and helps to foster a culture of continuous improvement and innovation.

The other options are not the best approaches to identify information systems control deficiencies. Countermeasures analysis is a method of identifying and evaluating the potential countermeasures or solutions to mitigate or eliminate a specific threat or risk, but it does not directly address the information systems control deficiencies. Best practice assessment is a method of comparing and benchmarking the information systems and their controls against the industry standards or best practices, but it does not provide a comprehensive or customized analysis of the information systems control deficiencies. Risk assessment is a method ofidentifying and analyzing the potential risks and their impacts on the information systems and their objectives, but it does not measure or evaluate the information systems control performance or quality. References = Gap Analysis: A Practical Guide | Smartsheet, IT Risk Resources | ISACA, How to Perform a Gap Analysis: Step-By-Step Guide & Template

Key Risk Indicators (KRIs) are metrics used by organizations to provide early warning signs of potential risks, including unauthorized data disclosure. By monitoring KRIs, organizations can proactively identify vulnerabilities and take corrective actions before a risk materializes. This proactive approach is essential in minimizing the potential impact of data breaches.​

According to ISACA's CRISC Review Manual, KRIs are defined as "metrics capable of showing that the enterprise is, or has a high probability of being, subject to a risk that exceeds the defined risk appetite." They are critical to the measurement and monitoring of risk and performance optimization. ​ISACA

While data backups (Option B) are vital for data recovery post-incident, they do not prevent unauthorized disclosures. An incident response plan (Option C) is reactive, focusing on responding after an incident has occurred. Cyber insurance (Option D) provides financial compensation post-incident but does not prevent the occurrence of data breaches.​

Therefore, implementing and monitoring KRIs is the most proactive approach to minimizing the potential impact of unauthorized data disclosure.

A spear phishing attack is a type of cyberattack that targets a specific individual or organization with a fraudulent email that appears to be from a trusted source, and attempts to trick the recipient into clicking amalicious link, opening a malicious attachment, or providing sensitive information. A spear phishing attack can compromise the security, confidentiality, integrity, or availability of the information systems and data of the individual or organization. The most effective way to mitigate the risk associated with spear phishing attacks is to implement a security awareness program, which is a program that educates and trains the employees and stakeholders of the organization about the security policies, procedures, and best practices, and the potential threats and risks that may affect the organization. A security awareness program can help to prevent or reduce the success of spear phishing attacks, as it can increase the knowledge and skills of the employees and stakeholders to recognize and avoid the fraudulent emails, and to report and respond to any suspicious or malicious activities. References = CRISC Review Manual, 7th Edition, page 181.

When likelihood is unknown, range-based estimates from subject-matter experts provideinformed and realistic insights into potential risk exposure. This approach helps approximate the inherent risk based on experience and expertise, supporting effective decision-making.

The most important characteristic of an effective risk management program is that risk ownership is assigned. Risk ownership is the accountability and authority to manage a risk1. Assigning risk ownership means identifying and assigning the person or entity who is responsible for evaluating, treating, monitoring, and reporting on a specific risk2. Assigning risk ownership is essential for ensuring that the risk management program works effectively and efficiently, as it helps to:

Clarify the roles and responsibilities of the different functions or groups involved in risk management and internal control;

Ensure that the risks are managed in accordance with the organization’s objectives, strategies, and risk appetite;

Provide guidance and support to the risk owners in identifying, assessing, and mitigating the risks;

Monitor and evaluate the performance and effectiveness of the risk owners and the risk response actions;

Communicate and report on the risk status and issues to the relevant stakeholders and authorities. The other options are not the most important characteristic of an effective risk managementprogram, as they are either less relevant or less specific than assigning risk ownership. Risk response plans are documented. This option is a consequence or outcome of an effective risk management program, not a characteristic of it. Risk response plans are the actions or measures that are taken to modify the risk, such as reducing, avoiding, transferring, or accepting the risk3. Documenting risk response plans means recording and maintaining the details and outcomes of the risk responseactions, such as the objectives, scope, resources, timelines, performance indicators, and results4. Documenting risk response plans can help to improve the consistency and transparency of the risk management process, as well as to support the monitoring and evaluation of the risk response actions. However, documenting risk response plans is not the most important characteristic of an effective risk management program, as it does not address the accountability and authority for managing the risk. Controls are mapped to key risk scenarios. This option is a specific or narrow example of an effective risk managementprogram, not a general or broad characteristic of it. Controls are the measures or actions that are taken to reduce the likelihood or impact of a risk, or to increase the likelihood or impact of an opportunity5. Mapping controls to key risk scenarios means linking the controls to the specific situations or events that may affect the organization’s objectives, operations, or performance6. Mapping controls to key risk scenarios can help to enhance the design and implementation of the controls, as well as to evaluate the effectiveness and efficiency of the controls in mitigating the risk. However, mapping controls to key risk scenarios is not the most important characteristic of an effective risk management program, as it does not cover the other aspects of risk management, such as risk identification, assessment, treatment, and monitoring. Key risk indicators are defined. This option is a component or element of an effective risk management program, not a characteristic of it. Key risk indicators are the metrics that measure thelevel and trend of a risk that may affect the organization’s objectives, operations, or performance7. Defining key risk indicators means establishing and maintaining the criteria and methods for measuring and reporting on the risk8. Defining key risk indicators can help to enhance the risk identification, assessment, and reporting processes, as well as to support the risk decision making and prioritization. However, defining key risk indicators is not the most important characteristic of an effective risk management program, as it does not indicate the accountability and authority for managing the risk. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.1.1, Page 85.

The risk scenario associated with data loss at the organization’s cloud provider should be reassigned to the data owner, as they have the authority and responsibility to define the classification, retention, and disposal requirements for the data they own, and to manage the risk and controls related to the data. The risk scenario should not be assigned to the cloud provider, as they are an external party that may not have the same interest or accountability as the organization. Senior management, chief risk officer (CRO), and vendor manager are not the best choices, as they have different roles and responsibilities related to risk governance, strategy, or oversight, respectively, but they do not own the data. References = CRISC Review Manual, 7th Edition, page 154.

A risk heat map is a graphical tool that displays the overall risk of the project to senior management by showing the probability and impact of individual risks in a matrix format. A risk heat map can help to prioritize the risks, communicate the risk exposure, and monitor the risk response. A risk heat map can also show the risk appetite and tolerance levels of the organization, as well as the residual risk after the risk response. The other options are not the most effective ways to represent the overall risk of the project to senior management, although they may be useful or complementary to the risk heat map. Aggregated key performance indicators (KPIs) are metrics that measure the performance of the project against the objectives, but they do not show the uncertainty or variability of the project outcomes. Key risk indicators (KRIs) are metrics that measure the level of risk or the effectiveness of the risk response, but they do not show the relationship between the probability and impact of the risks. A centralizedrisk register is a document that records the details of the individual risks, such as the description, category, cause, effect, probability, impact, response, and status, but it does not show the overall risk of the project in a visual or concise way. References = Managing overall project risk, Project Risk Management – Quick Reference Guide, 10 Common Project Risks (Plus the Steps To Solve Them), What Is Project Risk Management: Benefits, Challenges, Best Practices

The risk practitioner’s first course of action when an assessment of information security controls has identified ineffective controls should be A. Determine whether the impact is outside the risk appetite1

According to the CRISC Review Manual, risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite reflects the organization’s risk culture, strategy, and values2

When an assessment of information security controls has identified ineffective controls, it means that the controls are not providing the expected level of protection or assurance for the information assets or processes. This may result in increased exposure or vulnerability to threats, or reduced ability to achieve objectives. Therefore, the risk practitioner should first determine whether the impact of the ineffective controls is outside the risk appetite, as this would indicate the need for urgent action or escalation3

The other options are not the first course of action when an assessment of information security controls has identified ineffective controls, because:

•B. Requesting a formal acceptance of risk from senior management may be appropriate if the impact of the ineffective controls is within the risk appetite, and the organization decides to accept the risk as it is. However, this should not be the first course of action, as it may not address the root cause of the ineffective controls, or the potential consequences or opportunities for improvement4

•C. Reporting the ineffective control for inclusion in the next audit report may be part of the risk communication and reporting process, but it should not be the first course of action, as it may delay the resolution or mitigation of the issue, or the implementation of corrective actions. Moreover, the next audit report may not be timely or relevant for the decision-makers or stakeholders who need to be informed of the ineffective controls5

•D. Deploying a compensating control to address the identified deficiencies may be a possible risk response option, but it should not be the first course of action, as it may require further analysis, evaluation, and approval. Moreover, deploying a compensating control may not be the most effective or efficient solution, as it may introduce additional complexity, cost, or risk.

1: CRISC Review Questions, Answers & Explanations Database, Question ID: 100003 2: CRISC Review Manual, 7th Edition, page 28 3: CRISC Review Manual, 7th Edition, page 223 4: CRISC Review Manual, 7th Edition, page 224 5: CRISC Review Manual, 7th Edition, page 225 : CRISC Review Manual, 7th Edition, page 226

It is most important that security controls for a new system be documented in the system requirements. The system requirements define the functional and non-functional specifications of the system, including the security controls that are needed to protect the system and its data. Documenting the security controls in the system requirements can help ensure that they are designed, developed, tested, and implemented as part of the system development life cycle. Testing requirements, the implementation plan, and the security policy are other documents that may include security controls, but they are not as important as the system requirements. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 5; CRISC Review Manual, 6th Edition, page 212.

According to the CRISC Review Manual, risk taxonomy is the system of classification and categorization of risks based on common characteristics and attributes. Risk taxonomy is necessary to enable an IT risk register to be consolidated with the rest of the organization’s risk register, because it helps to ensure consistency, comparability, and alignment of the risks across the organization. Risk taxonomy also helps to facilitate the communication, reporting, and aggregation of the risks. The other options are not the correct answers, because they are not essential for consolidating the risk registers. Risk response is the action taken to address the risk, which may vary depending on the risk level and strategy. Risk appetite is the amount and type of risk that an organization is willing to accept, which may differ across the organization’s units and functions. Risk ranking is the process of prioritizing the risks based on their impact and likelihood, which may change over time and context. References = CRISC Review Manual, 7th Edition, Chapter 2, Section 2.1.2, page 69.

Disaster recovery plans are essential for ensuring the continuity and resilience of business operations in the event of a disruption or disaster. However, creating and maintaining separatedisaster recovery plans for each business unit may not be cost-effective or efficient, as it may result in duplication, inconsistency, or gaps in the plans. Therefore, the best course of action would be to evaluate opportunities to combine disaster recovery plans across the business units, where possible and appropriate. This would help to achieve economies of scale, standardization, and alignment of the plans, as well as reduce complexity and costs. However, this does not mean that all disaster recovery plans should be identical or centralized, as different business units may have different risk profiles, recovery objectives, and requirements. Therefore, the combined disaster recovery plans should still be tailored and customized to suit the specific needs and characteristics of each business unit. References = ISACA CRISC Review Manual, 7th Edition, Chapter 2, Section 2.3.2, page 71.

Single sign-on (SSO)simplifies authentication but introduces asingle point of failure. If the SSO mechanism is compromised or goes down, it can result in the loss of access across multiple systems, leading to widespread business disruption or security breaches.

 The most important information to include when reporting the effectiveness of risk management to senior management is the changes in residual risk levels against acceptable levels, as it indicates how well the risk management process and activities have reduced the risk exposure and impact to the level that is aligned with the risk tolerance and appetite of the organization. The other options are not the most important information, as they are more related to thedrivers,factors, or outcomes of risk management, respectively, rather than the effectiveness or value of risk management. References = CRISC Review Manual, 7th Edition, page 109.

 IT risk scenarios are hypothetical situations that describe how IT-related events or incidents could adversely affect an organization’s objectives, assets, or operations. IT risk scenarios can help to identify, analyze, and prioritize IT risks, and to develop appropriate responses and controls1.

An enterprise-wide risk register is a document that records and tracks the significant risks that an organization faces across its various functions, processes, and activities. An enterprise-wide risk register can help to provide a comprehensive and consistent view of the organization’s risk profile, and to support the decision making and reporting of the risk management function2.

The best practice that facilitates the incorporation of IT risk scenarios into the enterprise-wide risk register is to develop IT risk scenarios in the context of organizational objectives. This means that IT risk scenarios should be aligned with and derived from the organization’s strategic goals, mission, vision, and values. IT risk scenarios should also consider the interdependenciesand interactions between IT and other business domains, and the potential impact of IT risks on the organization’s performance and reputation3.

By developing IT risk scenarios in the context of organizational objectives, the organization can ensure that the IT risk scenarios are relevant, realistic, and meaningful for the enterprise-wide risk management. The organization can also ensure that the IT risk scenarios are consistent and comparable with other types of risk scenarios, such as financial, operational, or reputational risk scenarios. This can facilitate the integration and consolidation of IT risk scenarios into the enterprise-wide risk register, and enable a holistic and balanced assessment and reporting of the organization’s risks4.

The other options are not as effective as developing IT risk scenarios in the context of organizational objectives for incorporating IT risk scenarios into the enterprise-wide risk register. Developing key risk indicators (KRIs) for key IT risk scenarios can help to monitor and measure the IT risk exposure and performance, but it does not ensure that the IT risk scenarios are aligned with the organizational objectives or integrated with other risk scenarios. Assessing IT risk scenarios by the enterprise risk management team can help to validate and prioritize the IT risk scenarios, but it does not ensure that the IT risk scenarios are derived from the organizational objectives or consistent with other risk scenarios. Approving risk appetites for IT risk scenarios by key business stakeholders can help to establish the acceptable level of IT risk taking andtolerance, but it does not ensure that the IT risk scenarios are based on the organizational objectives or comparable with other risk scenarios. References =

IT Risk Scenario Development - ISACA

Risk Register - ISACA

Identifying Risks and Scenarios Threatening the Organization as an Enterprise - A New Enterprise Risk Identification Framework

Risk Register 2021-2022 - UNECE

[CRISC Review Manual, 7th Edition]

The best way to ensure data is properly sanitized while in cloud storage is to cryptographically scramble the data. Cryptographic scrambling is the process of transforming data into an unreadable form using a secret key or algorithm. Cryptographic scrambling protects the data from unauthorized access, modification, or deletion, even if the cloud storage provider or a third party gains access to the data. Cryptographic scrambling also ensures that the data can be restored to its original form using the same key or algorithm, if needed. The other options are not as effective as cryptographic scrambling, because they either do not completely remove the data,or they make it impossible to recover the data. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, page 3-21.