CRISC Exam Dumps - Isaca Certification Questions and Answers

A treatment plan status is a report that shows the current status and progress of the risk mitigation actions and activities that are implemented to reduce the risk exposure of the organization. A treatment plan status would provide the most useful information to a risk owner when reviewing the progress of risk mitigation, as it can help to monitor and evaluate the performance and effectiveness of the risk controls, and to identify and address any issues or gaps that may arise during the implementation. A treatment plan status can also provide feedback and information to the risk owners and stakeholders, and enable them to adjust the risk strategy and response actions accordingly. References = CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 257. CRISC Sample Questions 2024, Question 257. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 257. CRISC by Isaca Actual Free Exam Q&As, Question 9.

The most important objective of establishing an enterprise risk management (ERM) function within an organization is to have a unified approach to risk management across the organization. An ERM function is a centralized and coordinated function that oversees and supports the risk management activities of the organization, such as risk identification, assessment, response, monitoring, and reporting. An ERM function helps to ensure that the risk management process is consistent, comprehensive, and integrated with the organization’s strategy, objectives, and culture. An ERM function also helps to align the risk management activities with the organization’s risk appetite and tolerance, and to provide a holistic view of the organization’s risk profile and exposure. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.1.1, page 131

Key risk indicators (KRIs) are metrics that provide an early warning of increasing risk exposure in various areas of the organization. They help to monitor changes in the level of risk and enable timely actions to mitigate the risk. The most useful information for developing KRIs is the possible causes of materialized risk, which are the factors or events that trigger or contribute to the occurrence of a risk. By identifying the possible causes of materialized risk, an organization can design KRIs that measure the likelihood and impact of the risk, and alert the management when the risk exceeds the acceptable level. References = CRISC Review Manual, 7th Edition, page 101.

The most appropriate action when a tolerance threshold is exceeded is to communicate the potential impact to the decision makers. A tolerance threshold is the acceptable level of variation or deviation from the expected or planned performance or outcome of a risk response. When a tolerance threshold is exceeded, it means that the risk response is not effective or efficient enough to reduce the risk to an acceptable level, and that the enterprise is exposed to unacceptable levels of risk that could impair its ability to achieve its objectives. Therefore, the potential impact of the risk should be communicated to the decision makers, such as senior management, risk owners, or risk committee, who have the authority and responsibility to decide on the appropriate actions to address the risk situation. Communicating the potential impact can help to raise the awareness and urgency of the risk issue, and to facilitate the risk-based decision making process. Researching the root cause of similar incidents, verifying the response plan is adequate, and increasing human resources to respond in the interim are not as appropriate as communicating the potential impact, as they do not address the primary need of informing and involving the decision makers, and may not be feasible or effective in resolving the risk issue. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 41.

The primary reason for tracking the status of risk mitigation plans is to ensure that the proposed controls are implemented as scheduled, as this can help to reduce the risk exposure of the organization and to achieve the desired risk objectives. Tracking the status of risk mitigation plans can also help to monitor and evaluate the performance and effectiveness of the risk controls, and to identify and address any issues or gaps that may arise during the implementation. Tracking the status of risk mitigation plans can also provide feedback and information to the risk owners and stakeholders, and enable them to adjust the risk strategy and response actions accordingly. References = CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 251. CRISC Sample Questions 2024, Question 251. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 251. CRISC by Isaca Actual Free Exam Q&As, Question 9.

Several network user accounts were recently created without the required management approvals. This indicates that there is a risk of unauthorized access, use, disclosure, modification, or destruction of the network resources or data, which may affect the confidentiality, integrity, and availability of the network.

The best recommendation to address this situation is to investigate the root cause of noncompliance. This means that the risk practitioner should analyze the factors or reasons that led to the creation of the network user accounts without the required management approvals, such as human error, negligence, malice, system failure, process flaw, etc.

Investigating the root cause of noncompliance helps to identify and correct the source of the problem, prevent or reduce the recurrence of the problem, and improve the compliance and security of the network user accounts.

The other options are not the best recommendations to address this situation. They are either secondary or not effective for noncompliance.

The references for this answer are:

Risk IT Framework, page 31

Information Technology & Security, page 25

Risk Scenarios Starter Pack, page 23

The effectiveness of anti-malware software is the degree to which it can detect, prevent, and remove malicious software (malware) from the system or network. Malware is any software that is designed to harm, exploit, or compromise the functionality, security, or privacy of the system or network1. Some common types of malware are viruses, worms, Trojans, ransomware, spyware, adware, and rootkits2.

One of the best indicators of the effectiveness of anti-malware software is the number of successful attacks by malicious software, which means the number of times that malware has managed to bypass, evade, or disable the anti-malware software and cause damage or disruption to the system or network. The lower the number of successful attacks, the higher the effectiveness of the anti-malware software. This indicator can measure the ability of the anti-malware software to protect the system or network from known and unknown malware threats, and to respond and recover from malware incidents34.

The other options are not the best indicators of the effectiveness of anti-malware software, because:

Number of staff hours lost due to malware attacks is a measure of the impact or consequence of malware attacks on the productivity or performance of the staff. It does not directly reflect the ability of the anti-malware software to detect, prevent, or remove malware, as there may be other factors that affect the staff hours lost, such as the severity of the attack, the availability of backup or recovery systems, or the skills and awareness of the staff5.

Number of downtime hours in business critical servers is a measure of the impact or consequence of malware attacks on the availability or reliability of the servers. It does not directly reflect the ability of the anti-malware software to detect, prevent, or remove malware, as there may be other factors that affect the downtime hours, such as the type of the server, the configuration of the network, or the maintenance of the hardware6.

Number of patches made to anti-malware software is a measure of the maintenance or improvement of the anti-malware software. It does not directly reflect the ability of the anti-malware software to detect, prevent, or remove malware, as there may be other factors that affect the number of patches, such as the frequency of the updates, the quality of the software, or the compatibility of the system7.

References =

What is Malware? - Definition from Techopedia

Common Types of Malware and Their Impact - Techopedia

What is Anti-Malware? Everything You Need to Know (2023) - SoftwareLab

The 10 Best Malware Protection Solutions Compared for 2024 - Techopedia

The Cost of Malware Attacks - Security Boulevard

The Impact of Malware on Business - Kaspersky

What is Patch Management? - Definition from Techopedia

Being the first to market is a competitive advantage that can help an organization gain market share, customer loyalty, and brand recognition. However, this advantage can be lost if the project is delayed and the competitors catch up or surpass the organization. Therefore, the project delivery time is of greatest concern to senior management, as it directly affects the strategic objective of the project. The other options are less critical, as they can be managed or mitigated by the project team. More time for testing can improve the quality and reliability of the product, a new project manager can bring fresh ideas and perspectives, and the cost overrun can be justified by the expected benefits and revenues of the product. References = Project Initiation: The First Step to Project Management [2023] • Asana, 12 Steps to Initiate and Plan a Successful Project

Reviewing historical risk events is most useful for the risk assessment process within the risk management life cycle. Risk assessment is the process of identifying, analyzing, and evaluating the risks that may affect the project or the organization1. Reviewing historical risk events can help to:

Identify the sources, causes, and consequences of past risks and learn from the successes and failures of previous projects or organizations

Analyze the likelihood and impact of potential risks based on historical data and trends, and use statistical methods or models to estimate the probability and severity of risk scenarios

Evaluate the level of risk exposure and compare it with the risk appetite and tolerance of the project or the organization, and prioritize the risks that need further attention or action

Use historical risk events as inputs or examples for risk identification and analysis techniques, such as brainstorming, checklists, interviews, surveys, SWOT analysis, root cause analysis, or Monte Carlo simulation2

References = Risk and Information Systems Control Study Manual, Chapter 5: Risk Assessment Process3

A risk treatment plan is a document that outlines the approach and actions to be taken to address the unacceptable risks identified in the risk assessment process1. A risk treatment plan should include the following components2:

The risk identification number and description

The risk treatment option chosen (e.g., avoid, reduce, share, or accept)

The risk treatment owner, who is responsible for implementing and monitoring the risk treatment

The risk treatment actions, which are the specific tasks or steps to be performed to execute the risk treatment

The risk treatment resources, which are the human, financial, or technical resources required to support the risk treatment

The risk treatment target date, which is the deadline for completing the risk treatment

The risk treatment performance indicators, which are the measures to evaluate the effectiveness and efficiency of the risk treatment

The risk treatment status, which is the current progress or outcome of the risk treatment

Among the four options given, the most important component in a risk treatment plan is the treatment plan ownership. This is because the treatment plan ownership defines the accountability and authority for the risk treatment, and ensures that the risk treatment actions are carried out as planned and reported as required3. The treatment plan ownership also facilitates the communication and coordination among the stakeholders involved in the risk treatment, and enables the escalation and resolution of any issues or challenges that may arise during the risk treatment process4.

References = Risk Treatment (With Examples), ISO 27001 Risk Assessment & Risk Treatment: The Complete Guide, Risk Management Framework - Treat Risks, Risk Management Plan Components

 A role-based user access model is a type of technology control that assigns access rights and permissions to users based on their roles and responsibilities within the organization. A role-based user access model can reduce the likelihood of fraudulent payments committed internally, because it can help to:

Enforce the principle of least privilege, which means that users only have the minimum level of access required to perform their duties

Implement segregation of duties, which means that users cannot perform conflicting or incompatible functions, such as initiating and approving payments

Prevent unauthorized or inappropriate access to sensitive data or systems, such as payment information or applications

Detect and deter fraud attempts by creating audit trails and logs of user activities and transactions

Simplify and streamline the management and maintenance of user access rights and permissions, such as adding, modifying, or deleting users or roles12

The other options are not as important as a role-based user access model for reducing the likelihood of fraudulent payments committed internally. Automated access revocation is a technology control that automatically revokes or suspends user access rights and permissions when certain conditions are met, such as termination of employment, change of role, or expiration of password. Automated access revocation can help to prevent fraud by former or inactive users, but it does not address the risk of fraud by current oractive users3. Daily transaction reconciliation is a technology control that compares and verifies the transactions recorded in different systems or sources, such as bank statements and accounting records. Daily transaction reconciliation can help to detect fraud by identifying discrepancies or anomalies in the transactions, but it does not prevent fraud from occurring in the first place4. Rule-based data analytics is a technology control that applies predefined rules or criteria to analyze data and identify patterns, trends, or outliers. Rule-based data analytics can help to monitor fraud by generating alerts or reports of suspicious or unusual transactions, but it does not prevent fraud from happening or being attempted5. References =

Role-Based Access Control (RBAC) - ISACA

Role-Based Access Control: What It Is and How It Works

Automated Access Revocation - ISACA

Reconciliation - ISACA

Rule-Based Data Analytics - ISACA

[CRISC Review Manual, 7th Edition]

The most effective way to incorporate stakeholder concerns when developing risk scenarios is to evaluate the risk impact. Risk impact is the extent of the potential consequences or losses that may result from arisk event. Evaluating the risk impact involves considering the stakeholder concerns, expectations, and perspectives, as they may have different views on the value of the assets, the severity of the threats, and the acceptability of the outcomes. Evaluating the risk impact can help to ensure that the risk scenarios reflect the stakeholder interests and priorities, and that the risk responses are aligned with the stakeholder objectives. Establishing key performance indicators (KPIs), conducting internal audits, and creating quarterly risk reports are not as effective as evaluating the risk impact, as they are not directly related to the development of risk scenarios, and may not capture the stakeholder concerns adequately. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 50.

The first step in risk assessment is asset identification, which is the process of identifying and documenting the assets that are relevant and valuable to the organization, such as people, information, systems, processes, or infrastructure1. Asset identification can help to:

Establish the scope and boundaries of the risk assessment, and ensure that all the assets within the scope are considered and covered2.

Determine the criticality and priority of the assets, and assign them appropriate values or ratings based on their importance and contribution to the organization’s objectives3.

Identify the potential threats and vulnerabilities that may affect the assets, and assess their likelihood and impact on the assets4.

The other options are not the first step in risk assessment, because:

Review risk governance is not the first step, but rather a prerequisite or a foundation for risk assessment. Risk governance is the system of principles, policies, roles, and responsibilities that guide and oversee the risk management activities and initiatives of the organization5. Reviewing risk governance can help to ensure that the risk assessment is aligned with the organization’s riskstrategy, culture, and appetite, and that the risk assessment process is consistent, effective, and efficient6.

Identify risk factors is not the first step, but rather a subsequent or a parallel step to asset identification. Risk factors are the elements or conditions that influence or contribute to the occurrence or outcome of a risk event7. Identifying risk factors can help to understand the causes and sources of the risks, and to analyze and evaluate the risks based on their probability and severity.

Inherent risk identification is not the first step, but rather a later or a dependent step on asset identification and risk factor identification. Inherent risk is the level of risk that exists before the implementation of risk responses. Identifying inherent risk can help to measure the exposure or uncertainty of the assets, and to determine the need and extent of the risk responses.

References =

Risk Governance - CIO Wiki

Risk Governance Framework - CIO Wiki

Asset Identification - CIO Wiki

Asset Identification and Valuation - ISACA

Asset Criticality - CIO Wiki

Threat and Vulnerability Assessment - CIO Wiki

Risk Factor - CIO Wiki

[Risk Factor Analysis - CIO Wiki]

[Inherent Risk - CIO Wiki]

[Inherent Risk Assessment - CIO Wiki]

[Risk Assessment - CIO Wiki]

 The best person to own the unmitigated risk of the technology is the IT system owner. The IT system owner is the person or entity that has the authority and responsibility for the acquisition, development, maintenance, and operation of the IT system. The IT system owner is also responsible for ensuring that the IT system meets the business requirements, security standards, and compliance obligations of the enterprise. The IT system owner should own the unmitigated risk of the technology, as they are in the best position to understand the nature and impact of the risk, and to implement the appropriate risk responses to reduce the risk exposure to an acceptable level. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.3.1, page 251234

The best way to facilitate the alignment of IT risk management with enterprise risk management (ERM) is to link IT risk scenarios to enterprise strategy, because this ensures that the IT risks are considered in the context of the enterprise’s mission, vision, and goals. Linking IT risk scenarios to enterprise strategy also helps to prioritize the IT risks based on their impact and relevance to the enterprise’s objectives, and to select the appropriate risk responses and resources. The other options are not the best ways to facilitate the alignment of IT risk management with ERM, because they do not address the integration or alignment of the IT and enterprise perspectives. Adopting qualitative or quantitative enterprise risk assessment methods, and linking IT risk scenarios to technology objectives are examples of techniques or tools that can be used to perform IT risk management or ERM, but they do not ensure the alignment or consistency of the two processes. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.3, p. 22.

Encryption is a technique that transforms data into an unreadable format using a secret key, so that only authorized parties can access and decrypt the data. Encryption can help to protectsensitive data from unauthorized access or disclosure, especially when the data is stored or transmitted in the cloud1.

Ensuring the vendor does not know the encryption key is a control that will best reduce the risk associated with a data breach, because it can help to:

Prevent the vendor from accessing or disclosing the sensitive data, intentionally or unintentionally

Limit the exposure or impact of the data breach, even if the vendor’s systems or networks are compromised by hackers or malicious insiders

Maintain the confidentiality and integrity of the sensitive data, regardless of the vendor’s liability or responsibility

Enhance the trust and confidence of the customers and stakeholders, who may be concerned about the vendor’s refusal to accept liability for a data breach23

The other options are not as effective as ensuring the vendor does not know the encryption key for reducing the risk associated with a data breach. Engaging a third party to validate operational controls is a control that can help to verify and improve the vendor’s security practices and processes, but it does not guarantee that the vendor will prevent or respond to a data breach adequately or timely. Using the same cloud vendor as a competitor is not a control, but rather a business decision that may increase the risk associated with a data breach, as the vendor may have access to or disclose the sensitive data of both parties, or may favor one party over the other. Using field-level encryption with a vendor supplied key is a control that can help to encrypt specific fields or columns of data, such as names, addresses, or credit card numbers, but it does not prevent the vendor from accessing or disclosing the data, as the vendor has the encryption key4. References =

Encryption - ISACA

Cloud Encryption: Using Data Encryption in The Cloud

Cloud Encryption: Why You Need It and How to Do It Right

Field-Level Encryption - ISACA

[CRISC Review Manual, 7th Edition]

A risk register is a tool that records and tracks the identified risks, their causes, impacts, probabilities, responses, and owners. It is a living document that should be updated regularly to reflect the changes in therisk environment and the status of the risk responses12. The best way to improve a risk register is to ensure that it is updated based upon significant events, such as:

New risks are identified or existing risks are eliminated

Risk probabilities or impacts change due to internal or external factors

Risk responses are implemented or modified

Risk owners or stakeholders change

Risk incidents or issues occur

Risk thresholds or appetite change

Risk reporting or communication requirements change

Updating the risk register based upon significant events can help to:

Maintain the accuracy and relevance of the risk information

Enhance the risk awareness and accountability of the risk owners and stakeholders

Support the risk monitoring and reporting activities

Facilitate the risk evaluation and decision-making processes

Improve the risk management performance and maturity

References =

Risk Register - Project Management Knowledge

How to Create a Risk Register: A Step-by-Step Guide - ProjectManager.com

Risk scenarios are descriptions of possible events or situations that could cause or affect a risk. Risk scenarios can help a risk practitioner to enhance understanding of risk among stakeholders, as they can illustrate the causes, consequences, and impacts of the risk in a clear and realistic way. Risk scenarios can also facilitate communication and collaboration among stakeholders, as they can provide a common language and framework for risk identification, analysis, and response. Risk scenarios can also support decision-making and prioritization, as they can show the likelihood and severity of the risk outcomes. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 237.

IT risk scenarios are hypothetical situations that describe how IT-related risks can affect the organization’s objectives, operations, or assets1. IT risk scenarios help to make IT risk more concrete and tangible, and to enable proper risk analysis and assessment2. IT risk scenarios are developed after IT risks are identified, and are used as inputs for risk analysis, where the frequency and impact of the scenarios are estimated3.

The most important factor to the successful development of IT risk scenarios is threat and vulnerability analysis. Threat and vulnerability analysis is the process of identifying and evaluating the potential sources and causes of IT risks, such as malicious actors, natural disasters, human errors, or technical failures4. Threat and vulnerability analysis can help to:

Define the scope and boundaries of the IT risk scenarios, and ensure that they are relevant and realistic

Identify the critical assets, processes, or functions that are exposed or affected by the IT risks, and assess their value and importance to the organization

Determine the likelihood and methods of the threat events, and the existing or potential weaknesses or gaps in the IT control environment

Estimate the potential consequences and impacts of the IT risks, such as financial losses, operational disruptions, reputational damages, or compliance violations5

References = IT Scenario Analysis in Enterprise Risk Management - ISACA, IT Risk Scenarios - Morland-Austin, Threat and Vulnerability Analysis - Wikipedia, Threat and Vulnerability Analysis - ISACA

Risk avoidance is a type of risk response that involves eliminating the risk entirely by not engaging in the activity that causes the risk or changing the conditions that create the risk1. Riskavoidance is usually applied when the potential impact or likelihood of the risk is high or unacceptable, and when the benefits of avoiding the risk outweigh the costs or losses of doing so2.

In this case, the organization has adopted risk avoidance as its risk response, because it has decided to postpone the decision that could trigger the risk. By delaying the decision, the organization is avoiding therisk of making a wrong or unfavorable choice among the multiple options. However, this may not be the best or most effective risk response, as it could also result in missed opportunities, wasted resources, or increased uncertainty3. The organization should consider the trade-offs and consequences of avoiding the risk, and explore other possible risk responses that could reduce or transfer the risk.

The other options are not the risk responses that the organization has adopted. Risk transfer means shifting the responsibility or burden of the risk to another party, such as a vendor or an insurer2. The organization has not transferred the risk to anyone else, but rather avoided it by postponing the decision. Risk mitigation means implementing controls or safeguards to minimize the negative effects of the risk2. The organization has not mitigated the risk by reducing its impact or likelihood, but rather avoided it by delaying the decision. Risk acceptance means acknowledging the risk and its consequences without taking any action to address it2. The organization has not accepted the risk by tolerating its potential outcomes, but rather avoided it by postponing the decision. References =

10 Risk Mitigation techniques you need to know - Stakeholdermap.com

Risk Response Strategies: Types & Examples (+ Free Template)

[CRISC Review Manual, 7th Edition]

The most important factor when developing risk scenarios is obtaining input from key stakeholders. A risk scenario is a description of a possible event or situation that could affect the enterprise’s objectives, processes, or resources. Obtaining input from key stakeholders, such as business owners, process owners, subject matter experts, or external parties, helps to ensure that the risk scenarios are realistic, relevant, and comprehensive. It also helps to identify the sources,drivers, indicators, likelihood, impact, and responses of the risk scenarios, and to align them with the enterprise’s risk appetite and tolerance. Obtaining input from key stakeholders also fosters a collaborative and participatory approach to risk management, and enhances the risk awareness and ownership among the stakeholders. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.3, page 621

 The primary role of a data custodian in the risk management process is to ensure that data is protected according to the classification. A data custodian is a person or entity that has theresponsibility for implementing and maintaining the security controls for the data, such as access rights, encryption, backup, or disposal. A data custodian acts as an agent of the data owner, who is the person or entity that has the authority and accountability for the data. A data custodian should ensure that data is protected according to the classification, which is the process of assigning a level of sensitivity and criticality to the data, based on the impact of its loss, disclosure, or modification. Data classification helps to determine the appropriate security controls and risk responses for the data, and to comply with the relevant laws, regulations, or contractual obligations. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.1, page 1271

The likelihood rating in the risk register is a measure of how probable it is that a risk event will occur, given the current conditions and controls. The risk practitioner should change the likelihood rating if there is a significant change in the effectiveness of the controls that are implemented to prevent or reduce the risk. For example, if a control becomes obsolete, ineffective, or bypassed, the likelihood rating should increase, as the risk event becomes more likely to happen. Conversely, if a control becomes more efficient, reliable, or robust, the likelihood rating should decrease, as the risk event becomes less likely to happen. The other options are not likely to cause a change in the likelihood rating, as they are not directly related to the probability of the risk event. Risk appetite is the amount of risk that an organization is willing to accept in pursuit of its objectives. Control cost is the amount of resources that are required to implement and maintain a control. Risk tolerance is the acceptable level of variation that an organization is willing to allow for a risk to deviate from its desired level or expected outcome. These factors may influence the risk response or the risk acceptance, but not the likelihood rating. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.4: Risk Register, p. 25-26.

Determining if organizational risk is tolerable requires understanding the organization’s risk appetite, which is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives1. Understanding the organization’s risk appetite can help to:

Define and communicate the risk tolerance, which is the acceptable or unacceptable level of risk for each risk category or scenario2.

Guide and align the risk identification, analysis, evaluation, and treatment processes, and ensure that the risks are consistent and proportional to the risk appetite3.

Measure and monitor the risk performance and outcome, and ensure that the residual risk (the risk that remains after the risk responses) is within the risk appetite, or take corrective actions if needed4.

The other options are not the best ways to determine if organizational risk is tolerable, because:

Mapping residual risk with cost of controls is a useful but not sufficient way to determine if organizational risk is tolerable, as it provides a quantitative analysis of the trade-off between the risk level and the risk response cost5. However, mapping residual risk with cost of controls does not consider the qualitative aspects of the risk, such as the impact on the organization’s strategy, culture, or reputation.

Comparing against regulatory requirements is a necessary but not sufficient way to determine if organizational risk is tolerable, as it ensures that the organization complies with the applicable laws, rules, or standards that govern its activities and operations6. However, comparing against regulatory requirements does not guarantee that the organization meets its own objectives and expectations, which may be higher or lower than the regulatory requirements.

Comparing industry risk appetite with the organization’s risk appetite is a helpful but not sufficient way to determine if organizational risk is tolerable, as it provides a reference or a standard for benchmarking the organization’s risk level and performance with its peers or competitors7. However, comparing industry risk appetite with the organization’s risk appetite does not ensure that the organization addresses its specific or unique risks, which may differ from the industry risks.

References =

Risk Appetite - CIO Wiki

Risk Tolerance - CIO Wiki

Risk Management Process - CIO Wiki

Risk Monitoring - CIO Wiki

Residual Risk - CIO Wiki

Regulatory Compliance - CIO Wiki

Benchmarking - CIO Wiki

Risk and Information Systems Control documents and learning resources by ISACA

 Process owners are the best suited to help a risk practitioner understand the impact of IT-related events on business objectives, as they have the responsibility and authority over the design, execution, and performance of business processes. Process owners are also accountable for the risks and controls associated with their processes, and they can provide valuable input and feedback on the likelihood and impact of IT-related events on the process outcomes and objectives.

The other options are not the best suited to help a risk practitioner understand the impact of IT-related events on business objectives. IT management is responsible for the delivery and support of IT services and solutions, but they may not have the full visibility or understanding of the business objectives and processes. Internal audit is responsible for providing independent and objective assurance and consulting services on the effectiveness and efficiency of governance, risk management, and control processes, but they may not have the direct involvement or influence on the business objectives and processes. Senior management is responsible for settingthe strategic direction and objectives of the organization, but they maynot have the detailed knowledge or experience of the business processes and their risks and controls. References = IT Risk Manager: Skills and Roles & Responsibilities, IT Risk Resources | ISACA, Managing information technology risk | Business Queensland

An IT risk register is a document that records and tracks the significant IT risks that an organization faces across its various functions, processes, and activities. An IT risk register can help to provide a comprehensive and consistent view of the organization’s IT risk profile, and to support the decision making and reporting of the IT risk management function1.

One of the data that must be updated to maintain an IT risk register is the expected frequency and potential impact of each IT risk. The expected frequency is the probability or likelihood of the IT risk occurring, based on historical data, statistical analysis, expert judgment, or other methods. The potential impact is the magnitude or severity of the consequences or outcomes of the IT risk, measured in terms of cost, time, quality, reputation, or other criteria2.

Updating the expected frequency and potential impact of each IT risk is essential for maintaining an IT risk register, because it can help to:

Evaluate and prioritize the IT risks based on their risk level, which is calculated by multiplying the frequency and impact

Monitor and track the changes or trends in the IT risk exposure and performance over time

Identify and implement the appropriate risk response strategies and controls, based on the risk level and the risk appetite and tolerance of the organization

Report and communicate the IT risk status and progress to the stakeholders, using risk indicators, dashboards, or matrices3

The other options are not the data that must be updated to maintain an IT risk register, but rather the data that are used as inputs or outputs of the IT risk management process. Risk tolerance is the acceptable variation in the outcomes related to specific objectives or risks. Risk tolerance is used to measure the IT risk analysis and to guide the IT risk response. Enterprise-wide IT risk assessment is a process that identifies, analyzes, and evaluates the IT risks across theorganization. Enterprise-wide IT risk assessment is used topopulate the IT risk register and to inform the IT risk response. Risk appetite is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk appetite is used to guide the IT risk analysis and to align the IT risk response. References =

Risk Register - ISACA

Risk Analysis - ISACA

Risk Register 2021-2022 - UNECE

[How To Conduct Business Impact Analysis in 8 Easy Steps - G2]

[Risk Appetite and Risk Tolerance - ISACA]

[Enterprise Risk Assessment - ISACA]

[CRISC Review Manual, 7th Edition]

A risk register is a document that records and tracks the information about the risks that may affect the organization’s objectives, such as the risk description, category, source, cause, impact, probability, status, owner, response, etc.

When updating the risk register after a risk assessment, the most important information to include is the likelihood and impact of the risk scenario. This means that the risk register shouldreflect the current or updated estimates of the probability and consequence of the risk scenario, based on the risk analysis and evaluation methods and criteria.

The likelihood and impact of the risk scenario helps to determine the risk level and priority, select the most appropriate risk response, allocate the resources and budget for risk management, and monitor and report the risk performance and outcomes.

The other options are not the most important information to include when updating the risk register after a risk assessment. They are either secondary or not essential for risk management.

The references for this answer are:

Risk IT Framework, page 29

Information Technology & Security, page 23

Risk Scenarios Starter Pack, page 21

 A cost-benefit analysis is a tool that compares the costs and benefits of different alternatives, such as updating software or continuing to use end-of-life software. A cost-benefit analysis can provide the mosthelpful information to justify investing in updated software, as it can show the potential savings, benefits, and risks of each option, and help the decision-makers choose the best course of action. A cost-benefit analysis can also include qualitative factors, such as security, compliance, performance, and customer satisfaction, that may be affected by the software update. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 231. CRISC by Isaca Actual Free Exam Q&As, Question 8. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 231. CRISC Certified in Risk and Information Systems Control – Question231.

The first course of action for a risk practitioner when discovering a deficiency in a critical system that cannot be patched is to conduct a risk assessment. A risk assessment is a process of identifying, analyzing, and evaluating the risks that could affect the achievement of the objectives of the system or the organization. A risk assessment helps to determine the level and nature of the risk exposure, and to prioritize and respond to the risks. Conducting a risk assessment is the first course of action, as it helps to understand the source, cause, and impact of the deficiency, and to estimate the likelihood and consequences of the risk events that could exploit the deficiency. Conducting a risk assessment also helps to identify and evaluate the existing or potential controls or mitigations that could address the deficiency, and to recommend the appropriate risk treatment options. Reporting the issue to internal audit, submitting a request to change management, and reviewing the business impact assessment are not the first courses ofaction, as they are either the outputs or the inputs of the risk assessment process, and they do not address the primary need of assessing the risk situation and status. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 49.

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

Risk appetite should be the primary driver for periodically reviewing and adjusting key risk indicators (KRIs), because it reflects the level of risk that the enterprise is willing to accept in pursuit of its objectives. KRIs should be aligned with the risk appetite and adjusted accordingly when the risk appetite changes due to internal or external factors. The other options are not the primary drivers, although they may also influence the review and adjustment of KRIs. Risk impact, risk likelihood, and control self-assessments (CSAs) are secondary drivers that depend on the risk appetite. References = Most Asked CRISC Exam Questions and Answers

The primary focus of a risk owner once a decision is made to mitigate a risk is to ensure that the control design reduces the risk to an acceptable level. This means that the risk owner should verify that the control objectives, specifications, and implementation are aligned with the risk mitigation plan, and that the control is effective in reducing the risk exposure to within the risk appetite and tolerance of the enterprise. The risk owner should also ensure that the control design is consistent with the enterprise’s policies, standards, and procedures, and that it complies with any relevant laws, regulations, or contractual obligations. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.4, page 185.

 The best way to assess the effectiveness of an access management process is to reconcile a list of accounts belonging to terminated employees. This will ensure that the access rights of the employees who have left the organization are revoked in a timely and accurate manner, and that there are no orphaned or unauthorized accounts that could pose a security risk. Comparing the actual process with the documented process, reviewing access logs for user activity, and reviewing for compliance with acceptable use policy are also useful methods, but they are not as direct and conclusive as reconciling a list of accounts belonging to terminated employees. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

 The most important consideration when performing a vendor risk assessment is the inherent risk of the business process supported by the vendor, which is the risk that exists before any controls or mitigating factors are applied. The inherent risk reflects the potential impact and likelihood of the vendor’s failure or disruption on the enterprise’s objectives, operations, and reputation. The higher the inherent risk, the more rigorous and frequent the vendor risk assessment should be. The results of the last risk assessment of the vendor, the risk tolerance of the vendor, and the length of time since the last risk assessment of the vendor are not the most important considerations, as they do not directly measure the level of exposure and dependency that the enterprise has on the vendor. References = CRISC Certified in Risk and Information Systems Control – Question204; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 204.

When selecting a risk response, the following should be considered:

B. Risk response costs

It’s important to evaluate the costs associated with implementing a risk response to ensure that they are justified by the benefits of mitigating the risk. This helps in making cost-effective decisions that align with the organization’s risk management objectives.

The first step when addressing the situation of moving the payroll system to a SaaS application and complying with the new data privacy regulation is to understand the data flows. This means identifying where the data is collected, stored, processed, and transferred, and who has access to it. Understanding the data flows can help to determine the scope and impact of the regulation, as well as the potential risks and gaps in the current state. It can also help to identify the roles and responsibilities of the organization and the SaaS provider regarding data protection and compliance. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.1.2, p. 237-238

Key risk indicators (KRIs) are metrics that provide early warning signals of potential risk events or changes in the risk profile of an organization. They help to monitor the risk exposure and performance of the organization against its risk appetite and tolerance. They also enable timely and proactive risk responses and mitigation actions. Establishing KRIs is the most helpful in preventing risk events from materializing, as they can alert the organization of emerging risks and trigger preventive measures before the risks become significant or materialize. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, p. 114-115

According to the CRISC Review Manual, notifying network administrators before testing is the best mitigating control to reduce the risk introduced when conducting penetration tests, because it helps to avoid any disruption or damage to the network services and systems. Penetration testing is a technique that simulates an attack on the network to identify and exploit the vulnerabilities and weaknesses. Notifying network administrators before testing allows them to prepare for the test, monitor the test activities, and respond to any incidents or issues that may arise during the test. The other options are not the best mitigating controls, because they do not address the risk of network disruption or damage. Requiring the vendor to sign a nondisclosure agreement is a legal measure that protects the confidentiality of the network information, but it does not prevent the vendor from causing any harm to the network. Clearly defining the project scope is a planning activity that sets the boundaries and objectives of the test, but it does not ensure the safety and availability of the network. Performing background checks on the vendor is a due diligence activity that verifies the vendor’s credentials and reputation, but it does not guarantee the vendor’s performance or behavior. References = CRISC Review Manual, 7th Edition, Chapter 4, Section 4.2.2, page 181.

 Ensuring time synchronization of log sources is the most important consideration when developing a log collection and correlation strategy, as it enables the accurate and consistent analysis and correlation of log data from different sources and systems. Time synchronization can help to identify the sequence and causality of events, and to detect and respond to any anomalies or incidents. Time synchronization can also facilitate the compliance and audit of the log data, and support the forensic investigation and legal action if needed. References = Most Asked CRISC Exam Questions and Answers, Question 10. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 248. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 248. CRISC by Isaca Actual Free Exam Q&As, Question 9.

A key control indicator (KCI) is a metric that provides information on the extent to which a given control is meeting its intended objectives in terms of loss prevention, reduction, etc. A KCI should have an explicit relationship to both the specific control and the specific risk against which the control has been implemented. For risk related to IT infrastructure failure, a possible control is to have a recovery plan that can restore the critical IT services and minimize the impact of the failure. A KCI that can measure the effectiveness of this control is the number of successful recovery plan tests, which indicates how well the recovery plan can be executed in a real scenario. The higher the number of successful tests, the lower the risk of IT infrastructure failure. Therefore, this is the best KCI among the given options. References =

Integrating KRIs and KPIs for Effective Technology Risk Management

Key Control Indicator (KCI) - CIO Wiki

Infrastructure Issues: Understanding and Mitigating Risks

The most important consideration when selecting a control to mitigate an identified risk is whether the cost of control exceeds the mitigation value, because this determines the cost-benefit ratio of the control. A control should not be implemented if the cost of implementing and maintaining it is higher than the expected benefit of reducing the risk exposure. The other options are not the most important considerations, although they may also influence the control selection process. The availability of internal resources, the potential compounding effects, and the possibility of eliminating the risk are secondary factors that depend on the cost and value of the control. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

A risk treatment plan typically includes the following elements2:

Risk description: A brief summary of the risk, its causes, and its consequences.

Risk owner: The person or entity who is responsible for managing the risk and implementing the risk treatment plan.

Risk response: The strategy or method chosen to deal with the risk, such as avoid, reduce, transfer, or accept.

Risk actions: The specific tasks or steps that need to be performed to execute the risk response.

Risk resources: The human, financial, technical, or other resources that are required or available to support the risk actions.

Risk timeline: The schedule or deadline for completing the risk actions and achieving the desired risk level.

By recommending a risk treatment plan, the risk practitioner can help the organization to:

Analyze and prioritize the vulnerabilities detected on the systems, and determine their impact and likelihood.

Evaluate and compare the possible risk responses, and select the most suitable and feasible one for each vulnerability.

Define and assign the roles and responsibilities for the risk treatment process, and ensure the accountability and collaboration of the stakeholders.

Monitor and measure the progress and effectiveness of the risk treatment process, and report the results and outcomes to the management.

The other options are not the best course of action, because:

Recommending the business change the application is not a realistic or practical option, as it may be costly, time-consuming, or technically challenging to modify the application to make it compatible with the updated servers. It may also create other issues or risks, such as compatibility problems with other systems, performance degradation, or user dissatisfaction.

Including the risk in the next quarterly update to management is not a proactive or timely option, as it may delay or defer the risk treatment process and increase the exposure or vulnerability of the systems. It may also indicate a lack of urgency or importance of the risk, and undermine the credibility or trust of the management.

Implementing compensating controls is not a sufficient or comprehensive option, as it may not address the root cause or the source of the risk. Compensating controls are alternative or additionalcontrols that are implemented when the primary or preferred controls are not feasible or effective3. They may reduce the impact or likelihood of the risk, but they may not eliminate or resolve the risk.

References =

Risk Treatment Plan - CIO Wiki

Risk Treatment Plan Template - ISACA

Compensating Control - CIO Wiki

Architecture is the design and structure of a system or a process, such as an IT system or a business process. Architecture documentation is the document that describes and explains the architecture, such as its components, functions, relationships, requirements, constraints, orstandards. Architecture documentation can help to understand, communicate, and improve the system or the process1.

An environment that lacks documentation of the architecture faces a great risk of unknown vulnerabilities, which are the weaknesses or flaws in the system or the process that could be exploited by threats or attackers, but are not identified or addressed by the organization. Unknown vulnerabilities can pose a serious risk to the organization, because they can:

Compromise the confidentiality, integrity, and availability of the system or the process, and the information or resources that it handles or supports

Cause financial, operational, reputational, or legal damages or losses to the organization, such as data breaches, fraud, errors, delays, or fines

Remain undetected or unresolved for a long time, and increase the exposure or impact of the risk over time

Require more resources or efforts to mitigate or recover from the risk, and reduce the efficiency or effectiveness of the risk management process23

Lack of documentation of the architecture can increase the risk of unknown vulnerabilities, because it can:

Prevent or hinder the identification and assessment of the vulnerabilities, and the evaluation and prioritization of the risks

Impede or delay the implementation and enforcement of the controls or safeguards to prevent or reduce the vulnerabilities, and the monitoring and reporting of the risk status and progress

Obstruct or limit the communication and coordination among the stakeholders, and the awareness and accountability of the risk owners and users

Restrict or hamper the review and improvement of the system or the process, and the learning and feedback of the risk management4

The other options are not the greatest risks associated with an environment that lacks documentation of the architecture, but rather some of the possible causes or consequences of it. Legacy technology systems are outdated or obsolete systems that are still in use by the organization, but are no longer supported or maintained by the vendors or developers. Legacy technology systems can be a cause of lack of documentation of the architecture, as they may have been developed or acquired without proper documentation, or the documentation may have been lost or discarded over time. Network isolation is the separation or segregation of a network or a system from other networks or systems, either physically or logically, to prevent or limit the access or communication between them. Network isolation can be a consequence of lack of documentation of the architecture, as it may result from the inability or difficulty to integrate or connect the system or the process with other systems or processes. Overlapping threats are threats that affect more than one system or process, or have similar or related sources or causes, such as natural disasters, cyberattacks, or human errors. Overlapping threats can be a consequence of lack of documentation of the architecture, as they may arise from the lack of understanding or coordination of the system or the process with other systems or processes. References =

Architecture Documentation - ISACA

Vulnerability - ISACA

The Risks of Not Having a Vulnerability Management Program

The Importance of Architecture Documentation - ISACA

[The Risk of Poor Document Control - ComplianceBridge]

[CRISC Review Manual, 7th Edition]

Artificial intelligence (AI) solutions can offer significant benefits to an organization, such as improved efficiency, accuracy, and innovation. However, AI also poses new challenges and risks that need to be considered and addressed by senior management. Some of these risks include:

Ethical and social risks: AI solutions may have unintended or undesirable impacts on human values, rights, and behaviors, such as privacy, fairness, accountability, and transparency. For example, AI systems may exhibit bias, discrimination, or manipulation, or may infringe on personal data or autonomy.

Technical and operational risks: AI solutions may have vulnerabilities, errors, or failures that affect their performance, reliability, or security. For example, AI systems may be subject to hacking, tampering, or misuse, or may malfunction or produce inaccurate or harmful outcomes.

Legal and regulatory risks: AI solutions may have unclear or conflicting legal or regulatory implications or obligations, such as liability, compliance, or governance. For example, AI systems may raise questions about ownership, responsibility, or accountability, or may violate existing laws or regulations, or create new ones.

Therefore, a risk practitioner should communicate to senior management that AI potentially introduces new types of risk that need to be identified, assessed, and managed in alignment with the organization’s objectives, values, and risk appetite. References = ISACA CRISC Review Manual, 7th Edition, Chapter 3, Section 3.2.2, page 113.

According to the CRISC Review Manual, ethics management is the process of ensuring that the enterprise’s values and principles are embedded in its culture and practices. Ethics management helps to promote trust, integrity, accountability, and transparency among the stakeholders. One of the key elements of ethics management is to encourage the reporting of IT risk issues and incidents, and to protect the whistleblowers from any retaliation or negative consequences. Therefore, if employees do not report IT risk issues for fear of consequences, it is the strongest indication that the organization has ethics management issues, as it implies that there is a lack of trust, openness, and support in the organization. The other options are not the strongest indications of ethics management issues, as they are related to other aspects of IT governance,such as audit independence, policy compliance, and risk management framework. References = CRISC Review Manual, 7th Edition, Chapter 1, Section 1.3.2, page 34.

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]

The risk manager’s best course of action when discovering significant vulnerabilities in a commercial off-the-shelf software product is to review the risk of implementing versus postponing with stakeholders. This means that the risk manager should assess the potential impact and likelihood of the vulnerabilities being exploited, as well as the benefits and costs of using the software product. The risk manager should also consult with the relevant stakeholders, such as the business owners, the IT department, the security team, and the vendor, to understand their perspectives, expectations, and requirements. Based on this analysis, the risk manager should decide whether to proceed with the implementation, delay it until the next release,or look for alternative solutions. The risk manager should also document and communicate the decision and the rationale behind it, and monitor the situation for any changes or new developments.

The other options are not the best course of action, because:

Running vulnerability testing tools to independently verify the vulnerabilities is a useful step to confirm the existence and severity of the vulnerabilities, but it is not sufficient to address the risk. The risk manager still needs to evaluate the trade-offs between implementing and postponing the software product, and involve the stakeholders in the decision-making process.

Reviewing the software license to determine the vendor’s responsibility regarding vulnerabilities is an important step to understand the contractual obligations and liabilities of the vendor, but it is not enough to mitigate the risk. The risk manager still needs to consider the impact and likelihood of the vulnerabilities, and the benefits and costs of the software product, and consult with the stakeholders to decide the best course of action.

Requiring the vendor to correct significant vulnerabilities prior to installation is an unrealistic and impractical option, as the vendor has already stated that the vulnerabilities will not be corrected until the next release. The risk manager cannot force the vendor to change their schedule or priorities, and may risk damaging the relationship with the vendor. The risk manager should instead work with the vendor to understand the nature and scope of the vulnerabilities, and the expected timeline and features of the next release, and use this information to inform the risk assessment and decision-making process.

The primary benefit of conducting continuous monitoring of access controls is the ability to identify possible noncompliant activities that lead to data disclosure. Continuous monitoring of access controls is a process that involves collecting, analyzing, and reporting on the performance and effectiveness of the access controls on a regular basis. Continuous monitoring of access controls helps to detect and prevent any unauthorized or inappropriate access to information assets, and to ensure that the access controls arealigned with the enterprise’s security policies and standards. Continuous monitoring of access controls also helps to identify possible noncompliant activities that lead to data disclosure, such as data leakage, data theft, data tampering, or data breach. By identifying these activities, the enterprise can take timely and appropriate actions to mitigate the risk and protect the confidentiality, integrity, and availability of the information assets. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.3.2, page 1411

The most common concern associated with outsourcing to a service provider is unauthorized data usage, which means the misuse, disclosure, or theft of the organization’s data by the service provider or its employees, contractors, or subcontractors1. Unauthorized data usage can pose significant risks to the organization, such as:

Data security and privacy breaches, which can compromise the confidentiality, integrity, and availability of the data, and expose the organization to legal liability, regulatory penalties, reputational damage, or loss of trust and credibility2.

Data quality and accuracy issues, which can affect the reliability and validity of the data, and impair the decision-making, reporting, or performance of the organization3.

Data ownership and control issues, which can limit the access and rights of the organization to its own data, and create dependency or lock-in with the service provider4.

The other options are not the most common concern associated with outsourcing to a service provider, because:

Lack of technical expertise is a potential but not prevalent concern associated with outsourcing to a service provider, as it may affect the quality and efficiency of the services provided by the service provider, and the compatibility and integration of the services with the organization’s systems and processes5. However, most service providers have sufficient technical expertise in their domain or field, and they can offer specialized skills or resources that the organization may not have internally6.

Combining incompatible duties is a possible but not frequent concern associated with outsourcing to a service provider, as it may create conflicts of interest or segregation of duties issues for the service provider or the organization, and increase the risk of errors, fraud, or abuse7. However, most service providers have adequate governance and control mechanisms to prevent or mitigate such issues, and they can adhere to the organization’s policies and standards regarding the separation of duties8.

Denial of service attacks is a rare but not common concern associated with outsourcing to a service provider, as it may disrupt the availability or functionality of the services provided by the service provider, and affect the operations or continuity of the organization. However, most service providers have robust security measures and contingency plans to protect and recover from such attacks, and they can ensure the resilience and reliability of the services.

References =

Unauthorized Data Usage - CIO Wiki

What is outsourcing? Definitions, benefits, challenges, processes, advice | CIO

The Pros and Cons of Outsourcing in 2023 - GrowthForce

13 Common Problems of Outsourcing and How to Avoid Them - ENOU Labs

The Top 10 Problems with Outsourcing Implementation - SSON

10 problems with outsourcing (+ Solutions for each) - Time Doctor Blog

Segregation of Duties - CIO Wiki

Outsourcing Governance - CIO Wiki

[Denial-of-Service Attack - CIO Wiki]

[Business Continuity Planning - CIO Wiki]

The best way to determine the potential organizational impact of emerging privacy regulations is to conduct a privacy impact assessment (PIA). A PIA is a systematic process of identifying, analyzing, and evaluating the privacy risks and impacts of a new or existing system, process, program, or initiative that involves the collection, use, storage, or disclosure of personal information. A PIA can help to ensure that the enterprise complies with the emerging privacy regulations, and that the privacy rights and expectations of the individuals are respected and protected. A PIA can also help to identify the gaps, weaknesses, and opportunities for improvement in the enterprise’s privacy policies, procedures, and controls. Evaluating the security architecture maturity, mapping the new requirements to the existing control framework, and chartering a privacy steering committee are not as comprehensive and effective as conducting a PIA, as they do not address the specific privacy risks and impacts of the enterprise’s activities. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 192.