CRISC Exam Dumps - Isaca Certification Questions and Answers

Reporting risk assessment results to senior management is an essential part of risk communication, which is the process of sharing relevant and timely information about the risk exposure and risk management activities with the stakeholders. The most important benefit of reporting risk assessment results to senior management is to facilitate risk-aware decision making, which is the process of incorporating the risk information and analysis into the strategic and operational decisions of the organization. By reporting the risk assessment results, the risk practitioner can provide senior management with the insight and understanding of the current and potential risks, their likelihood and impact, their interrelationships and dependencies, and their alignment with the risk appetite and tolerance. This can help senior management to prioritize the risks, allocate the resources, select the risk responses, monitor the risk performance, and evaluate the risk outcomes. References = CRISC Review Manual, 7th Edition, page 105.

The best thing to include when communicating changes in the IT risk profile is the gaps between the current and desired states of the control environment, as this shows the stakeholders the extent and impact of the changes, and the actions and resources needed to address them. The control environment is the set of policies, processes, and systems that provide reasonableassurance that the IT risks are identified, assessed, and treated effectively and efficiently. The current state of the control environment reflects the existing level and performance of the controls, and the residual risk that remains after the controls are applied. The desired state of the control environment reflects the target level and performance of the controls, and the risk appetite and tolerance of the organization. The gaps between the current and desired states of the control environment indicate the areas of improvement or enhancement for the IT risk management process, and the priorities and strategies for risk response. The other options are not the best things to include when communicating changes in the IT risk profile, although they may be useful or relevant information. A list of recent incidents affecting industry peers can provide some context and comparison for the IT risk profile, but it does not measure or explain the changes in the IT risk level or the control environment. Results of external attacks and related compensating controls can demonstrate the security and resilience of the IT systems and networks, but they do not cover the entire scope or spectrum of the IT risk profile or the control environment. A review of leading IT risk management practices within the industry can provide some insights and benchmarks for the IT risk management process, but it does not reflect thespecific situation or needs of the organization or the stakeholders. References = Risk and Information Systems Control Study Manual, Chapter 5: Risk and Control Monitoring and Reporting, page 181.

 Role of the Board and Executive Management:

The board of directors and executive management are responsible for setting the overall strategic direction of the organization, including its risk tolerance.

They have the authority and oversight necessary to define the levels of risk that the organization is willing to accept in pursuit of its objectives.

 Defining Risk Tolerance:

Risk tolerance refers to the acceptable level of variation in performance relative to the achievement of objectives. It is essentially the degree of risk the organization is willing to endure.

The board and executive management establish risk tolerance based on the organization's strategic goals, capacity to absorb losses, and regulatory requirements.

 Importance of Senior Leadership:

Senior leadership's involvement ensures that risk tolerance is aligned with the organization's overall strategy and risk appetite.

It provides a top-down approach to risk management, ensuring consistency and alignment across the organization.

 Comparing Other Stakeholders:

IT Compliance and IT Audit:These functions are responsible for monitoring and ensuring adherence to policies but do not set risk tolerance.

Regulators and Shareholders:They influence risk management practices through external pressures but do not define risk tolerance directly.

Enterprise Risk Management (ERM):ERM frameworks support the implementation of risk management but the actual definition of risk tolerance comes from the board and executive management.

 References:

The CRISC Review Manual discusses how senior management, including the board, is responsible for defining risk tolerance and ensuring it aligns with the organization's risk appetite (CRISC Review Manual, Chapter 1: Governance, Section 1.10 Risk Appetite, Tolerance, and Capacity) .

The business owner should own the risk if the ERP and payroll system fail to operate as expected, because the business owner is ultimately responsible for the business processes and objectives that depend on the systems. The other options are not the risk owners, because:

Option B: The ERP administrator is responsible for the technical aspects of the ERP system, but not the payroll system or the business outcomes.

Option C: The project steering committee is responsible for overseeing the project of replacing the ERP system, but not the ongoing operation and maintenance of the systems or the business risks.

Option D: The IT project manager is responsible for managing the project of replacing the ERP system, but not the payroll system or the business risks. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 90.

The best type of indicators to measure the effectiveness of an organization’s firewall rule set are key control indicators (KCIs). A firewall is a device or software that filters the network traffic based on a set of rules or policies. A firewall rule set is the configuration of the firewall that defines the criteria for allowing or blocking the traffic. A key control indicator is a metric that measures the performance and effectiveness of a control in achieving its objectives and mitigating the risks. A key control indicator can help to evaluate the adequacy and efficiency of the firewall rule set, and to identify any gaps, weaknesses, or issues that need to be addressed.Key risk indicators (KRIs), key management indicators (KMIs), and key performance indicators (KPIs) are not as suitable as key control indicators, as they measure different aspects of the risk management process, such as the level and nature of the risk exposure, the alignment and integration of the risk management activities, and the achievement of the risk management goals and targets. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 220.

The best approach is tocollaborate with the control ownerto understand root causes and determine next steps. This respects ownership and enables targeted, informed decision-making before implementing drastic changes.

The RPO defines how much data loss is acceptable during system failure. If not clearly defined, restoration may skip key data, leading to incomplete recovery. ISACA guidelines highlight that alignment of RPO/RTO with business objectives is critical for viable DR planning

Quantum computing threatens outdated algorithms and key lengths. The biggest concern is stale encryption standards—they directly relate to cryptographic resilience. ISACA materials underscore that encryption evaluation is foundational in emerging-threat risk assessments.

Open communication of risk reporting is the most important factor for promoting a risk-aware culture, because it fosters trust, transparency, and accountability among all stakeholders. It also enables timely and informed decision-making, feedback, and learning from risk events. Regular testing of risk controls, communication of audit findings, and procedures for security monitoring are all important aspects of risk management, but they do not necessarily create a risk-aware culture, which requires a shared understanding and commitment to risk management across the organization. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.2, page 1-9.

The organization’s process owner should own the risk of exposing the payroll data due to a control weakness at the third party, because the process owner is the person who is responsible for the business process that generates, uses, or transfers the payroll data. The process owner should also ensure that the third party complies with the contractual obligations and service level agreements that define the expected performance and security standards of the payroll data processing. The other options are not the correct answers, because they are not the primary owners of the risk, although they may also be involved in the risk management process. The third party’s IT operations manager, the third party’s chief risk officer (CRO), and the organization’s risk practitioner are examples of secondary owners or stakeholders of the risk, who may provide support, guidance, or oversight to the risk owner, but they are not accountable for the risk or the risk response strategy. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

New risk exposures due to changes in the business environment are the possibilities and impacts of new or emerging threats or opportunities that may affect the organization’s objectives, performance, or value creation, as a result of changes in the internal or external factors that influence the organization’s operations, such as technology, competition, regulation, or customer behavior12.

The most helpful tool in identifying new risk exposures due to changes in the business environment is a SWOT analysis, which is a technique that involves identifying and analyzing the strengths, weaknesses, opportunities, and threats (SWOT) that are relevant to the organization’s situation, goals, and capabilities34.

A SWOT analysis is the most helpful tool because it helps the organization to scan and assess the business environment, and to identify and prioritize the new or emerging risk exposures that may arise from the changes in the environment34.

A SWOT analysis is also the most helpful tool because it helps the organization to align and adapt its strategy and actions to the changes in the environment, and to leverage its strengths and opportunities, and mitigate its weaknesses and threats34.

The other options are not the most helpful tools, but rather possible sources or inputs that may be used in a SWOT analysis. For example:

Standard operating procedures are documents that describe the routine tasks and processes that are performed by the organization, and the policies and standards that govern them56. However, these documents are not the most helpful tools because they may not reflect or capture the changes in the business environment, and they may need to be revised or updated to address the new or emerging risk exposures56.

Industry benchmarking is a technique that involves comparing and contrasting the performance and practices of the organization with those of the similar or leadingorganizations in the same or related industry, and identifying the gaps or opportunities for improvement78. However, this technique is not the most helpful tool because it may not provide a comprehensive or holistic view of the business environment, and it may not align with the organization’s specific situation, goals, or capabilities78.

Control gap analysis is a technique that involves assessing and evaluating the adequacy and effectiveness of the controls that are designed and implemented to mitigate the risks, and identifying and addressing the areas or aspects that need to be improved or added . However, this technique is not the most helpful tool because it is reactive rather than proactive, and it may not identify or anticipate the new or emerging risk exposures that may result from the changes in the business environment . References =

1: Risk IT Framework, ISACA, 2009

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

3: SWOT Analysis - ISACA1

4: SWOT Analysis: What It Is and When to Use It2

5: Standard Operating Procedure - Wikipedia3

6: How to Write Effective Standard Operating Procedures (SOP)4

7: Benchmarking - Wikipedia5

8: Benchmarking: Definition, Types, Process, Advantages & Examples6

Control Gap Analysis - ISACA7

Control Gap Analysis: A Step-by-Step Guide8

Unavailability of critical IT systems poses the greatest risk to an organization’s operations during a major IT transformation, because it can disrupt the business continuity, productivity, and performance of the organization. Unavailability of critical IT systems can also cause financial, reputational, or legal damages to the organization, and affect the quality and delivery of products or services to the customers. The other options are not the greatest risks, although they may also pose some challenges or threats to the organization during a major IT transformation. Lack of robust awareness programs, infrequent risk assessments of key controls, and rapid changes in IT procedures are examples of management or process risks that can affect the planning, execution,or monitoring of the IT transformation, but they do not have the same impact or severity as the unavailability of critical IT systems. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

Segregation of duties is a key control for preventing and detecting fraudulent transactions, especially in a large organization where there are many employees and transactions involved. Segregation of duties means that no single person has the authority or ability to initiate, approve, execute, and record a transaction without the involvement or oversight of another person. This reduces the opportunity and incentive for fraud, as well as the risk of errors or omissions. Segregation of duties also facilitates the detection of fraud by creating an audit trail and increasing the likelihood of whistleblowing.

The other options are not as effective as segregation of duties for mitigating risk related to fraudulent transactions. Monetary approval limits (B) are useful for controlling the amount and frequency of transactions, but they do not prevent unauthorized or fraudulent transactions from occurring. Clear roles and responsibilities © are important for defining the expectations and accountabilities of employees, but they do not ensure that employees comply with them or that their actions are monitored and verified. Password policies (D) are essential for securing access to systems and data, but they do not prevent fraudsters from exploiting weak or compromised passwords or from using legitimate passwords for fraudulent purposes.

The most important input when developing risk scenarios is the business objectives, as they provide the context and scope for the risk identification and analysis process. Risk scenarios are hypothetical situations that describe the possible causes, events, and consequences of a risk. Risk scenarios help to understand and communicate the nature and impact of the risk, and to supportthe risk assessment and response planning. The business objectives are the goals andtargets that the organization wants to achieve through its processes, functions, and projects. The business objectives define the expected outcomes and performance of the organization, and the criteria for measuring and evaluating the success or failure of the organization. The business objectives also reflect the organization’s vision, mission, values, and strategy, and the needs and expectations of the stakeholders. The other options are not the most important inputs when developing risk scenarios, although they may be useful or relevant information. Key performance indicators are metrics that measure and monitor the progress and achievement of the business objectives, but they do not provide the context or scope for the risk scenarios. The organization’s risk framework is the set of principles, policies, and processes that guide and support the risk management activities across the organization, but it does not provide the context or scope for the risk scenarios. Risk appetite is the level of risk that the organization is willing to accept or avoid in pursuit of its business objectives, but it does not provide the context or scope for the risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Identification, page 58.

According to the CRISC EXAM TOPIC 2 LONG Flashcards, the first thing that a risk practitioner should do when an organization decides to use a cloud service is to review the vendor selection process and vetting criteria. This is because the vendor selection process and vetting criteria are essential steps to ensure that the cloud service provider meets the organization’s requirements and expectations, and that the risks associated with the cloud service are identified and managed. By reviewing the vendor selection process and vetting criteria, the risk practitioner can evaluate the quality, reliability, security, and compliance of the cloud service provider, and determine if the cloud service is suitable and beneficial for the organization. The risk practitioner can also identify any gaps or weaknesses in the vendor selection process and vetting criteria, and recommend improvements or alternatives accordingly. References = CRISC EXAM TOPIC 2 LONG Flashcards

A compliance-based CSA focuses on ensuring that the business unit follows the policies and procedures established by the enterprise, regardless of the actual risk level or impact of the controls.

A risk-based CSA focuses on identifying and evaluating the risks that may affect the business unit’s objectives, and designing and implementing controls that are appropriate to mitigate those risks.

A compliance-based CSA may not capture all the high-risk issues that exist in a business unit, especially if they are not aligned with the enterprise’s standards or expectations.

A risk-based CSA may identify more high-risk issues than a compliance-based CSA, because it considers both internal and external factors that may affect the business unit’s performance or security.

Therefore, a difference in results between a previous control self-assessment (CSA) and an audit indicates that either one of them was not risk-based, but rather compliance-based.

The references for this answer are:

Risk IT Framework, page 9

Information Technology & Security, page 3

Risk Scenarios Starter Pack, page 1

This can help to:

Ensure that the implemented measures are effective and efficient in reducing the risk level to an acceptable level, and that they are aligned with the risk appetite and tolerance of the organization2.

Identify and address any gaps, issues, or challenges that may arise from the deviation from the approved risk action plan, and recommend and implement appropriate improvement actions or contingency plans3.

Communicate and report the results and outcomes of the validation to the relevant stakeholders, such as the risk owner, the risk committee, or the chief risk officer, and obtain their feedback and approval4.

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

Reporting the observation to the chief risk officer (CRO) is not the best course of action, as it may not provide sufficient information or evidence to support the deviation from the approved risk action plan. The CRO may not be able to evaluate or approve the implemented risk mitigation measures without knowing their adequacy or impact on the risk level5.

Updating the risk register with the implemented risk mitigation actions is not the best course of action, as it may not reflect the current or accurate risk status or performance. The risk register is a document that records and summarizes the key information and data about the identified risks and the risk responses6. Updating the risk register without validating the adequacy of the implemented risk mitigation measures may create inconsistencies or inaccuracies in the risk register.

Reverting the implemented mitigation measures until approval is obtained is not the best course of action, as it may expose the organization to higher or unacceptable levels of risk. Reverting the implemented mitigation measures may undo or negate the benefits or outcomes of the risk mitigation, and may increase the likelihood or impact of the risk events7.

References =

ISACA Risk Starter Kit provides risk management templates and policies

Risk Appetite and Tolerance - CIO Wiki

Risk Monitoring and Review - The National Academies Press

Risk Reporting - CIO Wiki

Chief Risk Officer - CIO Wiki

Risk Register - CIO Wiki

Risk Mitigation - CIO Wiki

As part of business continuity planning, the most important thing to include in a business impact analysis (BIA) is an industry standard framework. A BIA is a process of identifying and analyzing the potential effects of disruptions to the critical business functions and processes. An industry standard framework is a set of best practices, guidelines, and methodologies that provide a consistent and comprehensive approach to conducting a BIA. An industry standard framework can help to ensure that the BIA is complete, accurate, and reliable, and that it covers all the relevant aspects, such as the scope, objectives, criteria, methods, data sources, and reporting. An industry standard framework can also help to benchmark the BIA results against the industry norms and expectations, and to align the BIA with the business continuity strategy and plan. The other options are not as important as an industry standard framework, as they are related to the specific steps, activities, or outputs of the BIA, not the overall structure and quality of the BIA. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.

IT control status reporting is the process of collecting and analyzing data about the effectiveness and efficiency of IT controls. IT controls are the policies, procedures, and practices that ensure the confidentiality, integrity, and availability of IT resources and information. IT control status reporting helps to monitor the performance of IT controls against the predefined objectives and criteria, and to identify any gaps or issues that need to be addressed. IT control status reporting also provides information to the stakeholders about the current status and progress of IT control implementation and improvement.

The primary purpose of IT control status reporting is to facilitate the comparison of the current and desired states of IT controls. This means that IT control status reporting helps to evaluate the gap between the actual and expected performance of IT controls, and to determine the actions and resources needed to close the gap. IT control status reporting also helps to align the IT controls with the business goals and strategies, and to ensure that the IT controls are delivering value to the organization. By comparing the current and desired states of IT controls, IT control status reporting enables continuous improvement and optimization of IT control processes and outcomes.

The other options are not the primary purpose of IT control status reporting, but rather some of the benefits or outcomes of it. IT control status reporting can help to ensure compliance with IT governance strategy,but it is not the main reason for doing it. IT governance is the framework that defines the roles, responsibilities, and relationships among the stakeholders involved in ITdecision making and oversight. IT control status reporting can support IT governance by providing relevant and reliable information to the stakeholders, and by demonstrating the accountability and transparency of IT control activities. However, IT control status reporting is not the same as IT governance, and it is not the only way to ensure compliance with IT governance strategy.

IT control status reporting can also assist internal audit in evaluating and initiating remediation efforts, but it is not the main objective of it. Internal audit is an independent and objective assurance and consulting activity that evaluates the adequacy and effectiveness of IT controls, and provides recommendations for improvement. IT control status reporting can provide input and evidence to the internal audit process, and help to identify the areas of IT control that need further review or testing. IT control status reporting can also help to monitor and track the implementation of the audit findings and recommendations, and to verify the results of the remediation efforts. However, IT control status reporting is not the same as internal audit, and it is not the only source of information for internal audit.

Finally, IT control status reporting can benchmark IT controls with industry standards, but it is not the main goal of it. Industry standards are the best practices or guidelines that define the minimum requirements or expectations for IT control performance and quality. IT control status reporting can help to compare the IT controls with the industry standards, and to identify the areas of IT control that need to be enhanced or updated. IT control status reporting can also help to demonstrate the compliance or conformance of IT controls with the industry standards, and to provide assurance to the external parties or regulators. However, IT control status reporting is not the same as industry standards, and it is not the only way to benchmark IT controls. References =

Service Reporting in ITIL: Process, Objectives and Examples - KnowledgeHut

Anatomy of an effective status report - Project Management Institute

How to Create a Project Status Report [Template & Examples]

Communicating Document Control Progress on a Project

[CRISC Review Manual, 7th Edition]

 The primary purpose of a business impact analysis (BIA) is to evaluate the priority of business operations in case of disruption. A BIA is a process that identifies and analyzes the potential effects of various types of disruptions on the enterprise’s critical business functions and processes. A BIA helps to determine the recovery objectives, such as the recovery time objective (RTO) and the recovery point objective (RPO), for each business operation, based on the impactof disruption on the enterprise’s objectives, reputation, compliance, and stakeholders. A BIA also helps to identify the dependencies, resources, and interdependencies of the business operations, and to rank them according to their importance and urgency. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.2.1, page 671

Optimized risk management is achieved when risk is reduced to meet risk appetite, which is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite reflects the strategic goals and priorities of the organization, as well as its risk culture and tolerance. Reducing risk with strategic initiatives, within resource availability, or below risk appetite are all possible approaches, but they do not necessarily optimize risk management, as they may result in over- or under-investment in risk mitigation, or misalignment with business objectives. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.2, page 47

Risk exposure is the product of risk likelihood and risk impact ratings. It represents the potential loss or damage that may result from a risk event. After implementing countermeasures, the risk likelihood and/or impact ratings may change, depending on the effectiveness of the countermeasures. Therefore, the risk exposure must also change to reflect the updated risk ratings. The other components of the register, such as risk owner, risk impact rating, and risk likelihood rating, may or may not change depending on the nature and scope of the countermeasures. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.

Brainstorming sessions would best contribute to identifying obscure risk scenarios, as they allow participants to generate and share ideas without being constrained by conventional thinking or assumptions. Brainstorming sessions can help to identify risks that are not obvious, not well understood, or not covered by existing controls. Control self-assessments, vulnerability analysis, and Monte Carlo analysis are useful methods for evaluating and quantifying risks, but they are not designed to identify obscure risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Identification, page 59.

 The greatest risk associated with the transition of a sensitive data backup solution from on-premise to a cloud service provider is inadequate data encryption. Data encryption is a keysecurity measure that protects the confidentiality and integrity of data, especially when it is stored or transmitted over a network. If the data encryption is inadequate, the data backup solution may be vulnerable to unauthorized access, modification, or disclosure by malicious actors or third parties. This could result in data breaches, regulatory fines, reputational damage, or legal liabilities for the enterprise. More complex test restores, inadequate service level agreement (SLA) with the provider, and more complex incident response procedures are also potential risks associated with the transition, but they are not as great as inadequate data encryption. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.2.1.1, page 245.

The percent of patches implemented within established timeframe is the best metric to demonstrate the effectiveness of an organization’s patch management process, as it measures how well the organization meets its patching objectives and reduces its exposure to vulnerabilities. This metric reflects the timeliness, completeness, and quality of the patching process, and can be compared against the organization’s patch management policy and standards. A high percent of patches implemented within established timeframe indicates that the organization has a mature and efficient patch management process that minimizes the risk of security breaches or operational disruptions due to unpatched systems.

 Understanding the Question:

The question seeks to identify which source provides the most useful information for evaluating the effectiveness of existing controls.

 Analyzing the Options:

A. Previous audit reports:Provide historical data but might not reflect current risks.

B. Control objectives:These are standards to be achieved, not current evaluations.

C. Risk responses in the risk register:Useful but focused on specific responses rather than overall effectiveness.

D. Changes in risk profiles:Reflect current and emerging risks, providing a dynamic view of control effectiveness.



Risk Profiles:Evaluating changes in risk profiles helps understand how effective existing controls are against current threats. If risk levels are increasing, it may indicate that controls are insufficient or need updating.

Proactive Adjustment:By monitoring changes in risk profiles, organizations can proactively adjust their controls to address new or evolving risks.

 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 business process owner should own the risk of customer data leakage caused by the service provider, as they have the responsibility and authority over the design, execution, and performance of the business process. The business process owner is also accountable for the risks and controls associated with their process, and they can provide valuable input and feedback on the likelihood and impact of customer data leakage on the process outcomes and objectives.

The other options are not the best choices for owning the risk of customer data leakage caused by the service provider. The service provider is responsible for delivering and supporting the billing function and ensuring the security and privacy of the customer data, but they may not have the full visibility or understanding of the business process and objectives. The vendor risk manager is responsible for managing and monitoring the vendor relationship and performance, but they may not have the direct involvement or influence on the business process and its risks and controls. The legal counsel is responsible for providing legal advice and guidance on the contractual and regulatory obligations and implications of the outsourcing arrangement, but they may not have the detailed knowledge or experience of the business process and its risks andcontrols. References = Guide to Vendor Risk Assessment | Smartsheet, IT Risk Resources | ISACA, Data Ownership: Considerations for Risk Management - ISACA

In addition to the risk register, which is a tool to document and monitor the risks that affect the organization, a risk practitioner should review the business objectives of the organization to develop an understanding of its risk profile. The risk profile is a description of the set of risks that the organization faces in relation to its goals and strategies. By reviewing the business objectives, the risk practitioner can identify the sources, drivers, and consequences of the risks, as well as the alignment, prioritization, and tolerance of the risks. The business objectives also provide the context and criteria for evaluating and managing the risks. The other options are not the best choices to review for developing an understandingof the organization’s risk profile, as they do not capture the full scope and nature of the risks. The control catalog is a list of the existing controls that are implemented to mitigate the risks, but it does not reflect the effectiveness, efficiency, or sufficiency of the controls. The asset profile is a description of the resources and capabilities that the organization possesses or relies on, but it does not indicate the value, vulnerability, or interdependency of the assets. The key risk indicators (KRIs) are metrics that measure the level and trend of the risks, but they do not explain the causes, impacts, orresponses to the risks. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.2, Page 49.

A critical patch is a software update that fixes a security vulnerability or a bug that may affect the performance, functionality, or reliability of a system or a network. A critical patch implementation is a process that applies the software update to the system or network in a timely and effective manner. The failure of a critical patch implementation is a situation where the software update is not applied or not applied correctly, which may expose the system or networkto various threats, such as data theft, data corruption, data leakage, or denial of service. The failure of a critical patch implementation would be reflected in an organization’s risk profile by increasing the residual risk. Residual risk is the risk that remains after the risk response, which means the risk that is not avoided, transferred, or mitigated by the existing controls or measures. The failure of a critical patch implementation would increase the residual risk, as it would reduce the effectiveness or efficiency of the existing controls or measures that are supposed to address the security vulnerability or the bug. The failure of a critical patch implementation would also increase the likelihood or impact of the potential threats, as well as the exposure or consequences of the system or network. The other options are not the correct changes that would be reflected in an organization’s risk profile after the failure of a critical patch implementation, although they may be affected or related. Risk tolerance is the degree of variation from the risk appetite that the organization is not willing to accept. Risk tolerance may be decreased by the failure of a critical patch implementation, as the organization may become more cautious or conservative in accepting the risk, but it is not a direct or immediate change in the risk profile. Inherent risk is the risk that exists in the absence of any controls or measures, which means the risk that is inherent to the system or network or the environment. Inherent risk may be increased by the failure of a critical patch implementation, as the system or network may become more vulnerable or susceptible to the threats, but it is not a change in the risk profile, as the risk profile considers the existing controls or measures. Risk appetite is the amount and type of risk that the organization is willing to accept in pursuit of its objectives. Risk appetite may be decreasedby the failure of a critical patch implementation, as the organization may become less willing orable to accept the risk, but it is not a change in the risk profile, as the risk profile reflects the actual or current risk level, not the desired or expected risk level. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 972; What is a Critical Patch? - Definition from Techopedia3; What is Residual Risk? - Definition from Techopedia4

Assigning a data owner would best facilitate the implementation of data classification requirements. A data owner is responsible for defining the classification of the data, ensuring that the data is properly labeled, and approving access requests. Implementing technical control over the assets, implementing a data loss prevention (DLP) solution, and scheduling periodic audits are important activities, but they are not as effective as assigning a data owner. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.

The best evidence of an effective risk treatment plan is that the risk tolerance threshold is above the asset residual risk, because this means that the risk treatment plan has reduced the risk to a level that is acceptable to the enterprise. The risk tolerance threshold is the maximum amount of risk that the enterprise is willing to accept for a given asset or process. The asset residual risk is the remaining risk after applying the risk treatment plan. The risk treatment plan is effective if the asset residual risk is lower than or equal to the risk tolerance threshold. The other options are not the best evidence, although they may also be indicators of an effective risk treatment plan. The inherent risk being below the asset residual risk, the remediation cost being below the asset business value, and the remediation being completed within the asset recovery time objective (RTO) are examples of desirable or expected outcomes of the risk treatment plan, but they do not directly measure the effectiveness of the risk treatment plan. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

Preventive controls are the best types of controls to minimize the risk associated with a vulnerability, because they aim to avoid or reduce the occurrence of a threat or an exploit. Preventive controls can include physical, technical, or administrative measures, such as locks, firewalls, encryption, policies, training, or backup. Preventive controls can also involve eliminating or substituting the source of the vulnerability, such as outdated software or hardware.

References

•ISACA CRISC Review Manual, 7th Edition, Domain 3: Risk Response, Section 3.2.1: Control Types

•Hazard Controls - Princeton University

•Risk Control | Techniques and Importance of Risk Control - EDUCBA

Penetration testing is the best method for assessing control effectiveness against technical vulnerabilities that could be exploited to compromise an information system, as it simulates areal-world attack scenario and evaluates the security posture of the system. Penetration testing is a type of security testing that involves performing authorized and ethical hacking activities on a system to identify and exploit its vulnerabilities and weaknesses. Penetration testing can help to measure and improve the effectiveness and efficiency of the controls implemented to protect the system from unauthorized access, modification, or damage.

The other options are not the best methods for assessing control effectiveness against technical vulnerabilities that could be exploited to compromise an information system. Vulnerability scanning is an automated process that uncovers potential vulnerabilities in systems and software, but it does not provide information on the impact and severity of the vulnerability or how they can be exploited using different exploitation techniques1. Systems log correlation analysis is a process of examining and analyzing the records of system activities and events, but it does not directly test the controls or simulate the attack scenarios. Monitoring of intrusion detection system (IDS) alerts is a process of tracking and auditing the system or network for any signs of malicious or anomalous activities, but it does not evaluate the control performance or identify the root causes of the vulnerabilities. References = Vulnerability Assessment Principles | Tenable®, A Complete Guide on Vulnerability Assessment Methodology, Karen Scarfone Scarfone Cybersecurity - NIST Computer Security Resource …

The maturity of organizational risk management refers to the degree to which risk management is embedded and integrated into the organization’s culture, processes, and decision-making1. A higher level of maturity implies that the organization has a clear and consistent understanding ofits risk appetite and tolerance, and that it can effectively identify, assess, respond, monitor, and communicate risks2.

The best way to address the issue of participants focusing on the financial cost to mitigate risk rather than choosing the most appropriate response is to raise the maturity of organizational risk management. This can help to:

Ensure that risk management is aligned with the organization’s strategic objectives and values, and that risk responses are based on the potential impact and likelihood of risks, not just on the cost of mitigation

Foster a risk-aware culture that encourages proactive and collaborative risk management, and that recognizes and rewards good risk management practices

Provide adequate training and guidance for risk management roles and responsibilities, and ensure that risk management skills and competencies are developed and maintained

Implement a robust and consistent risk management framework, methodology, and tools that support the risk management process and enable continuous improvement and learning

Enhance the quality and reliability of risk information and reporting, and ensure that risk management performance and outcomes are measured and evaluated3

References = Risk Maturity Model - Wikipedia, Risk Maturity Model - ISACA, Risk Maturity Model - IRM

A balanced scorecard is a strategic management tool that helps to measure and communicate the performance of an organization or a program against its goals and objectives. A balanced scorecard typicallyconsists of four perspectives: financial, customer, internal process, and learning and growth. Each perspective has a set of key performance indicators (KPIs) that reflect the critical success factors and desired outcomes of the organization or the program1.

A balanced scorecard is most useful for reporting on the overall status and effectiveness of the IT risk management program, because it can provide a comprehensive and balanced view of the program’s performance across multiple dimensions. A balanced scorecard can help to align the IT risk management program with the business strategy and vision, and to demonstrate the value and impact of the program to the stakeholders. A balanced scorecard can also help to identify the strengths and weaknesses of the IT risk management program, and to monitor and improve the program’s processes and outcomes2.

The other options are not as useful as a balanced scorecard for reporting on the overall status and effectiveness of the IT risk management program. A capability maturity level is a measure of the maturity and quality of a process or a practice, based on a predefined set of criteria andstandards. A capability maturity level can help to assess and benchmark the IT risk management program’s processes and practices, but it does not provide a holistic view of the program’s performance and results3. An internal audit plan is a document that outlines the scope, objectives, and methodology of an internal audit activity. An internal audit plan can help to evaluate and verify the IT risk management program’s controls and compliance, but it does not provide a strategic view of the program’s goals and outcomes4. A control self-assessment (CSA) is a technique that involves the participation of the process owners and the staff in assessing the effectiveness and efficiency of their own controls. A CSA can help to enhance the awareness and ownership of the IT risk management program’s controls, but it does not provide an objective and independent view of the program’s performance and impact. References =

Balanced Scorecard Basics - Balanced Scorecard Institute

Using the Balanced Scorecard to Measure and Manage IT Risk

Capability Maturity Model Integration (CMMI) Overview

Internal Audit Planning: The Basics - The IIA

[Control Self-Assessment - ISACA]

Recovery time objectives (RTOs) are the maximum acceptable time frames for restoring the critical functions and processes after a disruption1. RTOs are derived from the business impact analysis (BIA) andreflect the organization’s risk appetite, which is the amount of risk that an organization is willing to accept to achieve its objectives2. Risk tolerance is the level of risk a company is willing to tolerate, and it is affected by a number of factors, including how much uncertainty or financial loss can be tolerated and where those losses will impact operations3. Risk tolerance is used to measure if the risk exposure is within the risk appetite and to implement controls to reduce the residual risk to an acceptable level2. If the majority of core IT application RTOs have exceeded the maximum time defined by the business application owners, it means that the organization is not meeting its risk appetite and is exposed to more risk than it can accept. Therefore, the most likely change as a result is to adjust the risk tolerance to reflect the current reality and to take actions to improve the recovery capabilities and reduce the risk exposure4. Risk forecasting is the process of estimating the potential outcomes and impactsof future events that may affect the organization’s objectives5. Risk forecasting may change as aresult of the RTOs exceeding the maximum time, but it is not the most likely change, as it does not directly address the gap between the risk appetite and the risk exposure. Risk likelihood is the probability of a risk event occurring5. Risk likelihood may change as a result of the RTOs exceeding the maximum time, but it is not the most likely change, as it does not directly measure the impact of the risk event on the organization’s objectives. Risk appetite is the amount of risk that an organization is willing to accept to achieve its objectives2. Risk appetite may change as a result of the RTOs exceeding the maximum time, but it is not the most likely change, as it is a strategic decision that reflects the organization’s vision and mission, and not a tactical response to a specific risk event. References = Risk and Information Systems Control Study Manual, Chapter 5: Risk Response and Mitigation, Section 5.3: Business Continuity Planning, pp. 227-238.

In the three lines of defense model, the primary responsibility for ensuring risk mitigation controls are properly configured belongs to line management.

First Line of Defense:

Operational Management:Line management is part of the first line of defense and is responsible for managing risks and implementing controls in their day-to-day operations.

Direct Control:They have the most direct control over processes and are best positioned to ensure that risk mitigation controls are properly configured and functioning as intended.

Responsibilities:

Implementation and Monitoring:Line management is responsible for both implementing the controls and monitoring their effectiveness. They are on the front lines of risk management and are integral to maintaining control effectiveness.

Accountability:They are accountable for ensuring that controls are aligned with the organization's risk management policies and procedures.

Risk aggregation in a complex organization will be MOST successful when using the same scales in assessing risk, because it can help to ensure the consistency and comparability of the risk assessment results across different units, levels, and domains of the organization. Using the same scales in assessing risk can also help to avoid the potential errors or biases that may arise from using different scales, such as overestimating or underestimating the risk exposure, or misaligning the risk appetite and tolerance. The other options are not as important as using the same scales in assessing risk, because:

Option B: Utilizing industry benchmarks is a good way to improve the quality and validity of the risk assessment results, but it does not ensure the success of the risk aggregation, which is the process of combining and consolidating the risk assessment results into a holistic and comprehensive view of the risk profile and exposure of the organization.

Option C: Using reliable qualitative data for risk items is a useful way to capture and describe the risk items, which are the sources and causes of the risks, but it does not ensure the success of the risk aggregation, which is the process of quantifying and measuring the risk items, and their likelihood and impact on the business objectives and processes.

Option D: Including primarily low-level risk factors is a necessary way to identify and assess the risk factors, which are the characteristics and attributes of the risks, but it does not ensure the success of the risk aggregation, which is the process of prioritizing and ranking the risk factors, and their significance and relevance to the organization’s strategy and goals. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 105.

According to the LDR514: Security Strategic Planning, Policy, and Leadership Course, after mapping generic risk scenarios to organizational security policies, the next course of action should be to validate the risk scenarios for business applicability. This is because generic risk scenarios are not specific to the organization’s context, objectives, and environment, and they may not capture the unique threats, vulnerabilities, and impacts that the organization faces. Therefore, validating the risk scenarios for business applicability will help to ensure that the risk scenarios are relevant, realistic, and consistent with the organization’s security policies. Validating the risk scenarios will also help to identify any gaps, overlaps, or conflicts between the risk scenarios and the security policies, and to resolve themaccordingly. References = LDR514: Security Strategic Planning, Policy, and Leadership Course, Risk Assessment and Analysis Methods: Qualitative and Quantitative

Risk scenarios: Narratives that describe potential risk events, their causes, consequences, and likelihood1.

Internet of Things (IoT): A network of interconnected devices, software, sensors, and other things that communicate and exchange data without human intervention2.

IoT threat landscape: The range and types of threats and attacks that target IoT devices, systems, and networks3.

The most helpful thing to review when identifying risk scenarios associated with the adoption of IoT technology in an organization is the IoT threat landscape. The IoT threat landscape provides a comprehensive and current overview of the potential sources, methods, and impacts of cyberattacks on IoT devices, systems, and networks. Reviewing the IoT threat landscape can help an organization to:

Identify the most relevant and prevalent threats and vulnerabilities that affect IoT technology, such as weak passwords, insecure interfaces, insufficient data protection, poor device management, or lack of encryption4.

Assess the likelihood and impact of different types of attacks, such as malware infections, denial-of-service attacks, data breaches, unauthorized access, or sabotage4.

Prioritize the most critical and urgent risks that need to be addressed and mitigated.

Develop realistic and plausible risk scenarios that reflect the actual IoT threat environment and the organization’s specific context and objectives.

The other options are not as helpful as the IoT threat landscape when identifying risk scenarios associated with the adoption of IoT technology in an organization, because they do not provide a comprehensive and current view of the potential threats and attacks that target IoT technology. The business case for the use of IoT, which is the justification and rationale for adopting IoT technology based on the expected benefits, costs, and risks, may help to understand the value and purpose of IoT technology for the organization, but it does not provide detailed information on the specific threats and vulnerabilities that affect IoT technology. Policy development for IoT, which is the process of creating and implementing rules and guidelines for the governance, management, and security of IoT technology, may help to establish the standards and expectations for IoT technology within the organization, but it does not provide an overview of the external threats and attacks that target IoT technology. The network that IoT devices can access, which is the infrastructure and system that enables the connectivity and communicationof IoT devices, may help to identify the potential entry points and attack vectors for IoT threats, but it does not provide a complete picture of the types and impacts of IoT threats.

References = Risk Scenarios Toolkit, What is the Internet of Things (IoT)? With Examples | Coursera, Top IoT security issues and challenges (2022) – Thales, 8 Internet of Things Threats and Security Risks - SecurityScorecard

The best indicator that additional or improved controls are needed in the environment is when risk events and losses exceed risk tolerance. Risk tolerance is the acceptable level of variation in performance or outcomes relative to the achievement of objectives. Risk events and losses are the negative consequences of risk that have occurred or are expected to occur. When risk events and losses exceed risk tolerance, it means that the existing controls are not sufficient or effective to prevent or mitigate the risk, and that the organization is exposed to unacceptable levels of risk that could impair its ability to achieve its objectives. Therefore, additional or improved controls are needed to reduce the risk to an acceptable level. Management decreasing organizational risk appetite, the risk register and portfolio not including all risk scenarios, and emerging risk scenarios being identified are not as clear and direct indicators that additional or improved controls are needed in the environment, as they do not necessarily reflect the actual performance or outcomes of the risk management process. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 41.

The organizational role that should be accountable for ensuring information assets are appropriately classified is the information asset owner, as they have the authority and responsibility to define the classification, retention, and disposal requirements for the information assets they own, and to manage the risk and controls related to the information assets. The other options are not the correct roles, as they have different roles and responsibilities related to the protection, governance, or maintenance of the information assets, respectively, rather than the classification of the information assets. References = CRISC Review Manual, 7th Edition, page 154.

Risk mitigation is a proactive business strategy to identify, assess, and mitigate potential threats or uncertainties that could harm an organization’s objectives, assets, or operations1. It entails specific action plans to reduce the likelihood or impact of these identified risks2.

There are several recognized ways to mitigate risk, such as accepting, avoiding, hedging, transferring, or reducing the risk3. Among the options given, only C is an example of risk reduction, which involvesimplementing controls or safeguards to minimize the negative effects of the risk3. Change and configuration management processes are methods to ensure that changes to the IT systems or infrastructure are properly authorized, documented, tested, and implemented, and that the configuration of the IT assets is consistent and accurate. These processes can help prevent or detect errors, defects, or vulnerabilities that could compromise the IT performance, security, or availability.

The other options are not examples of risk mitigation, but rather risk avoidance (A), risk transfer (B), or risk acceptance (D). Risk avoidance means eliminating the risk entirely by not engaging in the activity that causes the risk3. Not providing capability for employees to work remotely could avoid the risk of data breaches or network issues, but it could also limit the productivity and flexibility of the workforce. Risk transfer means shifting the responsibility or burden of the risk to another party, such as a vendor or an insurer3. Outsourcing the IT activities and infrastructure could transfer the risk of IT failures or incidents to the service provider, but it could also introduce new risks such as vendor dependency or loss of control. Risk acceptance means acknowledging the risk and its consequences without taking any action to address it3. Taking out insurance coverage for IT-related incidents could provide some financial compensation in case of a loss, but it does not reduce the likelihood or impact of the risk itself. References =

5 Key Risk Mitigation Strategies (With Examples) | Indeed.com

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

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

[Change and Configuration Management - ISACA]

A high-risk vulnerability in an application is a system flaw or weakness in the application’s code that can be exploited by a malicious actor, potentially leading to a security breach. The risk associated with a high-risk vulnerability in an application is the possibility and impact of such a breach occurring. The risk owner of a high-risk vulnerability in an application is the person or entity who has the authority and responsibility for managing the risk. The risk owner should be able to define the risk appetite, assess the risk level, select and implement the risk response, monitor and report the risk status, and ensure the risk alignment with the business objectives and strategy. The risk owner of a high-risk vulnerability in an application is the business unit, which is the organizational unit that operates the application and derives value from it. The businessunit understands the business needs and expectations of the application, and the potential consequences of a security breach. The business unit also has the resources and incentives to address the risk effectively and efficiently. Therefore, the business unit is the most appropriate risk owner of a high-risk vulnerability in an application. References = Why Assigning a Risk Owner is Important and How to Do It Right, CRISC 351-400 topic3, Foundations of Project Management : Week 2.

 The best course of action for a risk practitioner when a bank recently incorporated Blockchain technology with the potential to impact known risk within the organization is to analyze the risk and update the risk register as needed. Blockchain technology is a new and emerging technologythat may introduce new risks or change the existing risks for the bank. Therefore, the risk practitioner should perform a risk analysis to identify, assess, and evaluate the risks associated with the Blockchain technology, and update the risk register accordingly. Determining whether risk responses are still adequate, analyzing and updating control assessments, and conducting testing of the controls are possible actions that may follow the risk analysis, but they are not the best initial course of action. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.

The first step to ensure continuity of operations when performing a risk assessment of a new service to support a new business process is to identify the conditions that may cause disruptions to the service or the process. This is because identifying the potential sources, causes, and scenarios of disruptions helps to determine the impact and likelihood of the risks, and to select the appropriate risk responses and recovery strategies. The other options are not the first steps, although they may also be part of the risk assessment process. Reviewing incident response procedures, evaluating the probability of risk events, and defining metrics for restoring availability are examples of subsequent steps that depend on the identification of the conditions that may cause disruptions. References = CRISC: Certified in Risk & Information Systems Control Sample Questions