CRISC Exam Dumps - Isaca Certification Questions and Answers

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

The vendor must host data in a specific geographic location to ensure that the data is protected by the applicable data protection laws of the EU or the country where the data originates. This is especially important for SaaS customers who transfer personal data from the EU to third countries, as they need to comply with the GDPR and the new Standard Contractual Clauses (SCCs) that regulate such transfers. The vendor must also provide adequate security measures and guarantees to protect the data from unauthorized access, disclosure, or loss. References = Risk and Information Systems Control Study Manual, Chapter 5: IT Risk Mitigation, Section 5.3: IT Risk Mitigation Strategies and Approaches, Page 253; Data Protection – New EU Standard Contractual Clauses - Bodle Law.

The most important thing for a risk practitioner to ensure once a risk action plan has been completed is that the risk owner has validated the outcomes, as this means that the risk owner has confirmed that the risk response has been implemented and that the risk level has been reduced to an acceptable level. The risk owner is the person or entity with the authority and responsibility to manage a particular risk, and they should evaluate the effectiveness and efficiency of the risk action plan, and report any issues or changes. The risk action plan is a document that outlines the specific actions, resources, responsibilities, and timelines for implementing a risk response. The other options are not the most important things for a risk practitioner to ensure once a risk action plan has been completed, although they may be useful or necessary steps. Updating the risk register is a good practice, but it should be done after the risk owner hasvalidated the outcomes and with the consent of the risk owner. Mapping the control objectives to the risk objectives is a part of the risk response design, but it does not measure the actual achievement of the risk objectives. Achieving the requirements is a desired result, but it does not guarantee that the risk owner has validated the outcomes or that the risk level has been reduced to an acceptable level. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk Response, page 146.

The most important concern to address when formulating a social media policy to address information leakage is sharing company information on social media. Information leakage is the unauthorized or unintentional disclosure of confidential or sensitive information to unauthorized parties. Social media is a platform that enables the users to create and share content, such as text, images, videos, or links, with other users or the public. Sharing company information on social media is the most important concern, as it could expose the company’s trade secrets, intellectual property, customer data, financial data, or strategic plans to competitors, hackers, or regulators. Sharing company information on social media could also damage the company’s reputation, trust, or credibility, and result in legal or regulatory penalties, fines, or lawsuits. Therefore, a social media policy should clearly define what constitutes company information, and what are the rules and guidelines for sharing or not sharing company information on social media. A social media policy should also specify the roles and responsibilities of the employees, managers, and the social media team, and the consequences and sanctions for violating the policy. Sharing personal information on social media, using social media to maintain contact with business associates, and using social media for personal purposes during working hours are not as important as sharing company information on social media, as they do not directly involve the leakage of company information, and they may not have significant impact or risk on the company. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217

Software as a service (SaaS) is a cloud computing model that provides software applications over the internet, without requiring the customer to install or maintain them on their own devices1. SaaS applicationscan offer many benefits, such as scalability, accessibility, and cost-efficiency, but they also pose security risks, such as data breaches, unauthorized access, and compliance violations2.

One of the best ways to protect an organization against breaches when using a SaaS application is to use data loss prevention (DLP) tools. DLP tools are software solutions that monitor, detect,and prevent the unauthorized transmission or leakage of sensitive data from an organization’s network or devices3. DLP tools can help an organization to:

Identify and classify sensitive data, such as personal information, intellectual property, or financial records, and apply appropriate policies and controls to protect them

Encrypt data in transit and at rest, and use secure protocols and encryption keys to ensure data confidentiality and integrity

Block or alert on suspicious or malicious data transfers, such as unauthorized uploads, downloads, or sharing of data to external sources or devices

Audit and report on data activities and incidents, and provide evidence for compliance with data protection regulations and standards, such as GDPR, HIPAA, or PCI-DSS4

References = What is SaaS?, Top 7 SaaS Security Risks (and How to Fix Them), What is Data Loss Prevention (DLP)?, Data Loss Prevention (DLP) for SaaS Applications

A risk action plan is a document that outlines the actions to be taken to mitigate or avoid a risk. A risk action plan should be revised when the risk associated with a new technology is found to be increasing, as this indicates that the current plan is not effective or sufficient. Revising the risk action plan can help identify the root causes of the risk increase, evaluate the effectiveness of current controls, and implement additional or alternative controls as needed. Re-evaluatingcurrent controls, escalating the risk to senior management, and implementing additional controls are possible steps in the revision process, but they are not the first course of action. The first course of action should be to update the risk action plan to reflect the current risk situation and the appropriate risk response.

The primary focus of management when key risk indicators (KRIs) begin to rapidly approach defined thresholds is to determine what has changed in the environment. KRIs are metrics that provide information and insight on the current level and trend of the risk exposure, and help to monitor and report the risk status and performance. Defined thresholds are the values or rangesof the KRIs that indicate the acceptable or unacceptable level of the risk exposure, and trigger the risk response actions. When KRIs begin to rapidly approach defined thresholds, it means that the risk exposure is increasing or decreasing significantly, and that the risk situation and status may have changed. Therefore, the primary focus of management is to determine what has changed in the environment, which is the internal or external context that influences or affects the risk exposure and impact. Determining what has changed in the environment helps to identify and analyze the causes, drivers, or factors of the risk change, and to evaluate the implications and consequences of the risk change. Determining what has changed in the environment also helps to update and adjust the risk assessment and response, and to communicate and escalate the risk change to the relevant stakeholders. Designing compensating controls, determining if KRIs have been updated recently, and assessing the effectiveness of the incident response plan are not the primary focus of management, as they are either the outputs or the inputs of the risk change analysis, and they do not address the primary need of understanding the risk change. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 50.

The best input for conducting a review of emerging risk is the annual threat reports. Emerging risk is the risk that arises from new or evolving sources, or from existing sources that have not been previously considered or recognized. Emerging risk may have significant impact on the organization’s objectives, strategies, operations, or reputation, and may require new or different risk responses. Annual threat reports are the reports that provide information and analysis on the current and future trends, developments, and challenges in the threat landscape, such as cyberattacks, natural disasters, geopolitical conflicts, or pandemics. Annual threat reports can help to identify and assess the emerging risk, as they can provide insights into the sources, drivers, indicators, and scenarios of the emerging risk, as well as the potential impact and likelihood of the emerging risk. Annual threat reports can also help to benchmark and compare the organization’s risk exposure and preparedness with the industry and the peers, and to prioritize and respond to the emerging risk. Audit reports, industry benchmarks, and financial forecasts are not as useful as annual threat reports, as they do not focus on the emerging risk, and may not capture the latest or future changes in the threat landscape. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 50.

 The primary reason for establishing various threshold levels for a set of key risk indicators (KRIs) is to take appropriate actions in a timely manner. KRIs are metrics that provide information on the level of exposure to a given risk or the effectiveness of the controls in place. Threshold levels are predefined values that indicate when the risk level is acceptable, tolerable, or unacceptable. By establishing various threshold levels for a set of KRIs, the enterprise can monitor the risk situation and trigger the necessary responses before the risk becomes too severe or costly to mitigate. The other options are not the primary reasons for establishing various threshold levels, although they may be secondary benefits or outcomes of doing so. References = Risk and Information Systems Control Study Manual, Chapter 5: Risk and Control Monitoring and Reporting, page 189.

 The primary purpose of vulnerability assessments is to detect weaknesses that could lead to system compromise. A vulnerability assessment is a systematic review of security weaknesses in an information system. It evaluates if the system is susceptible to any known vulnerabilities, assigns severity levels to those vulnerabilities, and recommends remediation or mitigation, if and whenever needed1. By identifying and prioritizing the vulnerabilities, a vulnerability assessment helps to prevent or reduce the risk of cyberattacks that could exploit the vulnerabilities and compromise the system. The other options are not the primary purpose, but they may be secondary or tertiary outcomes or benefits of a vulnerability assessment. Providing clear evidence that the system is sufficiently secure is a result of a successful vulnerability assessment and remediation process, but it is not the main objective. Determining the impact of potential threats is a part of the risk assessment process, which complements the vulnerability assessment process, but it is not the same as detecting the vulnerabilities. Testing intrusion detection systems (IDS) and response procedures is a part of the penetration testing process, which simulates a real-world attack on the system to evaluate its security posture, but it is not the same as scanning the system for vulnerabilities. References = What is Vulnerability Assessment | VA Tools and Best Practices - Imperva

Annual loss expectancy (ALE) is a method to assign a monetary value to risk by multiplying the probability of a risk event by the potential loss associated with that event1. ALE can be used to compare the costs and benefits of different risk mitigation options and to determine the optimallevel of investment in riskmanagement2. Business impact analysis (BIA) is a process to identify and evaluate the potential effects of a disruption on the critical functions and processes of an organization3. BIA can help to forecast the impacts of a risk event, but it does not assign a monetary value to the risk itself. Cost-benefit analysis (CBA) is a technique to compare the costs and benefits of a project, decision, or action4. CBA can help to evaluate the feasibility and profitability of a risk mitigation option, but it does not assign a monetary value to the risk itself. Inherent vulnerabilities are the weaknesses or flaws in a system, process, or asset that expose it to potential threats5. Inherent vulnerabilities can increase the likelihood or impact of a risk event, but they do not assign a monetary value to the risk itself. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.2: Risk Analysis, pp. 77-81.

The primary goal of conducting a business impact analysis (BIA) as part of an overall continuity planning process is to identify critical business processes and the degree of reliance on support services. A BIA is a process of assessing the potential impact and consequences of a disruption or interruption of the business activities, operations, or functions. A continuity planning processis a process of developing, implementing, and maintaining a plan to ensure the continuity and recovery of the business activities, operations, or functions in the event of a disruption or interruption. The primary goal of conducting a BIA is to identify critical business processes and the degree of reliance on support services, which are the business processes that are essential for the survival and success of the business, and the support services that are required to enable or facilitate the critical business processes, such as IT systems, human resources, facilities, or suppliers. Identifying critical business processes and the degree of reliance on support services helps to determine the priorities and requirements for the continuity and recovery of the business activities, operations, or functions, and to select and implement the appropriate continuity andrecovery strategies and solutions. Obtaining the support of executive management, mapping the business processes to supporting IT and other corporate resources, and documenting the disaster recovery process are not the primary goals of conducting a BIA, as they are either the benefits or the outputs of the BIA process, and they do not address the primary need of assessing the impact and consequences of the business disruption or interruption. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 50.

The most important information to cover in a business continuity awareness training program for all employees of the organization is the communication plan. A communication plan is a document that defines the roles, responsibilities, procedures, and resources for communicating with the internal and external stakeholders before, during, and after a business continuity event. A communication plan helps to ensure that the relevant and accurate information is delivered to the appropriate parties in a timely and consistent manner, and that the feedback and responses are received and addressed accordingly. A communication plan also helps to maintain the trust, confidence, and reputation of the organization, and to comply with the legal or regulatory requirements. A communication plan is the most important information to cover in a business continuity awareness training program, because it helps to prepare and educate the employees on how to communicate effectively and efficiently in a business continuity event, and how to avoid or minimize the communication errors, gaps, or conflicts that could affect the business continuity performance and recovery. The other options are not as important as the communication plan, although they may also be covered in a business continuity awareness training program. Recovery time objectives (RTOs), segregation of duties, and critical asset inventory are all factors that could affect the business continuity planning and implementation, but they are notthe most important information to cover in a business continuity awareness training program. References = 6

According to the CRISC Review Manual (Digital Version), the security management function is responsible for ensuring that effective cybersecurity controls are established and maintained. The security management function should:

Define the cybersecurity strategy and objectives aligned with the enterprise’s risk appetite and business goals

Establish and maintain the cybersecurity policies, standards, procedures and guidelines

Implement and monitor the cybersecurity controls and processes

Coordinate and communicate with other stakeholders, such as risk owners, IT management, enterprise risk function, internal and external auditors, regulators and third parties

Report on the cybersecurity performance and risk posture to senior management and the board

Continuously improve the cybersecurity capabilities and maturity

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.4: IT Risk Management Roles and Responsibilities, pp. 29-301

A business continuity plan (BCP) is a system of prevention and recovery from potential threats to a company. The plan ensures that personnel and assets are protected and are able to function quickly in the event of a disaster1. The first task when developing a BCP should be to identify critical business functions and resources, because this will help to determine the scope, objectives, and priorities of the plan. Critical business functions and resources are those that are essential for the continuity of the company’s operations, and that would cause significant disruption or damage if they were interrupted or lost. By identifying critical business functions and resources, the company can focus its efforts and resources on protecting and restoring them, and minimizing the impact of a disaster. The other options are not the first task when developing a BCP, because they depend on the identification of critical business functions and resources, as explained below:

A. Determine data backup and recovery availability at an alternate site is a task that relates to the recovery strategy of the BCP, which aims to restore the data and information systems that support the critical business functions and resources. However, this task cannot be performed without first identifying which data and information systems are critical, and what level of availability and recovery they require.

C. Define roles and responsibilities for implementation is a task that relates to the organization and governance of the BCP, which aims to assign and communicate the duties and expectations of the personnel involved in the plan. However, this task cannot be performed without first identifying which personnel are critical, and what functions and resources they are responsible for.

D. Identify recovery time objectives (RTOs) for critical business applications is a task that relates to the analysis and evaluation of the BCP, which aims to measure the acceptable downtime and recovery speed of the critical business functions and resources. However, this task cannot be performed without first identifying which business applications are critical, and what impact and likelihood they have. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 115. What Is a Business Continuity Plan (BCP), and How Does It Work?, Business continuity plan (BCP) in 8 steps, with templates | BDC.ca, How Develop a Business Continuity Plan - Invenio IT, Business Continuity Planning | Ready.gov, Develop a Robust Business Continuity Plan | Wrike

Lack of common understanding of the organization’s risk culture is the greatest barrier to achieving the initiative’s objectives, because it hinders the alignment and integration of risk management across the organization. Risk culture is the set of shared values, beliefs, and behaviors that influence how risk is perceived and managed in an organization. A risk universe is a comprehensive and structured representation of all the sources and types of risk that an organization faces. Developing a risk universe requires a common understanding of the organization’s risk culture, as it affects the risk appetite, tolerance, and strategy of the organization. Lack of cross-functional risk assessment workshops, lack of quantitative methods to aggregate the total risk exposure, and lack of an integrated risk management system are all challenges that may affect thedevelopment of a risk universe, but they are not the greatest barrier, as they can be overcome with appropriate tools and techniques. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 44

The risk practitioner’s primary role during the change is to manage the third-party risk, as this involves identifying, assessing, and mitigating the risks associated with outsourcing the business operations for the emerging technology. The risk practitioner should ensure that the third-party provider has the necessary capabilities, security, and compliance to deliver the expected outcomes and meet the contractual obligations. The risk practitioner should also monitor the performance and service levels of the third-party provider and report any issues or incidents. Developing risk scenarios, managing the threat landscape, and updating risk appetite are all important activities for the risk practitioner, but they are not the primary role during the change. Developing risk scenarios is a technique for identifying and analyzing potential risk events and their impacts. Managing the threat landscape is a process of identifying and responding to the external and internal threats that may affect the organization. Updating risk appetite is a decision that reflects the organization’s willingness to accept or avoid risk in pursuit of its objectives. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Identification, page 48.

 According to the CRISC Review Manual, a list of unencrypted databases which contain sensitive data would be the most important information for assessing the risk impact, because it would help to determine the extent and severity of the potential data breach or loss. The risk impact is the effect or consequence of the risk occurrence on the business objectives and operations. A list of unencrypted databases which contain sensitive data would indicate the scope and magnitude of the risk exposure and the potential damage to the confidentiality, integrity, and availability of the data. The other options are not the most important information for assessing the risk impact, as they are less relevant or less specific than a list of unencrypted databases which contain sensitive data. The number of users who can access sensitive data would indicate the level of access control and the likelihood of unauthorized access, but it would not indicate thetype and value of the data. The reason some databases have not been encrypted would indicate the cause and rationale of the risk, but it would not indicate the effect or consequence of the risk. The cost required to enforce encryption would indicate the feasibility and affordability of the risk response, but it would not indicate the potential loss or harm of the risk. References = CRISC Review Manual, 7th Edition, Chapter 2, Section 2.2.2, page 78.

 Understanding the Question:

The question asks for the best guidance for developing relevant risk scenarios.

 Analyzing the Options:

A. Based on industry trends:Important but may not always be directly relevant to the specific organization.

B. Mapped to incident response plans:Useful but secondary to ensuring the scenarios are probable.

C. Related to probable events:Ensures the scenarios are realistic and likely, making them more relevant and actionable.

D. Aligned with risk management capabilities:Important for managing risks but not as critical as ensuring scenarios are probable.



Probable Events:Developing risk scenarios that are based on probable events ensures that the organization is prepared for the most likely risks. This makes risk management efforts more practical and focused on real threats.

Relevance:By focusing on probable events, the scenarios will be more relevant to the organization's actual risk environment, making it easier to allocate resources and plan responses effectively.

A risk-aware culture is a culture that recognizes, understands, and values the importance of risk management in achieving the organization’s objectives and goals. A risk-aware culture is also a culture that supports and encourages the identification, assessment, response, and monitoring of risks across the organization, as well as the sharing and learning of risk information and best practices. One of the activities that would best contribute to promoting an organization-wide risk-aware culture is communicating components of risk and their acceptable levels. This is a technique to inform and educate the stakeholders and decision makers about the nature and scope of the risks that the organization faces, as well as the criteria and standards that the organization uses to measure and manage the risks. Communicating components of risk and their acceptable levels can help to increase the awareness and understanding of the risks and their impact on the organization’s performance and value, as well as to align the expectations and behaviors of the stakeholders and decision makers with the organization’s risk appetite and tolerance. Communicating components of risk and their acceptable levels can also help to foster a transparent and collaborative environment for risk management, where the stakeholders and decision makers can openly discuss and address the risks and their implications, as well as to provide and receive feedback and support. The other options are not the best activities to promote an organization-wide risk-aware culture, although they may be relevant and useful. Performing a benchmark analysis and evaluating gaps is a technique to compare and improve the organization’s risk management process and performance with the industry standards or best practices, as well as to identify and close the gaps or weaknesses in the organization’s risk management capabilities or maturity. However, this technique does not necessarily promote a risk-aware culture, as it focuses on the process and performance of risk management, not the attitude and behavior of risk management. Conducting risk assessments and implementing controls is a technique to identify and analyze the risks that the organization faces, as well as to select and execute the appropriate actions to address the risks, such as avoiding, transferring, mitigating, or accepting the risks. However, this technique does not directly promote a risk-aware culture, as it focuses on the actions and outcomes of risk management, not the values and beliefs of risk management. Participating in peer reviews and implementing best practices is a technique to evaluate and enhance the quality and effectiveness of the organization’s risk management activities anddeliverables, as well as to adopt and apply the proven and successful methods or solutions for risk management. However, this technique does not effectively promote a risk-aware culture, as it focuses on the improvement and optimization of risk management, not the communication and collaboration of risk management. References = CRISC Review Manual, pages 22-231; CRISC Review Questions, Answers & Explanations Manual, page 982; The 6 keyelements to creating and maintaining a good risk culture3; How to increase risk awareness - Project Management Institute4

The first step in conducting a BIA is to identify critical information assets. This involves determining which assets are essential to the organization's operations and would have the most significant impact if disrupted. Understanding these assets sets the foundation for assessing potential impacts and developing appropriate recovery strategies.

Key control indicators (KCIs) are metrics that measure the performance of a control in reducing the causes, consequences, or likelihood of a risk. They help to evaluate the adequacy and efficiency of the internal control environment, which is the set of policies, procedures, and practices that support the achievement of organizational objectives and the management of risks. By monitoring KCIs, organizations can identify and address any gaps or weaknesses in their internal controls and ensure that they are operating as intended.

References

•ISACA CRISC Review Manual, 7th Edition, Domain 3: Risk Response, Section 3.2.2: Control Design and Implementation

•KRI Framework for Operational Risk Management | Workiva

•What is the difference between key risk indicators and key control indicators?

IT and business misalignment is the risk that the IT objectives, plans, and activities are not aligned with the business goals, needs, and expectations. This can result in wasted resources, missed opportunities, poor performance, and customer dissatisfaction. One of the best ways to mitigate this risk is to involve the business process owner in IT strategy. The business process owner is the person who has the authority and responsibility for a specific business process and its outcomes. By involving the business process owner in IT strategy, the organization can ensure that the IT initiatives and solutions are relevant, effective, and beneficial for the business process and its stakeholders. The business process owner can also provide valuable input, feedback, and support for the IT strategy and its implementation. The other options are not the best ways to mitigate the risk associated with IT and business misalignment, although they may be helpful and complementary. Establishing business key performance indicators (KPIs) is a technique to measure and monitor the achievement of business objectives and outcomes. However, KPIs do not necessarily ensure that the IT strategy is aligned with the business strategy or that the IT activities support the business activities. Introducing an established framework for IT architecture is a method to design and implement the IT infrastructure, systems, and services in a consistent and coherent manner. However, an IT architecture framework does not guarantee that the IT architecture is aligned with the business architecture or that the IT capabilities meet the business requirements. Establishing key risk indicators (KRIs) is a tool to monitor and communicate the level of exposure to a given risk or the potential impact of a risk. However, KRIs do not directly address the risk of IT and business misalignment or the actions needed to align them. References = CRISC Review Manual, pages 22-231; CRISC Review Questions, Answers & Explanations Manual, page 76

The primary reason to have risk owners assigned to entries in the risk register is to ensure that risk is treated appropriately, as risk owners are responsible for implementing the risk response strategies and monitoring the risk status and outcomes. Risk owners are also accountable for the risk and its impact on the enterprise’s objectives and operations. Having risk owners assigned to entries in the risk register helps to clarify the roles and responsibilities, improve the communication and coordination, and enhance the effectiveness and efficiency of the risk management process. Mitigating actions are prioritized, risk entries are regularly updated, and risk exposure is minimized are not the primary reasons to have risk owners assigned to entries in the risk register, but rather the results or benefits of having risk owners assigned to entries in the risk register. References = CRISC by Isaca Actual Free Exam Q&As, question 206; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 206.

Data usage exceeding individual consent presents the greatest risk to the organization’s reputation, as it violates the privacy and trust of the customers and exposes the organization to legal and regulatory liabilities. Customers have the right to know and control how their personal data is collected, processed, and shared by the organization, and they expect the organization to respect their preferences and comply with the applicable laws and standards. If the organization uses the data for purposes beyond the scope of the consent, or without obtaining the consent in the first place, it may damage its reputation and lose its customers’ loyalty and confidence. Third-party software used for data analytics, revenue generated from data analytics, and use of a data analytics system are not inherently risky to the organization’s reputation, as long as they are transparent, secure, and ethical. References = Most Asked CRISC Exam Questions and Answers - The Knowledge Academy; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 203.

Regulatory requirements should be the primary basis for deciding whether to disclose information related to risk events that impact external stakeholders, because they define the rules or standards that the organization must comply with to meet the expectations of the regulators, such as government agencies or industry bodies, and to avoid legal or reputational consequences. A risk event is an occurrence or incident that may cause harm or damage to the organization or its objectives, such as a natural disaster, a cyberattack, or a human error. An external stakeholder is a person or group that has an interest or influence in the organization or its activities, but is not part of the organization, such as customers, suppliers, partners, investors, or regulators. Disclosing information related to risk events that impact external stakeholders is a process of communicating or reporting the relevant facts or details of the risk events to the affected or interested parties. Disclosing information related to risk events may have benefits, such as maintaining trust, transparency, and accountability, but it may also have drawbacks, such as exposing vulnerabilities, losing competitive advantage, or inviting litigation. Therefore, regulatory requirements should be the primary basis for deciding whether to disclose information, as they provide the legal and ethical obligations and boundaries for the disclosure process. Stakeholder preferences, contractual requirements, and management assertions are all possible factors for deciding whether to disclose information related to risk events, but they are not the primary basis, as they may vary or conflict depending on the situation or context, and may not override the regulatory requirements. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158

Upon identification of an indicator of compromise (IoC) associated with an APT actor, the risk practitioner's best course of action is to assess the adequacy of existing security controls. This involves evaluating whether current defenses are sufficient to detect, prevent, and respond tosuch sophisticated threats. Ensuring control effectiveness is vital to mitigating the risk posed by APTs.CISA

A risk factor is a condition or event that may increase the likelihood or impact of a risk, which is the effect of uncertainty on objectives1. An information systems review is a process that involves examining and evaluating the adequacy and effectiveness of the information systems and their related controls, policies, and procedures2. The purpose of an information systems review is to identify and report the risk factors that may affect the confidentiality, integrity, availability, and performance of the information systems and their outputs3. The best way to ensure that the risk factors identified during an information systems review are addressed is to assign action items and deadlines to specific individuals, who are responsible and accountable for implementing the appropriate risk responses. A risk response is an action taken or plannedto mitigate or eliminate the risk, such as avoiding, transferring, reducing, or accepting the risk4. By assigning action items and deadlines to specific individuals, the organization can ensure that the risk factors are properly and promptly addressed, and that the progress and results of the risk responses are monitored and reported5. Informing business process owners of the risk, reviewing and updating the risk register, and implementing new control technologies are not the best ways to ensure that the risk factors identified during an information systems review are addressed, as they do not provide the same level of accountability and effectiveness as assigning action items anddeadlines to specific individuals. Informing business process owners of the risk is a process that involves communicating and sharing the risk information with the persons who have the authority and accountability for a business process that is supported or enabled by the information systems6. Informing business process owners of the risk can help to raise their awareness and understanding of the risk, but it does not ensure that they will take the necessary actions to address the risk. Reviewing and updating the risk register is a process that involves checking and verifying that the risk register, which is a document that records and tracks the risks and their related information, is current, complete, and consistent7. Reviewing and updating the risk register can help to reflect the changes and updates in the risk factors and their status, but it does not ensure that the risk factors are resolved or reduced. Implementing new control technologies is a process that involves introducing or applying new software or hardware that can help to prevent, detect, or correct the risk factors affecting the information systems8. Implementing new control technologies can help to improve the security and performance of the information systems, but it does not ensure that the risk factors are eliminated or mitigated. References = 1: Risk Factors - an overview | ScienceDirect Topics2: InformationSystems Audit and Control Association (ISACA) - ISACA3: Information Systems Audit: The Basics4: Risk Response Strategy and Contingency Plans - ProjectManagement.com5: Risk and Information Systems Control Study Manual, Chapter 3: Risk Response, Section 3.1: Risk Response Options, pp. 113-115.6: [Business Process Owner - Gartner IT Glossary] 7: Risk Register: A Project Manager’s Guide with Examples [2023] • Asana8: Technology Control Automation: Improving Efficiency, Reducing … - ISACA : [Business Process Owner - Roles and Responsibilities] : [Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.1: Risk Identification, pp. 57-59.] : [Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.]

Facilitating the exception process ensures that any deviations from the standard risk assessment procedures are formally documented, reviewed, and approved by appropriate governance bodies. This approach maintains the integrity of the risk management process while addressing the business unit manager's concerns.

Control processes are the procedures and activities that aim to ensure the effectiveness and efficiency of the organization’s operations, the reliability of its information, and the compliance with its policies and regulations12.

The ongoing efficiency of control processes is the degree to which the control processes achieve their intended results with minimum resources, costs, or waste34.

The best way to determine the ongoing efficiency of control processes is to analyze key performance indicators (KPIs), which are quantifiable measures of progress toward an intended result, such as a strategic objective or a desired outcome56.

Analyzing KPIs is the best way because it provides a systematic and consistent method of evaluating the performance of the control processes, and identifying the areas of improvement or optimization56.

Analyzing KPIs is also the best way because it enables the organization to monitor and report the efficiency of the control processes to the relevant stakeholders, and to take corrective or preventive actions when necessary56.

The other options are not the best way, but rather possible sources of information or inputs that may support or complement the analysis of KPIs. For example:

Performing annual risk assessments is a way to identify and evaluate the risks that may affect the organization’s objectives, and to determine the adequacy and effectiveness ofthe control processes in mitigating those risks12. However, this way is not the best because it is periodic rather than continuous, and may not capture the changes or trends in the efficiency of the control processes12.

Interviewing process owners is a way to collect and verify the information and feedback from the people who are responsible for designing, implementing, and operating the control processes12. However, this way is not the best because it is subjective and qualitative, and may not provide reliable or comparable data on the efficiency of the control processes12.

Reviewing the risk register is a way to examine and update the documentation and status of the risks and the control processes that are associated with them12. However, this way is not the best because it is descriptive rather than analytical, and may not measure or evaluate the efficiency of the control processes12. References =

1: Risk IT Framework, ISACA, 2009

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

3: The Control Process | Principles of Management4

4: Control Management: What it is + Why It’s Essential | Adobe Workfront5

5: What is a Key Performance Indicator (KPI)? Guide & Examples - Qlik1

6: What is a Key Performance Indicator (KPI)? - KPI.org2

According to the ISACA Risk and Information Systems Control study guide and handbook, the primary benefit of selecting an appropriate set of key risk indicators (KRIs) is that they provide a warning of emerging high-risk conditions. KRIs are metrics that monitor changes in the level of risk exposure and contribute to the early warning signs that enable organizations to report risks, prevent crises, and mitigate them in time. KRIs help risk managers to identify potential threats, assess their impact and likelihood, and take proactive measures to reduce the risk or seize the opportunity12

1: ISACA Risk and Information Systems Control Study Guide, 4th Edition, page 33 2: ISACA Risk and Information Systems Control Handbook, 1st Edition, page 25

The business application owner is responsible for the application's performance and availability. Therefore, they should approve any maintenance schedules that could impact the application's functionality, including temporary loss of failover capabilities. Their approval ensures that the business implications are considered and that appropriate contingency plans are in place.

The most important consideration when selecting KPIs for control monitoring is that the source information is consistently available, meaning that it can be obtained regularly, reliably, and timely from the same or equivalent data sources. This ensures that the KPIs can measure the performance of the controls over time and across different units or functions, and provide meaningful and comparable results. Source information that is acquired at stable cost, tailored by removing outliers, or readily quantifiable are also desirable, but not as essential as consistency.

The most helpful action to ensure the effective implementation of a new cybersecurity program is assigning clear ownership of the program. Here's why:

Clear Ownership:

Assigning clear ownership ensures that there is accountability and responsibility for the implementation and success of the program.

The program owner will coordinate activities, allocate resources, and monitor progress to ensure that objectives are met.

Creating Metrics:

While metrics are important for monitoring and reporting, they do not directly ensure the effective implementation of the program.

Hiring Subject Matter Experts:

Subject matter experts are valuable for providing insights and guidance, but without clear ownership, their efforts may not be effectively coordinated or aligned with program goals.

Establishing a Budget:

A budget is necessary for securing resources, but it must be managed and directed by a responsible owner to ensure the effective use of those resources.

The application owner must formally approve changes after reviewing impact—per ISACA's change management and governance frameworks that assign control over operational fallouts to functional owners .

The best recommendation to address recent IT risk trends that indicate social engineering attempts are increasing in the organization is to conduct a simulated phishing attack, as it tests the awareness and behavior of the employees in responding to a realistic and targeted email scam, and identifies the areas and individuals that need improvement or training. Updating spam filters, revising the acceptable use policy, and strengthening disciplinary procedures are not the best recommendations, as they may not address the human factor of the risk, or may be too reactive or punitive, respectively. References = CRISC Review Manual, 7th Edition, page 155.

A key performance indicator (KPI) is a measurable value that demonstrates how effectively an organization is achieving its objectives. In the context of disaster recovery planning (DRP), a KPI should reflect the ability of the organization to recover its critical business processes and applications within the predefined time frames and service levels. One of the most important KPIs for DRP is the percentage of applications that met the recovery time objective (RTO) during DRP testing. The RTO is the maximum acceptable length of time that a business process or application can be down after a disaster. By measuring the percentage of applications that met the RTO during DRP testing, the organization can evaluate the performance and reliability of its DRP, identify any gaps or weaknesses, and implement corrective actions to improve its readiness and resilience. The other options are not the best KPIs for DRP, as they do not directly measure the effectiveness of the recovery process. The number of users that participated in the DRP testing is a measure of the involvement and awareness of the staff, but not of the outcome of the testing. The number of issues identified during DRP testing is a measure of the quality and completeness of the DRP, but not of the actual recovery time. The percentage of issues resolved as a result of DRP testing is a measure of the improvement and maturity of the DRP, but not of the current recovery capability. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.3.3, Page 138.

According to ISACA, a risk register is a tool to record and track the identified risks, their ratings, responses, and status. The primary purpose of a risk register is to provide a centralized view of risk for the organization, as it enables the consolidation, communication, and reporting of risk information across different levels, units, and functions. A risk register can also support the risk management process, such as risk identification, assessment, treatment, monitoring, and review.

An internal data access policy is a set of rules and guidelines that define who, how, when, and why the users can access, use, share, or modify the data stored in a business application system, based on the data classification, sensitivity, and ownership.

Enforcing an internal data access policy is the most appropriate way to prevent unauthorized retrieval of confidential information stored in a business application system. This means that the organization implements and maintains effective controls to ensure that only the authorized users can access the confidential information, and that the access is logged and monitored for compliance and security purposes.

The other options are not the most appropriate ways to prevent unauthorized retrieval of confidential information stored in a business application system. They are either secondary or not essential for data access control.

The references for this answer are:

Risk IT Framework, page 28

Information Technology & Security, page 22

Risk Scenarios Starter Pack, page 20

Residual risk is the risk that remains after the implementation of risk responses. An effective risk management program should aim to reduce the residual risk to a level that is acceptable by the enterprise, in alignment with its risk appetite and tolerance. The reduction of residual risk indicates that the risk responses are appropriate and effective, and that the enterprise is achieving its objectives while managing its risks. The other options are not necessarily indicative of an effective risk management program, as they may depend on other factors, such as the reporting culture, the audit scope and methodology, and the nature and source of the inherent risk. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.3.1, pp. 24-25.

The first consideration when establishing a new risk governance program is embedding risk management into the organization. Embedding risk management means integrating risk management principles and practices into the organization’s culture, values, processes, and decision-making. Embedding risk management helps to ensure that risk management is not seen as a separate or isolated activity, but as a part of the organization’s normal operations and strategic objectives. Embedding risk management also helps to create a risk-aware and risk-responsive organization, where risk management is shared and supported by all stakeholders. The other options are not the first consideration, although they may be important steps or components of the risk governance program. Developing an ongoing awareness and training program, creating policies and standards that are easy to comprehend, and completing annual risk assessments on critical resources are all activities that can help to embed risk management into the organization, but they are not the initial or primary consideration. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.1, page 1-8.

During an initial risk assessment, it is crucial to consider existing controls primarily to determine the current risk level. Here's a

Understanding Existing Controls:

Existing controls are measures already in place to mitigate risks. These controls can include technical, administrative, and physical safeguards designed to protect organizational assets.

Knowing what controls are currently in place helps to understand the organization’s current defense mechanisms against potential threats.

Assessing the Current Risk Level:

The current risk level is the risk that remains after considering the effectiveness of existing controls, often referred to as residual risk.

By evaluating these controls, one can determine how much risk is actually mitigated and what level of risk remains.

For instance, if an organization has implemented firewalls and intrusion detection systems, these controls would reduce the risk of cyber attacks. The effectiveness of these controls will determine the residual risk level.

Differentiating Between Risk Types:

Inherent Risk:This is the level of risk that exists before any controls are applied. It’s the raw risk associated with a particular asset or process.

Residual Risk:This is the risk that remains after existing controls have been applied. It's the actual risk that an organization faces after mitigation efforts.

Current Risk:This term is often used interchangeably with residual risk but focuses on the risk level at the present moment, considering the existing controls.

Primary Objective in Initial Risk Assessment:

The primary objective of considering existing controls during the initial risk assessment is to gain an accurate picture of the current risk landscape. This allows risk practitioners to understandwhat additional controls or modifications might be needed to further reduce risk to acceptable levels.

Without considering existing controls, the assessment would only reflect the inherent risk, which doesn’t provide a realistic view of the organization's risk exposure.

 According to the 6 Best Practices to Ensure Software License Compliance article, the best way to determine software license compliance is to conduct regular internal compliance audits. These self-assessments can be done with the help of software license management companies. The goal is to see where compliance issues lie and to take corrective actions before they become seriousproblems. Periodic compliance reviews can help to avoid fines, penalties, lawsuits, and reputational damage that may result from software license violations. They can also help to optimize software spending and utilization, and to identify any gaps or opportunities for improvement in the software license management process. References = 6 Best Practices to Ensure Software License Compliance

The best way to increase the chances of a successful delivery of a new application and to assure the business management that IT has a plan in place for early identification of potential issues is to include business management on a weekly risk and issues report. A risk and issues report is a document that summarizes the current status, progress, and challenges of the IT project, as well as the actions and resources needed to address them. A risk and issues report helps to communicate and align the expectations and objectives of the IT and business stakeholders, and to facilitate timely and effective decision-making and problem-solving. A risk and issues report also helps to monitor and control the project scope, schedule, budget, and quality, and to ensure that the project delivers the desired value and benefits to the organization. The other options are not as effective as including business management on a weekly risk and issues report, althoughthey may be part of the IT project management process or outcomes. Implementing a release and deployment plan, conducting comprehensive regression testing, and developing enterprise-wide key risk indicators (KRIs) are all activities that can help to ensure the quality and reliability of the new application, but they do not necessarily involve the business management or provide assurance for the early identification of potential issues. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.4.1, page 5-32.

Risk appetite should be primarily driven by stakeholder requirements. Stakeholder requirements are the needs and expectations of the internal and external parties that have an interest or influence in the organization’s objectives or operations, such as the board, management, employees, customers, regulators, investors, etc. Risk appetite is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives. Risk appetite should be driven by stakeholder requirements, because they reflect the organization’s mission, vision, values, and strategy, and they provide the basis and direction for the organization’s risk management activities. Risk appetite should also be aligned and communicated with stakeholder requirements, because they affect the organization’s performance and reputation, and they require the organization’s accountability and transparency. The other options are not the primary drivers of risk appetite, although they may be considered or influenced by risk appetite. Enterprise security architecture roadmap, legal and regulatory requirements, and businessimpactanalysis (BIA) are all factors that could affect the organization’s risk profile, risk assessment, or risk response, but they do not necessarily determine or reflect the organization’s risk appetite. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.1, page 2-23.

A possible action that a risk practitioner should do next when an increased industry trend of external cyber attacks is identified is A. Conduct a threat and vulnerability analysis. A threat and vulnerability analysis is a process of identifying and assessing the potential sources and methodsof cyber attacks, as well as the weaknesses and gaps in the organization’s information systems and security controls12 By conducting a threat and vulnerability analysis, a risk practitioner can determine the level of exposure and risk that the organization faces from external cyber attacks, and prioritize the actions and resources needed to mitigate or prevent them3 A threat and vulnerability analysis can also help to update the risk impact rating and the key risk indicator in the risk register, as well as to notify senior management of the new risk scenario, but these are subsequent steps that follow after the analysis is completed. Therefore, the first action that a risk practitioner should do next is to conduct a threat and vulnerability analysis.

Validated security requirements and design documents demonstrate that security considerations have been integrated into the SDLC from the outset. This proactive approach ensures that security is embedded into system architecture and design, reducing vulnerabilities and enhancing overall system resilience.

Data anonymization is the most important control to ensure the privacy of customer information when participating in an industry benchmarking study that involves providing customer transaction records for analysis. Data anonymization is the process of removing or modifying personally identifiable information (PII) from data sets, such as names, addresses, phone numbers, email addresses, etc., so that the data cannot be traced back to specific individuals.Data anonymization protects the confidentiality and privacy of customers, while still allowing for meaningful analysis and comparison of data. Nondisclosure agreements (NDAs), data cleansing, and data encryption are also useful controls, but they do not eliminate the risk of data breaches or unauthorized access to PII. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, page 3-21.

Reporting the activity to the supervisor is the first thing that the risk practitioner should do when learning that a risk owner has been accepting gifts from a supplier of IT products. This is because accepting gifts from a supplier of IT products can create a conflict of interest, compromise the integrity and objectivity of the risk owner, and violate the organizational ethics policies. Reporting the activity to the supervisor can help ensure that the issue is escalated to the appropriate authority, investigated, and resolved in a timely and transparent manner. According to the CRISC Review Manual 2022, one of the key risk response techniques is to report the risk to the relevant stakeholders, such as the supervisor1. According to the web search results, reporting the activity to the supervisor is a common and recommended action when encountering a potential ethical violation in the workplace