CRISC Exam Dumps - Isaca Certification Questions and Answers

 Understanding the Question:

The question focuses on the primary reason for communicating risk assessment results to data owners.

 Analyzing the Options:

A. Design of appropriate controls:This is important but not the primary reason for communication.

B. Industry benchmarking of controls:This is secondary to the main goal of communicating risk.

C. Prioritization of response efforts:This enables data owners to allocate resources and address the most critical risks first.

D. Classification of information assets:This is typically part of the initial risk assessment process, not the main communication goal.

 Detailed Explanation:

Communication of Risk Assessment Results:Ensuring data owners understand the results of risk assessments allows them to make informed decisions on where to focus their efforts.

Prioritization:Data owners can prioritize their actions based on the assessed risk levels, ensuring that resources are allocated efficiently to mitigate the most significant risks.

Independent Assessment:

Objective Evaluation: An assessment by a qualified independent party ensures that the evaluation of the new controls is unbiased and thorough. It provides a credible verification of the control's effectiveness.

Expertise and Standards: Independent assessors bring specialized expertise and follow established standards and best practices, ensuring a comprehensive review of the control implementation.

Validation and Assurance: This assessment provides assurance to stakeholders that the controls are functioning as intended and meet the required security and operational standards.

Comparison with Other Options:

Post-Implementation Review by Key Personnel: While valuable, this review may lack the objectivity and thoroughness of an independent assessment.

Senior Management Sign-Off: Sign-off from senior management is important but does not provide the detailed validation of control effectiveness that an independent assessment offers.

Daily Operation of Robots without Human Interference: This indicates operational stability but does not verify that all controls are functioning as intended.

Best Practices:

Regular Independent Assessments: Schedule regular independent assessments to continuously validate the effectiveness of controls.

Comprehensive Reporting: Ensure that the independent assessment includes comprehensive reporting on findings and recommendations for improvement.

Follow-Up Actions: Implement any recommended actions from the assessment to address identified gaps or weaknesses in the controls.

Monitoring the percentage of patches deployed within the target time frame is a critical key control indicator for the patch management process. It reflects the organization's ability to apply necessary updates promptly, reducing exposure to known vulnerabilities. Timely patch deployment is essential for maintaining system security and compliance with organizational policies.​

According to the ISACA Risk and Information Systems Control study guide and handbook, the information owner is the official with statutory or operational authority for specified information and responsibility for establishing the controls for its generation, collection, processing, dissemination, and disposal. The information owner is also responsible for authorizing access to the information within their domain, based on the principle of least privilege and the need toknow. Therefore, the information owner should be accountable for authorizing information system access to internal users12

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

Mapping granular scenarios to high-level register items ensures consistency and alignment across different levels of risk management. This approach supportsIntegrated Risk Management Frameworks.

Biased recommendations from AI models can perpetuate or exacerbate organizational risks, especially in decision-making processes, regulatory compliance, and ethical standards. Addressing such concerns is vital under theEmerging Technology Risksdomain in risk management.

 The risk owner should be assigned accountability for monitoring risk levels, as they have the authority and responsibility to manage the risk and its associated controls, and to report on the risk status and performance. The risk practitioner, the business manager, and the control owner are not the best choices, as they have different roles and responsibilities related to risk identification, assessment, response, and reporting, but they are not accountable for the risk and its monitoring. References = CRISC Review Manual, 7th Edition, page 101.

According to the ISACA Risk and Information Systems Control study guide and handbook, the most important reason to communicate control effectiveness to senior management is to ensure management understands the current risk status. Control effectiveness is a measure of how well a control reduces the likelihood or impact of a risk event. By communicating control effectiveness, risk managers can provide management with relevant and timely information about the residual risk level, the risk appetite and tolerance, and the potential gaps or weaknesses in the control environment. This can help management make informed decisions about risk response strategies, resource allocation, and risk oversight12

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

 Zero Trust Model:

Zero Trust security model assumes that threats can exist both inside and outside the network. Every access request must be authenticated, authorized, and encrypted.

 Preventing Control Gaps:

A robust technical architecture ensures comprehensive and consistent security controls across the entire network.

It integrates various security measures, such as microsegmentation, strong authentication, continuous monitoring, and least privilege access, to create a unified defense strategy.

 Other Options:

Relying on Multiple Solutions:Can lead to fragmentation and inconsistencies in security controls.

Utilizing Rapid Development:May introduce vulnerabilities if security is not properly integrated.

Starting with a Large Initial Scope:Can be overwhelming and difficult to manage effectively, leading to potential gaps.

 References:

The CISSP Study Guide emphasizes the importance of a strong and cohesive technical architecture in implementing Zero Trust effectively (Sybex CISSP Study Guide, Chapter 8: Principles of Security Models, Design, and Capabilities) .

Inherent risk is the most likely to increase as a result of the new initiative, because it is the risk that exists before any controls or mitigating factors are applied. Inherent risk reflects the natural or raw level of exposure that the organization faces from a given risk source or scenario. Accepting credit card payments from customers via the corporate website introduces new sources and types of risk, such as fraud, theft, data breach, or non-compliance, that increase the inherent risk level of the organization. Risk tolerance, risk appetite, and residual risk are all related to the risk management process, but they are not the most likely to increase as a result of the new initiative, as they depend on the organization’s risk strategy, objectives, and controls. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.1, page 51

Preparing a risk response that is aligned to the organization’s risk tolerance is the next step after completing a risk assessment and reporting the validated vulnerability findings that require mitigation to the application owner, because it helps to define and implement the appropriate actions to reduce or eliminate the risk, or to prepare for and recover from the potential consequences. A risk response is a strategy or tactic for managing the identified risks, such as avoiding, transferring, mitigating, or accepting the risk. A risk response should be aligned to the organization’s risk tolerance, which is the acceptable level of variation from the organization’s objectives or expectations. A vulnerability is a weakness or flaw in an IT system or application that can be exploited by a threat or attack to cause harm or damage. A vulnerability finding is a result of a vulnerability assessment, which is a process of identifying and evaluating the vulnerabilities in an IT system or application. A vulnerability finding requires mitigation, which is a type of risk response that involves applying controls or countermeasures to reduce the likelihood or impact of the risk. Therefore, preparing a risk response that is aligned to the organization’s risk tolerance is the next step, as it helps to address the vulnerability findings and to achieve the desired level of risk. Reporting the findings to executive management, reassessing each vulnerability, and conducting a penetration test are all possible steps to perform afterpreparing a risk response, but they are not the next step, as they depend on the results and approval of the risk response. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.2, page 103

KRIs provide predictive metrics to monitor changes in risk levels, enabling timely interventions to maintain risks within the organization's appetite. This aligns with theRisk Monitoring and Reportingframework, which emphasizes proactive identification of risk thresholds.

The greatest concern with finding unreturned and unencrypted laptops belonging to former employees is the risk of unauthorized access to organizational data. The laptops may contain sensitive or confidential information that could be compromised if they fall into the wrong hands. This could result in data breaches, reputational damage, legal liabilities, or regulatory penalties for the organization. Therefore, it is important to have proper controls in place to ensure that the laptops are returned, wiped, or encrypted when the employees leave the organization.

 Importance of a Risk Register:

A risk register is a critical tool for documenting, tracking, and managing risks within an organization. It serves as a central repository for all identified risks, detailing their status, impact, likelihood, and the actions taken to mitigate them.

A regularly updated risk register demonstrates an active and ongoing risk management process, reflecting the organization's commitment to identifying and addressing risks promptly.

 Evidence of Robust Risk Management:

The risk register shows the organization's proactive approach to risk management by continuously monitoring and updating risks.

It provides transparency and accountability, allowing stakeholders to see how risks are being managed and mitigated over time.

Regular updates ensure that new risks are identified and existing risks are reassessed, indicating a dynamic and responsive risk management practice.

 Comparing Other Options:

Management-Approved Risk Dashboard:While useful for summarizing risk information, a dashboard does not provide the detailed, ongoing updates and comprehensive tracking found in a risk register.

Current Control Framework:A control framework outlines the controls in place but does not detail specific risks or their management.

Regularly Updated Risk Management Procedures:Procedures are important but do not provide the same level of detailed risk tracking and management as a risk register.

 References:

The CRISC Review Manual emphasizes the importance of a risk register in consolidating and tracking risk data, making it an essential component of robust risk management practices (CRISC Review Manual, Chapter 2: IT Risk Assessment, Section 2.6 Risk Register)​​ .

According to the ISACA Risk IT Framework, one of the key principles for effective risk management is to establish tone at the top and accountability. This means that senior management should set an example of ethical behavior and culture, and communicate the importance of ethics and compliance to the entire organization. Senior management should also ensure that the risk management process is aligned with the organization’s mission, vision, values, and code of conduct, and that ethical risks are identified, assessed, and treated appropriately. By demonstrating ethics in their day-to-day decision making, senior management can have the greatest positive impact on ethical compliance within the risk management process, as they can influence the attitudes, behaviors, and actions of all stakeholders.

Warning banners on login screens serve as deterrent controls. Deterrent controls are designed to discourage individuals from attempting unauthorized actions by warning them of potential consequences.

Purpose of Warning Banners

Warning banners provide clear notice to users, both authorized and unauthorized, that their activities may be monitored and that unauthorized access is prohibited.

They serve as a legal disclaimer, which can be crucial in prosecuting unauthorized access attempts.

Effectiveness as a Deterrent Control

The primary function of a warning banner is to deter potential intruders by making them aware of the surveillance and legal implications of unauthorized access.

For authorized users, it reinforces awareness of the organization's security policies and acceptable use agreements.

Comparison with Other Control Types

A. Corrective: These controls are used to correct or restore systems after an incident.

B. Preventive: These controls are designed to prevent security incidents from occurring.

C. Detective: These controls are used to detect and alert about security incidents.

D. Deterrent: These controls are intended to discourage individuals from performing unauthorized activities.

References

Sybex-CISSP-Official-Study-Guide-9-Edition.pdf, p. 829, detailing the role of warning banners as deterrent controls​​.

The risk practitioner’s best course of action after identifying risk scenarios related to noncompliance with new industry regulations is to escalate to senior management, as they have the authority and responsibility to decide on the appropriate risk response and allocate the necessary resources. Transferring the risk, implementing monitoring controls, and recalculating the risk are possible risk responses, but they require senior management approval and direction. References = Risk Scenarios Toolkit, page 19; CRISC Review Manual, 7th Edition, page 107.

A key risk indicator (KRI) is a metric that provides information on the level of exposure to a given risk. Changes in risk trend data indicate that the likelihood or probability of a risk occurring has changed. Therefore, the frequency of risk occurrence should be updated in the risk register to reflect the current risk profile. The impact, cost, and legal aspects of risk realization are not directly affected by the changes in risk trend data, unless the nature or severity of the risk has also changed. (Risk and Information Systems Control Review Questions, Answers & Explanations Manual, 5th Edition, page 972

The risk practitioner’s best course of action when an organization has been made aware of a newly discovered critical vulnerability in a regulatory reporting system is to perform an impact assessment, as it involves estimating the potential consequences or damage that the vulnerability may cause to the system and its related business processes, and prioritizing the risk response accordingly. The other options are not the best courses of action, as they may not address the urgency or severity of the vulnerability, or may require the prior knowledge of the impact or risk level, respectively. References = CRISC Review Manual, 7th Edition, page 100.

 Enterprise Risk Management (ERM):

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

 Importance of a Risk Profile:

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

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

 Steps to Develop a Risk Profile:

Identify all organizational assets and their importance to business operations.

Assess the vulnerabilities and threats associated with each asset.

Determine the potential impact and likelihood of risk events.

Document the findings to create a comprehensive risk profile.

 Supporting Implementation:

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

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

 Other Options:

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

 References:

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

•Risk acceptance is a status quo risk response, where the risk owner acknowledges the risk exists but accepts it with minimal response1. Risk acceptance may be appropriate when the cost of other risk responses exceeds the value that would be gained, or when the risk is below the risk acceptance criteria2.

•Risk acceptance criteria are the criteria used as a basis for decisions about acceptable risk2. They should be established before conducting a risk assessment, and they may be influenced by factors such as utility, equality, technology, and risk perception2. Different organizations and countries may have different risk acceptance criteria, depending on their context and values3.

•In this scenario, the organization has conducted a risk assessment for regulatory compliance, and has identified only one possible mitigating control. However, the cost of the control is higher than the penalty of noncompliance, which implies that the risk is below the risk acceptancecriteria. Therefore, the best recommendation is to accept the risk with management sign-off, which means that the management agrees to take the risk and is accountable for the consequences.

•Ignoring the risk until the regulatory body conducts a compliance check (option B) is not a good recommendation, as it may expose the organization to legal, financial, or reputational damage. Moreover, ignoring the risk may violate the principle of risk reduction, which states that risks should be reduced wherever practicable2.

•Mitigating the risk with the identified control (option C) is not a good recommendation, as it may not be cost-effective or efficient for the organization. The cost of the control is higher than the penalty ofnoncompliance, which means that the organization would spend more resources than necessary to reduce the risk. Moreover, mitigating the risk may not be aligned with the principle of utility, which states that resources should be used as efficiently as possible for the society as a whole2.

•Transferring the risk by buying insurance (option D) is not a good recommendation, as it may not be feasible or beneficial for the organization. Transferring the risk means that the organization shifts the responsibility or burden of the risk to another party, such as an insurer, a contractor, or a partner1. However, transferring the risk does not eliminate the risk, and it may incur additional costs or complications for the organization. Moreover, transferring the risk may not be possible or acceptable for some types of regulatory compliance risks, such as those related to health, safety, or environmental standards3.

A gap analysis is the process of comparing the current state of the organization’s compliance with the new regulation and the desired state of compliance. It helps to identify the gaps or deficiencies that need to be addressed and prioritize the actions to close them. Performing a gap analysis is the first step to understand the impact of the new regulation and plan the appropriate risk response.

References

•ISACA CRISC Review Manual, 7th Edition, Domain 2: IT Risk Assessment, Section 2.2.3: Gap Analysis

•Regulatory Change: Future of Risk in the Digital Era | Deloitte US

•Gap Analysis: What It Is and How to Perform One | The Blueprint

The risk practitioner’s next step after identifying risk owners and responses for newly identified risk scenarios in a recent risk workshop is to update the risk register with the results, as it involves documenting and communicating the risk information and decisions, and maintaining the accuracy and completeness of the risk register. Preparing a business case for the response options, identifying resources for implementing responses, and developing a mechanism for monitoring residual risk are possible steps, but they are not the next step, as they require the prior update of the risk register with the new risk information and decisions. References = CRISC Review Manual, 7th Edition, page 109.

Residual risk is the risk that remains after the risk response has been implemented. Risk tolerance is the acceptable level of variation from the desired outcome or objective. If the residual risk is within the risk tolerance, it means that the risk response has been effective in reducing the risk to an acceptable level.

References

•ISACA CRISC Review Manual, 7th Edition, Domain 3: Risk Response, Section 3.1.1: Residual Risk

•Residual Risk: Definition, Formula & Management - Video & Lesson Transcript | Study.com

•Risk Tolerance - ISACA

The most important course of action for a risk practitioner when reviewing the results of control performance monitoring is to validate whether the controls effectively mitigate risk, as it involves verifying and testing the adequacy and performance of the controls, and identifying any control gaps or deficiencies that may affect the risk level and response. The other options are not the most important courses of action, as they are more related to the evaluation, confirmation, or analysis of the risk profile, compliance, or indicators, respectively, rather than the validation of the control effectiveness. References = CRISC Review Manual, 7th Edition, page 154.

The greatest risk associated with inappropriate classification of data is users having unauthorized access to sensitive information. Proper data classification ensures that access controls are applied appropriately, protecting sensitive data from unauthorized access.

Importance of Data Classification

Data classification involves categorizing data based on its level of sensitivity and the impact that unauthorized access, disclosure, modification, or destruction would have on the organization.

It ensures that appropriate security measures are applied according to the data's classification.

Risks of Inappropriate Classification

Unauthorized Access: If data is not classified correctly, sensitive information may not receive the necessary protections, leading to unauthorized access.

Lack of Accountability: Misclassification can result in unclear responsibilities for data protection, but the primary concern remains unauthorized access.

Inaccurate Recovery Time Objectives (RTOs): While important, this is secondary to the risk of unauthorized access.

Inaccurate Record Management Data: This can affect operational efficiency but is not as critical as unauthorized access.

Implementing Effective Classification

Organizations must have a clear data classification policy and ensure it is followed consistently.

Regular audits and reviews should be conducted to verify that data is classified appropriately and that access controls are enforced.

References

CISM Review Manual Full text.html, emphasizing the importance of proper data classification and the risks associated with misclassification, especially unauthorized access to data​​.

Residual risk is the level of risk that remains after applying controls or other risk treatments. A critical patch is a type of control that aims to reduce the risk of a known vulnerability being exploited by attackers. If the patch implementation fails, the control is ineffective and the risk is not reduced. Therefore, the residual risk is increased, as the organization is still exposed to the potential negative consequences of the vulnerability.

Sensitivity and reliability are the most important criteria for selecting KRIs, as they indicate how well the KRIs reflect the changes in the risk level and how consistent and accurate the KRIs are in measuring the risk.Sensitivity means that the KRIs should respond quickly and proportionally to the variations in the risk exposure, and provide early warning signals of potential risk events. Reliability means that the KRIs should be based on valid and verifiable data sources, and produce consistent and comparable results over time and across different units or functions. Historical data availability, implementation and reporting effort, and ability to display trends are also useful criteria, but they are not as critical as sensitivity and reliability.

Vulnerable firmware that lacks updates is a significant security risk, as it can be exploited by attackers. Addressing this issue aligns withSecure IoT Deployment Practicesto reduce exposure.

 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 most important consideration when establishing a contingency plan and an alternate processing site for a company that has located its computer center on a moderate earthquake fault is that the alternative site does not reside on the same fault no matter how far the distance apart, as it ensures that the alternative site is not affected by the same earthquake event that may disrupt the primary site, and that the business continuity and recovery objectives can be met. The other options are not the most important considerations, as they are more related to the backup, priority, or readiness of the alternative site, respectively, rather than the location of the alternative site. References = CRISC Review Manual, 7th Edition, page 111.

 User Access Management:

Effective user access management ensures that accounts are properly created, managed, and disabled to prevent unauthorized access.

Monitoring the percentage of accounts disabled within the SLA helps ensure that the organization responds promptly to changes in user status, reducing the risk of unauthorized access.

 Importance of KPI:

This KPI measures the efficiency and effectiveness of the user access management process by tracking how quickly accounts are disabled when no longer needed.

A high percentage indicates timely action, reducing the risk of orphaned accounts being exploited.

 Comparing Other KPIs:

Proportion of End Users Having More Than One Account:Useful but not directly related to the timeliness of disabling accounts.

Proportion of Privileged to Non-Privileged Accounts:Important for monitoring privilege distribution but does not measure process efficiency.

Percentage of Accounts Not Activated:Indicates potential inefficiencies but does not address the risk of active accounts.

 References:

The CRISC Review Manual highlights the importance of timely account management to mitigate access risks (CRISC Review Manual, Chapter 3: Risk Response and Mitigation, Section 3.3 User Access Management)​​.

KRIs provide measurable indicators that flag when risks exceed predefined thresholds, enabling swift and effective risk response. This supports theMonitoring and Reportingfunction in risk management, ensuring risks are managed proactively.

The scenario that is most important to communicate to senior management is the accepted risk scenarios with impact exceeding the risk tolerance, as it indicates a significant risk issue or breach that may affect the achievement of the organizational objectives, and may require a review or escalation action. The other options are not the most important scenarios, as they may not indicate a risk issue or breach, but rather a risk monitoring, sharing, or management activity, respectively, that may not affect the organizational objectives directly or significantly. References = CRISC Review Manual, 7th Edition, page 109.

The risk owner is the person who should be accountable for any related losses to the organization, because they are the person who has the authority and responsibility to manage the risk and its associated controls.The risk owner is also the person who accepts the risk and its residual level, and who monitors and reports on the risk status and performance. The IT risk manager, the server administrator, and the risk practitioner are all involved in the risk management process, but they are not the person who should be accountable for the risk and its outcomes, as they do not have the ultimate decision-making power and accountability for therisk. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.1.1, page 79

The business manager is best suited to assess the impact of potential data loss when outsourcing a key database to an external service provider.

Role of the Business Manager:

Understanding Business Impact:The business manager has a comprehensive understanding of the business processes, the criticality of the data, and the potential impact of data loss on business operations.

Decision Making:They are responsible for making decisions regarding risk tolerance, business continuity, and aligning the risk management practices with business objectives.

Assessment of Data Loss Impact:

Operational Impact:The business manager can evaluate how data loss would affect day-to-day operations and overall business continuity.

Financial and Reputational Impact:They can also assess the financial repercussions and potential damage to the organization’s reputation, providing a holistic view of the impact.

 Developing IT Risk Scenarios:

Risk scenarios are hypothetical events that describe potential threats and their impact on business operations. These scenarios are essential for identifying and assessing risks.

 Importance of Potential Impact Events:

Events that could potentially impact the business provide the most useful information for developing risk scenarios because they directly relate to the organization’s objectives and operations.

Understanding these events helps in crafting realistic and relevant risk scenarios that can guide risk assessment and mitigation efforts.

 Components of Risk Scenarios:

Threat Actors:Identify who might exploit vulnerabilities.

Threat Events:Describe the specific events that could impact the business.

Business Impact:Assess how these events would affect business operations, finances, reputation, etc.

 Using Impact Events for Scenario Development:

Focusing on events that could disrupt critical business functions ensures that the scenarios are relevant and actionable.

It enables the risk practitioner to communicate the potential consequences effectively to stakeholders and prioritize mitigation efforts accordingly.

 Comparing Other Information Sources:

Published Vulnerabilities:Useful for understanding specific threats but may not directly relate to business impact.

Threat Actors:Important for identifying potential sources of risk but not sufficient alone for scenario development.

IT Assets:Relevant for risk assessment but secondary to understanding potential impact events.

 References:

The CRISC Review Manual discusses the importance of considering events that could impact the business when developing risk scenarios (CRISC Review Manual, Chapter 2: IT Risk Assessment, Section 2.4 Risk Scenario Development)​​.

A risk awareness program is a set of activities that aim to educate and inform employees about the organization’s risk culture, policies, and procedures. A risk awareness program can help improve an organization’s risk culture by enhancing the employees’ understanding of risk, their roles and responsibilities in risk management, and the benefits of risk mitigation. A risk awareness program can also foster a culture of openness, trust, and collaboration among employees, managers, and stakeholders, which can improve the organization’s risk performance and resilience.

Maintaining a documented risk register, rewarding employees for reporting security incidents, and allocating resources for risk remediation are also important aspects of risk management, but they do not directly address the organization’s risk culture, which is the shared values, beliefs, and attitudes that influence how risk is perceived and handled within the organization.

The risk owner holds ultimate accountability for risk treatment, as they are responsible for decisions regarding the management and mitigation of the risk. This is a fundamental principle ofRisk Ownership and Accountabilitywithin the CRISC framework.

Senior management involvement is foundational to an effective risk management framework. Lack of engagement signals inadequate oversight, strategic alignment, and resource commitment, impairing the program's success. This is supported by CRISC's focus on governance and leadership alignment to ensure enterprise risk management objectives are met.

Confirming that the risk has been mitigated to the intended level is paramount to ensure that the risk response was effective. This ties toRisk Mitigation and Treatment, ensuring that controls implemented have reduced the risk to within the organization's appetite. Updating registers or recalibrating tolerances comes secondary to verifying the effectiveness of mitigation.

 Role of the System Owner:

The system owner is responsible for the overall operation and management of an application or system. This includes ensuring that technical controls are implemented and functioning as intended.

They have detailed knowledge of the system's architecture, the controls in place, and how those controls are applied within the system.

 Effectiveness of Technical Controls:

Assessing the effectiveness of a technical control requires understanding its implementation, configuration, and operational context.

The system owner is best positioned to provide this information as they manage and oversee the technical environment of the application.

 Comparing Other Roles:

Internal Auditor:While auditors review and evaluate the effectiveness of controls, they do so from an independent standpoint and might not have detailed, day-to-day operational insights.

Process Owner:The process owner focuses on business processes rather than technical controls specific to an application.

Risk Owner:The risk owner is responsible for managing risk but may not have the technical expertise or detailed operational knowledge of the system.

 Supporting Information:

According to the CRISC Review Manual, the system owner is often involved in the assessment and reporting of control effectiveness, especially regarding technical controls (CRISC Review Manual, Chapter 3: Risk Response and Mitigation, Section 3.1.3 Assessing Control Effectiveness) .

The number of emergency change requests is the most important factor to review when confirming whether implemented controls are operating effectively, as it indicates the frequency and severity of incidents or issues that require urgent changes to the controls, and may reflect the control deficiencies or failures. The results of benchmarking studies, the results of risk assessments, and the maturity model are not the most important factors, as they are more related to the comparison, evaluation, or improvement of the controls, respectively, rather than the confirmation of the control effectiveness. References = CRISC Review Manual, 7th Edition, page 154.