CRISC Exam Dumps - Isaca Certification Questions and Answers

The most appropriate time for changes to be promoted to production is after they are approved by the business owner, who is the individual or group that is accountable and responsible for the business objectives and requirements that are supported or affected by the changes. The approval by the business owner ensures that the changes are aligned and compatible with the business objectives and requirements, and that they provide the expected or desired outcomes or benefits for the business.

The other options are not the most appropriate times for changes to be promoted to production, because they do not ensure that the changes are aligned and compatible with the businessobjectives and requirements, and that they provide the expected or desired outcomes or benefits for the business.

Communicating the changes to business management means informing or reporting the changes to the senior management or executives that oversee or direct the business activities or functions. Communicating the changes to business management is important for ensuring the awareness and support of the business management, but it is not the most appropriate time for changes to be promoted to production, because it does not indicatewhether the changes are approved or authorized by the business owner, who is accountable and responsible for the business objectives and requirements.

Testing the changes by business owners means verifying and validating the functionality and usability of the changes, using the input and feedback from the business owners. Testing the changes by business owners is important for ensuring the quality and performance of the changes, but it is not the most appropriate time for changes to be promoted to production, because it does not indicate whether the changes are approved or authorized by the business owner, who is accountable and responsible for the business objectives and requirements.

Initiating the changes by business users means requesting or proposing the changes by the end users or customers that interact with the information systems and resources that are affected by the changes. Initiating the changes by business users is important for ensuring the relevance and appropriateness of the changes, but it is not the most appropriate time for changes to be promoted to production, because it does not indicate whether the changes are approved or authorized by the business owner, who is accountable and responsible for the business objectives and requirements. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 40-41, 47-48, 54-55, 58-59, 62-63

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 194

CRISC Practice Quiz and Exam Prep

Occurrences of specific events are the most likely to cause a key risk indicator (KRI) to exceed thresholds, as they represent the actual or potential realization of the risk. A KRI is a metric that measures the level of risk exposure and the effectiveness of risk response strategies, and it has predefined thresholds that indicate the acceptable or unacceptable risk status. When a specific event occurs that affects the risk, such as a security breach, a system failure, or a compliance violation, the KRI value may change and exceed the thresholds, triggering an alert or an action. A performance measurement, the risk tolerance level, and risk scenarios are not the most likely to cause a KRI to exceed thresholds, as they do not reflect the actual or potential occurrence of the risk, but rather the expected or desired outcome, limit, or simulation of the risk. References = [CRISC Review Manual (Digital Version)], page 121; CRISC by Isaca Actual Free Exam Q&As, question 217.

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

According to the CRISC Review Manual (Digital Version), the best way to validate the results of a vulnerability assessment is to perform a penetration test, which is a type of security testing that simulates an attack on the IT assets and processes to exploit the identified vulnerabilities and evaluate the potential impact and severity of the attack. Performing a penetration test helps to:

Confirm the existence and exploitability of the vulnerabilities detected by the vulnerability assessment

Measure the effectiveness and efficiency of the existing security controls and countermeasures

Identify and prioritize the risks and gaps in the security posture of the IT assets and processes

Recommend and implement appropriate remediation and mitigation actions to address the vulnerabilities and risks

Enhance the security awareness and resilience of the organization

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.5: IT Risk Identification Methods and Techniques, pp. 36-371

Monitoring the average time to complete tasks and monthly reporting of the findings during the month-end close process aligns with the definition of a Key Performance Indicator (KPI).

Understanding KPIs:

Performance Measurement:KPIs are used to measure how effectively a company is achieving its key business objectives. Monitoring the average time to complete tasks during the month-end close process provides a performance metric.

Tracking Efficiency:By reporting these findings monthly, management can track the efficiency and performance of the system load capabilities.

Specific Measure:

Task Completion Time:The average time to complete tasks is a specific, measurable indicator of performance. It helps in understanding how well the system handles load and identifies areas for improvement.

Continuous Improvement:Regular monitoring and reporting encourage continuous improvement, which is a core aspect of using KPIs.

Assessing the risk of using production data for testing before making a decision is the best recommendation for the risk practitioner, because it helps to balance the benefits and drawbacks of using real data for the proof of concept (POC) of a security tool. A POC is a demonstration or trial of a proposed solution or product to verify its feasibility, functionality, and value. A security tool is a software or hardware device that helps to protect the IT systems or networks from threats or attacks. Using production data for testing purposes can yield the best results, as it reflects the actual data that the security tool will handle in the operational environment. However, using production data for testing also poses risks, such as data leakage, data corruption, data privacy violation, or regulatory non-compliance. Therefore, assessing the risk ofusing production data for testing before making a decision is the best recommendation, as it helps to identify and evaluate the potential risks and issues, and to determine the appropriate controls or mitigating factors to reduce or eliminate them. Accepting the risk of using the production data, benchmarking against what peer organizations are doing, and denying the request are all possible recommendations, but they are not the best recommendation, as they do not consider the risk assessment process and the trade-offs involved in using production data for testing. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.4.1, page 208

 The most important consideration for protecting data assets in a business application system is to ensure that the application controls are aligned with the data classification rules. Data classification rules define the level of sensitivity, confidentiality, and criticality of the data, andthe corresponding security requirements and controls. Application controls are the policies, procedures, and technical measures that are implemented at the application level to ensure the security, integrity, and availability of the data. Application controls should be designed and configured to match the data classification rules, so that the data is protected according to its value and risk. For example, if the data is classified as highly confidential, the application controls should enforce strong authentication, encryption, access control, logging, and auditing mechanisms. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 214.

 The most likely cause for a risk practitioner to reassess risk scenarios is a change in the regulatory environment. A regulatory environment is the set of laws, rules, and standards that apply to an organization and its activities, such as data privacy, security, compliance, or governance. A change in the regulatory environment can occur due to various factors, such as new legislation, court rulings, enforcement actions, or industry trends. A change in the regulatory environment can affect the risk scenarios that the organization faces, as it may introduce new or modified risks, or alter the probability or impact of existing risks. For example, a new regulation may require the organization to implement additional or different controls, or to report or disclose more information, which may increase the cost, complexity, or vulnerability of the organization’s processes and systems. A change in the regulatory environment may also affect the risk appetite, tolerance, and capacity of the organization, as it may impose different requirements or expectations for the organization’s risk management performance and outcomes. Therefore, a risk practitioner should reassess the risk scenarios when there is a change in the regulatory environment, to ensure that the risk scenarios are accurate, complete, and relevant, and that the risk response strategies and plans are appropriate, effective, and compliant. The other options are not the most likely cause, although they may be related or influential to the riskscenarios. A change in the risk management policy is a change in the rules and guidelines that define how the organization manages its risks, such as the roles and responsibilities, the processes and procedures, the tools and techniques, or the reporting and communication. A change in the risk management policy can affect the risk scenarios, as it may change the way the organization identifies, analyzes, evaluates, and responds to the risks, but it does not directly create or modify the risks themselves. A major security incident is an event or situation that compromises the confidentiality, integrity, or availability of the organization’s information or systems, such as a data breach, a denial-of-service attack, or a ransomware infection. A major security incident can affect the risk scenarios, as it may indicate or reveal the existence or severity of the risks, or trigger or escalate the consequences of the risks, but it is not a cause, rather it is an effect of the risks. An increase in intrusion attempts is an increase in the frequency or intensity of the unauthorized or malicious attempts to access or exploit the organization’s information or systems, such as phishing, malware, or brute-force attacks. An increase in intrusion attempts can affect the risk scenarios, as it may increase the likelihood or impact of the risks, or expose or exacerbate the vulnerabilities of the organization’s processes and systems, but it is not a cause, rather it is a manifestation of the risks. References = Risk Scenarios Toolkit -ISACA, How to Write Strong Risk Scenarios and Statements - ISACA, The Impact of Regulatory Change on Business - Deloitte

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

 A risk treatment plan is a document that describes the actions and resources required to implement the chosen risk response for a specific risk scenario. A risk response can be to accept, avoid, transfer, or mitigate the risk. The effectiveness of a risk treatment plan can be measured by how well it reduces the risk exposure and achieves the desired outcomes. The best evidence that a selected risk treatment plan is effective is to evaluate the residual risk level, which is the remaining risk after the risk treatment plan has been implemented. The residual risk level should be within the organization’s risk appetite and tolerance, and should reflect the actual risk reduction and value creation of the risk treatment plan. Evaluating the residual risk level can also help to identify any gaps or issues that need to be addressed, and to monitor and report on the risk performance and improvement. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.2, p. 108-109

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.

Comprehensive and Detailed Explanation From Exact Extract:

Administrative controls complement technical controls to enhance the overall effectiveness of risk mitigation. While technical controls implement the specific security mechanisms, administrative controls such as policies, procedures, and training ensure consistent and correct use of these technical controls, increasing their effectiveness in mitigating risk. This layered approach ensures that control measures are reinforced and integrated within the enterprise’s risk management strategy.

The programming project leader solely reviewing test results before approving the transfer to production would be a weakness in procedures for controlling the migration of changes to production libraries, because it violates the principle of segregation of duties, and it exposes the production libraries to the risk of unauthorized or erroneous changes. The programming project leader is responsible for developing and testing the changes, but not for approving and deploying them. The approval and deployment of the changes should be done by an independent and authorized party, such as the change control board or the operations manager. The other options are not weaknesses, but rather good practices, because:

Option B: Test and production programs being in distinct libraries is a good practice, because it prevents the accidental or intentional overwriting or mixing of the test and production programs, and it ensures the integrity and security of the production libraries.

Option C: Only operations personnel being authorized to access production libraries is a good practice, because it restricts the access and modification of the production libraries to the qualified and accountable staff, and it prevents the unauthorized or inappropriate access or modification of the production libraries by other parties.

Option D: A synchronized migration of executable and source code from the test environment to the production environment being allowed is a good practice, because it ensures the consistency and completeness of the changes, and it avoids the potential errors or discrepancies that may arise from the manual or partial migration of the changes. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 215.

 Zero Trust Architecture:

Zero Trust is a security concept centered on the belief that organizations should not automatically trust anything inside or outside their perimeters and must verify everything attempting to connect to their systems.

 Basic Tenets of Zero Trust:

The primary principle is "never trust, always verify." This means every access request is authenticated, authorized, and encrypted regardless of where it originates.

Zero Trust requires securing all communication, whether it occurs within the internal network or comes from external sources. This approach prevents lateral movement by potential attackers who have breached the network perimeter.

 Key Components:

Authentication and Authorization:Continuous verification of user identities and access privileges.

Microsegmentation:Dividing the network into small, isolated segments to limit the spread of threats.

Encryption:Ensuring that all data, whether at rest or in transit, is encrypted to protect its confidentiality and integrity.

 Other Options:

Incoming Traffic Inspection:While important, this is just one aspect of Zero Trust.

Security Frameworks and Libraries:These are tools and guidelines to implement security but do not define the core tenets of Zero Trust.

Digital Identities:Implementing digital identities is part of the broader Zero Trust strategy but not a standalone tenet.

 References:

The CISSP Study Guide explains the Zero Trust architecture and its emphasis on securing all communications regardless of network location (Sybex CISSP Study Guide, Chapter 8: Principles of Security Models, Design, and Capabilities)​​.

According to the CRISC Review Manual (Digital Version), establishing an organizational code of conduct is an example of a directive control, which is a type of control that guides or steers the behavior of individuals or processes to achieve desired outcomes. A directive control aims toinfluence or encourage compliance with the organization’s policies, standards, procedures, and guidelines. A directive control can also communicate the organization’s values, ethics, and expectations to its stakeholders. A directive control can take various forms, such as:

Codes of conduct or ethics

Policies or manuals

Training or awareness programs

Job descriptions or roles and responsibilities

Performance appraisals or incentives

Supervision or oversight

References = CRISC Review Manual (Digital Version), Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Scenarios, pp. 105-1061

The number of validated transactions is a critical indicator of a blockchain network's security. It reflects the network's ability to accurately and securely process transactions, ensuring data integrity and trustworthiness. A higher number of validated transactions indicates robust consensus mechanisms and effective security controls within the blockchain infrastructure.

The objective of aligning mitigating controls to risk appetite is to ensure that the cost of controls does not exceed the expected loss. The cost of controls is the amount of resources and efforts required to implement and maintain the controls that are designed to reduce the risk exposure. The expected loss is the estimated amount of loss or harm that may result from a risk event. Therisk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. By aligning mitigating controls to risk appetite, the organization can optimize the balance between the cost of controls and the expected loss, and avoid over- or under-investing in controls. Exposures being reduced to the fullest extent,exposures being reduced only for critical business systems, and insurance costs being minimized are other possible objectives, but they are not as relevant as the cost of controls not exceeding the expected loss. References = ISACA Certified in Risk and Information Systems Control (CRISC)Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.

Regular reviewshelp detect inappropriate, outdated, or excessive access rights. This is a fundamental part of access control governance and supports the principle of least privilege.

Continuous risk management process improvement is the practice of evaluating and enhancing the risk management process on a regular basis, to ensure that it is effective, efficient, and aligned with the business objectives and strategy. Continuous risk management processimprovement can help identify and address the gaps, weaknesses, or opportunities for improvement in the risk management process, and ensure that the process is responsive and adaptable to the changing risk environment. The most effective method for continuous risk management process improvement is periodic assessments, which are systematic and objective evaluations of the risk management process, performed at predefined intervals or after significant events. Periodic assessments can help measure and monitor the performance and maturity of the risk management process, using criteria such as the risk management framework, standards, policies, procedures, methods, tools, roles, responsibilities, and results. Periodic assessments can also help identify and analyze the strengths, weaknesses, threats, and opportunities of the risk management process, and provide feedback and recommendations for improvement. Periodic assessments can also help communicate and report the status and progress of the risk management process to the stakeholders, and obtain their input and support for improvement actions. References = Continuous Risk Management Guidebook, p. 7-8, ISO 31000: riskmanagement and its continuous improvement, How Continuous Monitoring Drives Risk Management.

Communicating risk assessments to senior management is crucial for ensuring that key decision-makers are aware of the organization's risk landscape. This awareness enables informed decision-making regarding risk responses, resource allocation, and strategic planning. It also fosters a risk-aware culture throughout the organization.

A risk practitioner should evaluate the relevance of the evolving threats to the organization’s industry, as this is the best course of action to understand the current and future risk landscape, and to align the risk management strategy accordingly. By evaluating the relevance of the evolving threats, the risk practitioner can determine the impact and likelihood of the threats affecting the organization’s objectives, assets, and processes, and prioritize the most critical and urgent risks. The risk practitioner can also identify the gaps and weaknesses in the existing controls, and recommend appropriate risk response measures to mitigate the threats. The other options are not as good as evaluating the relevance of the evolving threats, because they do not address the root cause of the rising security incidents, but rather focus on the symptoms or consequences of the incidents. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 85.

Establishing executive management support is the most important success factor when introducing risk management in an organization. This is because executive management support can help ensure that risk management is aligned with the organization’s vision, mission, and strategy, as well as provide the necessary resources, authority, and accountability for riskmanagement activities. Executive management support can also help foster a risk-aware culture,promote stakeholder engagement, and facilitate risk communication and reporting. According to the CRISC Review Manual 2022, one of the key elements of IT governance is to obtain executive management support and commitment for risk management1. According to the web search results, executive management support is a critical success factor for risk management in various contexts and industries234.

Conducting root cause analyses for risk events is the first recommendation that a risk practitioner should make when an increasing trend of risk events and subsequent losses has been identified, as this helps to identify the underlying causes and sources of the risk events, and to determine the appropriate actions to address them. Root cause analysis is a systematic process of collecting and analyzing data, finding the root causes, and implementing solutions to prevent recurrence or reduce the impact of the risk events. Educating personnel on risk mitigation strategies, integrating the risk event and incident management processes, and implementing controls to prevent future risk events are not the first recommendations, but rather the possible outcomes or actions of conducting root cause analyses for risk events. References = CRISC Certified in Riskand Information Systems Control – Question208; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 208.

Software as a Service (SaaS) is a cloud computing model that provides software applications over the internet, without requiring the users to install or maintain them on their own devices. SaaS vendors are responsible for hosting, managing, and updating the software applications, and providing technical support and security to the users. The key performance indicator (KPI) that would best measure the risk of a service outage when using a SaaS vendor is the frequency and duration of unplanned downtime, which is the amount and length of time that the software applications are unavailable or inaccessible due to unexpected events, such as network failures, server crashes, power outages, cyberattacks, etc. The frequency and duration of unplanned downtime indicate the reliability and availability of the SaaS vendor, and the potential impact of the service outage on the users’ business operations and productivity. References = 3

Regulatory restrictions for cross-border data transfer can significantly impact compliance, making this the most critical consideration. Addressing such restrictions ensures adherence toLegal and Regulatory Requirementsin risk management.

 Robust organizational communication channels are the best way to support ethical IT risk management practices, as they enable transparent and consistent sharing of risk information anddecisions among all stakeholders. Ethical IT risk management requires that the risk management process and outcomes are aligned with the enterprise’s values, objectives, and obligations, and that the risk management activities are conducted with integrity, accountability, and respect. Robust organizational communication channels facilitate these aspects by ensuring that the risk management roles and responsibilities are clearly defined and communicated, that the risk management policies and procedures are widely disseminated and understood, that the risk management performance and results are regularly reported and reviewed, and that the risk management feedback and improvement suggestions are solicited and addressed. Mapping of key risk indicators (KRIs) to corporate strategy, capability maturity models integrated with risk management frameworks, and rigorously enforced operational service level agreements (SLAs) are not directly related to ethical IT risk management practices, but rather to the effectiveness and efficiency of the risk management process. References = CRISC Certified in Risk and Information Systems Control – Question201; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 201.

The primary driver for an organization on a multi-year cloud implementation to publish a cloud security policy is to establish minimum cloud security requirements, as they specify the standards and expectations for the protection of the data and systems in the cloud environment, and ensure the alignment and compliance of the cloud security strategy with the organizational objectives and regulations. The other options are not the primary drivers, as they are more related to the evaluation, enforcement, or education of the cloud securitypolicy, respectively, rather than the establishment of the cloud security policy. References = CRISC Review Manual, 7th Edition, page 155.

Performing a threat assessment is the best course of action for a risk practitioner upon learning that regulatory authorities have concerns with an emerging technology that the organization is considering, because it helps to identify and analyze the sources and types of threats that may exploit the vulnerabilities or weaknesses of the technology, and to estimate their likelihood and impact. A threat is a potential event or action that may cause harm or damage to the organization or its objectives, such as a natural disaster, a cyberattack, or a human error. A threat assessment is a process of systematically identifying and assessing the threats that an organization faces, and estimating their probability and severity. An emerging technology is a new or innovative technology that has the potential to disrupt or transform the existing markets, industries, or practices, such as artificial intelligence, blockchain, or biotechnology. An emerging technology may offer benefits such as competitive advantage, efficiency, or creativity, but it may also pose risks such as technical complexity, interoperability issues, regulatory uncertainty, or ethicaldilemmas. Therefore, performing a threat assessment is the best course of action, as it helps to understand and evaluate the threats and their consequences, and to determine the appropriate controls or mitigating factors to reduce or eliminate them. Redesigning key riskindicators (KRIs), updating risk responses, and conducting a SWOT analysis are all possiblecourses of action to perform after performing a threat assessment, but they are not the best course of action, as they depend on the results and recommendations of the threat assessment. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.2, page 87

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

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

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

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

 Scenario analysis is a technique that helps to identify significant events that could impact an organization by creating and exploring plausible alternative futures. Scenario analysis can help anticipate and prepare for potential changes, opportunities, or threats in the internal or external environment, such as technological, economic, social, political, legal, or environmental factors.Scenario analysis can also help evaluate the impact and likelihood of different risk scenarios, and test the effectiveness and robustness of various risk response strategies. Scenario analysis can provide a comprehensive and holistic view of risks and their interrelationships, and support the decision making and planning process for risk management. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.4: IT Risk Scenarios, p. 49-50.

 IT risk owners are the most appropriate people to review the completed list of potential key risk indicators (KRIs) and select the ones that should be implemented. IT risk owners are the individuals who have the authority and accountability to manage the IT risks within their scope of responsibility. They are also responsible for defining the risk appetite, tolerance, and thresholds for their IT operations, and for ensuring that the KRIs are aligned with the business objectives and risk management strategy. IT security managers, IT control owners, and IT auditors are also involved in the risk management process, but they do not have the same level of authority and accountability as IT risk owners, and they may have different perspectives and priorities on the selection of KRIs. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.1, page 1-13.

Using a VPN ensures the secure transmission of sensitive data over a public network by encrypting the communication channel. This mitigates risks such as interception or unauthorized access, aligning withData Protection and Privacy Standards.

Evaluating risk scenarios and assessing current controls is the most helpful in identifying gaps between the current and desired state of the IT risk environment, because it allows the risk practitioner to compare the actual and expected outcomes of the IT processes and activities under different situations. A risk scenario is a hypothetical situation that describes a possible event or sequence of events that may affect the IT objectives and performance. A risk scenario can be based on various factors, such as the sources of risk, the risk drivers, the risk events, the risk impacts, and the risk responses. A risk scenario can also include the likelihood and severity of the risk, as well as the assumptions and uncertainties involved. Evaluating risk scenarios helps the risk practitioner to understand the nature and extent of the IT risks, as well as the potential consequences and opportunities that may arise from them. Assessing current controls is the process of examining and testing the existing controls that are implemented to manage the IT risks. A control is a measure or action that reduces the likelihood or impact of a risk, or enhances the benefits or opportunities of a risk. Assessing current controls helps the risk practitioner to determine the effectiveness and efficiency of the controls, as well as their alignment with the IT objectives and requirements. By evaluating risk scenarios and assessing current controls, the risk practitioner can identify the gaps between the current and desired state of the IT risk environment. The gaps can be related to the following aspects: - The IT objectives and performance: The gaps can indicate the difference between the actual and expected results of theIT processes and activities, as well as the deviation from the IT goals and targets. - The IT risk exposure and appetite: The gaps can indicate the difference between the actualand acceptable level of risk that the organization faces or is willing to take in pursuit of the IT objectives. - The IT risk management process and practices: The gaps can indicate the difference between the actual and expected performance of the IT risk management process, as well as the compliance with the IT risk management policies and standards. - The IT risk culture and awareness: The gaps can indicate the difference between the actual and desired level of risk awareness,understanding, and communication among the IT stakeholders, as well as the alignment with the organizational values and culture. Identifying the gaps between the current and desired state of the IT risk environment is important for the risk practitioner, as it can help to prioritize and address the IT risks, as well as to improve and optimize the IT risk management process and practices. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: Risk Scenarios, pp. 63-681

A risk register is a tool that records and tracks the identified risks, their causes, impacts, likelihood, responses, and owners. The owner for each risk scenario is the person or group whohas the authority and accountability to manage the risk and its response. The best way to identify the owner for each risk scenario in a risk register is to map the identified risk factors tospecific business processes. Risk factors are the internal and external variables that influence the occurrence and impact of risks. Business processes are the activities that produce value for the enterprise, such as sales, marketing, production, or delivery. By mapping the risk factors to the business processes, the risk practitioner can determine which business process is affected by or contributes to the risk, and who is responsible for the business process. The owner for each risk scenario should be the person or group who is responsible for the business process that is associated with the risk. The other options are not the best way to identify the owner for each risk scenario, as they involve different criteria or methods:

Determining which departments contribute most to risk means that the risk practitioner evaluates the degree of involvement or exposure of each department to the risk. This may not be a reliable or consistent way to identify the owner for each risk scenario, as the risk may span across multiple departments, or the department may not have the authority or accountability to manage the risk.

Allocating responsibility for risk factors equally to asset owners means that the risk practitioner assigns the same level of responsibility to each person or group who owns an asset that is affected by or contributes to the risk. An asset is a resource that has value for the enterprise, such as hardware, software, data, or people. This may not be a fair or effective way to identify the owner for each risk scenario, as the asset owners may have different levels of involvement or exposure to the risk, or may not have the authority or accountability to manage the risk.

Determining resource dependency of assets means that the risk practitioner analyzes the relationship and interdependence of the assets that are affected by or contribute to the risk. This may help to identify the potential impact or likelihood of the risk, but it does not directly help to identify the owner for each risk scenario, as the resource dependency may not reflect the authority or accountability to manage the risk. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.1.1.1, pp. 95-96.

According to the CRISC Review Manual (Digital Version), the primary reason a risk practitioner would be interested in an internal audit report is to evaluate the maturity of the risk management process, as it provides an independent and objective assessment of the effectiveness and efficiency of the risk management activities and controls. An internal audit report helps to:

Identify and evaluate the strengths and weaknesses of the risk management process and its alignment with the organization’s objectives and strategy

Detect and report any gaps, errors, or deficiencies in the risk identification, assessment, response, and monitoring processes and controls

Recommend and implement corrective actions or improvement measures to address the issues or findings in the risk management process

Communicate and coordinate the audit results and recommendations with the relevant stakeholders, such as the risk owners, the senior management, and the board

Enhance the accountability and transparency of the risk management process and its outcomes

References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.2: IT Risk Reporting, pp. 223-2241

The main purpose of a risk register is to enable well-informed risk management decisions by providing a comprehensive and up-to-date record of all the identified risks, their analysis, and their responses. A risk register is a tool that helps to document, monitor, and communicate the status and outcome of risk management activities. A risk register also facilitates the review and evaluation of the effectiveness of risk management processes and controls. Documenting the risk universe, promoting an understanding of risk,and identifying stakeholders are possible benefits of a risk register, but they are not the main purpose. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.1.3, page 531

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 640.

Documented procedures are the best way to enable effective IT control implementation. Documented procedures are the specific actions or steps that are performed to achieve the IT control objectives and mitigate the IT risks. Documented procedures provide clear guidance, consistency, and accountability for the IT control activities. Documented procedures also help to monitor and evaluate the effectiveness and efficiency of the IT controls, and to identify and address any gaps or weaknesses. The other options are not as effective as documented procedures, although they may support or complement the IT control implementation. Key risk indicators (KRIs) are metrics that measure the likelihood and impact of IT risks, but they do not specify how to implement the IT controls. Information security policies and standards are high-level statements that define the IT security goals and requirements, but they do not detail how to implement the IT controls. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, page 1-15.

Risk strategies are the plans and actions that an organization adopts to manage its risks and to achieve its objectives. Risk strategies should be aligned with the organization’s vision, mission, values, and culture, as well as its internal and external environment. The most important consideration when developing risk strategies is the long-term organizational goals, meaning that the risk strategies should support and enable the organization to pursue and attain its desired future state and outcomes. The long-term organizational goals should guide the risk identification, assessment, response, and monitoring processes, as well as the risk appetite and tolerance levels. The long-term organizational goals should also be communicated and cascaded throughout the organization to ensure the risk awareness and engagement of all stakeholders. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, p. 27-28

The ultimate objective of utilizing key control indicators (KCIs) in the risk management process is to provide early warning signs of a potential change in risk level, as they indicate the performance and adequacy of the controls, and alert the stakeholders to any control gaps or deficiencies that may affect the risk exposure and impact. The other options are not the ultimate objectives, as they are more related to the insight, basis, or benchmark of the risk managementprocess, respectively, rather than the early warning sign of the risk management process. References = CRISC Review Manual, 7th Edition, page 110.

Managing IT regulatory compliance risk in the same manner as other operational risks ensures a consistent and integrated approach to risk management. This involves identifying, assessing, mitigating, and monitoring compliance risks using the organization's established risk management framework. Such an approach promotes efficiency and ensures that compliance risks are not siloed but are considered within the broader context of enterprise risk management.

 A deterrent control is a type of control that has been implemented by displaying a poster that reads “Anyone caught taking photographs in the data center may be subject to disciplinary action.”, as it aims to discourage or prevent unauthorized or malicious activities by warning the potential perpetrators of the consequences or sanctions. The other options are not the correct types of control, as they are more related to the correction, detection, or prevention of unauthorized or malicious activities, respectively, rather than the deterrence of unauthorized or malicious activities. References = CRISC Review Manual, 7th Edition, page 154.

Implementing an emergency change authorization process is the best control for an organization that allows programmers to change production systems in emergency situations, because it helps to ensure that the changes are justified, approved, documented, and tested before they are implemented, and that they are monitored and reviewed after they are implemented. An emergency change is a change that is required to resolve or prevent a critical issue or incident that may affect the availability, performance, or security of the production systems. A production system is a system that is used to support or enable the operational or business functions or processes of the organization. An emergency change authorization process is a process that defines the roles and responsibilities, criteria and procedures, and tools and techniques for managing and controlling the emergency changes. Implementing an emergency change authorization process is the best control, as it helps to minimize the risks and impacts of theemergency changes, and to maintain the integrity and reliability of the production systems. Periodically reviewing operator logs, limiting the number of super users, and reviewing the programmers’ emergency change reports are all possible controls for an organization that allows programmers to change production systems in emergency situations, but they are not the best control, as they do not provide a comprehensive and consistent approach to the emergency change management. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.4.1, page 208

According to the Risk and Information Systems Control documents, the risk practitioner should conclude that no action is required as there was no impact. The fact that there have been no interruptions to business operations despite the increasing hardware failure incidents indicates that the built-in redundancy and fault-tolerant architecture are effective in ensuring continuity.

Options A and C are not necessary in this scenario. A root cause analysis (Option A) might be considered if there were actual interruptions or impact on business operations. However, since there were no interruptions, a root cause analysis may not be immediately required. Similarly, upgrading hardware (Option C) may not be necessary if the existing controls are effectively preventing business disruptions.

References = Risk and Information Systems Control Study Manual

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

Thefirst line of defenseincludesbusiness and operational managerswho own and manage risks directly. They implement controls as part of their day-to-day duties, making them the first to respond to risk.

The risk practitioner is responsible for determining which stakeholders need to be involved in the development of a risk scenario, as they have the knowledge and skills to facilitate the process and ensure that the relevant perspectives and information are considered. The risk owner, the compliance manager, and the control owner are examples of stakeholders who may participate in the risk scenario development, but they are not responsible for determining who should be involved. References = Risk Scenarios Toolkit, page 9; CRISC Review Manual, 7th Edition, page 101.

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

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

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

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

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

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

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

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

References =

Unauthorized Data Usage - CIO Wiki

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

The Pros and Cons of Outsourcing in 2023 - GrowthForce

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

The Top 10 Problems with Outsourcing Implementation - SSON

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

Segregation of Duties - CIO Wiki

Outsourcing Governance - CIO Wiki

[Denial-of-Service Attack - CIO Wiki]

[Business Continuity Planning - CIO Wiki]

The risk practitioner should report that the associated risk has been deferred, as this means that the risk response has been postponed or delayed due to lack of resources or other constraints. Deferring a risk response implies that the risk owner acknowledges the risk and intends to implement the risk mitigation action plan at a later stage, when the resources or conditions are available. The other options are not correct, as they do not reflect the actual status of the risk response. Mitigating a risk means that the risk response has been implemented and the risk level has been reduced. Accepting a risk means that the risk response has been rejected or waived, and the risk level has been accepted as it is. Avoiding a risk means that the risk response has beenimplemented and the risk level has been eliminated or transferred. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk Response, page 146.

A heat map is a graphical representation of the organization’s risk profile that shows the relative level of risk for each risk category or event. A heat map uses colors, shapes, or symbols to indicate the magnitude and likelihood of each risk, as well as its trend and status. A heat map offers the simplest overview of changes in the organization’s risk profile, as it allows the risk decision-makers to quickly identify the most significant risks, theareas of improvement or deterioration, and the gaps or overlaps in risk management. A heat map can also be used to communicate the risk profile to senior management and other stakeholders in a clear and concise manner. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: IT Risk Assessment Methods and Techniques, Page 77; Future Risks: How organizations see changes in risk management - Aon.

The greatest security risk in this scenario is that data may be commingled with other tenants’ data on the public cloud infrastructure. Data commingling occurs when data from different sources or customers are mixed together without proper segregation or encryption. This may result in data leakage, unauthorized access, or loss of confidentiality and integrity. Data commingling is a common challenge in public cloud environments, where multiple customers share the same physical resources and network. System downtime, infrastructure management, and cloud provider certification are also potential risks in this scenario, butthey are not as great as data commingling. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.2.1.1, page 2451

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 638.