CRISC Certified in Risk and Information Systems Control Questions and Answers

The greatest concern when assessing the risk profile of an organization is that the risk profile was last reviewed two years ago. A risk profile is a snapshot of the current risk exposure and appetite of the organization, based on the identification, analysis, and evaluation of the risks that could affect the achievement of the organization’s objectives. A risk profile should be reviewed and updated regularly, atleast annually, or whenever there are significant changes in the internal or external environment, such as new projects, strategies, regulations, or incidents. A risk profile that was last reviewed two years ago may not reflect the current risk situation and status of the organization, and may lead to inaccurate or incomplete risk assessment and response. The risk profile not being updated after a recent incident, the risk profile being developed without using industry standards, and the risk profile not containing historical loss data are also concerns, but they are not as critical as the risk profile being outdated. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 48.

 To determine if a risk is under-controlled, the risk practitioner will need to understand the risk tolerance. Risk tolerance is the acceptable or allowable level of variation or deviation from the expected or desired outcomes or objectives. Risk tolerance reflects the amount and type of risk that the organization is willing and able to take. A risk is under-controlled when the risk exposure exceeds the risk tolerance, meaning that the organization is taking on more risk than it can handle or afford. Therefore, the risk practitioner will need to understand the risk tolerance to compare it with the risk exposure and identify the gap or difference. The other options are not as relevant as understanding the risk tolerance, as they are related to the monitoring, identification, or determination of the risk or the IT performance, not the comparison or evaluation of therisk. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.

The risk of terminated employee accounts maintaining access is that the former employees or unauthorized parties may use the accounts to access or manipulate the organization’s information systems or resources, and cause harm or damage to the organization and its stakeholders, such as data loss, data breach, system failure, fraud, etc.

The first step to address the risk of terminated employee accounts maintaining access is to disable user access, which means to revoke or remove the permissions or privileges that allow the accounts to access or use the organization’s information systems or resources. Disabling user access can help the organization to address the risk by providing the following benefits:

It can prevent or stop the former employees or unauthorized parties from accessing or using the organization’s information systems or resources, and reduce or eliminate the potential harm or damage that they may cause for the organization and its stakeholders.

It can ensure the confidentiality, integrity, availability, and reliability of the organization’s information systems or resources, and protect them from unauthorized access or manipulation.

It can provide useful evidence and records for the verification and validation of the organization’s access control function, and for the compliance with the organization’s access control policies and standards.

The other options are not the first steps to address the risk of terminated employee accounts maintaining access, because they do not provide the same level of urgency and effectiveness that disabling user access provides, and they may not be sufficient or appropriate to address the risk.

Performing a risk assessment is a process of measuring and comparing the likelihood and impact of various risk scenarios, and prioritizing them based on their significance and urgency.Performing a risk assessment can help the organization to understand and document the risk of terminated employee accounts maintaining access, but it is not the first step to address the risk, because it does not prevent or stop the former employees or unauthorized parties from accessing or using the organization’s information systems or resources, and it may not be timely or feasible to perform a risk assessment before disabling user access.

Developing an access control policy is a process of defining and describing the rules or guidelines that specify the expectations and requirements for the organization’s access control function, such as who can access what, when, how, and why. Developing an access control policy can help the organization to establish and communicate the boundaries and objectives for the organization’s access control function, but it is not the first step to address the risk, because it does not prevent or stop the former employees or unauthorized parties from accessing or using the organization’s information systems or resources, and it may not be relevant or applicable to the existing or emerging risk scenarios that may affect the organization’s access control function.

Performing a root cause analysis is a process of identifying and understanding the underlying or fundamental causes or factors that contribute to or result in a problem or incident that has occurred or may occur in the organization. Performing a root cause analysis can help the organization to address and correct the risk of terminated employee accounts maintaining access, and prevent or reduce its recurrence or impact, but it is not the first step to address the risk, because it does not prevent or stop the former employees or unauthorized parties from accessing or using the organization’s information systems or resources, and it may not be timely or feasible to perform a root cause analysis before disabling user access. 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 207

CRISC Practice Quiz and Exam Prep

 Understanding Reputational Risk:

Reputational risk arises from negative public perception, which can be fueled by disinformation campaigns. These campaigns spread false or misleading information about an organization, potentially damaging its reputation.

 Mitigating Reputational Risk:

The best way to mitigate this risk is to actively counteract false information and restore public trust. This involves debunking false stories and correcting misinformation promptly and effectively.

 Role of Public Relations:

Engaging public relations (PR) personnel is crucial in managing the organization's reputation. PR professionals are skilled in crafting messages, dealing with media, and using communication strategies to address and correct false narratives.

PR personnel can issue press releases, organize press conferences, and leverage social media to reach a wide audience, ensuring the correct information is disseminated.

 Monitoring and Awareness Training:

While monitoring digital platforms and providing awareness training are important, they are more preventive measures. Monitoring helps in early detection, and training aids in internalmanagement of such risks. However, they do not actively counteract the false information once it is in the public domain.

 Restricting Social Media:

Restricting social media usage on corporate networks does not address the core issue of disinformation campaigns. It may reduce internal risks but does not mitigate external reputational damage.

 References:

The CRISC Review Manual discusses strategies for managing reputational risk and highlights the importance of proactive communication and public relations efforts (CRISC Review Manual, Chapter 1: Governance, Section 1.3.4 The Value of Risk Communication)​​.

 A risk heat map is a graphical tool that displays the risk events in a matrix based on their likelihood and impact. Risk events that are coded with the same color will have a similar risk likelihood, which is the probability or frequency of occurrence of a risk event. Risk score, riskimpact, and risk response are other possible attributes of risk events, but they are not represented by the color coding in a risk heatmap. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 7; CRISC Review Manual, 6th Edition, page 202.

According to the CRISC Review Manual (Digital Version), the right to audit the provider is the most important factor to help define the IT risk associated with outsourcing activity to a cloud-based service provider, as it enables the organization to verify the compliance and performance of the provider with the contractual obligations and service level agreements. The right to audit the provider helps to:

Assess the security, availability, confidentiality, integrity, and privacy of the data and processes hosted by the provider

Identify and evaluate the risks and controls related to the cloud-based services and the provider’s infrastructure

Monitor and measure the quality and effectiveness of the cloud-based services and the provider’s governance and management practices

Report and resolve any issues or incidents related to the cloud-based services and the provider’s operations

Ensure the alignment of the cloud-based services and the provider’s policies and standards with the organization’s objectives and requirements

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 176-1771

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

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

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

Balanced Scorecard Basics - Balanced Scorecard Institute

Using the Balanced Scorecard to Measure and Manage IT Risk

Capability Maturity Model Integration (CMMI) Overview

Internal Audit Planning: The Basics - The IIA

[Control Self-Assessment - ISACA]

According to the three lines of defense model, the responsibility for managing risk and controls resides with the operational management, which forms the first line of defense. The operational management is the function that owns and manages risk as part of their accountability for achieving objectives. They are responsible for identifying, assessing, mitigating, and reportingon risks and controls within their areas ofoperation. They are also responsible for implementing and maintaining effective internal controls and ensuring compliance with policies, standards, and regulations.

A maturity model is a framework that describes the stages or levels of development and improvement of a certain domain, such as a process, a function, or an organization. A maturitymodel can help to evaluate the current state, identify the strengths and weaknesses, set the goals and objectives, and measure the performance and improvement over time. The primary benefit of using a maturity model is that it helps to evaluate the evolution of process improvements, meaning that it can help to track the progress andchanges of the processes, as well as to identify the best practices and standards. A maturity model can also help to compare the processes with the industry benchmarks and competitors, as well as to align the processes with the business strategy and vision. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.2.1, p. 118-119

The percentage of unpatched IT assets is a KPI that measures the effectiveness of the IT asset management process in ensuring that the IT assets are updated with the latest security patches and are protected from vulnerabilities. This KPI reflects the compliance of the IT assets with the enterprise’s security policy and standards, and the ability of the IT asset management process to identify and remediate any gaps or risks in the IT asset inventory. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 5. CRISC by Isaca Actual Free Exam Q&As, Question 4. Most Asked CRISC Exam Questions and Answers, Question 10. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 4.

 Risk impact is the potential loss or damage that a risk event can cause to an organization. Risk impact can be expressed in qualitative or quantitative terms, such as financial, reputational, operational, or legal. A risk register is a tool that records and tracks the key information about the identified risks, such as their description, likelihood, impact, response, and status. A risk register helps an organization to monitor and manage its risks effectively and efficiently. When there is a change in the external or internal environment that affects the organization’s risks, such as new regulations, the risk register should be updated to reflect this change. The most important element of the risk register to update in this case is the risk impact, because the new regulations have significantly increased the penalties for data breaches, which means that the potential loss or damage that a data breach can cause to the organization has also increased. By updating the risk impact, the organization can reassess the severity and priority of the data breach risk, and adjust its risk response accordingly. The other elements of the risk register are less important toupdate in this case. The risk trend shows the direction and rate of change of the risk over time, which may or may not be affected by the new regulations. The risk appetite is the amount and type of risk that the organization is willing to accept in pursuit of its objectives, which is unlikely to change due to the new regulations. The risk likelihood is the probability of a risk event occurring, which is also independent of the new regulations. References = Risk IT Framework, ISACA, 2022, p. 131

Enterprise risk management (ERM) is a holistic and strategic approach to managing the risks that an organization faces across its various functions, processes, and activities. ERM aims to align the organization’s risk appetite and tolerance with its objectives and vision, and to optimize the value and performance of the organization1.

IT risk management is a subset of ERM that focuses on identifying, assessing, and mitigating the risks related to the use of information technology (IT) in the organization. IT risk management aims to ensure the confidentiality, integrity, and availability of IT resources and information, and to support the IT governance and strategy of the organization2.

The greatest benefit when ERM provides oversight of IT risk management is aligning IT with short-term and long-term goals of the organization, because it can help to:

Integrate IT risk management with the overall business strategy and risk management, and ensure that IT risks are considered and addressed at the enterprise level

Align IT risk appetite and tolerance with the business risk appetite and tolerance, and ensure that IT risks are balanced with the expected benefits and opportunities

Enhance IT risk awareness and communication among the stakeholders, and ensure that IT risks are reported and escalated appropriately

Optimize IT risk response and control, and ensure that IT risks are managed efficiently and effectively

Demonstrate IT risk value and impact, and ensure that IT risks are measured and monitored against the business objectives and performance34

The other options are not the greatest benefit when ERM provides oversight of IT risk management, but rather some of the outcomes or consequences of it. Ensuring the IT budget and resources focus on risk management is a benefit that can help to allocate and prioritize the IT resources and funds according to the IT risk level and the business needs. Ensuring senior management’s primary focus is on the impact of identified risk is a benefit that can help to increase the senior management’s involvement and accountability in IT risk management, and to support the IT risk decision making and reporting. Prioritizing internal departments that provide service to customers is a benefit that can help to improve the quality and efficiency of the IT service delivery and customer satisfaction. References =

Enterprise Risk Management - ISACA

IT Risk Management - ISACA

Aligning IT risks with Enterprise Risk Management (ERM)

Five Benefits of Enterprise Risk Management : Articles : Resources …

[CRISC Review Manual, 7th Edition]

According to the CRISC Review Manual (Digital Version), key risk indicator (KRI) thresholds are the most likely elements of a risk register to change as a result of change in management’s risk appetite, as they reflect the acceptable levels of risk exposure for the organization. KRIthresholds are the values or ranges that trigger an alert or a response when the actual KRI values deviate from the expected or desired values. KRI thresholds help to:

Monitor and measure the current risk levels and performance of the IT assets and processes

Identify and report any risk issues or incidents that may require attention or action

Evaluate the effectiveness and efficiency of the risk response actions and controls

Align the risk management activities and decisions with the organization’s risk appetite and risk tolerance

If the management’s risk appetite changes, the KRI thresholds may need to be adjusted accordingly to ensure that the risk register reflects the current risk preferences and expectations of the organization.

References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.1: IT Risk Monitoring, pp. 217-2181

According to the CRISC Review Manual1, the risk register is a tool that records the results of risk identification, analysis, evaluation, and treatment. The risk register should be updated whenever there is a change in the risk profile, such as when a risk response is implemented or a new risk is identified. Updating the risk register allows the organization to monitor the current status of risks and the effectiveness of risk responses. Therefore, the next step for the risk practitioner after identifying a risk with high impact and very low likelihood that is covered by insurance is to update the risk register with the new information. References = CRISC Review Manual1, page 191.

Artificial intelligence (AI) is a branch of computer science that aims to create machines or systems that can perform tasks that normally require human intelligence, such as learning, reasoning, decision making, etc.

An organization that is considering adopting AI should be aware of the potential risks and challenges that may arise from using AI, such as ethical, legal, social, technical, operational, or security issues.

The most important course of action for the risk practitioner is to identify applicable risk scenarios. This means that the risk practitioner should analyze the context and objectives of theAI adoption, the stakeholders and their expectations, the data and information sources and quality, the AI models and algorithms and their reliability, the AI outputs and outcomes and their impact, and the AI governance and oversight mechanisms and their effectiveness.

Identifying applicable risk scenarios helps to assess the likelihood and impact of the risks, prioritize the risks, design and implement appropriate risk responses, monitor and evaluate the risk performance, and report and communicate the risk status and issues.

The other options are not the most important courses of action for the risk practitioner. They are either secondary or not essential for AI risk management.

The references for this answer are:

Risk IT Framework, page 24

Information Technology & Security, page 18

Risk Scenarios Starter Pack, page 16

Risk assessment is a key process that identifies, analyzes, and evaluates the risks associated with the implementation of an emerging technology. It helps to determine the potential impact and likelihood of the risks, as well as the appropriate risk responses and controls. Lack of risk assessment can lead to poor decision making, inadequate risk mitigation, and unexpected consequences. Therefore, it should be of greatest concern to a risk practitioner reviewing the implementation of an emerging technology. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.2.1, p. 226-227

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

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

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

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

The references for this answer are:

Risk IT Framework, page 29

Information Technology & Security, page 23

Risk Scenarios Starter Pack, page 21

 Emerging risk is a risk that is new or evolving, and has the potential to significantly affect the enterprise’s objectives, performance, or reputation. Emerging risk can arise from changes in the internal or external environment, such as technological innovations, regulatory developments, or social trends. The best way to support communication of emerging risk is to include it on the next enterprise risk committee agenda. The enterprise risk committee is a group of senior executives who oversee the enterprise-wide risk management program, and provide guidance and direction to the risk owners and practitioners. By including the emerging risk on the agenda, the risk practitioner can ensure that the enterprise risk committee is aware of the risk, its causes, impacts, and likelihood, and can decide on the appropriate risk response strategy and actions. The other options are not the best way to support communication of emerging risk, as they involve different aspects of the risk management process:

Update residual risk levels to reflect the expected risk impact means that the risk practitioner adjusts the risk levels after considering the existing or planned risk responses. This may not befeasible or accurate for emerging risk, as the risk responses may not be defined or implemented yet, or may not be effective for the new or evolving risk.

Adjust inherent risk levels upward means that the risk practitioner increases the risk levels before considering any risk responses. This may not reflect the true nature or magnitude of the emerging risk, as the inherent risk levels are based on the assumptions and estimates of the risk practitioner, and may not account for the uncertainties or complexities of the emerging risk.

Include it in the risk register for ongoing monitoring means that the risk practitioner records and tracks the emerging risk, its causes, impacts, likelihood, responses, and owners. This is an important step in the risk management process, but it does not necessarily support communication ofthe emerging risk, as the risk register may not be accessible or visible to all the relevant stakeholders, or may not be updated or reviewed frequently enough to capture the changes in the emerging risk. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.2.2, pp. 21-22.

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

The most useful information to determine mitigating controls when a core data center went offline abruptly for several hours affecting many transactions across multiple locations is the root cause analysis. Root cause analysis is a technique that identifies the underlying factors or reasons that caused the problem or incident. Root cause analysis can help to understand the nature, scope,and impact of the problem or incident, and to prevent or reduce the recurrence or severity of the problem or incident in the future. Root cause analysis can also help to identify and prioritize the appropriate mitigating controls that address the root causes of the problem or incident. The other options are not as useful as root cause analysis, as they are related to the investigation, evaluation, or measurement of the problem or incident, not the resolution or prevention of the problem or incident. References = Risk and Information Systems ControlStudy Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.

A data loss prevention (DLP) control is a technology that tries to detect and stop sensitive data breaches, or data leakage incidents, in an organization. A DLP control is used to prevent sensitive data, such as credit card numbers, from being disclosed to an unauthorized person, whether it is deliberate or accidental1. The best way to help ensure the effectiveness of a DLP control that has been implemented to prevent the loss of credit card data is to test the transmission of credit card numbers. This is a technique to verify that the DLP control can successfully identify and block the credit card data when it is sent or received through various channels, such as email, messaging, or file transfers. Testing the transmission of credit card numbers can help to evaluate the accuracy and reliability of the DLP control, as well as to identify and correct any false positives or false negatives. The other options are not the best ways to help ensure the effectiveness of a DLP control that has been implemented to prevent the loss of credit card data, although they may be helpful and complementary. Reviewing logs forunauthorized data transfers is a technique to monitor and analyze the DLP control activities and incidents, such as who, what, when, where, and how the data was transferred. However, reviewing logs is a reactive and passive approach, while testing the transmission is a proactive and active approach. Configuring the DLP control to block credit card numbers is a technique to set up the DLP control rules and policies, such as defining the data patterns, the detection methods, and the response actions. However, configuring the DLP control is a prerequisite and a preparation step, while testing the transmission is a validation and a verification step. Testing the DLP rule change control process is a technique to ensure that the DLP control rules and policies are updated and maintained in a controlled and coordinated manner, such as obtaining approval, documenting the changes, testing the changes, and communicating the changes. However, testing the DLP rule change control process is a quality and governance step, while testing the transmission is a performance and functionality step. References = What is Data Loss Prevention (DLP)? | Digital Guardian1; CRISC Review Manual, pages 164-1652; CRISC Review Questions, Answers & Explanations Manual, page 833

The most essential factor for an effective change control environment is the separation of development and production environments. This ensures that changes are tested and verified in a controlled environment before being implemented in the live environment, reducing the risk of errors, failures, and unauthorized modifications. Business management approval of change requests, requirement of an implementation rollback plan, and IT management review of implemented changes are important elements of change control, but they are not as essential as the separation of environments. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.1.2, page 123.

Completing a gap analysis identifies discrepancies between current controls and the requirements of the IT control framework, ensuring a focused approach to compliance. This supportsRisk Assessment for Compliance Requirements.

Establishing a code of conduct for employee behavior is the most important factor for managing ethical risk, because it defines the standards and expectations for ethical conduct and decision making within the organization, and provides guidance and direction for employees to act in a responsible and ethical manner. Ethical risk is the risk of violating the moral principles or values that govern the behavior and actions of individuals or organizations, such as honesty, integrity, fairness, or respect. A code of conduct is a document that outlines the ethical principles, values, and rules that the organization and its employees must follow, and the consequences of non-compliance. A code of conduct helps to promote a positive and ethical culture within the organization, and to prevent or mitigate the ethical risks that may arise from conflicts of interest, fraud, corruption, discrimination, or other misconduct. Involving senior management in resolving ethical disputes, developing metrics to trend reported ethics violations, and identifying the ethical concerns of each stakeholder are all useful factors for managing ethical risk, but they are not the most important factor, as they do not directly address the ethical conduct and decision making of employees. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.5.1, page 67

 Residual risk is the risk that remains after security controls have been implemented on a system. Residual risk can be accepted, transferred, avoided, or further mitigated. The most important consideration when deciding whether to accept residual risk is the cost versus benefit of additional mitigating controls. This means comparing the potential impact of the residual risk with the cost and effectiveness of implementing more controls to reduce it. If the cost of additional controls outweighs the benefit of reducing the residual risk, then it may be acceptableto accept the residual risk. However, if the benefit of additional controls exceeds the cost, then it may be advisable to implement more controls to lower the residual risk to an acceptable level. References = Risk and Information Systems Control Study Manual, Chapter 3: Risk Response and Mitigation, Section 3.4: Risk Response Selection, p. 156-157.

 A risk response plan is a document that outlines the actions to be taken to address the identified risk scenarios. A risk response plan should include the objectives, scope, roles and responsibilities, resources, timelines, and metrics for each risk response. Assigning ownership of the risk response plan is the most effective way to mitigate identified risk scenarios, as it ensures accountability, clarity, and communication among the stakeholders involved in the risk management process. Assigning ownership also helps to monitor and evaluate the progress and effectiveness of the risk response plan, and to make adjustments as needed. References =Riskand Information Systems Control Study Manual, Chapter 3: Risk Response and Mitigation, Section 3.3: Risk Response Plan, p. 152-155.

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

A primary benefit of engaging the risk owner during the risk assessment process is prioritization of risk action plans across departments, because this helps to ensure that the most critical and relevant risks are addressed first, and that the resources and efforts are allocated and coordinated efficiently and effectively. A risk owner is the person or group who is responsible for the day-to-day management and mitigation of a specific risk, and who has the authority and accountability to make risk-related decisions. A risk assessment is the process of identifying, analyzing, and evaluating the risks that may affect the organization’s objectives, performance, or value. A risk action plan is the set of actions and tasks that are designed and implemented to reduce the likelihood and impact of a risk, or to exploit the opportunities that a risk may create. By engaging the risk owner during the risk assessment process, the organization can benefit from the following advantages:

The risk owner can provide valuable input and feedback on the risk identification, analysis, and evaluation, based on their knowledge, experience, and perspective of the risk and its context.

The risk owner can help to develop and implement the risk action plan, based on their understanding of the risk objectives, expectations, and outcomes, and their ability to influence and control the risk factors and sources.

The risk owner can help to prioritize the risk action plan, based on their assessment of the risk severity, urgency, and importance, and their consideration of the costs, benefits, and feasibility of the risk actions.

The risk owner can help to coordinate the risk action plan across departments, by communicating and collaborating with other risk owners, stakeholders, and resources, and by aligning and integrating the risk actions with the organization’s strategy, processes, and culture. References = Risk Owners — What Do They Do1

A data protection management plan is a document that outlines how an organization will protect its sensitive data from unauthorized access, use, disclosure, or loss. A data protection management plan should include the following components1:

The scope and objectives of the data protection management plan, and how it aligns with the organization’s data protection policy and strategy

The roles and responsibilities of the data protection team and other stakeholders, and how they will communicate and coordinate

The data protection risks and threats that the organization faces, and how they will be assessed and prioritized

The data protection controls and measures that the organization will implement and maintain, and how they will be monitored and evaluated

The data protection incidents and breaches that the organization may encounter, and how they will be reported and resolved

The data protection training and awareness programs that the organization will provide and conduct, and how they will be measured and improved

The first step that should be done when developing a data protection management plan is to identify critical data. This means that the organization should:

Define what constitutes sensitive data in the organization, such as personal data, confidential data, or regulated data

Identify and classify the sensitive data that the organization collects, processes, stores, or transfers, and assign appropriate labels or tags

Determine the value and importance of the sensitive data to the organization and its stakeholders, and the potential impacts or consequences of data loss or compromise

Map the data flows and locations of the sensitive data within the organization and across its partners or vendors, and document the data lifecycle stages and activities

By identifying critical data, the organization can:

Establish a clear and consistent understanding of the data protection scope and objectives, and ensure that they are relevant and realistic

Provide a comprehensive and accurate data inventory that can support the data protection risk assessment and control implementation

Identify and prioritize the data protection needs and requirements of the organization and its stakeholders, and align them with the data protection laws and standards

Communicate and report the data protection status and performance to the stakeholders and regulators, and ensure transparency and accountability

References = Guide to Developing a Data Protection Management Programme

A digital certificate is a document that contains the public key and the identity of the owner of the public key, and is signed by a trusted third party called a certificate authority (CA)1. A digital certificate can be used to ensure the message reaches the intended recipient without alteration, by using the following steps2:

The sender encrypts the message with the recipient’s public key, which can only be decrypted by the recipient’s private key. This ensures the confidentiality of the message, as only the intended recipient can read it.

The sender signs the message with their own private key, which can be verified by anyone who has their public key. This ensures the integrity and authenticity of the message, as it proves that the message has not been tampered with and that it comes from the sender.

The sender attaches their digital certificate to the message, which contains their public key and their identity, and is signed by a CA. This ensures the validity and trustworthiness of the sender’s public key and identity, as it confirms that they have been verified by a CA.

The recipient receives the message and the digital certificate, and verifies the signature of the CA on the digital certificate. This ensures that the digital certificate is genuine and has not been forged or revoked.

The recipient uses the public key from the digital certificate to verify the signature of the sender on the message. This ensures that the message has not been altered and that it comes from the sender.

The recipient uses their own private key to decrypt the message. This ensures that they can read the message.

Therefore, adding a digital certificate is the best way to ensure the message reaches the intended recipient without alteration, as it provides encryption, digital signature, and certificate verification, which are the three main components of secure email communication3. Applying multi-factor authentication, adding a hash to the message, and adding a secret key are not the best ways to ensure the message reaches the intended recipient without alteration, as they do not provide all the components of secure email communication. Applying multi-factor authentication is a technique that requires the user to provide two or more pieces of evidence to prove their identity, such as a password, a code, or a biometric factor4. Multi-factor authentication can enhance the security of the email account, but it does not protect the message itselffrom being intercepted, modified, or impersonated. Adding a hash to the message is a technique that involves applying a mathematical function to the message to generate a fixed-length value, called a hash or a digest, that uniquely represents the message5. A hash can be used to verify the integrity of the message, as any change in the message will result in a different hash. However, ahash does not provide confidentiality or authenticity of the message, as it does not encrypt themessage or identify the sender. Adding a secret key is a technique that involves using a single key, known only to the sender and the recipient, to encrypt and decrypt the message6. A secret key can provide confidentiality of the message, as only the sender and the recipient can read it. However, a secret key does not provide integrity or authenticity of the message, as it does not prevent the message from being altered or spoofed. Moreover, a secret key requires a secure way of exchanging the key between the sender and the recipient, which may not be feasible or reliable over email. References = 1: What is a digital certificate? | Norton2: How to Send Secure Emails in 2023 | A Guide to Secure Email - ProPrivacy3: Secure Email: A Complete Guide for 2023 - StartMail4: What is Multi-Factor Authentication (MFA)? | Duo Security5: What is a Hash Function? | Definition and FAQs6: [What is Symmetric Encryption? | Definition and FAQs]

According to the definition of key control indicators (KCIs), they are metrics that provide information on the extent to which a given control is meeting its intended objectives in terms of loss prevention, reduction, etc.1 Therefore, option D is the correct answer, as it reflects the purpose and function of KCIs. The other options are not accurate descriptions of KCIs, as they do not directly relate to the performance or outcome of the control. Option A is more relevant to the efficiency or productivity of the control, not its effectiveness. Option B is more relevant to the role of key risk indicators (KRIs), which measure the level of risk exposure or potentialimpact of risk events2. Option C is also more related to KRIs, as they monitor changes in the likelihood or frequency of adverse events due to risk factors2.

A business impact analysis (BIA) is a process that identifies and assesses the effects that accidents, emergencies, disasters, and other unplanned, negative events could have on a business. The BIA (sometimes also called business impact assessment) predicts how a business will be affected by everything from a hurricane to a labor strike1.

One of the data that would be used when performing a BIA is the expected costs for recovering the business. This data can help to estimate the amount of resources and funds that would be needed to restore the normal operations and functions of the business after a disruption. The expected costs for recovering the business can include:

The costs of repairing or replacing damaged or lost assets, such as equipment, inventory, or facilities

The costs of hiring or training additional staff, or outsourcing some tasks or services

The costs of implementing alternative or backup systems or processes, such as cloud computing or manual procedures

The costs of communicating and coordinating with customers, suppliers, partners, regulators, and other stakeholders

The costs of complying with legal or contractual obligations, or paying fines or penalties

The costs of mitigating or preventing further losses or damages, such as insurance premiums or security measures23

The expected costs for recovering the business can help to determine the priority and urgency of the recovery activities, and to allocate the available resources and funds accordingly. The expected costs for recovering the business can also help to evaluate the cost-effectiveness and feasibility of the recovery strategies and options, and to justify the investment in the business continuity planning and management4.

The other options are not the data that would be used when performing a BIA, but rather the data that would be used for other purposes or processes. A cost-benefit analysis of running the current business is a data that would be used to compare the advantages and disadvantages of different business decisions or alternatives, such as launching a new product or service, or expanding to a new market. A cost-benefit analysis can help to assess the profitability and viability of the current business, but it does not measure the impact of a disruption on the business5. A cost of regulatory compliance is a data that would be used toestimate the amount of resources and funds that would be required to meet the rules and standards set by the authorities or agencies that govern the business, such as laws, regulations, or policies. A cost of regulatory compliance can help to ensure the legality and accountability of the business, but it does not measure the impactof a disruption on the business. A projected impact of current business on future business is a data that would be used to forecast the potential outcomes and consequences of the current business activities or strategies on the future business performance and growth, such as sales, revenue, market share, or customer satisfaction. A projected impact of current business on future business can help to plan and optimize the future business, but it does not measure the impact of a disruption on the current business. References =

Business Impact Analysis | Ready.gov

Business Impact Analysis Toolkit | Smartsheet

Business Impact Analysis (BIA): Prepare for Anything [2023] • Asana

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

Cost Benefit Analysis - ISACA

[Regulatory Compliance - ISACA]

[Impact Analysis - ISACA]

[CRISC Review Manual, 7th Edition]

According to the CRISC Review Manual1, threat impact analysis is the process of estimating and evaluating the potential effects of a threat event on the organization’s objectives, processes, resources, and risks. Threat impact analysis helps to quantify and qualify the severity and likelihood of the threat, and to identify the possible consequences and implications for the organization. Communicating the results of the threat impact analysis is the most effective way to improve stakeholders’ understanding of the effect of a potential threat, as it helps to inform and educate the stakeholders about the nature and magnitude of the threat, and to solicit their feedback and input for the risk response. Communicating the results of the threatimpact analysis also helps to align the stakeholder expectations and preferences, and to facilitate risk-based decision making and action planning. References = CRISC Review Manual1, page 208.

A risk profile consolidates information about risks across the enterprise, enhancing internal reporting and facilitating informed decision-making. This aligns withRisk Governanceobjectives by providing a comprehensive view of risk for management and stakeholders.

The key to controlling escalating costs when an organization is having new software implemented under contract is change management, which is the process of identifying, evaluating, approving, and implementing changes to the project scope, schedule, budget, or quality1. Change management can help to control escalating costs by:

Establishing a clear and agreed-upon baseline for the project deliverables, requirements, and expectations, and ensuring that they are aligned with the contract terms and conditions2.

Defining and enforcing a formal and consistent change control process, which includes the roles and responsibilities, the criteria and methods, and the documentation and communication of the changes3.

Assessing and prioritizing the proposed changes, and determining their impact and feasibility, and their alignment with the project objectives and constraints4.

Obtaining the approval and authorization of the relevant stakeholders, such as the project sponsor, the project manager, the contractor, or the customer, before implementing the changes5.

Monitoring and measuring the performance and outcome of the changes, and ensuring that they are delivered within the agreed scope, schedule, budget, and quality6.

References =

Change Management - CIO Wiki

Project Scope Management - CIO Wiki

Change Control - CIO Wiki

Change Impact Analysis - CIO Wiki

Change Approval - CIO Wiki

Change Evaluation - CIO Wiki

According to the CRISC Review Manual1, risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite is the most influential factor when management makes risk response decisions, as it helps to define the boundaries and thresholds for acceptable risk levels, and to align the risk responses with the organization’s strategy, goals, and culture. Risk appetite alsohelps to balance the potential benefits and costs of risk responses, and to communicate the risk expectations and preferences to the stakeholders. References = CRISC Review Manual1, page 192.

Outsourcing IT security operations is a common practice that can provide benefits such as cost savings, access to specialized skills, and improved service quality12. However, outsourcing also introduces risks such as loss of control, dependency, contractual issues, and service failures12.

When an organization outsources its IT security operations to a third party, it does not transfer the accountability for the risk associated with the outsourced operations. Accountability is the obligation to answer for the execution of one’s assigned responsibilities34.

The organization’s management is ultimately accountable for the risk associated with the outsourced operations, as they are responsible for defining the organization’s risk appetite, strategy, and objectives, and for ensuring that the organization’s IT security operations are aligned with them34.

The organization’s management is also accountable for selecting, contracting, and overseeing the third party, and for ensuring that the third party meets the agreed service levels, standards, and compliance requirements34.

The organization’s management is also accountable for monitoring and reporting the risk associated with the outsourced operations, and for taking corrective actions when necessary34.

The other options are not ultimately accountable, but rather have different roles and responsibilities in relation to the outsourced operations. For example:

The third party’s management is responsible for delivering the IT security services according to the contract, and for managing the risk within their own organization34. They are accountable to the organization’s management, but not to the organization’s stakeholders.

The control operators at the third party are responsible for implementing and operating the IT security controls according to the service specifications, and for reporting any issues orincidents to the organization’s management34. They are accountable to the third party’s management, but not to the organization’s management or stakeholders.

The organization’s vendor management office is responsible for facilitating the relationship between the organization and the third party, and for supporting the organization’s management in the outsourcing process34. They are accountable to the organization’s management, but not for the risk associated with the outsourced operations. References =

1: Outsourcing IT Security: A Risk Management Perspective, ISACA Journal, Volume 2, 2019

2: The Cyber Security Risks Of Outsourcing, Cybersecurity Intelligence, January 4, 2022

3: Accountability for Information Security Roles and Responsibilities, Part 1, ISACA Journal, Volume 5, 2019

4: Risk IT Framework, ISACA, 2009

The primary focus of a risk practitioner when validating a risk response action plan should be that the risk response reduces risk to an acceptable level. A risk response action plan is a document that describes the actions or measures that are taken or planned to modify the risk, such as reducing, avoiding, transferring, or accepting the risk1. Validating a risk response action plan means verifying whether the plan is feasible, effective, and efficient in addressing the risk2. The main objective of validating a risk response action plan is to ensure that the risk response reduces risk to an acceptable level, which is the level of risk that the organization is willing to tolerate or bear, based on its risk appetite and risk criteria3. Reducing risk to an acceptable level means that the risk response actions can lower the likelihood or impact of the risk to a point where the risk does not pose a significant threat or challenge to the organization’s objectives, operations, or performance. Reducing risk to an acceptable level also means that the risk response actions can balance the benefits and costs of the risk response, and that they can provide a reasonable assurance of the risk management effectiveness and efficiency4. The other options are not the primary focus of a risk practitioner when validating a risk response action plan, as they are either less relevant or less specific than reducing risk to an acceptable level. Quantifying risk impact is a component or element of validating a risk response action plan, notafocus of it. Quantifying risk impact means measuring or estimating the potential effects or consequences of the risk on the organization5. Quantifying risk impact can help to evaluate the severity and priority of the risk, as well as to compare the risk against the risk criteria and the risk appetite. However, quantifying risk impact is not the primary focus of a risk practitioner when validating a risk response action plan, as it does not address the feasibility, effectiveness, or efficiency of the risk response actions, or the level of risk reduction that they can achieve. Aligning with business strategy is a secondary or incidental benefit of validating a risk response action plan, not a primary or essential focus of it. Aligning with business strategy means ensuring that the risk response actions are consistent and coherent with the organization’s goals and values6. Aligning with business strategy can help to integrate the risk response actions with the organization’s culture and governance, as well as to support and enable the achievement of the organization’s mission and vision. However, aligning with business strategy is not the main focus of a risk practitioner when validating a risk response action plan, as it does not indicate the feasibility, effectiveness, or efficiency of the risk response actions, or the level of risk reduction that they can achieve. Advancing business objectives is a tertiary or indirect outcome of validating a risk response action plan, not a primary or direct focus of it. Advancing business objectives means contributing to the improvement and enhancement of the organization’s performance and results7. Advancing business objectives can help to create value and deliver benefits for the organization and its stakeholders, as well as to optimize the use of the organization’s resources and capabilities. However, advancing business objectives is not the main focus of a risk practitioner when validating a risk response action plan, as it does not address the feasibility, effectiveness, or efficiency of the risk response actions, or the level of risk reduction that they can achieve. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.8, Page 61.

The primary reason for periodically monitoring key risk indicators (KRIs) is to detect changes in the risk profile of the enterprise. KRIs are metrics that provide information on the level of exposure to a specific risk or a group of risks. By monitoring KRIs, the enterprise can identifyany deviations from the expected risk level, and take appropriate actions to adjust the risk response or the risk appetite. Monitoring KRIs also helps to validate the effectiveness of risk mitigation controls and the accuracy of risk assessments. Rectifying errors in results of KRIs, reducing costs of risk mitigation controls, and continually improving risk assessments are possible benefits of monitoring KRIs, but they are not the primary reason. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.1.1.2, page 175.

The most important factor when assessing the risk of allowing users to access company data from their personal devices is the classification of the data, as it indicates the level of sensitivity, confidentiality, and criticality of the data. Data classification helps to determine the appropriate level of protection and controls that are needed to prevent unauthorized access, disclosure, modification, or loss of the data. Data classification also helps to define the roles and responsibilities of the data owners, custodians, and users, and the acceptable use of the data. The other options are not the most important factors, although they may be relevant or influential in the risk assessment. The type of device may affect the security features and vulnerabilities of the device, but it does not determine the value or impact of the data. The remote management capabilities may affect the ability to monitor, control, or wipe the device in case of theft or loss, but they do not reflect the nature or purpose of the data. The volume of data may affect the storage capacity or performance of the device, but it does not indicate the importance or significance of the data. References = What is BYOD (Bring-Your-Own-Device) - CrowdStrike; Understanding BYOD Policy - Get Certified Get Ahead; Addressing cyber security concerns on employees’ personal devices; Personal Devices at Work – Nonprofit Risk Management Center; 10 Keys to an Effective BYOD and Remote Access Policy

 The control owner is the person who has the authority to approve an exception to a control. A control is a policy, procedure, or technical measure that is implemented to prevent or mitigate a risk. A control owner is responsible for the design, implementation, operation, and maintenance of the control, as well as for monitoring and reporting its performance and effectiveness. A control owner is also accountable for the approval of any changes or exceptions to the control, based on the risk assessment and business justification. An information security manager, a risk owner, and a risk manager are not the best choices, as they do not have the same level of authority, responsibility, and knowledge as the control owner in relation to the control. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 35.

The IT control environment is the set of standards, processes, and structures that provide the basis for carrying out IT internal control across the organization1. The IT control environment comprises the IT governance, IT policies and procedures, IT organizational structure, IT roles and responsibilities, IT competencies and training, and IT culture and ethics2. The effectiveness of the IT control environment can be measured by how well it supports the achievement of the organization’s IT objectives, such as IT reliability, security, compliance, and performance3.

One of the best ways to provide the most up-to-date information about the effectiveness of the organization’s overall IT control environment is to perform periodic penetrationtesting. Penetration testing is the process of simulating real-world cyberattacks on the organization’s IT systems, networks, and applications, to identify and exploit any vulnerabilities, weaknesses, or gaps in the IT control environment4. Penetration testing can help to:

Evaluate the current state and maturity of the IT control environment and its alignment with the organization’s risk appetite and tolerance

Detect and prioritize the most critical and urgent IT risks and threats that may compromise the organization’s IT objectives or assets

Test and validate the effectiveness and efficiency of the existing IT controls and their ability to prevent, detect, or respond to cyberattacks

Provide recommendations and feedback for improving the IT control environment and enhancing the IT security posture and resilience of the organization

References = COSO – Control Environment - Deloitte, How to use COSO to assess IT controls - Journal of Accountancy, What is Penetration Testing?, [Penetration Testing: A Guide for Business Leaders]

An IT risk threat analysis is best used to establish risk scenarios. A risk scenario is a description of a possible event or situation that may affect the achievement of the IT objectives. A riskscenario consists of three elements: a threat, a vulnerability, and an impact. A threat is a potential cause of an unwanted incident. A vulnerability is a weakness or flaw that can be exploited by a threat. An impact is the consequence or effect of the incident on the IT objectives. An IT risk threat analysis is a technique that identifies and evaluates the threats that may pose a risk to the IT assets and processes. An IT risk threat analysis can help to establish risk scenarios by providing the information and context for the threat element of the risk scenario. The other options are not as directly related to an IT risk threat analysis, as they are related to the outcomes, measures, or responsibilities of the IT risk management process, not the inputs or sources of the IT risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.

The most important factor for sustainable development of secure IT services is security training for systems development staff. Security training helps to ensure that the staff members are aware of the security risks, requirements, and best practices that affect the IT services they develop. Security training also helps to improve the security skills and knowledge of the staff members,and to foster a security culture and behavior within the development team. Security training can also help to prevent or reduce security defects, vulnerabilities, or incidents in the IT services, and to enhance the security performance and quality of the IT services. Well-documented business cases, security architecture principles, and secure coding practices are also important factors for sustainable development of secure IT services, but they are not as important as security trainingfor systems development staff. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.1.1.2, page 2291

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 653.

A business continuity plan (BCP) is a document that describes the procedures and actions that an organization will take to ensure the continuity of its critical functions and operations in the event of a disruption or disaster12.

Testing a business continuity plan is a method of evaluating the effectiveness and readiness of the BCP, and identifying and addressing any gaps or weaknesses in the plan34.

The most cost-effective way to test a business continuity plan is to conduct a tabletop exercise, which is a type of simulation that involves gathering the key stakeholders and participants of the BCP, and discussing and reviewing the roles, responsibilities, and actions that they will take in response to a hypothetical scenario of a disruption or disaster56.

A tabletop exercise is the most cost-effective way because it requires minimal resources and time, and can be conducted in a regular meeting room or online platform56.

A tabletop exercise is also the most cost-effective way because it provides a high-level overview and assessment of the BCP, and can identify and address the major issues or challenges that may arise in the implementation of the plan56.

The other options are not the most cost-effective ways, but rather possible alternatives or supplements that may have different levels of complexity or cost. For example:

Conducting interviews with key stakeholders is a way of testing a business continuity plan that involves asking and answering questions about the BCP, and collecting feedback and suggestions from the people who are involved or affected by the plan78. However, this way is not the most cost-effective because it may not cover all the aspects or scenarios of the BCP, and may not facilitate the interaction or collaboration among the stakeholders78.

Conducting a disaster recovery exercise is a way of testing a business continuity plan that involves activating and executing the BCP in a realistic and controlled environment, and measuring the outcomes and impacts of the plan . However, this way is not the most cost-effective because it requires a lot of resources and time, and may disrupt or interfere with the normal operations of the organization .

Conducting a full functional exercise is a way of testing a business continuity plan that involves simulating and testing the BCP in a live and dynamic environment, and involving the external entities and stakeholders that are part of the plan . However, this way is not the most cost-effective because it requires the most resources and time, and may pose the highest risk or challenge to the organization . References =

1: Business Continuity Plan (BCP) Definition1

2: Business Continuity Planning - Ready.gov2

3: Testing, testing: how to test your business continuity plan4

4: Comprehensive Guide to Business Continuity Testing | Agility5

5: How to Conduct a Tabletop Exercise for Business Continuity3

6: Tabletop Exercises: A Guide to Success6

7: How to Conduct Testing of a Business Continuity Plan7

8: Business Continuity Plan Testing: Interviewing Techniques8

Disaster Recovery Testing: A Step-by-Step Guide

Disaster Recovery Testing Scenarios: A Guide to Success

Functional Exercises: A Guide to Success

Functional Exercise Toolkit

The most significant risk to an organization when updating the incident response plan is the undefined assignment of responsibility. An incident response plan is a document that defines the roles, responsibilities, procedures, and resources for responding to an incident that could disrupt the normal operations of the organization, or compromise its assets, reputation, or compliance. An incident response plan should clearly assign the responsibility for each task and activity involved in the incident response process, such as detection, containment, analysis, eradication, recovery, and reporting. Undefined assignment of responsibility could lead to confusion, duplication, conflict, or omission among the stakeholders, and impair the effectiveness and efficiency of the incident response process. Undefined assignment of responsibility could also increase the risk of escalation, recurrence, or impact of the incident, and affect the accountability and performance of the organization. Obsolete response documentation, increased stakeholder turnover, and failure to audit third-party providers are also risks, but they are not as significant as undefined assignment of responsibility, as they do not directly affect the execution and outcome of the incident response process. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 130.

Restricting access to the risk register on a need-to-know basis is important because it contains vulnerabilities and threats that could expose the organization to potential harm or loss if they are disclosed or exploited by unauthorized parties. The risk register is a tool that captures and documents the risk identification, analysis, evaluation, and treatment processes1. The risk register contains sensitive information such as the sources and causes of risk, the potential impacts and consequences of risk, the likelihood and frequency of risk occurrence, and the risk response actions and plans1. If this information is accessed by unauthorized parties, such as competitors, hackers, or malicious insiders, they could use it to launch attacks, sabotageoperations, or gain an unfair advantage over the organization. Therefore, access to the risk register should be limited to those who have a legitimate need and authorization to view, modify, or use the information, such as the risk owners, managers, or practitioners

The best way to prevent technical vulnerabilities from being exploited is to update the software with the latest patches and updates. Patches and updates are software modifications that fix the known bugs, errors, or flaws in the software. They also improve the performance, functionality, and security of the software. By updating the software with the latest patches and updates, the company can reduce the exposure and likelihood of the technical vulnerabilities, and protect the software from potential attacks or exploits. The other options are not as effective as updating the software with the latest patches and updates, as they are related to the quality assurance, legal protection, or error handling of the software, not the prevention or mitigation of the technical vulnerabilities. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

The primary reason for a risk practitioner to report changes and trends in the IT risk profile to senior management is to ensure that IT risk is managed within acceptable limits, because it helps to inform and advise the senior management on the current state and direction of IT risk, and to support the risk-based decision making and prioritization. An IT risk profile is a summary of the key IT risks that an organization faces, and their implications for the organization’s objectives and strategy. An IT risk profile may change or evolve over time, due to factors such as newtechnologies, business initiatives, or external events. Reporting changes and trends in the IT risk profile to senior management is the primary reason, as it helps to ensure that the senior management is aware of and prepared for the IT risk challenges and opportunities, and that the IT risk is managed within the acceptable limits defined by the organization’s risk appetite and tolerance. To ensure risk owners understand their responsibilities, to ensure the organization complies with legal requirements, and to ensure the IT risk awareness program is effective are all possible reasons for reporting changes and trends in the IT risk profile, but they are not the primary reason, as they are not directly related to the management of IT risk within acceptable limits. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.3, page 91

Control ownership is the assignment of roles and responsibilities for the design, implementation, monitoring, and improvement of controls that mitigate risks. Control ownership can help ensure that the controls are effective, efficient, and aligned with the business objectives and risk appetite. Control ownership can also help facilitate the communication, coordination, and accountability among the stakeholders involved in the risk management process. One of the factors that would present the greatest challenge when assigning accountability for control ownership is unclear reporting relationships. Reporting relationships are the formal or informal lines of authority and communication that define who reports to whom, and who is accountable for what. Unclear reporting relationships can create confusion, ambiguity, and conflict among the control owners and other stakeholders, such as the risk owners, the business owners, the auditors, the regulators, etc. Unclear reporting relationships can also hinder the performance evaluation, feedback, and recognition of the control owners, and affect their motivation and commitment. Unclear reporting relationships can also increase the risk of duplication, inconsistency, or gaps in the control activities, and compromise the quality and reliability of the control environment. References = Defining, Assigning and Measuring: Accountability Challenges in 21st Century Governance, CRISC 351-400 topic3, Foundations of Project Management : Week 2.

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

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

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

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

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

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

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

Encryption - ISACA

Cloud Encryption: Using Data Encryption in The Cloud

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

Field-Level Encryption - ISACA

[CRISC Review Manual, 7th Edition]

Externally sourced policies must be relevant and applicable to the organization's specific operations. Without operational applicability, policies offer little control value—even if they're up-to-date or legally compliant per ISACA practice domains.

An independent security audit report is a document that provides an objective and comprehensive assessment of the security posture and practices of a cloud service provider (CSP), based on a set of standards, criteria, or frameworks1. An independent security audit report can help an organization to evaluate the risks and benefits of using a CSP, and to ensure that the CSP meets the organization’s security and compliance requirements2.

If an organization receives an independent security audit report of its CSP that indicates significant control weaknesses, the next step that should be done in response to this report is to analyze the impact of the provider’s control weaknesses to the business. This means that the organization should:

Identify and prioritize the business processes, functions, or objectives that depend on or are affected by the CSP’s services

Assess the potential consequences and likelihood of the control weaknesses leading to security incidents, breaches, or losses

Estimate the financial, operational, reputational, or legal impacts of the security incidents, breaches, or losses

Compare the impacts with the organization’s risk appetite and tolerance, and determine the level of risk exposure and acceptance

Communicate the results of the analysis to the relevant stakeholders and decision-makers3

References = What is a Security Audit?, Cloud Security Audit: A 10-Step Checklist, Independent security audits are essential for cloud service providers. Here’s why

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

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

 Check totals are IT controls that verify the accuracy and completeness of data by comparing the sum or count of data records or data fields with a predetermined or expected value. Check totals can help detect and prevent errors, omissions, or alterations in data entry, processing, or transmission. Check totals can also help identify and correct data discrepancies or anomalies. Therefore, check totals are the most useful IT controls in mitigating the risk associated with inaccurate data. The other options are not the best answers because they do not directly address the risk of inaccurate data. Encrypted storage of data is an IT control that protects the confidentiality and integrity of data by preventing unauthorized access or modification. However, encryption does not ensure the accuracy or validity of the data itself. Links to source data are IT controls that provide traceability and transparency of data by allowing users to access or view the original data from which the derived or aggregated data is obtained. However, links to source data do not verify or correct the data quality or consistency. Audit trails for updates and deletions are IT controls that record thehistory and changes of data by capturing the date, time, user, and action performed on the data. Audit trails can help monitor and review the data activities and transactions, but they do not prevent or detect the data errors or inaccuracies. References = CRISC Review Manual, pages 164-1651; CRISC Review Questions, Answers & Explanations Manual, page 722

Conducting interviews with senior management is the best method for determining an enterprise’s current appetite for risk, because it helps to obtain the direct and qualitative input and feedback from the senior management on their expectations and preferences regarding thelevel and type of risk that the enterprise is willing to accept or pursue, in relation to its objectives and strategy. Risk appetite is the amount and nature of risk that an enterprise is willing to take in order to achieve its objectives and create value. Risk appetite is influenced by factors such as the enterprise’s culture, values, vision, mission, and strategy, as well as the externalenvironment and stakeholders. Risk appetite may vary depending on the context and situation, and may change over time. Conducting interviews with senior management is the best method, as it helps to understand and capture the current and explicit risk appetite of the enterprise, and to align the risk management process and activities with the senior management’s risk vision and direction. Conducting comparative analysis of peer companies, reviewing brokerage firm assessments, and performing trend analysis using prior annual reports are all possible methods for determining an enterprise’s current appetite for risk, but they are not the best method, as they may provide only indirect, quantitative, or historical information, and may not reflect the current and specific risk appetite of the enterprise. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 45

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

 The most important thing to do when establishing an enterprise IT risk management program is to review the alignment with the organization’s strategy. The organization’s strategy is the plan or direction that the organization follows to achieve its vision, mission, and goals. The IT risk management program should be aligned with the organization’s strategy, so that it supports and enables the organization’s strategic objectives, and addresses the IT risks that could affect the organization’s performance and value. Reviewing the alignment with the organization’s strategy helps to ensure that the IT risk management program is relevant, effective, and consistent with the organization’s expectations and needs. The other options are not as important as reviewing the alignment with the organization’s strategy, although they may be useful or necessary steps or components of the IT risk management program. Understanding the organization’s information security policy, validating the organization’s data classification scheme, and reporting identified IT risk scenarios to senior management are all activities that can help to implement and improvethe IT risk management program, but they are not the initial or primary thing todo. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 2-12.

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

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

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

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

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

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

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

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

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

1: Risk IT Framework, ISACA, 2009

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

3: The Control Process | Principles of Management4

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

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

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

Effective risk governance requires senior management to have a clear understanding of business risks and the associated ownership. This understanding enables them to make informed decisions, allocate resources appropriately, and establish accountability for risk management activities throughout the organization.

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

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

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

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

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

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

[Change and Configuration Management - ISACA]

Using a common risk taxonomy is the most important factor to consider when creating a separate IT risk register for a large organization with regard to the existing corporate risk register, as it ensures consistency, clarity, and alignment of the IT risk identification, classification, and reporting with the corporate risk management framework and strategy. Leveraging business risk professionals, relying on generic IT risk scenarios, and describing IT risk in business terms are not the most important factors, as they are more related to the resources, inputs, or outputs of the IT risk register, respectively, rather than the structure or format of the IT risk register. References = CRISC Review Manual, 7th Edition, page 100.

According to the Risk and Information Systems Control Study Manual, residual risk is the risk that remains after the implementation of risk responses. Residual risk is most commonly compared against the risk appetite, which is the amount of risk that an organization is willing to accept to achieve its objectives. By comparing the residual risk with the risk appetite, the organization can determine if the risk response is adequate and effective, or if additional actionsare needed to reduce the risk to an acceptable level. Residual risk should be monitored and reported regularly to ensure that it stays within the risk appetite. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.3.1, Page 222. A Comprehensive Guide to Risk Appetite and Risk Tolerance

The best course of action for a system administrator who suspects a colleague may be intentionally weakening a system’s validation controls in order to pass through fraudulent transactions is B. Share the concern through a whistleblower communication channel1

According to the CRISC Review Manual, a whistleblower communication channel is a mechanism that allows employees to report suspected fraud or unethical behavior without fear of retaliation or reprisal. A whistleblower communication channel is part of an effective fraud detection and prevention framework, and it helps to promote a culture of integrity and accountability within the organization2

The other options are not as effective or appropriate as sharing the concern through a whistleblower communication channel, because:

•A. Implementing compensating controls to deter fraud attempts may not address the root cause of the problem, and it may also create additional complexity and cost for the system. Moreover, it may not prevent the colleague from finding other ways to bypass the controls or collude with external parties.

•C. Monitoring the activity to collect evidence may expose the system administrator to legal or ethical risks, especially if the monitoring is done without proper authorization or due process. Itmay also delay the reporting and resolution of the issue, and potentially allow more fraudulent transactions to occur.

•D. Determining whether the system environment has flaws that may motivate fraud attempts may be useful for understanding the context and the factors that contribute to the fraud risk, but it does not address the immediate concern of reporting the suspected fraud. It may also imply that the system administrator is trying to justify or rationalize the colleague’s behavior, rather than holding them accountable.

1: CRISC Review Questions, Answers & Explanations Database, Question ID: 100002 2: CRISC Review Manual, 7th Edition, page 224

A risk register is a tool that records and tracks the information about the identified risks, such as the risk description, category, owner, probability, impact, response strategy, status, and action plan. The most important consideration for effectively maintaining a risk register is to update it frequently, as the risk environment is dynamic and subject to change. By updating the risk register regularly, an organization can ensure that the risk information is current, accurate, and relevant, and that the risk responses are timely, appropriate, and effective. References = CRISC Review Manual, 7th Edition, page 99.

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

According to the CRISC Review Manual (Digital Version), the organization’s culture is the most important factor affecting risk management in an organization, as it influences the riskawareness, risk attitude, risk behavior and risk communication of all stakeholders. The organization’s culture is defined as the shared values, beliefs, norms and expectations that guide the actions and interactions of the members of the organization. The organization’s culture affects how risk management is perceived, supported, implemented and integrated within the organization. A strong risk culture is one that:

Aligns with the organization’s vision, mission, strategy and objectives

Promotes a common understanding of risk and its implications for the organization

Encourages the identification, assessment, response and monitoring of risks at all levels

Fosters a proactive, collaborative and transparent approach to risk management

Empowers and rewards the stakeholders for taking ownership and accountability of risks

Enables continuous learning and improvement of risk management capabilities and maturity

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.3: IT Risk Culture, pp. 23-251

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

The most effective way to limit the impact of a ransomware attack is to have data backups. Data backups are copies of the data that are stored in a separate location or device, and can be used to restore the data in case of a loss or corruption. Data backups can help to recover the data that is encrypted or deleted by the ransomware, and to avoid paying the ransom to the attackers. Data backups also help to reduce the downtime and disruption caused by the ransomware attack, and to maintain the business continuity and availability of the data. Cyber insurance, cryptocurrency reserve, and end user training are not the most effective ways to limit the impact of a ransomware attack, as they may not prevent or recover the data loss, and may incur additional costs or risks for the enterprise. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.1.1.1, page 2281

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 657.

When reviewing a report on the performance of control processes, it is most important to verify whether the residual risk objectives have been achieved, as this indicates the extent to which the control processes have reduced the risk to an acceptable level. Residual risk is the risk that remains after the implementation of controls, and it should be aligned with the risk appetite and tolerance of the enterprise. Business process objectives, regulatory standards, and control process design are not the most important factors to verify,as they do not directly measure the effectiveness and efficiency of the control processes in managing the risk. References = CRISCPractice Quiz and Exam Prep; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 209.

 Understanding the Question:

The question is about mitigating the impact of social engineering attacks that use AI technology to impersonate senior management personnel.

 Analyzing the Options:

A. Training and awareness of employees for increased vigilance:This is the most proactive approach. Educating employees about the risks and signs of social engineering attacks enhances their ability to recognize and respond appropriately to such threats.

B. Increased monitoring of executive accounts:Useful but reactive; it doesn't prevent initial attempts.

C. Subscription to data breach monitoring sites:Helps detect breaches but doesn’t directly mitigate impersonation attacks.

D. Suspension and takedown of malicious domains or accounts:Reactive measure and might not be immediate or comprehensive.



Importance of Training:Employees are often the first line of defense against social engineering attacks. Regular training ensures they are aware of the tactics used in such attacks, including those leveraging AI, and how to respond effectively.

Proactive Measure:Training increases vigilance and the likelihood of early detection, reducing the potential impact of the attack.

A risk register is a document that records and tracks the information and status of the identified risks and their responses. It includes the risk description, category, source, cause, impact, probability, priority, response, owner, action plan, status, etc.

A risk scenario is a description or representation of a possible or hypothetical situation or event that may cause or result in a risk for the organization. A risk scenario usually consists of three elements: a threat or source of harm, a vulnerability or weakness, and an impact or consequence.

Multiple risk practitioners are the individuals or groups that are involved or responsible for the identification, analysis, evaluation, and communication of the risks and their responses. They may include the risk owners, risk managers, risk analysts, risk consultants, risk auditors, etc.

A single risk register is a risk register that is shared or used by multiple risk practitioners across the organization, and that contains the information and status of all the risks and their responses that are relevant or applicable to the organization.

The most important consideration when multiple risk practitioners capture risk scenarios in a single risk register is using a consistent method for risk assessment, which is the process of determining the significance and urgency of the risks that may affect the organization’s objectives and operations. Risk assessment involves measuring and comparing the likelihood and impact of various risk scenarios, and prioritizing them based on their magnitude and importance.

Using a consistent method for risk assessment when multiple risk practitioners capture risk scenarios in a single risk register ensures that the risk scenarios are captured and recorded in a uniform and standardized way, and that they are comparable and compatible with each other. It alsohelps to avoid or reduce the inconsistencies, discrepancies, or conflicts that may arise from the different perspectives, assumptions, or judgments of the multiple risk practitioners, and to ensure the accuracy, reliability, and validity of the risk register.

The other options are not the most important considerations when multiple risk practitioners capture risk scenarios in a single risk register, because they do not address the main challenge or issue that may arise from the multiple risk practitioners capturing risk scenarios in a single risk register, which is the lack of consistency or standardization in the risk assessment method.

Aligning risk ownership and control ownership means ensuring that the individuals or groups that are accountable and responsible for the risks and their responses are clearly defined and assigned, and that they have the authority and resources to perform their roles and duties. Aligning risk ownership and control ownership is important when multiple risk practitioners capture risk scenarios in a single risk register, but it is not the most important consideration, because it does not ensure that the risk scenarios are captured and recorded in a uniform and standardized way, and that they are comparable and compatible with each other.

Developing risk escalation and reporting procedures means establishing and implementing the processes and guidelines for communicating and sharing the information and status of the risks and their responses among the relevant stakeholders, and for escalating or transferring the risks and their responses to the appropriate levels or parties when necessary or required. Developing risk escalation and reporting procedures is important when multiple risk practitioners capture riskscenarios in a single risk register, but it is not the most important consideration, because itdoes not ensure that the risk scenarios are captured and recorded in a uniform and standardized way, and that they are comparable and compatible with each other.

Maintaining up-to-date risk treatment plans means updating and revising the actions or plans that are selected and implemented to address or correct the risks and their responses, based on the changes or developments that may occur in the risk environment or performance. Maintaining up-to-date risk treatment plans is important when multiple risk practitioners capture risk scenarios in a single risk register, but it is not the most important consideration, because it does not ensure that the risk scenarios are captured and recorded in a uniform and standardized way, and that they are comparable and compatible with each other. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 178

CRISC Practice Quiz and Exam Prep

The most important thing to include in a risk assessment of an emerging technology is the impact and likelihood ratings of the risks associated with the technology. Impact and likelihood ratings are the measures of the potential consequences and probabilities of the risk events that could affect the achievement of the enterprise’s objectives. Impact and likelihood ratings can help to evaluate the level andnature of the risk exposure, and to prioritize the risks for further analysis and response. Impact and likelihood ratings can also help to communicate the risk profile and appetite of the enterprise, and to support the risk-based decision making. Risk response plans, risk and control ownership, and key controls are not as important as impact and likelihood ratings, as they are the outputs or outcomes of the risk assessment process, and not the inputs or components of the risk assessment process. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 49.

The best indicator of the risk appetite and tolerance level for the risk associated with business interruption caused by IT system failures is the recovery time objective (RTO). The RTO is the maximum acceptable time or duration that a business process or an IT system can be disrupted or interrupted before it causes unacceptable impact or harm to the business. The RTO reflects the risk appetite and tolerance level for thebusiness interruption risk, as it indicates how much disruption or interruption the business can tolerate or accept, and how quickly the business needs to resume or recover the business process or the IT system. The RTO also helps to determine the priorities and requirements for the business continuity and recovery planning, and to select and implement the appropriate continuity and recovery strategies and solutions. Mean time to recover(MTTR), IT system criticality classification, and incident management service level agreement (SLA) are not the best indicators of the risk appetite and tolerance level for the business interruption risk, as they are either the measures or the outcomes of the business continuity and recovery performance, and they do not directly indicate how much disruption or interruption the business can tolerate or accept. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 50

 Performing a post-implementation review is the best way to confirm whether appropriate automated controls are in place within a recently implemented system, as it helps to evaluate the effectiveness and efficiency of the system and its controls after they have been deployed and operationalized. A post-implementation review is a process of assessing and validating the system and its controls against the predefined criteria and objectives, such as functionality, performance, security, compliance, and user satisfaction. A post-implementation review can help to confirm whether appropriate automated controls are in place within a recently implemented system by providing the following benefits:

It verifies that the system and its controls meet the design specifications and standards, and comply with the relevant laws, regulations, and contractual obligations.

It identifies and measures the actual or potential benefits and value of the system and its controls, such as improved efficiency, reliability, or quality.

It detects and analyzes any issues, gaps, or weaknesses in the system and its controls, such as errors, inconsistencies, or vulnerabilities.

It provides recommendations and action plans to address the identified issues, gaps, or weaknesses, and to improve or enhance the system and its controls.

It communicates and reports the results and findings of the review to the relevant stakeholders, and solicits their feedback and suggestions.

The other options are not the best ways to confirm whether appropriate automated controls are in place within a recently implemented system. Conducting user acceptance testing is an important step to ensure that the system and its controls meet the user requirements and expectations, but it is usually performed before the system is implemented and operationalized, and it may not cover all aspects of the system and its controls. Reviewing the key performance indicators (KPIs) is a useful method to measure and monitor the performance of the system and its controls, but it may not provide a comprehensive or objective evaluation of the system and its controls. Interviewing process owners is a possible technique to collect and analyze information on the system and its controls, but it may not provide sufficient or reliable evidence to confirm the appropriateness of the system and its controls. References = Post-Implementation Review: The Key to a Successful Project, IT Risk Resources | ISACA, Post Implementation Review (PIR) - Project Management Knowledge

From a risk management perspective, the primary benefit of using automated system configuration validation tools is that they reduce the inherent risk, which is the risk that exists before any controls are applied. Automated system configuration validation tools can help to ensure that the system settings are consistent, compliant, and secure, and that they match the predefined standards and policies. This can reduce the likelihood and impact of errors, misconfigurations, vulnerabilities, or deviations that may compromise the system’s functionality, performance, or integrity. The other options are not the primary benefits of using automated system configuration validation tools, although they may be secondary benefits or outcomes of doing so. Residual risk is the risk that remains after the controls are applied, and it may not be directly affected by the automated system configuration validation tools. Staff costs and operational costs are related to the efficiency and economy of the system configuration process, but they are not the main risk management objectives. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk Response, page 150.

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

An effective risk management program is a systematic and consistent process of identifying, analyzing, evaluating, treating, monitoring, and communicating risks that may affect the achievement of the organization’s objectives12.

The best indication of an effective risk management program is that the residual risk, which is the risk remaining after risk treatment, is within the organizational risk appetite, which is the amount and type of risk that the organization is willing to accept in pursuit of its objectives12.

This indicates that the organization has successfully implemented appropriate risk responses that align with its risk strategy and criteria, and that the organization is able to balance the potential benefits and costs of taking risks12.

The other options are not the best indication, but rather components or outcomes of an effective risk management program. For example:

Risk action plans are approved by senior management is an outcome of an effective risk management program that demonstrates the commitment and accountability of the leadership for risk management12.

Mitigating controls are designed and implemented is a component of an effective risk management program that involves reducing the likelihood or impact of a risk event12.

Risk is recorded and tracked in the risk register is a component of an effective risk management program that involves documenting and updating the risk information and status12. References =

1: Risk IT Framework, ISACA, 2009

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

The impact to affected stakeholdersis the most critical factor when considering risks tied to re-identification. ISACA notes that risk is ultimately measured by how it affects stakeholders—including customers, partners, and regulators—particularly when personal data is involved.

===========

Requiring a risk assessment with change requests is the most effective way to integrate business risk management with IT operations because it ensures that any changes to the IT environment are aligned with the business objectives and risk appetite. A risk assessment with change requests involves identifying, analyzing, evaluating, and treating the potential risks that may arise from the proposed changes, as well as monitoring and reviewing the outcomes of the changes. This way, the IT operations can support the business goals and mitigate the IT risks in a proactive and consistent manner. References = Risk and Information Systems Control Study Manual, Chapter 3: Risk Response and Mitigation, Section 3.2: Change Management, pp. 121-1231

Read rights: The permission to view or access the content of a file or a folder1.

Application files: The files that contain the code, data, or resources of an application or a program2.

Controlled server environment: A server environment that is managed and secured by a set of policies, procedures, and tools3.

Business process owner: The person who is responsible for the design, execution, and performance of a business process.

Read rights to application files in a controlled server environment should be approved by the business process owner. The business process owner is the person who has the authority and accountability for the business process that uses or depends on the application files. The businessprocess owner should approve the read rights to application files in a controlled server environment to:

Ensure that the read rights are aligned with the business needs and objectives

Prevent unauthorized or unnecessary access to the application files

Protect the confidentiality, integrity, and availability of the application files

Comply with the relevant laws and regulations that govern the access to the application files

The other options are not the best choices for approving the read rights to application files in a controlled server environment, because they do not have the same level of authority, responsibility, or knowledge as the business process owner. The database administrator, who is the person who manages and maintains the database systems and data, may have the technical skills and access to grant the read rights to application files, but they may not have the business insight or approval to do so. The chief information officer, who is the person who oversees the IT strategy and operations of the organization, may have the executive power and oversight to approve the read rights to application files, but they may not have the specific or detailed knowledge of the business process or the application files. The systems administrator, who is the person who configures and maintains the server systems and networks, may have the administrative privileges and tools to grant the read rights to application files, but they may not have the business understanding or authorization to do so.

References = Read Permission - an overview | ScienceDirect Topics, What is an Application File? - Definition from Techopedia, What is a Server Environment? - Definition from Techopedia, [Business Process Owner: Definition, Roles, and Responsibilities]

 The most important consideration when implementing ethical remote work monitoring is to inform the employees of how they are being monitored, because this respects their privacy rights and expectations, and ensures their consent and compliance with the monitoring policy. Informing the employees of how they are being monitored also helps to build trust and transparency between the employer and the employees, and reduces the potential legal or ethical issues that may arise from the monitoring activities. The other options are not the most important considerations, although they may also be relevant for ethical remote work monitoring. Monitoring only during official hours of business, reporting on nonproductive employees to management, and integrating multiple data monitoring sources into security incident response procedures are examples of operational or technical aspects of remote work monitoring,notethical aspects. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

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

Risk mitigation is most effective when the residual risk is optimized, as it means that the risk exposure and impact have been reduced to the level that is aligned with the risk tolerance and appetite of the organization, and that the risk response is cost-effective and optimal. The other options are not the factors that determine the effectiveness of risk mitigation, as they are more related to the types or sources of risk, respectively, rather than the level or outcome of risk. References = CRISC Review Manual, 7th Edition, page 111.

The average time to provision user accounts is the most useful indicator to measure the efficiency of an identity and access management (IAM) process, because it reflects how quickly and smoothly the process can grant access to the appropriate users. The average time to provision user accounts can be calculated by dividing the total time spent on provisioning user accounts by the number of user accounts provisioned in a given period. A lower average time indicates a more efficient IAM process, as it means that users can access the resources they need without unnecessary delays or errors. A higher average time may indicate problems or bottlenecks in the IAM process, such as manual steps, complex workflows, lack of automation, or insufficient resources. The average time to provision user accounts can also be compared across different applications, systems, or business units to identify areas for improvement or best practices. The other options are less useful indicators to measure the efficiency of an IAM process. The number of tickets for provisioning new accounts shows the demand for the IAM process, but not how well the process meets the demand. The password reset volume per month shows the frequency of password-related issues, but not how effectively the IAM process handles them. The average account lockout time shows the impact of account lockouts on user productivity, but not howefficiently the IAM process prevents or resolves them. References = Top Identity and Access Management Metrics 

 A source code review is the process of examining and analyzing the source code of an application to identify any vulnerabilities, errors, or flaws that may compromise the security, functionality, or performance of the application. A source code review is the most effective way to identify an application backdoor prior to implementation, as it can detect any hidden or unauthorized code that may allow unauthorized access, bypass security controls, or execute malicious commands. A source code review can also help to improvethe quality and reliability of the application, and ensure compliance with the coding standards and best practices. References = CRISC Review Manual, 7th Edition, page 181.

Data confidentiality risk is the risk that the data may be accessed, disclosed, or modified by unauthorized parties, resulting in breaches of privacy, trust, or compliance1. Platform as a Service (PaaS) is a cloud computing model that provides a platform for developing, testing, and deploying applications, without requiring the users to manage the underlying infrastructure2. An internally developed payroll application is an application that is created and maintained by the organization itself, rather than by a third-party vendor, and that is used to process and manage the payroll data of the organization’s employees3. The owner of the data confidentiality risk is the person or entity that has the authority and accountability for the data and its protection, and that is responsible for identifying, assessing, and mitigating the risk. The owner of the data confidentiality risk related to an internally developed payroll application that leverages PaaS infrastructure from the cloud is the human resources head, as they are the person who oversees the human resources function and the payroll data of the organization. The human resources head has the best understanding of the sensitivity, value, and usage of the payroll data, and the potential impacts and implications of a data confidentiality breach. The human resources head also has the ability and responsibility to define and implement the policies, procedures, and controls that are necessary to protect the payroll data, and to monitor and report on the performance and compliance of the data confidentiality risk management. The IT infrastructure head, the supplier management head, and the application development head are not the best choices for owning the data confidentiality risk related to an internally developed payrollapplication that leverages PaaS infrastructure from the cloud, as they do not have the same level of authority and accountability as the human resources head. The IT infrastructure head is the person who oversees the IT infrastructure function and the PaaS infrastructure of the organization. The IT infrastructure head may be involved in providing input and feedback to the human resources head on the data confidentiality risk management, especially those related to the PaaS infrastructure, but they do not have the final say or the overall responsibility for the payroll data and its protection. The supplier management head is the person who oversees the supplier management function and the relationship with the cloud service provider that provides the PaaS infrastructure. The supplier management head may be involved in negotiating and enforcing the service level agreements and the security requirements with the cloud service provider, but they do not have the authority or the expertise to manage the data confidentiality risk of the payroll data. The application development head is the person who oversees the application development function and the development, testing, and deployment of the payroll application. The application development head may be involved in designing and implementing the security features and controls of the payroll application, but they do not have the perspective or the influence to manage the data confidentiality risk of the payroll data. References = 3: Payroll Software: What Is It & How Does It Work? | QuickBooks2: What is Platform as a Service (PaaS)? | IBM1: Data Confidentiality: Identifyingand Protecting Assets Against Data … : [Risk Ownership - Risk Management] : [Human Resources and Payroll Security Policy - University of …] : [Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Concepts, pp. 17-19.] : [Risk andInformation Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.1: Risk Identification, pp. 57-59.] : [Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.1: Control Design, pp. 233-235.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.2: Control Implementation, pp. 243-245.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.3: Control Monitoring and Maintenance, pp. 251-253.]

Insecure data transmission protocols should be of greatest concern when an organization is implementing internet of Things (IoT) technology to control temperature and lighting in its headquarters, because they can expose the IoT devices and data to unauthorized access,interception, or manipulation. Insecure data transmission protocols can also compromise the confidentiality, integrity, and availability of the IoT system and the information it collects and transmits. The other options are not the greatest concerns, although they may also pose some challenges or risks to the IoT implementation. Insufficient network isolation, impact on networkperformance, and lack of interoperability between sensors are examples of technical or operational issues that can affect the functionality, efficiency, or compatibility of the IoT system, but they do not have the same severity or impact as insecure data transmission protocols. References = CRISC Sample Questions 2024

Information security requirements should be defined during theInitiationphase of the SDLC. This ensures that security is integrated into the design from the beginning, minimizing vulnerabilities and aligning security measures with business requirements. Early identification of security needs reduces rework and costs associated with later stages.

The primary objective of a risk identification process is to determine threats and vulnerabilities, which are the sources and causes of the risks that may affect the organization’sobjectives. Threats are any events or circumstances that have the potential to harm or exploit the organization’s assets, such as people, information, systems, processes, or infrastructure1. Vulnerabilities are any weaknesses or gaps in the organization’s capabilities, controls, or defenses that may increase the likelihood or impact of the threats2. By determining threats and vulnerabilities, the organization can:

Identify and document all possible risks, regardless of whether they are internal or external, current or emerging, or positive or negative3.

Understand the nature and characteristics of the risks, such as their sources, causes, consequences, and interrelationships4.

Provide the basis for further risk analysis and evaluation, such as assessing the probability and severity of the risks, and prioritizing the risks according to their significance and urgency5.

References =

Threat - CIO Wiki

Vulnerability - CIO Wiki

Risk Identification - CIO Wiki

Risk Identification and Analysis - The National Academies Press

Risk Analysis - CIO Wiki

Integrating the results of top-down risk scenario analyses is the most helpful in aligning IT risk with business objectives, as it helps to identify and prioritize the IT-related risks that could affect the achievement of the business goals and strategies. A top-down risk scenario analysis is a method of risk assessment that starts from the business perspective and considers the potential impact and likelihood of various risk events on the business outcomes and performance. A top-down risk scenario analysis can help to align IT risk with business objectives by providing the following benefits:

It ensures that the IT risk assessment is driven by the business needs and priorities, rather than by the IT technical details or assumptions.

It enables a holistic and comprehensive view of the IT risk landscape and its interdependencies with the business processes and functions.

It facilitates the communication and collaboration among the business and IT stakeholders and enhances their understanding and awareness of the IT risk exposure and control environment.

It supports the development and implementation of effective and efficient IT risk response and mitigation strategies that are aligned with the business risk appetite and objectives.

The other options are not the most helpful in aligning IT risk with business objectives. Introducing an approved IT governance framework is a good practice to establish the principles, policies, and processes for the governance of IT, but it does not directly address the IT riskalignment with the business objectives. Performing a business impact analysis (BIA) is an important step to assess the potential consequences of IT disruptions on the business operations and continuity, but it does not provide information on the likelihood or sources of the IT risk events. Implementing a risk classification system is a useful tool to categorize and organize the IT risks based on their characteristics and attributes, but it does not link the IT risks with the business objectives or outcomes. References = Risk Scenarios Toolkit - ISACA, IT Risk Resources | ISACA, How to reduce risk by aligning business strategy and IT strategy - QuoStar

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

The lack of integrity of data is the greatest concern when replication of a critical database used by two business units failed. Data integrity means that the data is accurate, complete, consistent, and reliable. If the replication failed, it means that the data in the primary and secondary databases may not be synchronized and may have discrepancies or errors. This could affect the quality and reliability of the data and the business processes that depend on it. The other options are not as concerning as the lack of integrity of data, as they are related to the efficiency, cost, or confidentiality of the data, which are less critical than the accuracy and reliability of the data. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Key Performance Indicators, page 183.

The primary input when designing IT controls should be internal and external risk reports. IT controls are specific activities performed by persons or systems to ensure that business objectives are met, and thatthe confidentiality, integrity, and availability of data and the overall management of the IT function are ensured1. Designing IT controls means creating and implementing the appropriate measures or actions to reduce the likelihood or impact of the IT risks that may affect the organization2. Internal and external risk reports are documents that provide information and analysis on the current and potential IT risks that the organization faces, as well as their sources, drivers, consequences, and responses3. Internal risk reports are generated by the organization itself, such as by the IT risk management function, the internal audit function, or the business units. External risk reports are obtained from external sources, such as regulators, industry associations, or third-party service providers. Internal and external risk reports are the primary input when designing IT controls, because they help to:

Identify and prioritize the IT risks that need to be addressed by the IT controls;

Evaluate the likelihood and impact of the IT risks, and compare them against the organization’s risk appetite and tolerance;

Determine the most suitable and effective IT control objectives and activities to mitigate the IT risks;

Align the IT control design and implementation with the organization’s objectives, strategies, and values;

Monitor and measure the performance and effectiveness of the IT controls in reducing the IT risks. The other options are not the primary input when designing IT controls, as they are either less relevant or less specific than internal and external risk reports. Benchmark of industry standards is a comparison of the organization’s IT control practices and performance with those of other organizations in the same industry or sector4. Benchmark of industry standards can help to improve the quality and consistency of the IT control design and implementation, as well as to identify the best practices and gaps. However, benchmark of industry standards is not the primary input when designing IT controls, as it does not address the specific IT risks that the organization faces, or the IT control objectives and activities that are appropriate and effective for the organization. Recommendations from IT risk experts are the suggestions or advice from the professionals or specialists who have the knowledge and experience in IT risk management and IT control design and implementation5. Recommendations from IT risk experts can help to enhance the IT control design and implementation, as well as to provide guidance and support to the organization. However, recommendations from IT risk experts are not the primary inputwhen designing IT controls, as they are based on the opinions and perceptions of the experts, and may not reflect the actual or objective level and nature of the IT risks, or the IT control objectives and activities that are suitable and efficient for the organization. Outcome of control self-assessments is the result or conclusion of the evaluation and testing of the design and operation of the existingIT controls by the organization itself, such as by the IT control owners, the IT risk management function, or the business units6. Outcome of control self-assessments can help to improve the IT control design and implementation, as well as to detect and correct any issues or deficiencies. However, outcome of control self-assessments is not the primary input when designing IT controls, as it does not cover the new or emerging IT risks that the organization may face, or the IT control objectives and activities that are relevant and necessary for the organization. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1, Page 189.

The main goal of the risk analysis process is to determine the frequency and magnitude of loss, because this will help to measure the level of risk exposure and the need for risk mitigation controls. Frequency refers to how often a risk event may occur, while magnitude refers to how much harm or damage a risk event may cause. By determining the frequency and magnitude of loss, the risk analysis process can quantify the impact and likelihood of the risks, and assign a risk rating and priority. The other options are not the main goal of the risk analysis process, because they are either inputs or outputs of the process, as explained below:

A. Potential severity of impact is an output of the risk analysis process, as it is the result of estimating the consequences of a risk event on the organization’s objectives, assets, or processes. The potential severity of impact is influenced by the magnitude of loss, but also by other factors, such as the timing, duration, and scope of the risk event.

C. Control deficiencies are an input of the risk analysis process, as they are the gaps or weaknesses in the existing controls that may increase the risk exposure or reduce the risk mitigation effectiveness. Control deficiencies are identified by comparing the current control environment with the desired control environment, and by evaluating the design and operation of the controls.

D. Threats and vulnerabilities are inputs of the risk analysis process, as they are the sources and causes of the risks that may affect the organization’s objectives, assets, or processes. Threats are external or internal factors that have the potential to exploit the vulnerabilities, while vulnerabilitiesare internal or external weaknesses that increase the susceptibility to the threats. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.1, page 45. What is Risk Analysis? Process, Types, Examples & Methods, Risk Analysis Tutorial - The Process | solver, What is the goal of a risk assessment? - Creative Safety Supply

Executive management should be primarily responsible for establishing an organization’s IT risk culture, as they have the authority and accountability to define and communicate the vision, mission, values, and objectives of the organization, and to set the tone and direction for the IT risk management and control processes. Executive management is the highest level of management in an organization, and it consists of the board of directors, the chief executive officer (CEO), and other senior executives. Executive management is responsible for the strategic planning and decision making of the organization, and for ensuring the alignment of the organizational strategy and objectives with the stakeholder expectations and requirements.

Executive management should be primarily responsible for establishing an organization’s IT risk culture by providing the following benefits:

It demonstrates the leadership and commitment of the executive management to the IT risk management and control processes, and to the achievement of the organizational strategy and objectives.

It influences and motivates the behavior and attitude of the staff and managers towards IT risk management and control, and fosters a culture of risk awareness, ownership, and accountability across the organization.

It defines and communicates the IT risk appetite and tolerance of the organization, and guides and supports the development and implementation of the IT risk policies, standards, and procedures.

It allocates and monitors the resources and performance of the IT risk management and control processes, and ensures the effectiveness and efficiency of the IT risk governance and oversight.

The other options are not the primary choices for establishing an organization’s IT risk culture. Business process owner is the person who has the responsibility and authority over the design, execution, and performance of a specific business process, and they are accountable for the risks and controls associated with their process, but they do not have the overall or strategic responsibility for the IT risk culture. Risk management is the function or department that is responsible for managing and monitoring the IT risk management and control processes, and for providing advice and guidance to the executive management and the business units, but they do not have the ultimate or final responsibility for the IT risk culture. ITmanagement is the function or department that is responsible for managing and maintaining the IT operations and security, and for supporting the IT risk management and control processes, but they do not have the highest or broadest responsibility for the IT risk culture. References = Risk Culture - Open Risk Manual, IT Risk Resources | ISACA, The 6 key elements to creating and maintaining a good risk culture

Risk limits, thresholds, and indicators provide the most useful information to determine risk exposure following control implementations, as they help to measure and monitor the current and residual risk levels and compare them with the desired and acceptable risk levels. Risk limits, thresholds, and indicators are defined as follows:

Risk limits are the maximum amount of risk that an organization is willing to accept for a given activity, process, or objective. Risk limits are derived from the organizational risk appetite and tolerance, and they help to guide the risk response and control selection.

Risk thresholds are the points or levels at which the risk or performance is acceptable or unacceptable. Risk thresholds are used to trigger alerts, actions, or escalation when the risk or performance deviates from the expected or planned range.

Risk indicators are metrics or measures that provide information on the current or potential risk exposure or performance. Risk indicators can be classified into key risk indicators (KRIs), whichmeasure the likelihood and impact of risk events, and key performance indicators (KPIs), which measure the effectiveness and efficiency of controls and processes.

Risk limits, thresholds, and indicators help to determine risk exposure following control implementations by providing quantitative and qualitative data and feedback on the risk and control environment. They also help to identify and prioritize the areas for improvement and enhancement of the risk and control environment. Risk limits, thresholds, and indicators also facilitate the communication, collaboration, and accountability among the stakeholders involved in the risk management and control processes.

The other options are not the most useful information to determine risk exposure following control implementations. Strategic plan and risk management integration is the process of aligning the organizational strategy and objectives with the risk management framework and activities, but it does not provide specific information on the risk exposure or control effectiveness. Risk escalation and process for communication is the process of reporting and escalating the risk issues and incidents to the appropriate authority and stakeholders, but it doesnot provide comprehensive information on the risk exposure or control performance. Policies, standards, and procedures are the documents that define the principles, rules, and guidelines for the risk management and control processes, but they do not provide actual information on the risk exposure or control implementation. References = Risk Limits, Thresholds and Indicators - ISACA, IT Risk Resources | ISACA, Risk Management: Risk Indicators and Risk Appetite

 The best control to minimize the risk associated with scope creep in software development is an established process for project change management. Scope creep is the uncontrolled expansion of the project scope due to changes in requirements, specifications, or expectations. A project change management process can help to prevent or reduce scope creep by defining the procedures for requesting, reviewing, approving, and implementing changes in the project. Retention of test data and results, business management review of functional requirements, and segregation between development, test, and production are other possible controls, but they are not as effective as a project change management process. References = ISACA Certified in Riskand Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

According to the CRISC 351-400 topic3 Flashcards, the administrative access represents a segregation of duties conflict, which should be of greatest concern to a risk practitioner. Segregation of duties is a principle that aims to prevent fraud, errors, or abuse of power by ensuring that no single person can perform incompatible functions, such as development, testing, and production. By having administrative access to a production application, a software developer can potentially modify the code, bypass the testing and approval process, and deploy the changes without proper authorization or documentation. This can compromise the integrity, availability, and security of the application, and expose the organization to operational, financial, legal, or reputational risks. Therefore, the answer is D. The administrative access represents a segregation of duties conflict. *References

The risk profile of an organization is a summary of the key risks that affect its objectives, operations, and performance. The risk profile can help senior management understand the current and potential exposure of the organization to various sources of uncertainty, and prioritize the risk response accordingly. An external security audit can reveal multiple findings related to control noncompliance, which indicate that the existing controls are not adequate, effective, or aligned with the organization’s risk appetite. These findings can have a significant impact on the organization’s risk profile, as they can increase the likelihood and/or impact of adverse events, such as data breaches, cyberattacks, regulatory fines, reputational damage, etc. Therefore, the most important information that the risk practitioner should communicate to senior management is the impact to the organization’s risk profile, as it can help them make informed decisions about the risk response and allocation of resources. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.1: Risk Profile, p. 193-195.

The most helpful way to mitigate the risk associated with an application under development not meeting business objectives is to include key stakeholders in the review of user requirements, because this ensures that the application is designed and developed according to the needs and expectations of the end users and the business owners. Including key stakeholders in the review of user requirements also helps to avoid scope creep, requirement changes, or miscommunication that may affect the quality, functionality, or usability of the application. The other options are not the most helpful ways to mitigate the risk, although they may also be useful in reducing the likelihood or impact of the risk. Identifying threats that may compromise enterprise architecture (EA), including diverse business scenarios in user acceptance testing (UAT), and performing risk assessments during the business case development stage are examples of preventive or detective controls that aim to identify and address the potential issues or problems that may arise during the application development process, but they do not address the alignment of the applicationwith the business objectives. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

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

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

The greatest benefit to an organization when updates to the risk register are made promptly after the completion of a risk assessment is optimized risk treatment decisions. Risk treatment decisions are the choices made by the organization on how to respond to the identified risks, such as avoiding, transferring,mitigating, or accepting them. Optimized risk treatment decisionsare those that align with the organizational risk appetite and objectives, and provide the best balance between the costs and benefits of the risk response actions.

Updating the risk register promptly after the completion of a risk assessment helps to optimize risk treatment decisions by providing the most current and accurate information on the risk exposure and control environment. By updating the risk register, the organization can ensure that the risk scenarios, risk levels, risk owners, risk responses, and risk indicators are consistent with the risk assessment results and reflect the changes in the internal and external environment. Updating the risk register also helps to prioritize the risks and allocate the resources more effectively and efficiently for risk treatment. Updating the risk register also facilitates the communication, collaboration, and accountability among the stakeholders involved in the risk management and control processes.

The other options are not the greatest benefits to an organization when updates to the risk register are made promptly after the completion of a risk assessment. Improved senior management communication is a benefit of updating the risk register, as it helps to inform and involve the senior management in the risk management and control processes, but it is not the greatest benefit. Enhanced awareness of risk management is a benefit of updating the risk register, as it helps to educate and engage the staff and other stakeholders in the risk management and control processes, but it is not the greatest benefit. Improved collaboration among risk professionals is a benefit of updating the risk register, as it helps to coordinate and integrate the efforts andexpertise of the risk professionals, but it is not the greatest benefit. References = Risk Register: Examples, Benefits, and Best Practices, IT Risk Resources | ISACA, Discover 10 major benefits for keeping a risk register

Whose risk tolerance matters most when making a risk decision depends on the context and the perspective of the decision-maker. However, in general, the business process owner of the exposed assets is the most important stakeholder to consider, as they are accountable for the risks and the outcomes of the risk decisions. The business process owner has the authority, responsibility, and knowledge to manage the risks that affect their business objectives, performance, and reputation. The business process owner also has the best understanding of the risk appetite and tolerance of the organization, and how to align the risk decisions with the organizational strategy and context. The other options are not the most important stakeholders to consider, although they may have some influence or interest in the risk decisions. Customers who would be affected by a breach are external stakeholders who may have different risk preferences and expectations than the organization, and who may not be fully aware of the risk exposure or mitigation options. Auditors, regulators, and standards organizations are alsoexternal stakeholders who may impose some requirements or constraints on the risk decisions, but who may not have the same level of involvement or impact as the business process owner. The information security manager is an internal stakeholder who may provide some technical expertise or guidance on the risk decisions, but who may not have the same level of authority or accountability as the business process owner. References = Risk Appetite vs. Risk Tolerance: What is the Difference?; Principles of risk decision-making; Risk Tolerance - Overview, Factors, and Types of Tolerance; Five Factors to Consider When Establishing Risk Tolerance; Risk Tolerance - Overview, Factors, and Types of Tolerance

The most important characteristic of a key risk indicator (KRI) to enable decision-making is illustrating changes in risk trends, as it provides a clear and timely indication of the direction and magnitude of the risk level and exposure, and enables the stakeholders to take proactive andappropriate actions to address the risk. The other options are not the most important characteristics, as they are more related to the monitoring, measurement, or identification of the risk, respectively, rather than the illustration of the risk trends. References = CRISC Review Manual, 7th Edition, page 110.

According to the CRISC Review Manual1, a third-party audit is an independent and objective examination of an organization’s security controls by an external auditor or organization. A third-party audit provides the most objective assessment of the effectiveness of an organization’s security controls, as it helps to avoid any conflicts of interest, biases, or assumptions that may affect the internal audit, review, or testing. A third-party audit also helps to ensure that the security controls comply with the relevant standards, regulations, and best practices, and that they meet the expectations and requirements of the stakeholders, such as customers, partners, or regulators. References = CRISC Review Manual1, page 224.

The most critical factor when designing controls is the involvement of the process owner, who is the person responsible for the performance and outcomes of a business process. The process owner has the best knowledge and understanding of the process objectives, activities, inputs,outputs, resources, and risks. The process owner can provide valuable input and feedback on the design of controls that are relevant, effective, efficient, and aligned with the process goals. The process owner can also ensure that the controls are implemented, monitored, and improved as needed. The involvement of the process owner can also increase the acceptance and ownership of the controls by the process participants and stakeholders. The other options are less critical when designing controls. The involvement of internal audit can provide assurance and advice on the adequacy and effectiveness of the controls, but internal audit is not responsible for the design or implementation of the controls. The quantitative impact of the risk can help to prioritize and justify the controls, but it is not sufficient to determine the appropriate type and level of controls. The identification of key risk indicators can help to monitor and measure the risk and the performance of the controls, but it is not the main driver of the control design. References = Risk IT Framework, ISACA, 2022, p. 181

Applying risk appetite is the most important topic to cover in a training session to communicate risk assessment methodologies. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. It is a key element of the risk management framework and influences the risk assessment process. Applying risk appetite helps to ensure a consistent risk view within the organization by providing a common basis for evaluating and prioritizing risks, aligning risk responses with business goals, and communicating risk information to stakeholders. The other options are not the most important topics to cover in a training session to communicate risk assessment methodologies, although they may be relevant and useful. Applying risk factors is a technique to quantify or qualify the likelihood and impact of risks based on predefined criteria or scales. Referencing risk event data is a source of information to identify and analyze risks based on historical or current incidents. Understanding risk culture is a factor that affectsthe risk behavior and attitude of the organization and its people. References = CRISC Review Manual, pages 40-411; CRISC Review Questions, Answers & Explanations Manual, page 612

A change management process is a set of procedures and activities that ensure that any changes to the IT systems or applications are planned, approved, tested, implemented, and documented in a consistent and controlled manner.

A change management process has recently been updated with new testing procedures. This means that the process has been improved or modified to include new or additional steps or methods for verifying and validating the changes before they are deployed to the production environment.

The next course of action after updating the change management process with new testing procedures is to communicate to those who test and promote changes. This means that the change management team or function should inform and educate the people who are involved or affected by the changes, such as the developers, testers, users, customers, etc., about the new testing procedures, their purpose, benefits, requirements, and expectations.

Communicating to those who test and promote changes helps to ensure that the new testing procedures are understood and followed by all the parties, that the changes are tested and promoted in accordance with the process standards and criteria, and that the changes are delivered with the expected quality and performance.

The other options are not the next courses of action after updating the change management process with new testing procedures. They are either secondary or not essential for change management.

The references for this answer are:

Risk IT Framework, page 27

Information Technology & Security, page 21

Risk Scenarios Starter Pack, page 19

Information security risk factors are the sources of uncertainty that may affect the confidentiality, integrity, or availability of information assets within an organization. Information security risk factors can include threats, vulnerabilities, or impacts that may compromise the security of information assets. Information security risk factors should be mitigated when developing in-house applications, which are software applications that are designed, developed, and maintained by the organization itself, rather than by external vendors or providers. Mitigating information security risk factors when developing in-house applications canhelp prevent or reduce the occurrence or consequences of security incidents, such as data breaches, cyberattacks, unauthorized access, or data loss. The best way to ensure that information security risk factors are mitigated when developing in-house applications is to identify information security controls in the requirements analysis. The requirements analysis is the stage of the system development life cycle (SDLC) where the business needs and expectations of the application are defined and documented. The requirements analysis should include the functional and non-functional requirements of the application, such as the features, functions, performance, quality, reliability, and security of the application. Identifying information security controls in the requirements analysis can help ensure that the security requirements of the application are clearly specified and agreed upon by the stakeholders, and that they are aligned with the organization’s security policies, standards, and regulations. Identifying information security controls in the requirements analysis can also help ensure that the security requirements are integrated into the design, development, testing, and deployment of the application, and that they are verified and validated throughout the SDLC. Identifying information security controls in the requirements analysis can also help ensure that the security requirements are traceable, measurable, and manageable, and that they can be monitored and reviewed for effectiveness and efficiency. References = THE SYSTEM DEVELOPMENT LIFE CYCLE (SDLC), p. 2-3, System Development Life Cycle - GeeksforGeeks, 7.3: Systems Development Life Cycle - Engineering LibreTexts, What Is SDLC? 7 Phases of System Development Life Cycle - Intetics.

 Reduced ability to evaluate key risk indicators (KRIs) will have the greatest impact on the ability to monitor risk when an information system for a key business operation is moved from an in-house application to a Software as a Service (SaaS) vendor, as it may limit the visibility and control over the risk exposure and performance of the system. KRIs are metrics that measure the level of risk exposure and the effectiveness of risk response strategies, and they should be aligned with the enterprise’s risk appetite and objectives. When the system is moved to a SaaS vendor, the enterprise may lose access to the data and processes that are used to calculate and report the KRIs, or the KRIs may become irrelevant or inconsistent with the vendor’s environment and standards. This may impair the ability to monitor risk and to take timely and appropriate actions to manage risk. Reduced access to internal audit reports, dependency on the vendor’s key performance indicators (KPIs), and dependency on service level agreements (SLAs) are not the greatest impacts on the ability to monitor risk, as they do not affect the measurement and reporting of the risk status and performance, but rather the assurance and evaluation of the system quality and reliability. References = CRISC Certified in Risk andInformation Systems Control – Question221; ISACACertified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 221.

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

The risk practitioner should update the risk scenarios in the risk register to reflect the new international regulations and their potential impact on the organization. The risk register is a tool that records and tracks the identified risks, their likelihood, impact, mitigation strategies, and status. Updating the risk register will help the risk practitioner to prioritize and manage the risks effectively, and communicate them to the relevant stakeholders.

References

•ISACA CRISC Review Manual, 7th Edition, Domain 1: IT Risk Identification, Section 1.2.2: Risk Register

•Risk Register - ISACA

•How to Create a Risk Register: A Step-by-Step Guide | The Blueprint

The effectiveness of risk treatment determines whether the selected response sufficiently mitigates the identified risk. This consideration ensures alignment with risk appetite and reduces residual risk to acceptable levels, reflecting the priorities set out in theRisk Response and Treatmentdomain of CRISC.

 Contractually obligating the supplier to follow privacy laws is the best way to mitigate the risk of violating privacy laws when transferring personal information to a supplier, because it ensures that the supplier is legally bound to comply with the applicable laws and regulations that protect the privacy and security of the personal information. This also creates a clear accountability andliability for the supplier in case of a privacy breach, and defines the rights and obligations of both parties in relation to the personal information. The other options are not the best ways to mitigate the risk of violating privacy laws, although they may also be helpful in reducing the likelihood or impact of a privacy breach. Encrypting the data while in transit to the supplier, requiring independent audits of the supplier’s control environment, and utilizing blockchain during the data transfer are examples of technical or assurance controls that aim to protect the confidentiality, integrity, and availability of the personal information, but they do not address the legal or contractual aspects of the privacy laws. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

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

 Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite can be expressed in qualitative or quantitative terms, and can vary depending on the context and the stakeholder. Risk appetite should be defined and communicated by the senior management or the board of directors, and should guide the risk management decisions and actions throughout the organization. When a project team has accepted a risk outside the established risk appetite, the risk practitioner’s best course of action is to escalate the risk decision to the project sponsor for review, meaning that the risk practitioner should report the risk acceptance and its rationale to the project sponsor, who is the person or group that provides the resources and support for the project, and is accountable for its success. The project sponsor should review the risk decision and determine whether it is aligned with the organization’s objectives and strategy, and whether it requires any further approval oraction. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.1, p. 25-26

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.

Multi-factor authentication is the most effective way to mitigate the risk of unauthorized access to the system, as it requires the users to provide more than one piece of evidence to prove their identity, such as a password, a token, a biometric feature, etc. This reduces the likelihood of compromising the credentials and ensures that only authorized users can perform maintenance on the system.

Single sign-on is a convenience feature that allows users to access multiple systems with one set of credentials, but it does not address the risk of sharing credentials among multiple users.

Audit trail review is a detective control that can help identify and investigate unauthorized access to the system, but it does not prevent or mitigate the risk of credential compromise.

Data encryption at rest is a security measure that protects the data stored on the system from unauthorized access, but it does not prevent or mitigate the risk of credential compromise. References = CRISC Review Manual, 7th Edition, ISACA, 2020, page 107-108.

Residual system access is the risk that the customer service representatives who are transferred to the sales department may still have access to the systems or applications that they used in their previous role, which may not be relevant or authorized for their new role.

The access control manager is the person or function who is responsible for defining, implementing, and maintaining the policies and procedures for granting, modifying, reviewing, and revoking access rights to the systems or applications, based on the principle of least privilege and the segregation of duties.

The access control manager is responsible for mitigating the risk associated with residual system access, by ensuring that the access rights of the customer service representatives are updated or removed according to their new role and responsibilities, and that the access changes are documented and approved by the appropriate authorities.

The other options are not responsible for mitigating the risk associated with residual system access. They are either irrelevant or less effective than the access control manager.

The references for this answer are:

Risk IT Framework, page 26

Information Technology & Security, page 20

Risk Scenarios Starter Pack, page 18

Risk transfer is a risk response strategy that involves shifting the responsibility or burden of a risk to another party, such as a third party, an insurance company, or a joint venture. Risk transfer does not eliminate the risk, but it reduces the exposure or impact of the risk to the enterprise. An example of risk transfer is engaging a third party to provide an Internet gateway encryption service that protects sensitive data uploaded to a cloud service. By doing so, the organization transfers the risk of data breach or loss to the third party, who is responsible for ensuring the security and availability of the data. The other options are not examples of risk transfer, as they involve different risk response strategies:

Risk mitigation is a risk response strategy that involves reducing the likelihood or impact of a risk to an acceptable level, such as by implementing controls, policies, or procedures.

Risk avoidance is a risk response strategy that involves eliminating the risk by not performing the activity that generates the risk, such as by discontinuing a product or service, or not entering a market.

Risk acceptance is a risk response strategy that involves acknowledging the risk and taking no action to address it, such as by tolerating the risk, exploiting the risk, or sharing the risk. References =Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.3.1.1, pp. 107-108.

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

The risk identification number and description

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

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

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

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

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

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

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

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

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

Reviewing configuration settings is the best way for an organization to ensure that servers are compliant to security policy, because it helps to check and verify that the servers are configured and maintained according to the established security standards and guidelines, and that any deviations or violations are identified and corrected. A configuration setting is a parameter or option that defines the behavior or functionality of a server, such as a system, an application, or aservice. A security policy is a document that outlines the security objectives, principles, and rules that the organization and its employees must follow, and the consequences of non-compliance. Reviewing configuration settings is the best way, as it helps to ensure that the servers are secure and compliant, and that any security risks or issues are detected and resolved. Reviewing change logs, server access logs, and anti-malware compliance are all possible ways to ensure that servers are compliant to security policy, but they are not the best way, as they do not provide a comprehensive and consistent view of the configuration settings and their compliance status. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2, page 200

A risk heat map is a graphical tool that displays the level of risk for each risk area based on the impact and likelihood of occurrence. It also provides a summary of the risk assessment results, such as the number and severity of risks, the risk appetite and tolerance, and the risk response strategies. A risk heat map can help senior management to understand the risk profile of the organization, prioritize the risks that need attention, and allocate resources accordingly. A risk heat map is more effective than the other options because it can communicate complex information in a simple and visual way, and it can highlight the key risk areas and trends. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.2, page 97.

A risk assessment of a production system is a process of identifying, analyzing, evaluating, and treating the risks that may affect the performance, quality, or safety of the production system, which is a system that transforms inputs into outputs using various resources, processes, and technologies12.

The most appropriate action for the risk manager to take after undertaking a risk assessment of a production system is to inform the process owner of the concerns and propose measures to reduce them, which is a process of communicating and consulting with the person who is responsible for the design, operation, and improvement of the production system, and suggesting possible risk responses that can prevent, mitigate, transfer, or accept the risks34.

This action is the most appropriate because it ensures the involvement and collaboration of the process owner, who has the authority and accountability to implement and monitor the risk responses, and who can provide feedback and input on the feasibility and effectiveness of the proposed measures34.

This action is also the most appropriate because it supports the risk management process and objectives, which are to identify and address the risks that may affect the achievement of the organization’s goals and the delivery of value to the stakeholders34.

The other options are not the most appropriate actions, but rather possible alternatives or supplements that may have some limitations or drawbacks. For example:

Recommending a program that minimizes the concerns of the production system is an action that involves designing and planning a set of coordinated and interrelated activities and tasks that aim to reduce the likelihood or impact of the risks34. However, this action is notthe most appropriate because it does not involve the process owner, who is the key stakeholder and decision maker for the production system, and who may have different views or preferences on the risk responses34.

Informing the development team of the concerns, and together formulating risk reduction measures is an action that involves communicating and consulting with the group of people who are responsible for creating, testing, and deploying the products or services that are produced by the production system, and jointly developing possible risk responses34. However, this action is not the most appropriate because it does not involvethe process owner, who is the primary owner and user of the production system, and who may have different needs or expectations on the risk responses34.

Informing the IT manager of the concerns and proposing measures to reduce them is an action that involves communicating and consulting with the person who is responsible for managing and overseeing the IT resources, processes, and systems that support the production system, and suggesting possible risk responses34. However, this action is not the most appropriate because it does not involve the process owner, who is the main stakeholder and beneficiary of the production system, and who may have different requirements or constraints on the risk responses34. References =

1: Risk Assessment for the Production Process1

2: Risk Assessment for Industrial Equipment2

3: Risk IT Framework, ISACA, 2009

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

 A detective control is a type of internal control that seeks to uncover problems in a company’s processes once they have occurred. Examples of detective controls include physical inventory checks, reviews of account reports and reconciliations, as well as assessments of current controls1. A periodic access review is a detective control that involves verifying the access rightsand privileges of users to ensure that they are appropriate and authorized. A periodic access review can help to detect any unauthorized or inappropriate access, such as excessive or redundant permissions, segregation of duties violations, or dormant ororphaned accounts23. The other options are not detective controls, but rather preventive controls, which are designed to prevent errors or fraud from occurring in the first place. A limit check is a preventive control that validates the input data against a predefined range or limit, and rejects any data that falls outside the acceptable range4. Access control software is a preventive control that restricts the access to information systems or resources based on the identity, role, or credentials of the user5. Rerun procedures are preventive controls that ensure the accuracy and completeness of data processing by repeating the same process and comparing the results6. References = Detective Control: Definition, Examples, Vs. Preventive Control; Detective Control - What Is It, Examples, Vs Preventive Control; Limit Check - an overview |ScienceDirect Topics; Access Control Software - an overview | ScienceDirect Topics; Rerun Procedures - an overview | ScienceDirect Topics

The best answer is C. real-time monitoring of risk events and control exceptions. Real-time monitoring is a process of continuously collecting and analyzing data and information on the occurrence and impact of risk events and control exceptions, using automated tools and techniques, such as dashboards, alerts, or analytics12. Real-time monitoring can help to identify and respond to the risks and the issues as soon as they happen, and to prevent or mitigate the potential consequences. Real-time monitoring can also help to improve the efficiency and effectiveness of the risk management process, and to provide timely and accurate reporting and communication to the stakeholders. Real-time monitoring is the best answer, because itrepresents a leading-edge practice in risk monitoring, as it leverages the latest technology and innovation, and it enables a proactive and agile approach to risk management. The other options are not the best answer, although they may be useful or necessary for risk monitoring. Procedures to monitor the operation of controls are a part of the risk monitoring process, but they are not the same as or a substitute for real-time monitoring, as they may not be able to capture and address the risks and the issues in a timely manner, and they may rely on manual or periodic methods, rather than automated or continuous ones. A tool for monitoring critical activities and controls is a resource or a device that supports the risk monitoring process, but it is not the same as or a substitute for real-time monitoring, as it may not be able to collect and analyze the data and information in real time, and it may depend on the quality and reliability of the tool. Monitoring activities for all critical assets is a scope or a coverage of the risk monitoring process, but it is not the same as or a substitute for real-time monitoring, as it may not be able to identify and respond to the risks and the issues as soon as they happen, and it may require a lot of resources and efforts. Performing a controls assessment is a process of evaluating and testing the design and operation of the controls, but it is not the same as or a substitute for real-time monitoring, as it may not be able to detect and report the risks and the issues in real time, and it may follow a predefined or scheduled plan, ratherthan a dynamic or adaptive one. References = Real-Time Risk Monitoring - ISACA, Real-Time Risk Monitoring: A Case Study - ISACA

The most effective practice in protecting personally identifiable information (PII) from unauthorized access in a cloud environment is to utilize encryption with logical access controls. Encryption is a technique that transforms the data into an unreadable or unintelligible form, making it inaccessible or unusable by unauthorized parties. Logical access controls are the mechanisms or rules that regulate who can access, view, modify, or delete the data, based on their identity, role, or privilege. By utilizing encryption with logical access controls, the PII can be protected from unauthorized access, disclosure, or theft, both in transit and at rest, in a cloud environment. The other options are not as effective as utilizing encryption with logical access controls, as they are related to the classification, separation, or audit of the data, not the protection or security of the data. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

Ensuring segregation of duties are implemented within key systems or processes is the best strategy employed by risk management to prevent internal fraud, because it reduces the opportunity for a single person to manipulate or misuse the system or process for fraudulent purposes. Segregation of duties is a control that assigns different roles and responsibilities to different individuals, such that no one person can perform all the steps of a transaction or process. Requiring control owners to conduct an annual control certification, conducting regular internal and external audits on the systems supporting financial reporting, and requiring the information security officer to review unresolved incidents are all useful strategies to detect ordeter internal fraud, but they are not the best strategy to prevent it, as they do not directly address the root cause of fraud. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.1, page 197

Limited integration with external systems and blockchainsis the greatest concern. Without considering interoperability during the SDLC, the system may not be able to connect seamlessly with partners or external networks, hindering business goals and limiting the blockchain’s benefits.

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•A risk owner is the person or entity that has the authority and responsibility to manage a specific risk1. The risk owner is accountable for the implementation and effectiveness of the risk response strategy and the risk treatment plan2.

•Identifying the risk owner is the first step when a new risk scenario has been identified, because the risk owner is the key stakeholder who will be involved in the subsequent steps of the risk management process, such as risk analysis, risk evaluation, risk treatment, and risk monitoring2.

•Identifying the risk owner also helps to clarify the roles and responsibilities of different parties involved in the risk management process, such as the risk manager, the risk analyst, the risk committee, and the risk auditor3. This can improve the communication, coordination, and collaboration among the risk management team and ensure that the risk is managed effectively and efficiently.

•Estimating the residual risk (option A) is not the first step when a new risk scenario has been identified, because the residual risk is the risk that remains after the risk treatment plan has been implemented2. Therefore, estimating the residual risk requires prior steps such as risk analysis, risk evaluation, and risk treatment.

•Establishing key risk indicators (KRIs) (option B) is not the first step when a new risk scenario has been identified, because KRIs are metrics or data points that provide early warning signals or information about the level or trend of a risk4. Therefore, establishing KRIs requires prior steps such as risk identification, risk analysis, and risk evaluation.

•Designing control improvements (option C) is not the first step when a new risk scenario has been identified, because control improvements are part of the risk treatment plan, which is the set of actions and resources needed to implement the chosen risk response strategy2. Therefore,designing control improvements requires prior steps such as risk analysis, risk evaluation, and risk response selection.

References =

•Risk Owner - Institute of Internal Auditors

•Risk Treatment Plan - ISACA

•Risk Management Roles and Responsibilities - 360factors

•Key Risk Indicators: A Practical Guide | SafetyCulture

A risk register is a document that contains information about potential cybersecurity risks that could threaten a project’s success, or even the business itself2. Therefore, it is important to protect the confidentiality and integrity of the risk register from unauthorized or inappropriate access, modification, or disclosure. One way to do this is to implement role-based access, which is a method of restricting access to the risk register based on the roles or responsibilities of the users1. This way, only authorized users who need to view or edit the risk register for legitimate purposes can do so, and the access rights can be revoked or modified as needed. This would most effectively reduce the potential for inappropriate exposure of vulnerabilities documented in the risk register. The other options are not as effective or feasible as option C, as they do not address the need to balance the security and availability of the risk register. Option A, limiting access to senior management only, would compromise the availability and usefulness of the risk register, as other stakeholders such as project managers, risk owners, or auditors may need to access therisk register for risk identification, analysis, response, or monitoring purposes3. Option B, encrypting the risk register, would enhance the security of the risk register, but it would not prevent authorized users from exposing the vulnerabilities to unauthorized parties, either intentionally or unintentionally. Encryption also adds complexity and cost to the risk register management process, and may affect the performance or usability of the risk register4. Option D, requiring users to sign a confidentiality agreement, would rely on the compliance and ethics of the users, but it would not prevent or detect any breaches of the agreement. A confidentiality agreement also does not specify the access rights or roles of the users, and may not be legally enforceable in some cases5.

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

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

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

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

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

The references for this answer are:

Risk IT Framework, page 31

Information Technology & Security, page 25

Risk Scenarios Starter Pack, page 23

 IT asset inventory is the process of tracking and managing the financial, physical, licensing, and contractual aspects of IT assets throughout their life cycle1. IT assets include hardware, software, and network components that an organization values and uses to achieve its objectives2. A complete and accurate IT asset inventory can help an organization to optimize its IT budget, reduce security risks, ensure compliance, and improve performance3.

One of the best controls to enable an organization to ensure a complete and accurate IT asset inventory is performing network scanning for unknown devices. Network scanning is the process of identifying and collecting information about the devices connected to a network, such as their IP addresses, operating systems, open ports, services, and vulnerabilities4. Network scanning can help an organization to:

Discover and inventory all the IT assets on the network, including those that are unauthorized, unmanaged, or hidden

Detect and remove any rogue or malicious devices that may pose a threat to the network security or performance

Update and verify the asset inventory data regularly and automatically, and alert on any changes or discrepancies

Support the asset lifecycle management and maintenance activities, such as patching, upgrading, or retiring assets5

References = IT Asset Valuation, Risk Assessment and Control Implementation Model, ITAM: The ultimate guide to IT asset management, Navigating Security Threats with IT Inventory Management, Network Scanning - Wikipedia, 8 Best IT Asset Management Software (2024)

After migrating a key financial system to a new provider, it was discovered that a developer could gain access to the production environment. This indicates that there is a risk of unauthorized access, use, disclosure, modification, or destruction of sensitive data, such as financial records, transactions, reports, etc.

A control that could mitigate this risk is to remove the developer’s access to the production environment. This means that the developer would not be able to alter the source code or configuration of the financial system without proper authorization or approval.

The other options are not the best ways to mitigate the risk in this situation. They are either irrelevant or less effective than removing the developer’s access.

The references for this answer are:

Risk IT Framework, page 14

Information Technology & Security, page 8

Risk Scenarios Starter Pack, page 6

The best way to determine the value of information assets for risk management purposes is to assess the loss impact if the information is inadvertently disclosed, as this reflects the potential damage or harm that the organization may suffer due to a breach of confidentiality, integrity, or availability of the information. The loss impact can be measured in terms of financial, operational, reputational, legal, or regulatory consequences, depending on the nature, sensitivity, and criticality of the information. The loss impact can also help the organization to prioritize the protection and mitigation of the information assets, and to align the risk management strategy with the business objectives and risk appetite.

Reviewing the risk register is the best way to help an organization gain insight into its overall risk profile, because it provides a comprehensive and structured representation of all the key risks that the organization faces, along with their likelihood, impact, and response strategies. A risk register is a tool that records and tracks the current status of risks, their sources, causes, consequences, and controls. A risk register helps to facilitate the communication and reporting of risks, and to support the risk-based decision making and prioritization. A risk profile is a summary of the key risks that an organization faces, and their implications forthe organization’s objectives and strategy. Reviewing the risk register is the best way to understand the risk profile, as it reflects the nature and level of exposure that the organization has from the various risk sources and scenarios. Reviewing the threat landscape, the risk appetite, and the risk metrics are all useful ways to help an organization gain insight into its overall risk profile, but they are not the best way, as they do not provide a comprehensive and structured view of the risks and theirresponses. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 83

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

When a risk is accepted, it must be documented in the risk register—including rationale, alternatives evaluated, decision-makers, and contextual factors. This aligns with governance and audit accountability requirements in ISACA guidance.

The best option to protect against a future recurrence of unauthorized access by a service provider’s administrator is D. Contractual requirements. Data encryption, intrusion prevention system, and two-factor authentication are all technical measures that can enhance the security of the data stored in the Infrastructure as a Service (IaaS) model, but they do not prevent the service provider’s administrator from accessing the data if they have the necessary credentials, keys, or permissions. Contractual requirements, on the other hand, are legal obligations that bind the service provider to respect the customer’s privacy and confidentiality, and to limit the access tothe data to only authorized and necessary personnel. Contractual requirements can also specify the penalties or remedies for any breach of contract, which can deter the service provider’s administrator from violating the terms of the agreement. Therefore, contractual requirements are the most effective way to protect against a future recurrence of unauthorized access by a service provider’s administrator12

1: What is Data Encryption? | Forcepoint 2: The elements of a contract: understanding contract requirements - Juro

A security policy exception is a deviation from the established security policy that is granted to an individual or a group for a specific purpose or period of time. A security policy exception may be necessary when the security policy is too restrictive, outdated, or incompatible with the business requirements or objectives. However, a security policy exception also introduces a risk to the organization, as it may weaken the security posture, expose the organization to threats orvulnerabilities, or violate the compliance or regulatory obligations. Therefore, an upward trend in the number of security policy exceptions approved should be of most concern, as it indicates that the security policy is not effective or aligned with the organization’s needs and goals, and that the organization is accepting more risk than desired. The other options are not as concerning as the number of security policy exceptions approved, because they do not imply a direct or immediate risk to the organization, but rather reflect the normal or expected activities of the security management process, as explained below:

A. Number of business change management requests is a metric that measures the volume and frequency of the requests to modify the business processes, systems, or functions. An upward trend in this metric may indicate that the organization is undergoing a transformation, innovation, or improvement, which may have positive or negative impacts on the organization’s performance and security. However, this metric does not necessarily imply a risk to the organization, as the change management requests may be properly assessed, approved, and implemented, following the established change management procedures and controls.

B. Number of revisions to security policy is a metric that measures the amount and extent of the changes made to the security policy over time. An upward trend in this metric may indicate that the security policy is being updated, refined, or enhanced, which may improve or maintain the security posture and compliance of the organization. However, this metric does not necessarily imply a risk to the organization, as the revisions to the security policy may be based on the best practices, standards, and expectations for security management, and may be communicated and enforced effectively across the organization.

D. Number of changes to firewall rules is a metric that measures the number and type of the modifications made to the firewall configuration, which controls the incoming and outgoing network traffic based on predefined rules. An upward trend in this metric may indicate that the firewall is being adjusted, optimized, or customized, which may increase or decrease the firewall performance and security. However, this metric does not necessarily imply a risk to the organization, as the changes to the firewall rules may be justified, authorized, and validated,following the established firewall management procedures and controls. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 115. Security Policy Exceptions: What Are They and How to Manage Them, Security Policy Exceptions: How to Handle Them in a Secure Manner, Security Policy Exceptions: A Necessary Evil?

The result of postponing the assessment and treatment of several risk scenarios is that the risk associated with these new entries has been accepted. Risk acceptance is a risk response strategy that involves acknowledging the existence of a risk and deciding not to take any action to reduce its likelihood or impact. By postponing the assessment and treatment of the risk scenarios, the organization is implicitly accepting the risk and its consequences. Risk mitigation, deferral, and transfer are other possible risk response strategies, but they are not applicable in this case. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 9; CRISC Review Manual, 6th Edition, page 137.

Automated data indicating that risk has been reduced provides the most tenable evidence that a business process control is effective, because it shows the actual impact and outcome of thecontrol on the risk level. A demonstration that the control is operating as designed, a successful walk-through of the associated risk assessment, and a management attestation that the control is operating effectively are not the most tenable evidence, because they are based on subjective judgments, assumptions, or expectations, not on objective facts or results. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

The most important factor to the effectiveness of key performance indicators (KPIs) is relevance. KPIs are metrics that measure the achievement of the objectives or the performance of the processes. Relevance means that the KPIs are aligned with and support the strategic goals and priorities of the organization, and that they reflect the current and desired state of the outcomes or outputs. Relevance also means that the KPIs are meaningful and useful for the decision makers and stakeholders, and that they provide clear and actionable information for improvement or optimization. The other options are not as important as relevance, as they arerelated to the approval, review, or automation of the KPIs, not the quality or value of the KPIs. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Key Performance Indicators, page 183.

 The areas to address first when classifying and prioritizing risk responses are those with high cost effectiveness ratios and high risk levels, as they represent the most optimal and urgent risk responses that can reduce the risk exposure and impact significantly with a reasonable cost. Theother options are not the areas to address first, as they may indicate suboptimal or less urgent risk responses that may not align with the risk tolerance and appetite of the organization. References = CRISC Review Manual, 7th Edition, page 109.

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.​

The best way to identify changes in the risk profile of an organization is to monitor key risk indicators (KRIs), which are metrics that provide information on the level of exposure to a given operational risk1. KRIs can help to monitor the changes in risk levels over time, identify emerging risks, and trigger risk response actions when the risk exceeds the acceptable thresholds2. KRIs can also help to align the risk management strategy with the business objectives and context. The other options are not the best ways to identify changes in the risk profile of an organization, as they do not provide the same level of insight and guidance as KRIs. Monitoring key performance indicators (KPIs) may show the results or outcomes of the business processes, but not the risks or uncertainties that affect them. Interviewing the risk owner may provide some subjective or qualitative information on the risk perception or attitude, but not the objective or quantitative data on the risk exposure or impact. Conducting a gap analysis may show the difference between the current and desired state of the organization, but not the causes or sources of the risk. References = Key Risk Indicators; Key Risk Indicators: A Practical Guide

Changes deployed to production are those that affect the functionality, performance, or security of the system in a way that is visible or accessible to the end users1. These changes can introduce new risks or vulnerabilities, such as errors, bugs, compatibility issues, or unauthorized access2. Therefore, it is important to monitor the risk associated with these changes and measure how often they cause incidents in production.

One metric that can be used to monitor this risk is the percentage of changes that cause incidents in production. This metric indicates how effective the change management process is and how well the organization can prevent or mitigate potential problems caused by changes3. A high percentage of incidents indicates a high level of risk and a need for improvement in the change management process.

References = IT Change Management for SOC: Process and Best Practices, Determining and Managing Risk when Deploying Code, 6 Deployment Risks and How To Mitigate Them

 Information security policies are the foundation of an organization’s security program, as they define the objectives, roles, responsibilities, and standards for protecting the information assets and systems. However, information security policies are not static, and they need to be reviewed and updated regularly to reflect the changes in the organization’s environment, risk profile, and compliance requirements. Therefore, the best course of action when conducting an organization-wide risk assessment is to review the policies against current needs to determine adequacy. This means comparing the policies with the current threats, vulnerabilities, controls, and best practices, and identifying any gaps or weaknesses that need to be addressed. The other options are not the best course of action, as they do not consider the current needs of the organization. Reviewing and updating the policies to align with industry standards may not be sufficient, as the organization may have specific or unique needs that are not covered by the standards. Determining that the policies should be updated annually may not be realistic, as the frequency of updates may depend on the nature and complexity of the policies and the organization. Reporting that the policies are adequate and do not need to be updated frequently may not be accurate, as the policies may be outdated or ineffective, and may expose the organization to unnecessary risks. References = Risk Assessment and Analysis Methods: Qualitative and Quantitative - ISACA, Does Your Organization Need a Security Risk Assessment? - ISACA, SP 800-39, Managing Information Security Risk: Organization, Mission …

 When a new security vulnerability is made public, the first step is to determine whether the affected technology is used within the organization. This will help to assess the impact and exposure of the vulnerability on the organization’s assets, processes, and objectives. If the affected technology is not used within the organization, then the vulnerability does not pose a direct threat and no further action is required. However, if the affected technology is used within the organization, then the next steps are to identify the systems and components that are vulnerable, evaluate the severity and likelihood of the vulnerability being exploited, and implement appropriate mitigating controls or remediation actions. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2.1, p. 240-241

The primary objective for selecting risk response options is to reduce risk to an acceptable level. Risk response options are the possible actions that can be taken to address the risks that have been identified and analyzed in the risk management process. Risk response options can be classified into four categories: avoid, transfer, mitigate, and accept for negative risks (or threats), and exploit, share, enhance, and accept for positive risks (or opportunities). The selection of the risk response options depends on various factors, such as the risk level, the risk appetite and tolerance, the cost and benefit, and the feasibility and availability of the options. The main goal of selecting the risk response options is to reduce the risk to a level that is acceptable to the organization, which means that the risk exposure is within the boundaries of the risk criteria and the risk appetite. The other options are not the primary objective for selecting risk response options, although they may be related or beneficial. Identifying compensating controls is a technique to implement additional or alternative controls when the existing controls are not effective or sufficient to reduce the risk to an acceptable level. Minimizing residual risk is a result of selecting and implementing the risk response options, but it is not the main purpose. Residual risk is the risk that remains after the risk response, and it may or may not be acceptable depending on the risk appetite and tolerance. Reducing risk factors is a method to decrease the likelihood or impact of the risk by addressing the root causes or sources of the risk. However,reducing risk factors does not necessarily mean that the risk is reduced to an acceptable level,as there may be other factors or uncertainties that affect the risk. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 862

 The risk treatment response that should be reflected in the risk register when an IT department decides to keep the data center in-house instead of outsourcing it to an overseas location is risk avoidance. Risk avoidance is a risk response strategy that involves eliminating the source of the risk, or changing the plan or scope of the activity, to avoid the risk altogether. Risk avoidance can help to reduce the risk exposure and impact to zero, by removing the possibility of the risk occurrence. In this case, the IT department avoids the risk of outsourcing the data center to an overseas location, which could involve various threats, vulnerabilities, and uncertainties, such as data security, legal compliance, service quality, communication, or cultural issues. By keeping the data center in-house, the IT department maintains the control and ownership of the data center, and eliminates the potential risk associated with the outsourcing. Risk mitigation, risk acceptance, and risk transfer are not the correct risk treatment responses, as they do not reflect the actual decision and action taken by the IT department, and they do not eliminate the risk source or occurrence. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 51.

The best course of action when a recent regulatory requirement has the potential to affect an organization’s use of a third party to supply outsourced business services is to conduct a gap analysis, as it involves comparing the current and desired states of compliance, and identifying any gaps or discrepancies that need to be addressed. Terminating the outsourcing agreement, identifying compensating controls, and transferring risk to the third party are not the best courses of action, as they may not be feasible, effective, or appropriate, respectively, and may require the prior knowledge of the compliance gaps and risks. References = CRISC Review Manual, 7th Edition, page 111.

Low-probability, high-impact events are those that have a low chance of occurring but would cause significant harm if they do. These events are often difficult to predict and quantify, but they can have a major impact on the organization’s objectives, reputation, or operations. By including these events in a risk assessment, the organization can develop understandable and realistic risk scenarios that reflect the potential consequences of different outcomes1. This can help the organization to prioritize its risk management activities and allocate its resources accordingly.

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

 Understanding the Question:

The question asks which method best enables timely detection of changes in the security control environment.

 Analyzing the Options:

A. Control self-assessment (CSA):Allows for continuous monitoring and quick detection of any changes or deficiencies in controls.

B. Log analysis:Useful for detecting security incidents but not as comprehensive as CSA for overall control environment changes.

C. Security control reviews:Typically periodic and might not be as timely.

D. Random sampling checks:Not as systematic or comprehensive as CSA.



Control Self-Assessment (CSA):CSA involves regular, structured evaluations by internal staff to ensure controls are working effectively. It promotes early detection of issues by those directly responsible for the controls.

Timeliness:CSA is an ongoing process, making it more timely in identifying changes compared to periodic reviews or random checks.

The acceptance of control costs that exceed risk exposure most likely demonstrates corporate culture misalignment, as it indicates that the organization is not following the principles and values of effective risk management, and that there is a lack of communication and coordination among the risk owners and stakeholders. Corporate culture misalignment can also result in inefficient and wasteful use of resources, and reduced risk-return trade-off. The organization should align its corporate culture with its risk appetite and tolerance, and ensure that the control costs are proportional and justified by the risk exposure and the expected benefits. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 255. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 255. CRISC by Isaca Actual Free Exam Q&As, Question 9.

A comparison of current risk levels with established tolerance is the most useful information for senior management when determining an appropriate risk response, as it shows the gap between the actual risk exposure and the desired risk exposure of the enterprise. This gap indicates the need and urgency for risk response actions, and helps senior management to prioritize and allocate resources for risk mitigation. A comparison of current risk levels with established tolerance also reflects the effectiveness of the existing risk management process and controls, and enables senior management to monitor and adjust the risk strategy and objectives accordingly. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 234. CRISC by Isaca Actual Free Exam Q&As, Question 9. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 234. CRISC Sample Questions 2024, Question 234.

According to the CRISC Review Manual (Digital Version), a contract associated with a cloud service provider must include ownership of responsibilities, as this defines the roles and obligations of both the cloudprovider and the customer in relation to the cloud services. The contract should specify who is responsible for:

Service delivery and performance

Data security and privacy

Compliance with regulations and standards

Incident management and reporting

Business continuity and disaster recovery

Change management and configuration control

Intellectual property rights and licensing

Termination and data egress

The contract should also include service level agreements (SLAs) that measure and monitor the quality and availability of the cloud services, as well as remedies and penalties for non-compliance. The contract should also address pricing and payment terms, dispute resolution mechanisms, and liability and indemnification clauses.

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 173-1741

The BEST information when determining whether to accept residual risk of a critical system to be implemented is the potential business impacts are within acceptable levels, because it indicates that the residual risk, which is the risk that remains after the risk response actions, does not exceed the risk tolerance and appetite of the organization, and that it does not pose a significant threat or disruption to the business objectives and processes. The potential business impacts are the consequences or outcomes of the residual risk on the organization’s performance, reputation, and value. The other options are not as informative as the potential business impacts, because:

Option A: Single loss expectancy (SLE) is a measure of the monetary loss that is expected from a single occurrence of a risk event, but it does not provide the best information when determining whether to accept residual risk, because it does not consider the frequency or probability of the risk event, or the qualitative aspects of the risk impact, such as customer satisfaction, employee morale, or regulatory compliance.

Option B: Cost of the information system is a measure of the total expenditure that is required to acquire, develop, operate, and maintain the information system, but it does not provide the best information when determining whether to accept residual risk, because it does not reflect the value or benefit of the information system, or the risk exposure or variation that the information system may introduce or encounter.

Option C: Availability of additional compensating controls is a measure of the alternative or supplementary controls that can be implemented to reduce the residual risk, but it does not provide the best information when determining whether to accept residual risk, because it does not indicate the effectiveness or efficiency of the compensating controls, or the cost-benefitanalysis of implementing them. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 122.

Residual risk exceeds acceptable limits, because it indicates that the risk level is higher than the organization’s risk appetite or tolerance, and that the risk responses and controls are insufficient or ineffective. Residual risk is the level of risk remaining in a process or procedure following the implementation of risk controls to limit or remove it. Escalation is a process that increases theawareness and involvement of higher-level stakeholders or authorities in a risk issue or situation. Escalation is appropriate when the risk issue or situation is outside the scope or authority of the current risk owner or manager, and requires the attention or action of the senior management or the board of directors. Residual risk exceeding acceptable limits is the best situation to justify escalation, as it implies that the current risk owner or manager cannot manage the risk within the predefined boundaries or expectations, and that the senior management or the board of directors need to intervene or approve the risk acceptance or transfer.

Residual risk being inadequately recorded, residual risk remaining after controls have been applied, and residual risk equaling current risk are all possible situations that may require escalation, but they are not the best situations, as they do not necessarily indicate that the risk level is higher than the acceptable limits, and that the senior management or the board of directors need to be involved.

The organization control environment is most effective when the controls perform as intended. The controls are the mechanisms or measures that are designed and implemented to prevent, detect, or correct the risks that may affect the achievement of the objectives. The controls perform as intended when they provide reasonable assurance that the risks are mitigated or managed to an acceptable level, and that the objectives are met or exceeded. The performance of the controls can be measured and evaluated by using key performance indicators (KPIs) and key risk indicators (KRIs). The other options are not as indicative of the effectiveness of the control environment, as they are related to the review, implementation, or efficiency of the controls, not the performance or assurance of the controls. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: IT Control Assessment, page 69.

Risk appetite is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk appetite reflects the organization’s risk attitude and its willingness to take on risk in specific scenarios. Risk appetite is usually expressed in a qualitative statement approved by the board of directors1.

Risk capacity is the maximum amount of risk that an organization can responsibly take on without jeopardizing its financial stability or other key objectives. Risk capacity is determined by objective factors like income, assets, liabilities, debts, insurance coverage, dependents, and time horizon. Risk capacity is usually expressed in a quantitative measure that sets the limit of how much risk the organization can handle2.

Prudent business practice requires that risk appetite not exceed risk capacity, because this would mean that the organization is taking on more risk than it can afford or sustain. If the risk appetiteis higher than the risk capacity, the organization may face serious consequences such as insolvency, bankruptcy, reputational damage, legal liability, or regulatory sanctions. Therefore, the organization should align its risk appetite with its risk capacity, and ensure that its risk exposure is within its risk tolerance3.

The other options are not correct. Inherent risk is the level of risk that exists in the absence of controls or mitigations. It is the natural level of risk inherent in a process or activity. Residual risk is the level of riskthat remains after the controls or mitigations have been applied. It is the remaining risk after the risk response has been implemented. Risk tolerance is the acceptable variation in the outcomes related to specific objectives or risks. It is the range of risk exposure that the organization is prepared to accept4. None of these concepts are directly comparable torisk appetite, and none of them represent the limit of how much risk the organization can take on. References =

Risk Appetite vs. Risk Tolerance: What is the Difference? - ISACA

What Is the Difference Between Risk Tolerance and Risk Capacity? - Investopedia

Risk Management: Understanding Risk Capacity, Appetite, and Tolerance - Consulting Edge

[CRISC Review Manual, 7th Edition]

 The PRIMARY basis for selecting a security control is the ability to mitigate risk, because it is the measure of how well the control can prevent or reduce the occurrence or impact of the risk, and how effectively the control can achieve the desired level of security and protection for the system and the data. The ability to mitigate risk is the most important criterion for selecting a security control, as it directly relates to the purpose and value of the control. The other options are not the primary basis, because:

Option A: To achieve the desired level of maturity is a goal of selecting a security control, but not the primary basis. The desired level of maturity is the state or condition of the security control that reflects its quality, consistency, and reliability, and it should be aligned with the organization’s security objectives and standards. The desired level of maturity is a result of selecting a security control, not a reason for selecting it.

Option B: The materiality of the risk is a factor of selecting a security control, but not the primary basis. The materiality of the risk is the degree or extent of the risk that affects the organization’s performance, reputation, and value, and it should be considered when selecting a security control, but it is not the only or the most important factor. The materiality of the risk is an input to selecting a security control, not an output of selecting it.

Option D: The cost of the control is a constraint of selecting a security control, but not the primary basis. The cost of the control is the amount of resources and expenditure that are required to implement and maintain the control, and it should be balanced with the benefit and effectiveness ofthe control, but it is not the only or the most important constraint. The cost of the control is a limitation of selecting a security control, not a motivation for selecting it. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 211.

According to the CRISC Review Manual, the most important reason for implementing change control procedures is to ensure that only approved changes are implemented, because it helps to prevent or minimize the risk of unauthorized or unintended changes that may affect the stability, security, or performance of the IT systems and processes. Change control procedures are the steps and activities that are followed to manage the initiation, review, approval, implementation, and verification of changes. Change control procedures also help to ensure that the changes are aligned with the business requirements and objectives, and that the changes are documented and communicated to the stakeholders. The other options are not the most important reason for implementing change control procedures, as they are related to other benefits or outcomes of the change control process. Timely evaluation of change events is the reason for implementing change management, which is the process of identifying, analyzing, and responding to the changes that may affect the IT systems and processes. An audit trail is the outcome of implementing change control procedures, as it provides a record of the changes and their impacts. Logging emergency changes is the exception of implementing change control procedures, as it allows for bypassing the normal approval process in case of urgent or critical changes. References = CRISC Review Manual, 7th Edition, Chapter 4, Section 4.2.1, page 177.

 Risk tolerance is the best term to describe the situation where an organization has agreed to a 99% availability for its online services and will not accept availability that falls below 98.5%. Risk tolerance is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk tolerance defines the acceptable variation in outcomes related to specific performance measures, such as availability, reliability, or security. Risk tolerance is usually expressed as a range, such as 99% +/- 0.5%. Risk mitigation, risk evaluation, and risk appetite are not the correct terms to describe this situation, because they refer to different aspects of risk management, such as reducing, assessing, or pursuing risk, respectively. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.1, page 1-8.

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.

An IT risk awareness program shouldprimarily ensure that employees and stakeholders understand and comply with the organization's risk and information security policies. ISACA highlights that an awareness program must reinforce policy understanding to drive compliant and secure behavior across the organization.

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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.

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

Cyber risk insurance is a type of insurance policy that provides coverage against losses and damages caused by cyber incidents such as data breaches, hacking, and other cyber attacks. When an organization decides to purchase cyber risk insurance, it transfers the risk of financial loss due to a cyber incident to the insurance company. In the scenario described in the question, the organization allowed its cyber risk insurance to lapse while seeking a new insurance provider. This means that the organization is currently not covered by any cyber risk insurance policy and is therefore exposed to financial losses due to cyber incidents. The risk practitioner should report to management that the risk has been accepted. Accepting risk means that the organization is aware of the potential consequences of the risk and has decided not to take any action to mitigate, transfer, or avoid it. The other options are not correct because they do not reflect the current situation of the organization. The organization has not transferred the risk to another party, as it has no cyber risk insurance policy in place. The organization has not mitigated the risk, as it has not implemented anycontrols or measures to reduce the likelihood or impact of the risk. The organization has not avoided the risk, as it has not eliminated the source or cause of the risk or changed its activities to prevent the risk from occurring. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 752

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.

Classifying information assets is a process of identifying and categorizing the data and information resources that are owned, controlled, or used by an organization, based on their value, sensitivity, and criticality.

Classifying information assets helps to determine the appropriate level of control that is needed to protect them from unauthorized access, use, disclosure, modification, or destruction. Control level refers to the degree of protection or assurance that a control provides against a risk.

Classifying information assets also helps to communicate risk to senior management, assign risk ownership, and facilitate internal audit. These are other benefits of risk management that are not directly related to determining the appropriate level of control.

The references for this answer are:

Risk IT Framework, page 11

Information Technology & Security, page 5

Risk Scenarios Starter Pack, page 3

According to the Risk and Information Systems Control Study Manual, the first step in prioritizing risk response is to address the high risk factors that have efficient and effective solutions. This means that management should focus on the risks that have the most impact on the organization’s objectives and can be mitigated with the least amount of resources and effort. This approach helps to optimize the risk response process and achieve the best results in terms of risk reduction and value creation. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.3.2, Page 223.

The next step for the risk practitioner after identifying risk owners and responses for newly identified risk scenarios is to update the risk register with the results. The risk register is a document that records the details of the risks, such as their sources, causes, consequences, likelihood, impact, and responses. By updating the risk register with the results of the risk workshop, the risk practitioner can ensure that the risk information is current, accurate, and complete, and that the risk owners and responses are clearly defined and communicated. Developing a mechanism for monitoring residual risk, preparing a business case for the response options, and identifying resources for implementing responses are possible steps that may follow the updating of the risk register, but they are not the next step. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

Residual risk is the risk that remains after applying risk responses, such as avoidance, mitigation, transfer, or acceptance. It represents the level of exposure that the organisation is willing to tolerate or assume. Residual risk should be aligned with the organisation’s risk appetite and risk tolerance, which are determined by senior management. Therefore, the best way to obtain senior management support for investment in a control implementation would be to articulate the reduction in residual risk that the control would achieve. This would demonstrate how the control would help the organisation meet its riskobjectives and reduce the likelihood or impact of adverse events. References = ISACA CRISC Review Manual, 7th Edition, Chapter 1, Section 1.3.2, page 25.

The best way to determine whether system settings are in alignment with control baselines is to perform configuration validation. Configuration validation is the process of verifying that the system settings and parameters are consistent with the predefined standards and requirements, and that they reflect the current and desired state of the system. Configuration validation helps to ensure that the system is configured correctly and securely, and that it complies with the relevant policies, regulations, and bestpractices. Configuration validation also helps to identify and correct any deviations or errors in the system settings, and to prevent or mitigate any potential risks or issues. The other options are not as effective as configuration validation, although they may provide some input or information for the system alignment. Control attestation, penetration testing, and internal audit review are all activities that can help to assess or evaluate the system alignment, but they do not necessarily determine or validate the system settings. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.

Defining recovery time objectives (RTOs) and acceptable data loss thresholds is critical for effective disaster response, ensuring recovery activities are aligned with business priorities. This supportsBusiness Continuity Planning.

An IT license audit is a process that verifies the compliance of the IT software and hardware assets with the licensing agreements and regulations. An IT license audit can reveal the existence of unlicensed copies of software, which can expose the enterprise to legal, financial, and reputational risks. The best course of action in such a situation is to report the issue to management so that appropriate action can be taken. Management can then decide on the most suitable risk response strategy, such as procuring the necessary licenses, uninstalling the unlicensed software, or negotiating with the software vendor. Reporting the issue to managementcan also help to prevent further violations, identify the root causes, and implement corrective and preventive measures. The other options are not the best course of action, as they may not address the issue effectively, efficiently, or ethically. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1.1, pp. 156-157.

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.

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

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.

An IT risk register is a document that records the identified IT risks, their analysis, and their responses. It is a useful tool for managing and communicating the IT risks throughout the project or the organization. The most important factor for maintaining the effectiveness of an IT risk register is to perform regular reviews and updates to the register, meaning that the riskpractitioner should periodically check and revise the riskregister to reflect the changes in the IT risk environment, the project status, or the organization’s objectives. Performing regular reviews and updates to the register can help to ensure that the risk register is accurate, complete, and current, and that it provides relevant and reliable information for the risk management decision making and actions. Performing regular reviews and updates to the register can also help to identify any new or emerging IT risks, as well as to monitor and report on the IT risk performance and improvement. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, p. 106-107

Ethics committees are typically responsible for developing, implementing, and overseeing an organization’s ethical guidelines and policies. They play a crucial role in mitigating ethical risk by ensuring that the organization’s operations align with its ethical standards123.

References

1What Is Ethically Informed Risk Management? - Journal of Ethics

2Five Ways to Reduce Ethics and Compliance Risk - Free Ethics Toolkit

35 Ways to Manage Ethical Risks - ClearRisk