CRISC Certified in Risk and Information Systems Control Questions and Answers

Key risk indicators (KRIs) are most useful during the monitoring phase of the risk management process, as they provide timely and relevant information on the current and future risk status and performance. KRIs are metrics that measure the level of risk exposure and the effectiveness of risk response strategies, and they have predefined thresholds that indicate the acceptable or unacceptable risk status. By monitoring the KRIs, the risk practitioner can identify and report any changes or deviations in the risk level, and take appropriate actions to manage the risk. KRIs are not most useful during the analysis, identification, or response selection phases, as they do not help to assess the likelihood or impact of the risk, to find the sources or causes of the risk, or to evaluate or choose the optimal risk response option. References = CRISC: Certified in Risk & Information Systems Control Sample Questions, question 222.

The most helpful factor for an information security management team when allocating resources to mitigate exposures is the risk assessment results. The risk assessment results provide a comprehensive and objective analysis of the risks facing the enterprise, including their likelihood, impact, and root causes. The risk assessment results also help to identify the gaps and weaknesses in the existing controls, and to prioritize the risks based on their severity and urgency. The risk assessment results enable the information security management team toallocate the resources in a cost-effective and risk-based manner, and to implement the most appropriate risk responses to reduce the exposures to an acceptable level. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.1.1, page 1751

Authentication logs are records of the attempts and results of logging into an IT system, network, or application, such as the user name, password, date, time, location, or device1. Authentication logs can help to verify and audit the identity and access of the users, and to detect and investigate any unauthorized or suspicious login activities, such as failed or repeated attempts, or unusual patterns or locations2.

Among the four options given, the discovery that authentication logs have been disabled should be of greatest concern to the organization. This is because disabling authentication logs can:

Prevent or hinder the organization from monitoring and controlling the access and activity of the users, especially the disgruntled, terminated IT administrator who may have malicious intentions or insider knowledge

Enable or facilitate the disgruntled, terminated IT administrator or other attackers to bypass or compromise the authentication mechanisms or policies, and gain unauthorized or elevated access to the IT systems, networks, or applications

Conceal or erase the evidence or traces of the login attempts or actions of the disgruntled, terminated IT administrator or other attackers, and make it difficult or impossible to identify, investigate, or prosecute them

Indicate or imply that the disgruntled, terminated IT administrator or other attackers have already breached or compromised the IT systems, networks, or applications, and have disabled the authentication logs to cover their tracks or avoid detection3

References = What is Authentication Logging?, Authentication Logging - Wikipedia, Fired admin cripples former employer’s network using old credentials

A cost-benefit analysis is a tool that compares the costs and benefits of different alternatives, such as implementing or not implementing a specific control. A cost-benefit analysis provides the most useful information when determining if a specific control should be implemented, as it can show the potential savings, benefits, and risks of each option, and help the decision-makers choose the best course of action. A cost-benefit analysis can also include qualitative factors, such as security, compliance, performance, and customer satisfaction, that may be affected by thecontrol implementation. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 256. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 256. Most Asked CRISC Exam Questions and Answers, Question 10. CRISC by Isaca Actual Free Exam Q&As, Question 9.

A cause-and-effect diagram, also known as a fishbone diagram or an Ishikawa diagram, is a graphical tool that helps to identify and analyze the potential causes and effects of a problem or an event. A cause-and-effect diagram can be used to develop technical risk scenarios related to a recently developed ERP system, because it can help to:

Break down the complex problem or event into manageable and measurable categories and subcategories of causes and effects

Visualize the relationships and interactions among the various factors that contribute to the problem or event

Identify the root causes and the most significant effects of the problem or event

Generate ideas and hypotheses for testing and validating the problem or event

Communicate and present the problem or event clearly and logically to the stakeholders1

A cause-and-effect diagram can be constructed by following these steps:

Define the problem or event and write it in a box on the right side of the diagram

Draw a horizontal line from the box to the left side of the diagram, representing the main spine of the fishbone

Identify the major categories of causes that affect the problem or event, such as people, process, technology, environment, etc., and write them on the branches of the spine

For each category, brainstorm and list the possible subcategories and specific causes that influence the problem or event, and write them on the sub-branches of the spine

For each cause, identify and list the possible effects or consequences that result from the problem or event, and write them on the sub-sub-branches of the spine

Analyze the diagram and prioritize the causes and effects based on their frequency, severity, and controllability

Develop technical risk scenarios based on the most critical causes and effects, and describe how they could affect the ERP system and the organization1

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 application with the business objectives. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

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.

A RACI matrix is a tool that assigns the roles and responsibilities for each risk, such as who is responsible, accountable, consulted, and informed. A RACI matrix helps to clarify the expectations and accountabilities for each risk owner and stakeholder, and to ensure that the risk is managed and monitored effectively and efficiently.

A risk register is a document that records and tracks the identified risks, their likelihood, impact, and mitigation strategies. A risk register does not assign the accountability for each risk, but rather the ownership and response.

A risk catalog is a collection of risks that have been identified and categorized based on common attributes, such as source, type, or impact. A risk catalog does not assign the accountability for each risk, but rather the classification and description.

A risk scenario is a technique that simulates the possible outcomes of different risk events and assesses their impact on the enterprise’s objectives and operations. A risk scenario does not assign the accountability for each risk, but rather the analysis and evaluation.

A key control indicator (KCI) is a metric that measures the effectiveness of a control in mitigating a risk. A good KCI for a vulnerability management program should reflect how well the program is reducing the exposure to high-risk vulnerabilities. The percentage of high-risk vulnerabilities addressed is a KCI that shows the proportion of identified high-risk vulnerabilities that have been remediated or mitigated within a defined time frame. This KCI can help monitor the progress and performance of the vulnerability management program and identify areas for improvement.

The other options are not the best KCI for a vulnerability management program because they do not measure the effectiveness of the control. The percentage of high-risk vulnerabilities missed is a measure of the completeness of the vulnerability scanning process, not the control. The number of high-risk vulnerabilities outstanding is a measure of the current risk exposure, not the control. The defined thresholds for high-risk vulnerabilities are a measure of the risk appetite, not the control. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3: IT Risk Assessment, Section 3.4: Risk Indicators, p. 133-134.

A risk profile is a summary of the key risks that an organization faces, along with the corresponding risk responses, risk owners, and risk indicators1. A risk profile is a useful tool for communicating and reporting the risk status and performance to the management and other stakeholders2. When developing a risk profile for management approval, the most useful information to include is the residual risk and the risk appetite, because:

Residual risk is the level of risk that remains after the implementation of risk responses3. It indicates the degree of exposure or uncertainty that the organization still faces, and the potential impact or consequences of the risk events. Residual risk helps the management to evaluate the effectiveness and adequacy of the risk responses, and to decide whether to accept, reduce, transfer, or avoid the risk4.

Risk appetite is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives5. It reflects the organization’s risk culture, strategy, and priorities, and provides a basis for setting risk thresholds and targets. Risk appetite helps the management to align the risk profile with the organizational goals and values, and to ensure that the risk responses are consistent and proportional to the risk level6.

The other options are not the most useful information when developing a risk profile for management approval, because:

Strength of detective and preventative controls is a measure of how well the controls can identify or prevent the occurrence or impact of the risk events7. It is a part of the risk response information, but it does not provide a comprehensive or holistic view of the risk profile. It does not show the residual risk or the risk appetite, which are more relevant and important for the management approval.

Effectiveness and efficiency of controls is a measure of how well the controls achieve their intended objectives and how well they use the available resources8. It is a part of the risk performance information, but it does not provide a complete or balanced view of the risk profile. It does not show the residual risk or the risk appetite, which are more significant and meaningful for the management approval.

Inherent risk and risk tolerance are related but different concepts from residual risk and risk appetite. Inherent risk is the level of risk that exists before the implementation of risk responses3. Risk tolerance is the acceptable variation or deviation from the risk appetite or the risk objectives5. They are useful for the risk assessment and analysis, but they do not provide the current or desired state of the risk profile. They do not show the residual risk or the risk appetite, which are more critical and valuable for the management approval.

References =

Risk Profile - CIO Wiki

Risk Profile: Definition, Example, and How to Create One

Residual Risk - CIO Wiki

What is Residual Risk? - Definition from Techopedia

Risk Appetite - CIO Wiki

Risk Appetite: What It Is and Why It Matters - Gartner

Preventive and Detective Controls - CIO Wiki

Control Effectiveness and Efficiency - CIO Wiki

 According to the CRISC Review Manual, the greatest risk associated with the misclassification of data is unauthorized access, because it can result in the loss of confidentiality, integrity, and availability of the data. Data classification is the process of assigning categories to data based on its sensitivity and value to the organization. Data classification helps to determine the appropriate level of protection and handling for the data. If the data is misclassified, it may not receive the adequate level of security controls, and it may be accessed by unauthorized or inappropriate users. The other options are not the greatest risks associated with the misclassification of data, as they are less likely or less severe than unauthorized access. Inadequate resource allocation is the risk of not allocating sufficient resources to protect the data, which may affect its availability and performance. Data disruption is the risk of losing or corrupting the data, which may affect its integrity and availability. Inadequate retention schedules is the risk of not retaining the data forthe required period of time, which may affect its compliance and usability. References = CRISC Review Manual, 7th Edition, Chapter 4, Section 4.1.1, page 161.

Conducting social engineering testing is the best way to assess the effectiveness of the security awareness training, as it helps to measure and evaluate the actual behavior and response of the employees to simulated real-world attacks that exploit human vulnerabilities. Social engineering testing is a type of security testing that involves performing authorized and ethical hacking activities on the employees to manipulate them into revealing sensitive information, such as credentials, or performing malicious actions, suchas clicking on a phishing link or opening a malicious attachment. Social engineering testing can help to assess the effectiveness of the security awareness training by providing the following benefits:

It tests the employees’ knowledge and skills in recognizing and resisting social engineering attacks, such as phishing, vishing, baiting, or impersonation.

It identifies and measures the strengths and weaknesses of the employees’ security awareness and behavior, and the impact and severity of their actions on the security posture and risk exposure of the organization.

It provides feedback and learning opportunities for the employees to improve their security awareness and behavior, and to reinforce the key concepts and practices taught in the training.

It communicates and reports the results and findings of the testing to the management and the stakeholders, and supports the development and implementation of corrective or preventive actions.

The other options are not the best ways to assess the effectiveness of the security awareness training. Auditing security awareness training materials is a good practice to ensure that the training content is accurate, relevant, and up-to-date, but it does not measure or evaluate the employees’ security awareness and behavior. Administering an end-of-training quiz is a useful method to test the employees’ comprehension and retention of the training content, but it does not reflect or simulate the employees’ security awareness and behavior in real-world situations. Performing a vulnerability assessment is an important step to identify and analyze the potential vulnerabilities in the systems and software, but it does not assess or address the human vulnerabilities or the employees’ security awareness and behavior. References = 3 ways to assess the effectiveness of security awareness training …, IT Risk Resources | ISACA, Measuring the Effectiveness of Security Awareness Training - Hut Six

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

 Establishing clear accountability for risk is the best way for an organization to enable risk treatment decisions, as it ensures that the risk owners and stakeholders have the authority and responsibility to manage and mitigate the risks that they are assigned to. Establishing clear accountability for risk also facilitates communication and collaboration among the risk owners and stakeholders, and enables them to monitor and report the risk status and performance. Establishing clear accountability for risk also supports the risk governance and culture of the organization, and aligns the risk management process with the organization’s strategy and objectives. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 250. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 250. CRISC Sample Questions 2024, Question 250. CRISC by Isaca Actual Free Exam Q&As, Question 9.

 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

An IT risk register is a document that records and tracks the identified IT risks, their likelihood, impact, and mitigation strategies. It is a living document that needs to be updated regularly to reflect the current risk profile of the organization. One of the situations that would require updates to the IT risk register is the discovery of an ineffectively designed key IT control, as this would increase the likelihood or impact of the related IT risk. Management review of key risk indicators (KRIs), changes to the team responsible for maintaining the register, and completion of the latest internal audit are not reasons to update the IT risk register, as they do not affect the identified IT risks or their mitigation strategies. References = [CRISC Review Manual (DigitalVersion)], page 97; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 198.

This can help to:

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

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

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

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

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

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

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

References =

ISACA Risk Starter Kit provides risk management templates and policies

Risk Appetite and Tolerance - CIO Wiki

Risk Monitoring and Review - The National Academies Press

Risk Reporting - CIO Wiki

Chief Risk Officer - CIO Wiki

Risk Register - CIO Wiki

Risk Mitigation - CIO Wiki

A risk map is a visual tool that helps to communicate risk to management by showing the likelihood and impact of different risks on a matrix1. A risk map can help to:

Identify the most critical risks that need immediate attention or action

Compare and prioritize risks based on their severity and probability

Align risk management strategies with the organization’s risk appetite and tolerance

Communicate risk information in a clear and concise way that is easy to understand and interpret2

References = Risk and Information Systems Control Study Manual, Chapter 5: Risk Assessment Process3

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

When selecting a risk response, the following should be considered:

B. Risk response costs

It’s important to evaluate the costs associated with implementing a risk response to ensure that they are justified by the benefits of mitigating the risk. This helps in making cost-effective decisions that align with the organization’s risk management objectives.

A risk scenario is a hypothetical situation that describes how a risk event could adversely affect an organization’s objectives, assets, or operations. A risk scenario can be used for risk analysis,which is the process of estimating the likelihood and impact of the risk event, and evaluating the effectiveness and efficiency of the risk response1.

One of the essential components of a risk scenario is the threat type, which is the source or cause of the risk event. The threat type can be classified into various categories, such as natural, human, technical, environmental, or legal. The threat type can help to define the characteristics, motivations, capabilities, and methods of the risk event, and to identify the potential vulnerabilities and exposures of the organization. The threat type can also help to determine the frequency and severity of the risk event, and to select the appropriate risk response strategies and controls23.

The other options are not the components of a risk scenario, but rather the outcomes or inputs of risk analysis. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite can help to guide the risk analysis by providing a high-level statement of the desired level of risk taking and tolerance4. Risk tolerance is the acceptable variation in the outcomes related to specific objectives or risks. Risk tolerance can help to measure the risk analysis by providing quantitative or qualitative indicators of the acceptable range of risk exposure and performance4. Residual risk is the remaining risk after the risk response has been implemented. Residual risk can help to monitor the risk analysis by providing feedback on the effectiveness and efficiency of the risk response and the need for further action. References =

Risk Analysis - ISACA

Threat - ISACA

Threat Modeling - ISACA

Risk Appetite and Risk Tolerance - ISACA

[Residual Risk - ISACA]

[CRISC Review Manual, 7th Edition]

The best way to ensure that access remains appropriate for an organization that practices the principle of least privilege is to review user access rights on a regular basis by obtaining an access control matrix and approval from the user’s manager. An access control matrix is a table that shows the access rights and permissions of each user or role for each resource or function. An access control matrix helps to verify that the users have the minimum level of access required to perform their duties, and to identify any unauthorized or excessive access rights. Approval from the user’s manager helps to confirm that the user’s access rights are consistent with their current role and responsibilities, and to authorize any changes or exceptions as needed. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.2, page 1281

 Cross-site scripting (XSS) and SQL injection are two common types of web application attacks that can compromise the confidentiality, integrity, and availability of data and systems. XSS allows an attacker to inject malicious code into a web page that is viewed by other users, while SQL injection allows an attacker to execute arbitrary commands on a database server by manipulating the input parameters of a web application. Both attacks can result in data theft, unauthorized access, defacement, denial of service, and more.

To mitigate these attacks, the best option is to require the software vendor to remediate the vulnerabilities by applying secure coding practices, such as input validation, output encoding, parameterized queries, and HTML sanitization. These techniques can prevent or limit the impact of XSS and SQL injection by ensuring that user input is not interpreted as code or commands by the web browser or the database server. The software vendor should also provide regular updates and patches to fix any known or newly discovered vulnerabilities.

The other options are not effective or acceptable ways to mitigate these attacks. Monitoring the databases for abnormal activity can help detect and respond to SQL injection attacks, but it does not prevent them from happening or address the root cause of the vulnerability. Approving an exception to allow the software to continue operating can expose the organization to unnecessary risks and liabilities, as well as violate compliance requirements and standards. Accepting the risk and letting the vendor run the software as is can also have serious consequences for the organization, as it implies that the potential impact and likelihood of the attacks are low or acceptable, which may not be the case. References =

IT Risk Resources | ISACA

CRISC Certification | Certified in Risk and Information Systems Control | ISACA

Cross Site Scripting Prevention Cheat Sheet - OWASP

A novel technique to prevent SQL injection and cross-site scripting attacks using Knuth-Morris-Pratt string match algorithm | EURASIP Journal on Information Security | Full Text

Difference Between XSS and SQL Injection - GeeksforGeeks

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 risk alignment 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

A standardized risk taxonomy is a common language and structure for identifying, analyzing, and reporting risks across the enterprise. It enables consistent and comparable risk assessment and aggregation, as well as clear communication and coordination among different divisions. A list of control deficiencies, an enterprise risk ownership policy, and an updated risk tolerance metric are not sufficient to enable management of risk at the enterprise level, as they do not address the issue of risk alignment and integration among divisions. References = [CRISC Review Manual (Digital Version)], page 42; CRISC by Isaca Actual Free Exam Q&As, question 197.

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

 The primary role of a data custodian in the risk management process is to ensure that data is protected according to the classification. A data custodian is a person or entity that has theresponsibility for implementing and maintaining the security controls for the data, such as access rights, encryption, backup, or disposal. A data custodian acts as an agent of the data owner, who is the person or entity that has the authority and accountability for the data. A data custodian should ensure that data is protected according to the classification, which is the process of assigning a level of sensitivity and criticality to the data, based on the impact of its loss, disclosure, or modification. Data classification helps to determine the appropriate security controls and risk responses for the data, and to comply with the relevant laws, regulations, or contractual obligations. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.1, page 1271

 A cost-benefit analysis is a tool that compares the costs and benefits of different alternatives, such as updating software or continuing to use end-of-life software. A cost-benefit analysis can provide the mosthelpful information to justify investing in updated software, as it can show the potential savings, benefits, and risks of each option, and help the decision-makers choose the best course of action. A cost-benefit analysis can also include qualitative factors, such as security, compliance, performance, and customer satisfaction, that may be affected by the software update. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 231. CRISC by Isaca Actual Free Exam Q&As, Question 8. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 231. CRISC Certified in Risk and Information Systems Control – Question231.

 The best course of action for a newly hired risk practitioner who finds that the risk register has not been updated in the past year is to identify changes in risk factors and initiate risk reviews. This would help the risk practitioner to update the risk register with the current and relevant information on the risks facing the enterprise, such as their sources, drivers, indicators, likelihood, impact, and responses. It would also help the risk practitioner to evaluate the effectiveness of the existing controls, and to identify any new or emerging risks that need to be addressed. Identifying changes in risk factors and initiating risk reviews would enable the risk practitioner to maintain the accuracy and completeness of the risk register, and to provide valuable input for the risk management process. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.1.1, page 2271

Security awareness training is a process of educating and informing the users about the security policies, procedures, and best practices of the organization, and the potential threats and risks that may affect the confidentiality, integrity, and availability of the information and systems.

The best indicator of whether security awareness training is effective is user behavior after training. This means that the users demonstrate and apply the knowledge and skills that they have learned from the training, such as following the security rules and guidelines, reporting any security incidents or issues, avoiding any risky or malicious actions, etc.

User behavior after training helps to measure the actual impact and outcome of the training, compare them with the expected or desired objectives and standards, identify any gaps or issues that may affect the training effectiveness or efficiency, and take appropriate actions to address them.

The other options are not the best indicators of whether security awareness training is effective. They are either subjective or not essential for security awareness training.

The references for this answer are:

Risk IT Framework, page 30

Information Technology & Security, page 24

Risk Scenarios Starter Pack, page 22

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

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

The best course of action when a risk practitioner identifies a database application that has been developed and implemented by the business independently of IT is to include the application in IT risk assessments. IT risk assessments are the process of identifying, analyzing, and evaluating the IT-related risks that could affect the achievement of the enterprise’s objectives. By including the application in IT risk assessments, the risk practitioner can identify the potential threats, vulnerabilities, and impacts associated with the application, and recommend the appropriate controls and mitigation strategies to reduce the risk to an acceptable level. Escalating the concern to senior management, documenting the reasons for the exception, and proposing that the application be transferred to IT are not the best courses of action, as they do not address the risk exposure and impact of the application, and may not be feasible or desirable for the business. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 47.

Specifying cloud service provider liability for data privacy breaches in the contract is the most effective control to address the risk associated with compromising data privacy within the cloud, because it establishes the roles and responsibilities of the cloud service provider and the customer in case of a data breach, and defines the compensation or remediation measures that the cloud service provider should provide. This control also creates an incentive for the cloud service provider to implement adequate security measures to protect the customer’s data and comply with the relevant laws and regulations. The other options are not the most effective controls, although they may also be helpful in reducing the risk of data privacy breaches. Establishing baseline security configurations with the cloud service provider, requiring the cloud service provider to disclose past data privacy breaches, and ensuring the cloud service provider performs an annual risk assessment are examples of preventive or detective controls that aim to reduce the likelihood or impact of a data breach, but they do not address the accountability or liability of the cloud service provider in case of a data breach. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

The risk practitioner should explain to senior management that mitigation plans for threat events should be prepared in the current planning period, as this would demonstrate a proactive and responsible approach to risk management. Mitigation plans are documents that outline the actions and resources needed to reduce the likelihood and/or impact of a specific risk scenario. Mitigation plans should include the following elements:

Risk scenario description and risk ID

Risk owner and other stakeholders

Risk response strategy and objectives

Risk response actions and tasks

Resources, costs, and benefits

Roles and responsibilities

Timeline and milestones

Performance indicators and monitoring mechanisms

Contingency plans and triggers

Mitigation plans help to address the gap between the current and desired risk levels and align the risk response with the organizational risk appetite and objectives. Mitigation plans also facilitate the communication, coordination, and collaboration among the risk owners and other stakeholders involved in the risk response process. Mitigation plans should be prepared in the current planning period, as this would allow the organization to act timely and effectively in the event of a low frequency threat event. Preparing mitigation plans in advance would also help to avoid or minimize the potential harm to the organization and its reputation.

The other options are not the best ways to communicate the associated risk to senior management. Explaining that this risk scenario is equivalent to more frequent but lower impact risk scenarios may not accurately reflect the true nature and severity of the risk. Explaining that the current level of risk is within tolerance may not convey the urgency and importance of addressing the risk. Explaining that an increase in threat events could cause a loss sooner than anticipated may not provide a clear and actionable solution for the risk. References = Four steps for managing risk at the CEO level, IT Risk Resources | ISACA, How to Communicate Risk to Stakeholders | Anitian

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]

 The best indication that risk management is effective is when risk has been reduced to meet the risk appetite of the enterprise. Risk appetite is the amount and type of risk that an enterprise is willing to accept in pursuit of its objectives. Risk appetite reflects the enterprise’s risk culture, strategy, and values, and provides a basis for setting risk tolerance levels and risk response strategies. Risk management is effective when it enables the enterprise to align its risk exposure with its risk appetite, and to optimize the risk-return trade-off. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.1, page 181

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.

Key risk indicators (KRIs) are metrics that provide information on the level of exposure to a given risk. Key control indicators (KCIs) are metrics that measure the performance or effectiveness of a control in mitigating a risk. KCIs provide input for KRIs, because they help to assess the residual risk after applying the control. For example, if the KRI is the number of security incidents, and the KCI is the percentage of incidents detected by the intrusion prevention system (IPS), then the KCI provides input for the KRI by showing how well the IPS is reducing the risk of security breaches. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

Key risk indicators (KRIs) are metrics that help organizations monitor and assess potential risks that may impact their operations, financial health, or overall performance1. KRIs should have certain characteristics that make them effective for risk monitoring, such as:

Ability to measure the right thing (e.g., supports the decisions that need to be made)

Quantifiable (e.g., damages in dollars of profit loss)

Capability to be measured precisely and accurately

Relevant (measuring the right thing associated with decisions)2

Among the four options given, only option C (sensitivity to changes in risk levels) best enables effective risk monitoring. This is because KRIs should be able to capture the changes in risk levels over time and alert organizations to emerging or escalating risks3. A high sensitivity to changes in risk levels indicates that theKRI is responsive and timely, and can help organizations take preventive or corrective actions before the risks become too severe.

References = Key Risk Indicators: A Practical Guide, Key Risk Indicators: Examples & Definitions, Key Risk Indicators - Wikipedia

The most important factor to communicate to senior management during the initial implementation of a risk management program is the desired risk level, which is the level of risk that the organization aims to achieve in order to fulfill its objectives and strategy1. The desired risk level can help to:

Define and communicate the risk appetite and tolerance, which are the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives2.

Guide and align the risk identification, analysis, evaluation, and treatment processes, and ensure that the risks are consistent and proportional to the desired risk level3.

Measure and monitor the risk performance and outcome, and ensure that the actual risk level is within the desired risk level, or take corrective actions if needed4.

The other factors are not the most important to communicate to senior management, because:

Regulatory compliance is a necessary but not sufficient factor to communicate to senior management, as it ensures that the risk management program complies with the applicable laws, rules, or standards that govern the organization’s activities and operations5. However, regulatory compliance does not guarantee that the risk management program is relevant and useful for the organization’s specific objectives and strategy.

Risk ownership is a desirable but not essential factor to communicate to senior management, as it assigns the roles and responsibilities for managing the risks and implementing the risk responses to the appropriate individuals or entities within the organization. However, risk ownership does not ensure that the risk management program is effective and efficient in achieving the desired risk level.

Best practices are a useful but not critical factor to communicate to senior management, as they provide the guidelines and standards for designing and implementing the risk management program, based on the experience and knowledge of the industry or the profession. However, best practices do not ensure that the risk management program is suitable and feasible for the organization’s specific context and capabilities.

References =

Desired Risk Level - CIO Wiki

Risk Appetite and Tolerance - CIO Wiki

Risk Management Process - CIO Wiki

Risk Monitoring - CIO Wiki

Regulatory Compliance - CIO Wiki

[Risk Ownership - CIO Wiki]

[Best Practice - CIO Wiki]

[Risk Management - CIO Wiki]

Risk tolerance is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk tolerance is an important component of the corporate risk profile, as it defines the boundaries and limits of the acceptable risk exposure for the organization. Comparing the risk tolerance against the corporate risk profile can help to ensure that the organization’s risk strategy and objectives are aligned with its risk appetite and capacity, and that the organization is not taking on more risk than it can handle or afford. Comparing the risk tolerance against the corporate risk profile can also help to monitor and adjust the risk management process and controls, and to optimize the risk-return trade-off. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 249. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 249. CRISC Sample Questions 2024, Question 249. CRISC by Isaca Actual Free Exam Q&As, Question 9.

The most comprehensive input to the risk assessment process specific to the effects of system downtime is the business impact analysis (BIA). The BIA is a process of analyzing the potential impacts of disruptive events on the business processes, functions, and resources. The BIA identifies the criticality, dependencies, recovery priorities, and recovery objectives of the business processes, and quantifies the financial and non-financial impacts of system downtime. The BIA provides valuable information for the risk assessment process, as it helps to evaluate the likelihood and impact of the risks, and to determine the appropriate risk responses. Business continuity plan (BCP) testing results, recovery time objective (RTO), and recovery point objective (RPO) are not as comprehensive as the BIA, as they are derived from the BIA and focus on specific aspects of the business continuity and recovery strategies. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 130.

Risk appetite should be the primary driver for periodically reviewing and adjusting key risk indicators (KRIs), because it reflects the level of risk that the enterprise is willing to accept in pursuit of its objectives. KRIs should be aligned with the risk appetite and adjusted accordingly when the risk appetite changes due to internal or external factors. The other options are not the primary drivers, although they may also influence the review and adjustment of KRIs. Risk impact, risk likelihood, and control self-assessments (CSAs) are secondary drivers that depend on the risk appetite. References = Most Asked CRISC Exam Questions and Answers

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 penetration testing. 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]

The best recommendation to address an organization’s need to secure multiple systems with limited IT resources is to perform a vulnerability analysis. A vulnerability analysis is a process of identifying, assessing, and prioritizing the weaknesses or flaws in the systems that could be exploited by threats or risks. A vulnerability analysis helps to determine the level and nature of the exposure and impact of the systems, and to select and implement the appropriate security controls or mitigations. Performing a vulnerability analysis is the best recommendation, as it helps to optimize the use of the limited IT resources, by focusing on the most critical or significant vulnerabilities, and by applying the most effective or efficient security solutions.Performing a vulnerability analysis also helps to improve the security posture and performance of the systems, and to reduce the likelihood and consequences of security incidents or breaches. Applying available security patches, scheduling a penetration test, and conducting a business impact analysis (BIA) are not the best recommendations, as they are either the outputs or the inputs of the vulnerability analysis process, and they do not address the primary need of securing the systems with limited IT resources. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

 The number of projects going live without a security review is the best key control indicator (KCI) to indicate whether security requirements are identified and managed throughout a project life cycle, because it measures the compliance and effectiveness of the security review process. A security review is a process that ensures that the security requirements are defined, implemented, tested, and verified for each project, and that any security risks or issues are identified and resolved before the project is deployed. The number of projects going live without a security review should be minimized or eliminated, as it indicates afailure or weakness of the security review process. The other options are not the best KCIs, because they do not directly measure the identification and management of security requirements. The number of employees completing project-specific security training, the number of security projects started in core departments, and the number of security-related status reports submitted by project managers areexamples of input or output indicators that measure the activities or results of the project, but not the security requirements. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

The most helpful activity for a risk practitioner when ensuring that mitigated risk remains within acceptable limits is to implement a process for ongoing monitoring of control effectiveness. This would enable the risk practitioner to track the performance of the controls, identify any deviations or gaps, and take corrective actions as needed. Ongoing monitoring of control effectiveness would also provide assurance that the risk responses are working as intended, and that the residual risk is aligned with the risk appetite and tolerance of the enterprise. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.3.1, page 188.

An incident is an unplanned event that disrupts or degrades the normal operation or performance of an IT service, system, or network1. An incident can cause various negative impacts, such as service outages, data losses, security breaches, or customer dissatisfaction2. An incident can recur if the underlying cause or problem of the incident is not properly identified and resolved3.

The best course of action to help reduce the probability of an incident recurring is to perform root cause analysis. Root cause analysis is a systematic process of finding and eliminating the fundamental cause or problem that led to the incident4. Root cause analysis can help to:

Prevent or minimize the recurrence of the incident by addressing the source of the problem, not just the symptoms or effects

Identify and implement corrective or preventive actions that can effectively resolve or mitigate the problem

Learn from the incident and improve the IT service, system, or network quality and reliability

Enhance the incident management and problem management processes and capabilities5

References = What is an Incident?, Incident Management - Wikipedia, Problem Management - Wikipedia, Root Cause Analysis - Wikipedia, Root Cause Analysis: A Guide for Business Leaders

 Anonymizing personal data in non-production environments means replacing the real data with fictitious but realistic data that does not allow identification of the individuals. This is a good way to mitigate the risk of sensitive personal data leakage from a software development environment, as it reduces the exposure of the data to unauthorized access or misuse. Tokenizing personal data only in test environments is not sufficient, as the data may still be exposed in other non-production environments, such as development or staging. Data loss prevention tools (DLP) installed in passive mode may detect and report data leakage incidents, but they do not prevent them from happening. Multi-factor authentication for access to non-production environments may enhance the security of the access, but it does not protect the data from being leaked by authorized users or compromised by other means. References = CRISC Review Manual (Digital Version), page 226; CRISC Review Questions, Answers & Explanations Database, question 195.

The data privacy officer is the best person to notify in case of a new malware that has severely impacted industry peers with data loss. The data privacy officer is responsible for ensuring that the enterprise complies with the applicable privacy laws and regulations, and that the personal data of the customers, employees, and other stakeholders are protected from unauthorized access, use, disclosure, or destruction. The data privacy officer can assess the potential impact of the malware on the enterprise’s data privacy obligations and risks, and coordinate the appropriate response and remediation actions. The customer database manager, the customer data custodian, and the audit committee are not the best persons to notify, as they do not have the same level of authority, responsibility, and expertise as the data privacy officer in dealing with data privacy issues. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 191.

Personal data is any information that relates to an identified or identifiable individual, such as name, address, email, phone number, etc. Processing personal data involves collecting, storing, using, disclosing, or deleting it. Processing personal data poses various risks to the privacy and security of the data subjects,such as unauthorized access, disclosure, modification, or loss. Therefore, processing personal data requires appropriate technical and organizational measures to safeguard the data and to comply with the relevant laws and regulations. One of the most effective practices to safeguard the processing of personal data is to use tokenization. Tokenization is a technique that replaces sensitive data elements with non-sensitive equivalents, called tokens, that have no meaning or value outside of a specific system or context. Tokenization reduces the risk of exposing personal data to unauthorized parties, as the tokens cannot be reversed or linked back to the original data without the proper key or algorithm. Tokenization also helps to minimize the amount of personal data that is stored or transmitted, and to limit the scope of compliance requirements. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2.2, p. 196-197

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.

 Process owners are the best suited to help a risk practitioner understand the impact of IT-related events on business objectives, as they have the responsibility and authority over the design, execution, and performance of business processes. Process owners are also accountable for the risks and controls associated with their processes, and they can provide valuable input and feedback on the likelihood and impact of IT-related events on the process outcomes and objectives.

The other options are not the best suited to help a risk practitioner understand the impact of IT-related events on business objectives. IT management is responsible for the delivery and support of IT services and solutions, but they may not have the full visibility or understanding of the business objectives and processes. Internal audit is responsible for providing independent and objective assurance and consulting services on the effectiveness and efficiency of governance, risk management, and control processes, but they may not have the direct involvement or influence on the business objectives and processes. Senior management is responsible for settingthe strategic direction and objectives of the organization, but they maynot have the detailed knowledge or experience of the business processes and their risks and controls. References = IT Risk Manager: Skills and Roles & Responsibilities, IT Risk Resources | ISACA, Managing information technology risk | Business Queensland

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

 Key control indicators (KCIs) are metrics that measure how well a specific control is performing in reducing the causes, consequences, or likelihood of a risk1. KCIs are used to evaluate the control operating effectiveness, which is the degree to which a control achieves its intended objectives and mitigates the risk2.

The primary reason to use KCIs to evaluate control operating effectiveness is to monitor the achievement of set objectives. This means that KCIs help to:

Track and report the progress and performance of the control against the predefined targets, standards, or benchmarks

Identify and address any gaps, deviations, or issues in the control operation or outcome

Provide feedback and assurance to the stakeholders and regulators on the adequacy and reliability of the control

Support the continuous improvement and optimization of the control3

References = Key Control Indicator (KCI) - CIO Wiki, Evaluating and Improving Internal Control in Organizations - IFAC, A Methodical Approach to Key Control Indicators

To help identify high-risk situations, an organization should continuously monitor the environment, as it can help to detect and respond to any changes or emerging risks that may affect the organization’s objectives and strategy. Continuous monitoring can also provide timely and relevant feedback and information to the decision-makers and stakeholders, and enable them to adjust the risk strategy and response actions accordingly. Continuous monitoring can also help to ensure that the risk management process is aligned with the organization’s risk appetite andtolerance, and supports the achievement of the organization’s goals and value creation. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 243. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 243. CRISC Sample Questions 2024, Question 243.

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

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

Alignment to business objectives is the most important factor when developing a business case for a proposed security investment, because it demonstrates how the investment will support the enterprise’s mission, vision, and goals. A business case should show how the security investment will contribute to the value creation, risk reduction, and performance improvement of the enterprise. The other options are not the most important factors, although they may also be included in the business case. The identification of control requirements, the consideration of new business strategies, and the inclusion of strategy for regulatory compliance are secondary factors that depend on the alignment to business objectives. References = Most Asked CRISC Exam Questions and Answers

A cost-benefit analysis is the best method to assist in justifying an investment in automated controls, as it helps to compare and evaluate the costs and benefits of the investment and to determine its feasibility and profitability. A cost-benefit analysis is a process of identifying, measuring, and comparing the expected costs and benefits of a project or a decision, such asinvesting in automated controls. A cost-benefit analysis can help to justify an investment in automated controls by providing the following benefits:

It enables a data-driven and evidence-based approach to decision making, rather than relying on subjective or qualitative judgments.

It facilitates a consistent and standardized way of assessing and communicating the value and impact of the investment across the organization and to the external stakeholders.

It supports the alignment of the investment with the organizational strategy and objectives, and helps to evaluate the achievement of the desired outcomes.

It helps to identify and prioritize the opportunities and challenges of the investment, and to develop and implement appropriate strategies and actions to address them.

It provides feedback and learning opportunities for the investment and its outcomes, and helps to foster a culture of continuous improvement and innovation.

The other options are not the best methods to assist in justifying an investment in automated controls. Alignment of investment with risk appetite is an important aspect of risk management, but it does not directly address the costs and benefits of the investment. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Alignment of investment with risk appetite helps to ensure that the investment is consistent with the organizational risk tolerance and preferences,and does not expose the organization to excessive or unacceptable risk. Elimination of compensating controls is a possible benefit of investing in automated controls, but it is not a method to justify the investment. Compensating controls are alternative or additional controls that are implemented to mitigate the risk when the primary or preferred controls are not feasible or effective. Elimination of compensating controls can help to reduce the complexity and costs of the control environment, and to improve the efficiency and reliability of the controls. Reduction in personnel costs is a possible benefit of investing in automated controls, but it is not a method to justify the investment. Personnel costs are the expenses related to the staff and employees involved in the processes or functions that are automated. Reduction in personnel costs can help to increase the profitability and productivity of the organization, and to allocate the resources more effectively and efficiently. References = Cost Benefit Analysis: An Expert Guide | Smartsheet, IT Risk Resources | ISACA, Automation - Efficiency, Cost-Savings, Robotics | Britannica

The best course of action in responding to the internal audit inquiry is to provide justification for the lower risk rating. This would demonstrate that the risk record was updated based on a valid and documented rationale, such as changes in the risk environment, risk drivers, risk indicators, or risk responses. Providing justification would also help to maintain the transparency and accountability of the risk management process, and ensure that the internal audit is satisfied with the risk assessment outcome. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.3, page 184.

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 decisions are 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

Greatest Privacy Risk:

Jurisdictional Challenges: Processing personal data in an offshore location often involves dealing with different legal and regulatory requirements, which can complicate compliance with data privacy laws such as GDPR or CPRA.

Data Transfer Risks: Even with a data sharing agreement, the protection and enforcement of privacy rights can be less stringent in the offshore location compared to the home jurisdiction. This can lead to increased risks of data breaches and misuse.

Enforcement Difficulties: If privacy violations occur, enforcing legal actions across borders can be challenging, potentially leading to inadequate redress for affected individuals.

Comparison with Other Options:

Privacy Risk Awareness Training Not Conducted: This is a significant risk but can be mitigated relatively quickly with proper training programs.

Privacy Not Incorporated into Risk Management Framework: While critical, the risk can be managed by integrating privacy into the framework without immediate severe consequences.

Remote Work by Staff with Access to Personal Data: This introduces risks related to secure access and data protection but can be managed with proper security controls.

Best Practices:

Data Sovereignty Considerations: Ensure data is processed in jurisdictions with strong privacy laws that align with the organization's regulatory requirements.

Regular Audits and Assessments: Conduct regular audits of data processing practices in offshore locations to ensure compliance with data privacy agreements.

Legal Safeguards: Establish robust legal safeguards and contracts to enforce data protection standards across jurisdictions.

The most important information to review when developing plans for using emerging technologies is the organizational strategic plan. The organizational strategic plan is a document that defines the vision, mission, goals, and objectives of the organization. It also outlines the strategies, actions, and resources that are needed to achieve them. The organizational strategic plan provides the direction, alignment, and guidance for the use of emerging technologies, and ensures that they are aligned with and support the organizational needs and priorities. The other options are not as important as the organizational strategic plan, as they are related to the current state, specific area, or potential issues of the use of emerging technologies, not the overall purpose and value of the use of emerging technologies. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.2: IT Risk Identification Methods, page 19.

Managing cyber risk according to the organization’s risk management framework is the best recommendation to help ensure cyber risk is assessed and reflected in the enterprise-level risk profile, as it helps to integrate and align the cybersecurity risk management (CSRM) and the enterprise risk management (ERM) processes. A risk management framework is a set of principles, policies, and practices that guide and support the risk management activities within an organization. A risk management framework helps to establish a consistent, comprehensive, and coordinated approach to risk management across the organization and to the external stakeholders.

Managing cyber risk according to the organization’s risk management framework helps to ensure cyber risk is assessed and reflected in the enterprise-level risk profile by providing the following benefits:

It enables a holistic and comprehensive view of the cyber 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 cyber risk exposure and control environment.

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

It provides feedback and learning opportunities for the cyber risk management and control processes and helps to foster a culture of continuous improvement and innovation.

The other options are not the best recommendations to help ensure cyber risk is assessed and reflected in the enterprise-level risk profile. Defining cyber roles and responsibilities across the organization is a good practice to clarify and assign the duties and accountabilities for the cyber risk management and control processes, but it does not directly address the cyber risk assessment and integration with the enterprise-level risk profile. Conducting cyber risk awareness training tailored specifically for senior management is a useful method to educate and engage the senior management in the cyber risk management and control processes, but it does not provide a systematic or consistent way to assess and reflect the cyber risk in the enterprise-level risk profile. Implementing a cyber risk program based on industry best practices is a possible action to improve and enhance the cyber risk management and control processes, but it does not ensure the alignment or integration with the organization’s risk management framework or the enterprise-level risk profile. References = Integrating Cybersecurity and Enterprise Risk Management (ERM) - NIST, IT Risk Resources | ISACA, Identifying and Estimating Cybersecurity Risk for Enterprise Risk …

 A cost-benefit analysis of the control versus probable legal action is the best way to inform decision-makers about the value of a notice and consent control for the collection of personal information, as it quantifies the potential benefits and costs of implementing the control and compares them with the potential consequences of not implementing the control. This helps the decision-makers to evaluate the trade-offs and the return on investment of the control.

A comparison of the costs of notice and consent control options is not sufficient to inform decision-makers about the value of the control, as it does not consider the benefits or the risks of the control.

Examples of regulatory fines incurred by industry peers for noncompliance are not the best way to inform decision-makers about the value of the control, as they are based on historical data and may not reflect the current or future situation of the enterprise.

A report of critical controls showing the importance of notice and consent is not the best way to inform decision-makers about the value of the control, as it does not provide any quantitative or comparative data to support the decision. References = CRISC Review Manual, 7th Edition, ISACA, 2020, page 140-1411

According to the CRISC Review Manual, centralized log management is the best way to assist in reconstructing the sequence of events following a security incident across multiple IT systems in the organization’s network, because it enables the collection, correlation, analysis, and retention of log data from various sources. Centralized log management can provide a comprehensive and consistent view of the activities and transactions that occurred before, during, and after the incident, and can facilitate the identification of the root cause, impact, and scope of the incident. The other options are not the best ways to assist in reconstructing the sequence of events, because they do not provide the same level of detail and accuracy as centralized log management. Network monitoring infrastructure is a tool that helps to monitor the performance and availability of the network, but it does not capture the log data from the IT systems. Centralized vulnerability management is a process that helps to identify and remediate the vulnerabilities in the IT systems, but it does not record the events and transactions that occurred on the systems. Incident management process is a process that helps to respond to and resolve the incidents, but it does not provide the log data from the IT systems. References = CRISC Review Manual, 7th Edition, Chapter 5, Section 5.3.2, page 263.

 The greatest risk to change control in business application development over the complete life cycle is the introduction of requirements that have not been approved. Requirements are the specifications or expectations of the business users or stakeholders for the application, such as the features, functions, or performance1. Change control is the process of identifying, evaluating, approving, and implementing changes to the application, such as the design, code, or configuration2. By introducing requirements that have not been approved, the organization can face significant risks, such as:

Scope creep, which is the uncontrolled or unauthorized expansion of the project scope, and can result in increased costs, delays, or errors3.

Quality issues, which can affect the reliability, usability, or security of the application, and can lead to defects, failures, or breaches4.

Stakeholder dissatisfaction, which can arise from the mismatch or inconsistency between the delivered application and the expected application, and can cause complaints, disputes, or litigation5.

The other options are not the greatest risk to change control, because:

Emphasis on multiple application testing cycles is not a risk, but rather a benefit or a best practice for change control, as it can help to ensure that the application meets the requirements and standards, and that the changes are effective and efficient.

Lack of an integrated development environment (IDE) tool is a challenge, but not a risk, for change control, as it can affect the productivity, collaboration, or integration of the developers, and can cause difficulties or inefficiencies in the development process. However, it does not directly affect the requirements or the quality of the application, and it can be overcome by using other tools or methods.

Bypassing quality requirements before go-live is a risk, but not the greatest risk, for change control, as it can compromise the quality or performance of the application, and can expose the organization to errors, failures, or breaches. However, it is less likely or frequent than introducing requirements that have not been approved, and it can be detected or prevented by using quality assurance or quality control techniques.

References =

Requirements - CIO Wiki

Change Control - CIO Wiki

Scope Creep - CIO Wiki

Quality - CIO Wiki

Stakeholder Management - CIO Wiki

[Software Testing - CIO Wiki]

[Integrated Development Environment (IDE) - CIO Wiki]

[Quality Requirements - CIO Wiki]

[Software Development Life Cycle - CIO Wiki]

Implementing a file corruption detection tool as a risk response strategy will help to reduce the impact of future events, as it will enable the organization to identify and correct the corrupted files before they cause further damage or loss. A file corruption detection tool is a software that scans and verifies the integrity and validity of the files, and alerts the users or administrators of any anomalies or errors. This helps to minimize the disruption and downtime caused by the data corruption incidents, and to preserve the quality and reliability of the data. Implementing a file corruption detection tool will not reduce the likelihood of future events, as it does not prevent or mitigate the causes or sources of the data corruption incidents. It will not restore availability, as it does not recover or restore the corrupted files, but only detects them. It will not address the root cause, as it does not analyze or eliminate the underlying factors that lead to the data corruption incidents. References = CRISC Certified in Risk and Information Systems Control – Question215; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 215.

 The greatest concern with the situation of combining the second and third lines of defense in a new department that reports to a recently appointed C-level executive is that the independence of the internal third line of defense may be compromised. The second line of defense is the function that oversees and supports the risk management activities of the first line of defense, which is the function that owns and manages the risks. The third line of defense is the function that provides independent assurance of the risk management activities, such as the internal audit function. Combining the second and third lines of defense in a new department may compromise the independence of the internal third line of defense, as it may create a conflict of interest, bias, or influence among the functions, and impair the objectivity, credibility, and quality of the assurance activities. The independence of the internal third line of defense is essential for ensuring that the risk management activities are performed in a consistent and effective manner, and that the issues and gaps are identified and reported without fear or favor. The risk governanceapproach of the second and third lines of defense may differ, cost reductions may negatively impact the productivity of other departments, and the new structure may not be aligned to the organization’s internal control framework are also concerns, but they are not as great as the compromise of the independence of the internal third line of defense, as they do not directly affect the assurance and accountability of the risk management activities. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 36.

The potential loss to the business due to non-performance of the asset is the most helpful information for asset owners when classifying organizational assets for risk assessment, because it reflects the value and criticality of the asset to the business objectives and processes. The potential loss can be measured in terms of financial, operational, reputational, or legal impacts.The known emerging environmental threats are not relevant for asset classification, because they are external factors that affect the risk level, not the asset value. The known vulnerabilities published by the asset developer are not relevant for asset classification, because they are internal factors that affect the risk level, not the asset value. The cost of replacing the asset with a new asset providing similar services is not relevant for asset classification, because it does not reflect the business impact of losing the asset functionality or availability. References = CRISC Sample Questions 2024

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

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

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

The references for this answer are:

Risk IT Framework, page 28

Information Technology & Security, page 22

Risk Scenarios Starter Pack, page 20

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 impact of 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]

 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 …

 A vulnerability is a weakness or flaw that can be exploited by a threat to cause harm or damage to an asset. Employees holding the door open for others, so that trailing employees do not have to stop and swipe their own ID badges, is a behavior that best represents a vulnerability, as itbypasses the security control of the ID badge system, and allows unauthorized or unauthenticated access to the premises. This behavior can increase the risk of physical or logical security breaches, such as theft, vandalism, sabotage, or espionage. References = CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 258. Most Asked CRISC Exam Questions and Answers, Question 10. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 258. CRISC by Isaca Actual Free Exam Q&As, Question 9.

The drawback in the use of quantitative risk analysis is that it requires more resources than other methods. Quantitative risk analysis is a method of risk analysis that assigns numeric values to the exposures of assets, the impact and likelihood of risk events, and the cost and benefit of risk responses. Quantitative risk analysis can provide more precise and objective results, and support the risk-based decision making process. However, quantitative risk analysis also requires more resources than other methods, such as data, time, expertise, and tools, to collect, validate, and analyze the quantitative information, and to perform the complex calculations and simulations. Quantitative risk analysis may also be limited by the availability, reliability, and accuracy of the data, and the assumptions and models used. Assigning numeric values to exposures of assets, producing the results in numeric form, and being based on impact analysis of information assets are not drawbacks, but characteristics of quantitative risk analysis. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 49.

Residual risk is the risk that remains after the implementation of controls. It is important for a risk practitioner to verify that the residual risk is within the acceptable levels defined by the enterprise’s risk appetite and tolerance. This ensures that the controls are effective in reducing the risk exposure to an acceptable level and align with the enterprise’s objectives and strategy. References = CRISC Review Manual 27th Edition, page 131. Most Asked CRISC Exam Questions and Answers.

Production data is the data that is used in the actual operation of a system or application, such as customer information, financial records, transactions, etc.

Test data is the data that is used in the testing or development of a system or application, such as dummy data, sample data, simulated data, etc.

A risk practitioner has become aware of production data being used in a test environment. This indicates that there is a risk of unauthorized access, use, disclosure, modification, or destruction of the production data, which may affect the confidentiality, integrity, and availability of the data.

The primary concern of the risk practitioner in this situation is the sensitivity of the data. This means that the risk practitioner should assess how valuable, critical, or confidential the data is, and what would be the impact or consequence if the data is compromised or lost.

The sensitivity of the data helps to determine the level of protection and control that is needed to safeguard the data, and the priority and urgency of the risk response actions.

The other options are not the primary concerns of the risk practitioner in this situation. They are either secondary or not essential for data protection.

The references for this answer are:

Risk IT Framework, page 32

Information Technology & Security, page 26

Risk Scenarios Starter Pack, page 24

 The best time to identify the risk associated with a major project to determine a mitigation plan is the project initiation phase. The project initiation phase is the first phase of the project management process, where the project is defined, authorized, and planned. The project initiation phase includes the activities of developing the project charter, identifying the stakeholders, and defining the scope and objectives of the project. The project initiation phase is the best time to identify the risk associated with the project, as it provides the opportunity to understand the project context, requirements, and expectations, and to establish the risk management framework, process, and plan. By identifying the risk early in the project, the mitigation plan can be integrated with the project plan, and the resources, budget, and schedule can be allocated accordingly. The other options are not as optimal as the project initiation phase, as they are related to the execution, closing, or planning of the project, not the definition or authorization of the project. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Management Process, page 15.

The risk practitioner’s best course of action when the residual risk is now within the organization’s defined appetite and tolerance levels is to verify the adequacy of risk monitoring plans. Risk monitoring is the process of tracking and reviewing the risk status and performance, and ensuring that the risk responses are effective and efficient1. Risk monitoring plans are the documents that specify the objectives, scope, methods, roles, and responsibilities for the risk monitoring activities2. By verifying the adequacy of risk monitoring plans, the risk practitioner can:

Ensure that the risk monitoring plans are aligned with the organization’s risk strategy, objectives, and policies, and that they comply with the relevant standards and regulations3.

Evaluate whether the risk monitoring plans are comprehensive and consistent, and that they cover all the key aspects and indicators of the risks and the risk responses4.

Identify and address any gaps, issues, or challenges that may affect the implementation or outcome of the risk monitoring plans, and recommend and implement appropriate improvement actions5.

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

Identifying new risk entries to include in ERM is not a relevant or necessary course of action, as it is not directly related to the residual risk or the risk responses. ERM is the process of identifying, analyzing, evaluating, and managing the risks that may affect the organization’s strategic, operational, financial, or reputational objectives6. Identifying new risk entries is a part of the risk identification process, which is the first step in ERM. It should be performedperiodically or when there are significant changes in the internal or external environment, not when the residual risk is within the appetite and tolerance levels7.

Removing the risk entries from the ERM register is not a valid or advisable course of action, as it may create a false sense of security or complacency. The ERM register is a tool that records and summarizes the key information and data about the identified risks and the risk responses. Removing the risk entries from the ERM register may imply that the risks no longer exist or matter, which is not true. The risks may still occur or change, and the risk responses may still fail or become obsolete. Therefore, the risk entries should be kept and updated in the ERM register, unless the risks are completely eliminated or transferred.

Re-performing the risk assessment to confirm results is not an efficient or effective course of action, as it may be redundant or unnecessary. Risk assessment is the process of estimating the probability and impact of the risks, and prioritizing the risks based on their significance and urgency. Re-performing the risk assessment may not provide any new or useful information or insights, and may waste time and resources. Instead, the risk practitioner should verify and validate the risk assessment results, and ensure that they are accurate and reliable.

References =

Risk Monitoring - CIO Wiki

Risk Monitoring Plan - CIO Wiki

Risk Monitoring and Reporting - ISACA

Risk Monitoring and Control - Project Management Institute

Risk Monitoring and Review - The National Academies Press

Enterprise Risk Management - CIO Wiki

Risk Identification - CIO Wiki

[Risk Register - CIO Wiki]

[Risk Register: How to Use It in Project Management - ProjectManager.com]

[Risk Assessment - CIO Wiki]

[Risk Assessment Process - ISACA]

The risk associated with an asset after controls are applied can be expressed as a function of the likelihood and impact, as it helps to measure and quantify the residual risk level and exposure. Residual risk is the risk that remains after the implementation of controls or risk treatments. Residual risk can be calculated by multiplying the likelihood and impact of a risk event, where likelihood is the probability or frequency of the risk event occurring, and impact is the consequence or severity of the risk event on the asset or objective. Residual risk can be expressed as:

ResidualRisk=Likelihood×Impact

Expressing the risk associated with an asset after controls are applied as a function of the likelihood and impact helps to provide the following benefits:

It enables a data-driven and evidence-based approach to risk assessment and reporting, rather than relying on subjective or qualitative judgments.

It facilitates a consistent and standardized way of measuring and communicating risk levels and exposure across the organization and to the external stakeholders.

It supports the alignment of risk management and control activities with the organizational strategy and objectives, and helps to evaluate the achievement of the desired outcomes.

It helps to identify and prioritize the areas for improvement and enhancement of the risk management and control processes, and guide the development and implementation of corrective or preventive actions.

It provides feedback and learning opportunities for the risk management and control processes, and helps to foster a culture of continuous improvement and innovation.

The other options are not the best ways to express the risk associated with an asset after controls are applied. A function of the cost and effectiveness of controls is a measure of the inputs or outputs of therisk management and control processes, but it does not indicate the risk level or exposure. The likelihood of a given threat is a component of the risk calculation, but it does not reflect the impact or consequence of the threat. The magnitude of an impact is a component of the risk calculation, but it does not reflect the likelihood or probability of the risk event.References=Risk Assessment and Analysis Methods: Qualitative and Quantitative,IT Risk Resources | ISACA,Residual Risk: Definition, Formula & Management - Video & Lesson …

According to the CRISC Review Manual, performing the assessment as it would normally be done is the best approach when a risk practitioner has been asked by a business unit manager for special consideration during a risk assessment of a system, because it ensures that the risk practitioner maintains their objectivity, integrity, and professionalism. The risk practitioner should not compromise the quality or accuracy of the risk assessment, regardless of any external pressure or influence. The risk practitioner should follow the established risk assessment methodology and standards, and report the risk results and recommendations based on the facts and evidence. The other options are not the best approaches, because they may affect the credibility or reliability of the risk assessment. Conducting an abbreviated version of the assessment may result in incomplete or insufficient risk information, which may lead to poor risk decisions or actions. Reporting the business unit manager for a possible ethics violation may escalate the situation or create a conflict of interest, which may hinder the risk assessment process or outcome. Recommending an internal auditor perform the review may transfer the responsibility or accountability of the risk practitioner, which may undermine their role or authority. References = CRISC Review Manual, 7th Edition, Chapter 2, Section 2.2.1, page 74.

The most important factor for a risk practitioner to consider when determining the control requirements for data privacy arising from emerging technologies is the laws and regulations that apply to the organization and the technologies. Laws and regulations are the legal and ethical obligations that the organization must comply with when collecting, processing, storing, and sharing personal data. Laws and regulations can vary depending on the jurisdiction, sector, and type of data involved, and they can impose different requirements and restrictions on the use of emerging technologies that may affect data privacy. For example, the General Data Protection Regulation (GDPR) in the European Union, the California Consumer Privacy Act (CCPA) in the United States, and the Personal Data Protection Act (PDPA) in Singapore are some of the laws and regulations that govern data privacy and protection in different regions and contexts123. A riskpractitioner should consider the laws and regulations when determining the control requirements for data privacy arising from emerging technologies, because they can help to ensure that the organization respects the rights and interests of the data subjects, avoids legal and reputational risks, and maintains trust and accountability. The other options are not the mostimportant factor, although they may be relevant or influential to the control requirements for data privacy arising from emerging technologies. Internal audit recommendations are the suggestions and feedback from the internal audit function, which evaluates and improves the effectiveness of the governance, risk management, and control systems of the organization, but they do not supersede or replace the laws and regulations. Policies and procedures are the rules and guidelines that define how the organization operates and conducts its activities, but they should be aligned and consistent with the laws and regulations. Standards and frameworks are the best practices and benchmarks that are adopted by the organization to guide and support its processes and performance, but they should be compatible and compliant with the laws and regulations. References = Emerging privacy-enhancing technologies: Current regulatory and policy approaches | en | OECD, Data and Cybersecurity: 2023 Regulatory Challenges - KPMG, Ethical Dilemmas and Privacy Issues in Emerging Technologies: A … - MDPI

Embedding risk management into processes that are aligned with business drivers is the most effective way to integrate risk and compliance management, as it ensures that the risk management objectives and activities are consistent and supportive of the enterprise’s strategic goals and values. It also enables the identification and management of risks and compliance requirements across the enterprise, and the optimization of risk and compliance resources and performance. Embedding risk management into compliance decision-making, designingcorrective actions to improve risk response capabilities, and conducting regular self-assessments to verify compliance are not ways to integrate risk and compliance management, but rather components or outcomes of the risk and compliance management process. References = CRISC Practice Quiz and Exam Prep; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 202.

IT risk scenarios are hypothetical situations that describe how IT-related risks can affect the organization’s objectives, operations, or assets1. IT risk scenarios help to make IT risk more concrete and tangible, and to enable proper risk analysis and assessment2. IT risk scenarios are developed after IT risks are identified, and are used as inputs for risk analysis, where the frequency and impact of the scenarios are estimated3.

The most important factor to the successful development of IT risk scenarios is threat and vulnerability analysis. Threat and vulnerability analysis is the process of identifying and evaluating the potential sources and causes of IT risks, such as malicious actors, natural disasters, human errors, or technical failures4. Threat and vulnerability analysis can help to:

Define the scope and boundaries of the IT risk scenarios, and ensure that they are relevant and realistic

Identify the critical assets, processes, or functions that are exposed or affected by the IT risks, and assess their value and importance to the organization

Determine the likelihood and methods of the threat events, and the existing or potential weaknesses or gaps in the IT control environment

Estimate the potential consequences and impacts of the IT risks, such as financial losses, operational disruptions, reputational damages, or compliance violations5

References = IT Scenario Analysis in Enterprise Risk Management - ISACA, IT Risk Scenarios - Morland-Austin, Threat and Vulnerability Analysis - Wikipedia, Threat and Vulnerability Analysis - ISACA

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.

The greatest concern for a risk practitioner when an organization is adopting blockchain for a new financial system is the limited organizational knowledge of the underlying technology. Blockchain is a distributed ledger technology that enables secure and transparent transactions among multiple parties without the need for intermediaries or central authorities. Blockchain technology has many potential benefits for the financial sector, such as reducing costs, increasing efficiency, enhancing security, and improving trust. However, blockchain technology also poses many challenges and risks for the organization, such as technical complexity, interoperability issues, regulatory uncertainty, and cultural resistance. The limited organizational knowledge of the underlying technology is the greatest concern, because it affects the ability and readiness of the organization to adopt, implement, use, and maintain the blockchain system effectively and securely. The limited organizational knowledge could also result in poor decision-making, inadequate governance, insufficient training, and increased vulnerability to errors, fraud, or attacks. The other options are not as concerning as the limited organizational knowledge, although they may also pose some difficulties or limitations for the blockchain adoption. Lack of commercial software support, varying costs related to implementation and maintenance, and slow adoption of the technology across the financial industry are all factors that could affect the feasibility and sustainability of the blockchain system, but they do not directly affect the capability and maturity of the organization. References = 5

Periodically reviewing big data strategies is the best option to minimize the risk of inaccurate data, because it allows the organization to assess the quality, validity, and reliability of the data sources and the analytics methods. It also enables the organization to identify and address any gaps, errors, or inconsistencies in the data and the results. By reviewing the big data strategies, the organization can ensure that the data analytics are aligned with the business objectives and the risk appetite.

Establishing an intellectual property agreement is not relevant to the risk of inaccurate data, as it is a legal measure to protect the ownership and use of the data, not its quality or accuracy.

Evaluating each of the data sources for vulnerabilities is a good practice, but it is not sufficient to minimize the risk of inaccurate data, as it only focuses on the security aspect of the data, not the validity or reliability of the data itself.

Benchmarking to industry best practice is a useful way to compare the performance and results of the data analytics, but it does not directly address the risk of inaccurate data, as it assumes that the data and the methods are already valid and reliable. References = Risk IT Framework, 2nd Edition, ISACA, 2019, page 62-63.

The most important factor for senior management to review during an acquisition is the risk appetite and tolerance of the target organization. The risk appetite and tolerance reflect the amount and type of risk that an organization is willing to accept in pursuit of its objectives. By reviewing the risk appetite and tolerance of the target organization, senior management can determine if they are compatible with their own, and if the acquisition will create any significant risk exposure or opportunity for the acquiring organization. Risk framework and methodology, key risk indicator (KRI) thresholds, and risk communication plan are other factors that may be reviewed, but they are not as important as the risk appetite and tolerance. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.

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 appetite is 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 number of recurring restore failures is the best key performance indicator (KPI) to measure the effectiveness of a backup process, as it helps to evaluate the reliability and quality of the backup data and the backup system. A backup process is a process of creating and storing copies of data or systems to enable recovery in case of data loss, corruption, or disaster. A restore process is a process of retrieving and restoring the backup data or systems to the original or alternative location or state. A restore failure is an event that occurs when the restore process fails to complete successfully or correctly, due to various reasons, such as corrupted or missing backup data, incompatible or outdated backup system, or insufficient or unavailable resources. A recurring restore failure is a restore failure that happens repeatedly or frequently, indicating a persistent or systemic problem with the backup process.

The number of recurring restore failures helps to measure the effectiveness of the backup process by providing the following benefits:

It indicates the extent and magnitude of the backup process performance and quality issues, and the impact and severity of the backup process failures on the data or system availability and integrity.

It identifies and analyzes the root causes and contributing factors of the backup process failures, and the gaps or weaknesses in the backup process design, implementation, operation, or monitoring.

It provides feedback and learning opportunities for the backup process improvement and enhancement, and guides the development and implementation of corrective or preventive actions.

It communicates and reports the backup process status and results to the relevant stakeholders, and supports the alignment of the backup process with the organizational strategy and objectives.

The other options are not the best key performance indicators (KPIs) to measure the effectiveness of a backup process. The number of resources to monitor backups is a measure of the inputs or costs of the backup process, but it does not indicate the outputs or benefits of the backup process. The number of restoration monitoring reports is a measure of the documentation or communication of the backup process, but it does not reflect the actual or potential performance or quality of the backup process. The number of backup recovery requests is a measure of the demand or frequency of the backup process, but it does not evaluate the reliability or quality of the backup process. References = 12 Process KPIs to Monitor Process Performance in 2024 - AIMultiple, IT Risk Resources | ISACA, Mastering RTO and RPO in Backup Strategies: A Key to Data Recovery Success

The most important topic to cover in a risk awareness training program for all staff is the policy compliance requirements and exceptions process. This topic would help the staff to understand the enterprise’s risk policies, standards, and procedures, and how they apply to their roles and responsibilities. It would also help the staff to know the process for requesting, approving, and documenting any exceptions to the policies, and the consequences of non-compliance. This topic would enhance the staff’s risk awareness and responsibility, and foster a culture of compliance and accountability within the enterprise. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.4.1, page 2491

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

The person who should be accountable for resolving the situation where a root cause analysis indicates a major service disruption due to a lack of competency of newly hired IT system administrators is the chief information officer (CIO). The CIO is the senior executive who is responsible for the overall management and governance of the IT function within the organization, including the IT strategy, objectives, policies, processes, and resources. The CIO is also accountable for the performance and value of the IT services and systems, and for ensuring that they meet the needs and expectations of the business and its stakeholders. The CIO should be accountable for resolving the situation, because it involves a major IT service disruption that could affect the organization’s operations and reputation, and because it is related to the IT staff competency and capability, which are under the CIO’s authority and responsibility. The other options are not as accountable as the CIO, although they may have some roles or involvement inthe situation. The HR training director, the business process owner, and the HR recruitment manager are not directly responsible for the IT function or the IT service delivery, and they may not have the authority or the expertise to resolve the situation. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.1.1, page 2-3.

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

The result of a realized risk scenario is a loss event. A loss event is an occurrence that causes harm or damage to the organization’s assets, resources, or reputation. A loss event is also known as an incident or a breach. A loss event is the outcome of a risk scenario, which is a description of a possible situation or event that could affect the organization’s objectives or operations. A risk scenario consists of three elements: a threat, a vulnerability, and an impact. A threat is a potential source of harm or damage. A vulnerability is a weakness or flaw that could be exploited by a threat. An impact is the consequence or effect of a threat exploiting a vulnerability. A risk scenario is realized when a threat exploits a vulnerability and causes an impact, which results in a loss event. The other options are not the result of a realized risk scenario, although they may be part of a risk scenario. A technical event, a threat event, and a vulnerability event are all types of events that could occur in a risk scenario, but they are not the final outcome or result of a risk scenario. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

The best way to mitigate the high cost of retrieving electronic evidence associated with potential litigation is to implement policies and procedures for data retention and destruction. Data retention and destruction policies and procedures define the criteria, methods, and schedules for retaining and disposing of electronic data. They help to ensure that the electronic data is stored, managed, and deleted in a consistent, secure, and compliant manner. They also help to reduce the volume, complexity, and cost of retrieving electronic evidence, as they limit the scope, duration, and frequency of the data preservation and discovery process. The other options are not as effective as data retention and destruction policies and procedures, as they are related to the collection, analysis, or classification of electronic data, not the retention or destruction of electronic data. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

The most effective way to reduce risk associated with an increase of online transactions on a retailer website is to implement website activity monitoring. Website activity monitoring can help to detect and prevent fraudulent transactions, unauthorized access, data breaches, and other cyber threats that may compromise the security and integrity of the website and its data. Scalable infrastructure, a hot backup site, and transaction limits are other possible ways to reduce risk, but they are not as effective as website activity monitoring. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 7; CRISC Review Manual, 6th Edition, page 202.

The most critical factor to consider when determining an organization’s risk appetite is the management culture. The management culture reflects the values, beliefs, and attitudes of the senior management and the board of directors toward risk management. The management culture influences how the organization defines, communicates, and implements its risk appetite and tolerance. Fiscal management practices, business maturity, and budget for implementing security are other factors that may affect the risk appetite, but they are not as critical as the management culture. References = ISACA Certified in Risk andInformation Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.

When an organization has a policy prohibiting ransom payments in the event of a ransomware attack, the most effective control to support this policy is creating immutable backups. Here’s why:

Immutable Backups:

Definition:Immutable backups are backups that cannot be altered, deleted, or modified in any way once they are created. This ensures that a clean, untampered copy of data is always available.

Protection Against Ransomware:Ransomware attacks typically encrypt data and demand a ransom to decrypt it. With immutable backups, the organization can restore the affected systems using the backup without paying the ransom, thereby adhering to their policy.

Effectiveness:

Restoration Capability:Immutable backups provide a reliable means to restore data to its state before the ransomware attack. This restoration capability negates the need to consider paying the ransom to regain access to encrypted data.

Compliance with Policy:By having a secure and untouchable backup, the organization ensures compliance with its no-ransom policy as it can recover operations without engaging with the attackers.

Comparison with Other Options:

Vulnerability Scanning:While important, this primarily helps in identifying vulnerabilities and does not directly help in data recovery post-ransomware attack.

Patching:Regular patching reduces the risk of ransomware infection but does not aid in recovery if an attack occurs.

Intrusion Detection:Continuous monitoring can detect ransomware activities but does not provide a solution for restoring data after an attack.

The best approach to mitigate the risk associated with a control deficiency is to implement compensating controls. A control deficiency is a situation where a control is missing, ineffective, or inefficient, and cannot provide reasonable assurance that the objectives or requirements are met. A compensating control is a control that provides an alternative or additional measure of protection when the primary or preferred control is not feasible or effective. A compensating control can help to reduce the likelihood and/or impact of the risk associated with the control deficiency, and maintain the compliance or performance level. The other options are not as effective as implementing compensating controls, as they are related to the analysis, assessment, or provision of the risk, not the mitigation of the risk. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

 The best way to assess the effectiveness of an access management process is to reconcile a list of accounts belonging to terminated employees. This will ensure that the access rights of the employees who have left the organization are revoked in a timely and accurate manner, and that there are no orphaned or unauthorized accounts that could pose a security risk. Comparing the actual process with the documented process, reviewing access logs for user activity, and reviewing for compliance with acceptable use policy are also useful methods, but they are not as direct and conclusive as reconciling a list of accounts belonging to terminated employees. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

The first step for the risk practitioner to address the situation of extended network outages that have exceeded tolerance is to recommend a root cause analysis of the incidents. A root cause analysis is a process of identifying and resolving the underlying causes of a problem or an event. By performing a root cause analysis, the risk practitioner can determine why the network outages occurred, what factors contributed to them, and how they can be prevented or reduced in the future. Recommending additional controls, updating the risk tolerance level, and updating the incident-related risk trend are possible steps that may follow the root cause analysis, but they are not the first step. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.

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

 Penetration test results are the most helpful resource to a risk practitioner when updating the likelihood rating in the risk register. Penetration testing is a method of simulating real-world attacks on an IT system or network to identify and exploit vulnerabilities and measure the potential impact. Penetration test results provide empirical evidence of the existence and severity of vulnerabilities, as well as the ease and probability of exploitation. These results can help the risk practitioner to update the likelihood rating of the risks associated with the vulnerabilities, and to prioritize the risk response actions. Risk control assessment, audit reports with risk ratings, and business impact analysis (BIA) are also useful resources for risk management, but they are not as directly related to the likelihood rating as penetration test results. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.3, page 2-28.

An information asset inventory is a list of all the information assets that an organization owns or uses. It includes information such as the asset name, description, owner, location, classification, value, and dependencies. The primary objective of maintaining an information asset inventory is to provide input to business impact analyses (BIAs), which are used to identify the criticality and recovery priorities of information assets in the event of a disruption. By having an updated and accurate information asset inventory, an organization can ensure that the BIAs reflect the current state and needs of the business processes that rely on the information assets. References = CRISC Review Manual, 7th Edition, page 74.

The main purpose of monitoring risk is to provide decision support for the organization. Risk monitoring is the process of tracking and reviewing the risk management activities, the risk profile, and the risk performance of the organization. By monitoring risk, the organization can obtain timely and relevant information and feedback on the risk situation, and use it to make informed and effective decisions on risk management and business objectives. Communication, risk analysis, and benchmarking are other possible purposes of risk monitoring, but they are not as important as decision support. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

The best way to ensure the continued effectiveness of the IT risk management function within an organization experiencing high employee turnover is to have well documented policies and procedures. Policies and procedures are the formal documents that define the roles, responsibilities, processes, and standards for the IT risk management function. They provide guidance, consistency, and continuity for the IT risk management activities and outcomes. They also facilitate the knowledge transfer, training, and performance evaluation of the IT risk management staff. The other options are not as helpful as well documented policies and procedures, as they are related to the tools, mechanisms, or structures that support the IT risk management function, not the foundation and direction of the IT risk managementfunction. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Management Process, page 15.

The most important reason to validate that risk responses have been executed as outlined in the risk response plan is to ensure that the residual risk is at an acceptable level. Residual risk is the risk that remains after applying a risk response. The risk response plan is the document that describes the actions and resources needed to address the risk. Validating the risk response execution is the process of verifying that the risk response actions have been performed as planned, and that they have achieved the desired results. Validating the risk response execution helps to measure and monitor the residual risk, and to ensure that it is within the risk tolerance of the organization and its stakeholders. The other reasons are not as important as ensuring that the residual risk is at an acceptable level, although they may be secondary benefits or outcomes of validating the risk response execution. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.

The control owner is the person who is responsible for ensuring that the control is designed to effectively address risk. The control owner is also responsible for implementing, operating, monitoring, and maintaining the control. The control owner should ensure that the control is aligned with the risk owner’s risk appetite and tolerance, and that the control is periodically reviewed and updated to reflect changes in the risk environment. The risk manager, the control tester, and the risk owner are not directly responsible for the design of the control, although they may provide input, feedback, or approval. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, page 1-15.

The best way to ensure the implementation of corrective action plans is to assign accountability to risk owners. Corrective action plans are the plans that describe the actions and resources that are needed to correct or improve the performance or compliance of the processes or controls. Risk owners are the persons who have the authority and responsibility for managing the risks and their responses. By assigning accountability to risk owners, the implementation of corrective action plans can be monitored, evaluated, and enforced, and the results and outcomes can be reported and communicated. The other options are not as effective as assigning accountability to risk owners, as they are related to the training, scheduling, or outsourcing of the corrective action plans, not the oversight or governance of the corrective action plans. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.

 Using anonymized data in a non-production environment is the best approach for an organization in a heavily regulated industry to comprehensively test application functionality. Anonymized data is data that has been stripped of any personally identifiable information (PII) or other sensitive data, such as names, addresses, phone numbers, email addresses, etc. Anonymized data protects the privacy and security of the data, while still preserving the structure and format of the original data. Using anonymized data in a non-production environment allows the organization to test the application functionality without risking data breaches or violating regulations. Using production data, masked data, or test data in either production or non-production environments are not as optimal as using anonymized data, because they may introduce errors, inconsistencies, or vulnerabilities in the data or the application. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, page 3-21.

The risk practitioner’s most important responsibility in managing risk acceptance that exceeds risk tolerance is to verify authorization by senior management. Risk acceptance is a risk response strategy that involves acknowledging and agreeing to bear the risk and its potential consequences. Risk tolerance is the acceptable or allowable level of variation or deviation from the expected or desired outcomes or objectives. When the risk acceptance exceeds the risk tolerance, it means that the organization is taking on more risk than it can handle or afford. Therefore, the risk practitioner should verify that the risk acceptance is authorized by senior management, who have the authority and accountability for making risk management decisions and ensuring that they are aligned with the organizational strategy and objectives. The other options are not as important as verifying authorization by senior management, as they are related to the adjustments, conditions, or documentation of the risk acceptance, not the approval or validation of the risk acceptance. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.2: IT Risk Response Options, page 133.

The best way to mitigate the risk to operations caused by severe weather events is to develop a business continuity plan (BCP). A BCP is a document that describes the procedures and resources needed to ensure the continuity of the organization’s critical functions and processes in the event of a disruption or disaster. A BCP helps to identify the recovery objectives, strategies, and priorities, as well as the roles and responsibilities of the recovery team members. A BCP also helps to prepare and test the recovery capabilities and resources, such as alternate locations, backup systems, and communication channels. The other options are not as effective as developing a BCP, although they may be part of the BCP process or outcomes. Preparing a cost-benefit analysis to evaluate relocation, preparing a disaster recovery plan (DRP), and conducting a business impact analysis (BIA) for an alternate location are all activities that can help to develop or implement a BCP, but they are not the best way to mitigate the risk to operations. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.2.1, page 5-9.

Risk tolerance and appetite are the expressions of the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk tolerance is the acceptable level of variation that the organization is willing to allow for the outcome of its risk decisions. Risk appetite is the broad-based amount of risk that the organization is willing to accept in its activities. The primary objective of establishing an organization’s risk tolerance and appetite is to assist management in decision making, as they provide guidance and boundaries for the risk management activities and decisions. By establishing the risk tolerance and appetite, the organization can align its risk exposure with its strategic goals, optimize its risk-return trade-off, and enhance its risk culture and performance. References = CRISC Review Manual, 7th Edition, page 61.

After entering a large number of low-risk scenarios into the risk register, it is most important for the risk practitioner to analyze changes to aggregate risk. Aggregate risk is the total amount and type of risk that the organization faces or accepts, considering all the individual and interrelated risk scenarios. Aggregate risk helps to measure and monitor the organization’s risk profile, riskappetite, and risk performance, and to support the risk decision-making and reporting processes. Analyzing changes to aggregate risk is important after entering a large number of low-risk scenarios, because even though the individual risk scenarios may have low likelihood or impact, they may still have a significant cumulative or combined effect on the organization’s objectives or operations. Analyzing changes to aggregate risk also helps to identify and prioritize the most critical or relevant risk scenarios, and to select the most appropriate and effective risk responses and strategies. The other options are not as important as analyzing changes to aggregate risk, although they may be part of or derived from the risk analysis process. Preparing a follow-up risk assessment, recommending acceptance of the risk scenarios, and reconfirming risk tolerance levels are all activities that can help to implement or update the risk management process, but they are not the most important after entering a large number of low-risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-25.

 The most concerning issue for a risk practitioner reviewing an organization risk register is that several risk action plans have missed target completion dates. This indicates that the risk responses are not being implemented effectively or timely, and that the risk exposure may not be reduced as expected. Senior management accepting more risk than usual, risk associated with many assets being expressed in qualitative terms, and many risk scenarios being owned by the same senior manager are not as concerning as the missed deadlines, as they may reflect the risk appetite, tolerance, and culture of the organization. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 10; CRISC Review Manual, 6th Edition, page 140.

The most reliable evidence of the effectiveness of security controls implemented for a web application is penetration testing. Penetration testing is a process that simulates an attack on the web application by exploiting its vulnerabilities, using the same tools and techniques as real attackers. Penetration testing helps to evaluate the effectiveness of security controls, because it helps to verify that the security controls can prevent, detect, or mitigate the attack, and to measure the impact and severity of the attack. Penetration testing also helps to identify and address any weaknesses or gaps in the security controls, and to provide recommendations and solutions for improving the security of the web application. The other options are not as reliable as penetration testing, although they may provide some evidence of the effectiveness of security controls. IT general controls audit, vulnerability assessment, and fault tree analysis are all examples of analytical or evaluative methods, which may help to assess or estimate the effectiveness of security controls, but they do not necessarily test or measure the effectiveness of security controls in a realistic scenario. References = 10

The best way to facilitate the identification of appropriate key performance indicators (KPIs) for a risk management program is to evaluate KPIs in accordance with risk appetite. KPIs are metrics that measure the performance and effectiveness of the risk management program, and help monitor and report on the achievement of the risk objectives and outcomes. Risk appetite is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives. Evaluating KPIs in accordance with risk appetite helps to identify the appropriate KPIs, because it helps to align the KPIs with the organization’s mission, vision, values, and strategy, and to ensure that the KPIs reflect the organization’s risk tolerance and threshold. Evaluating KPIs in accordance with risk appetite also helps to communicate and coordinate the KPIs with the organization’s stakeholders, such as the board, management, and business units, and to facilitate the risk decision-making and reporting processes. The other options are not as effective as evaluating KPIs in accordance with risk appetite, although they may be part of or derived from the KPI identification process. Reviewing control objectives, aligning with industry best practices, and consulting risk owners are all activities that can help to define or refine the KPIs, but they are not the best way to facilitate the identification of appropriate KPIs. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.5.1, page 4-38.

Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite is influenced by various factors, such as the organization’s mission, vision, values, culture, stakeholders, resources, capabilities, etc. However, the factor that has the greatest influence on the organization’s risk appetite is the business objectives and strategies, which are the desired outcomes and the plans to achieve them. The business objectives and strategies define the direction and scope of the organization, and the risk appetite reflects the level of risk that the organization is prepared to take to accomplish them. The risk appetite should be aligned with the business objectives and strategies, andshould provide guidance for the risk management activities and decisions. References = CRISC Review Manual, 7th Edition, page 61.

 Asset management is the process of identifying, tracking, and maintaining the physical and information assets of an organization. Asset management helps to optimize the value, performance, and security of the assets, and support the business objectives and strategies. The factor that would be of greatest concern regarding an organization’s asset management is an incomplete asset inventory, which is a list of all the assets that the organization owns or uses. An incomplete asset inventory may indicate that the organization does not have a clear and accurate understanding of its assets, their location, ownership, value, dependencies, etc. This may lead to various risks, such as asset loss, theft, misuse, damage, underutilization, overutilization, etc. An incomplete asset inventory may also affect the asset classification, protection, recovery, and disposal processes. References = 6

The risk practitioner’s most important action related to the decision to commit to a business activity with the knowledge that the risk exposure is higher than the risk appetite is to document formal acceptance of the risk. Formal acceptance of the risk means that the organization acknowledges and agrees to bear the risk and its potential consequences. Formal acceptance of the risk should be documented and approved by the appropriate authority level, such as senior management or the board of directors. Formal acceptance of the risk should also include the rationale, assumptions, and conditions for accepting the risk, as well as the monitoring and reporting mechanisms for the risk. Formal acceptance of the risk provides evidence and accountability for the risk management decision and helps to avoid disputes or misunderstandings in the future. The other options are not as important as documenting formal acceptance of the risk, as they are related to the alternatives, adjustments, or rejections of the risk, not the actual acceptance of the risk. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.2: IT Risk Response Options, page 133.

The greatest concern for a risk practitioner when process documentation is incomplete is the inability to identify the risk owner. The risk owner is the person or entity that has the authority and responsibility to manage a specific risk or a group of related risks. The risk owner helps to identify, assess, and respond to the risks, and to monitor and report on the risk performance and improvement. The risk owner also helps to communicate and coordinate the risk management activities with the relevant stakeholders, such as the board, management, business units, and IT functions. The risk owner is usually identified in the process documentation, which describes the roles, responsibilities, procedures, and resources for each process. The inability to identify the risk owner is a major concern for the risk practitioner, because it may affect the accountability, transparency, and effectiveness of the risk management process, and may lead to confusion, conflicts, or gaps in the risk management activities. The other options are not as concerning as the inability to identify the risk owner, although they may also pose some difficulties or limitations for the risk management process. Inability to allocate resources efficiently, inability to complete the risk register, and inability to identify process experts are all factors that could affect the quality and timeliness of the risk management process, but they do not necessarily affect the authority and responsibility of the risk management process. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 2-11.

 A control is a measure or action that is implemented to reduce the likelihood or impact of a risk event, or to enhance the benefits or opportunities of a risk event. A control owner is a person who is assigned the responsibility and authority for the design, implementation, operation, and maintenance of a control. The most appropriate person to be assigned ownership of a control is the individual accountable for monitoring control effectiveness, which is the process of measuring and evaluating the performance and compliance of the control. By assigning the control ownership to the individual accountable for monitoring control effectiveness, the organization can ensure that the control is aligned with the risk objectives, operates as intended, and delivers the expected results. References = 4

The best representation of the desired risk posture for an organization is when the residual risk is lower than the risk tolerance. Residual risk is the remaining risk after the implementation of risk responses or controls. Risk tolerance is the acceptable level of risk that the organization is willing to take or bear. Thedesired risk posture is when the organization has reduced the residual risk to a level that is equal to or lower than the risk tolerance, which means that the organization has achieved its risk objectives and is comfortable with the remaining risk exposure. The other options are not the best representation of the desired risk posture, as they indicate that the organization has not effectively managed its risk. Inherent risk is lower than risk tolerance means that the organization has not identified or assessed its risk properly, as inherent risk is the risk before any controls or responses are applied. Operational risk is higher than risk tolerance means that the organization has not implemented or monitored its risk responses or controls adequately, as operational risk is the risk of loss resulting from inadequate or failed internal processes,people, and systems. Accepted risk is higher than risk tolerance means that the organization has not aligned its risk appetite and risk tolerance, as accepted risk is the risk that the organization chooses to retain or take without any further action. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.1, page 2-23.

 The control owner should be responsible for evaluating the residual risk after a compensating control has been implemented. A compensating control is a control that provides an alternative or additional measure of protection when the primary or preferred control is not feasible or effective. A residual risk is the risk that remains after the risk response or mitigation has beenapplied. The control owner is the person who has the authority and responsibility for designing, implementing, and monitoring the controls that enforce the policy. The control owner can assess the impact and effectiveness of the compensating control on the residual risk, and report the results and recommendations to the risk owner or the risk practitioner. The other options are not as responsible as the control owner, as they are related to the compliance, ownership, or management of the risk, not the evaluation of the control. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.

The most concerning issue when reviewing the results of an independent control assessment to determine the effectiveness of a vendor’s control environment is that the controls had recurring noncompliance. This indicates that the vendor’s controls are not operating as intended or designed, and that the vendor is not taking corrective actions to address the control deficiencies. This can increase the risk exposure and liability for the organization that outsources the service or function to the vendor. The report being provideddirectly from the vendor, the risk associated with multiple control gaps being accepted, and the control owners disagreeing with the auditor’s recommendations are other possible issues, but they are not as critical as the recurring noncompliance. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

The person or entity who should be primarily responsible for performing user entitlement reviews is the data owner. A user entitlement review is a process that verifies and validates the access rights and privileges of the users to the data and resources in the IT environment. A user entitlement review helps to ensure that the users have the appropriate and necessary access to perform their roles and functions, and to prevent or detect any unauthorized or inappropriate access. A data owner is the person or entity that has the authority and responsibility to define, classify, and protect the data and resources in the IT environment. A data owner helps to perform user entitlement reviews, because they help to establish and enforce the access policies and standards for the data and resources, and to approve or revoke the access requests and changes for the users. A data owner also helps to monitor and report on the access performance and compliance for the data and resources, and to identify and address any issues or gaps in the access management activities. The other options are not the primary responsible party for performing user entitlement reviews, although they may be involved in the process. IT security manager, IT personnel, and data custodian are all examples of roles or functions that can help to support or implement the user entitlement reviews, but they do not necessarily have the authority or responsibility to define, classify, or protect the data and resources. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.2.1, page 5-14.

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

The management action that will most likely change the likelihood rating of a risk scenario related to remote network access is implementing multi-factor authentication. Multi-factor authentication is a technique that requires the user to provide two or more pieces of evidence to verify their identity, such as a password, a token, or a biometric factor. Multi-factor authentication can help to reduce the likelihood of unauthorized or malicious access to theremote network, as it adds an extra layer of security and makes it harder for the attackers to compromise the user credentials. The other options are not as likely to change the likelihood rating of the risk scenario, as they are related to the update, creation, or maintenance of the remote network access, not the verification or protection of the remote network access. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

The most important factor for successful incident response is the timeliness of attack recognition. Incident response is the process of detecting, analyzing, containing, eradicating, recovering, and reporting on security incidents that could affect the organization’s IT systems or data. The timeliness of attack recognition is the speed and accuracy with which the organization can identify and confirm that an attack has occurred or is in progress. The timeliness of attack recognition is crucial for successful incident response, as it affects the ability and effectiveness of the organization to respond to and mitigate the attack, and to minimize the damage and impact of the attack. The other options are not as important as the timeliness of attack recognition, although they may also contribute to or influence the incident response. The quantity of data logged by the attack control tools, the ability to trace the source of the attack, and the blocking of the attack route immediately are all factors that could help or hinder the incident response, but they are not the most important factor for successful incident response. References = CISA Review Manual, 27th Edition, Chapter 5, Section 5.4.1, page 5-32.

The best course of action to address the risk associated with data transfer if the relationship is terminated with the vendor is to ensure the language in the contract explicitly states who is accountable for each step of the data transfer process. This can help to avoid ambiguity, confusion, or disputes over the ownership, responsibility, and liability of the data and the data transfer process. Meeting with the business leaders, collecting requirements, and working with the information security officer are important activities, but they are not as effective as ensuring the contractual agreement is clear and enforceable. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.

The 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 most helpful information to review when determining a system’s criticality is the associated business impact analysis (BIA). A BIA is a process of identifying and evaluating the potential effects of disruptions to the organization’s critical business functions and processes. A BIA can help to determine the system’s criticality by assessing its impact on the organization’s objectives, performance, and value. Process flow, service level agreement (SLA), and system architecture are other possible information sources, but they are not as helpful as the BIA. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.

The best way to ensure key risk indicators (KRIs) provide value to risk owners is to provide timely notification of the changes in the risk exposure. KRIs are metrics that provide an early warning of increasing risk exposure in various areas of the organization. By providing timely notification of the KRI values, the risk owners can be alerted of the risk situation and take appropriate actions to manage the risk. Ongoing training, return on investment (ROI), and cost minimization are other possible ways to ensure KRIs provide value, but they are not as effective as timely notification. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 10; CRISC Review Manual, 6th Edition, page 140.

The best course of action when an organization wants to reduce likelihood in order to reduce a risk level is to implement preventive measures. Likelihood is the probability or chance of a risk occurring, and risk level is the combination of likelihood and impact of a risk. Preventive measures are controls that are designed to prevent or deter the occurrence of a risk, such as policies, standards, procedures, guidelines, etc. Implementing preventive measures is the best course of action, because it helps to reduce the likelihood of a risk, and consequently, the risk level. Implementing preventive measures also helps to protect and enhance the organization’s objectives, performance, and improvement. The other options are not the best course of action, although they may be related to the risk management process. Monitoring risk controls, implementing detective controls, and transferring the risk are all activities that can help to manage or mitigate the risks, but they do not necessarily reduce the likelihood or the risk level. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-21.

The main benefit of using key risk indicators (KRIs) for an organization is that they provide an early warning that a risk threshold is about to be reached. KRIs are metrics that measure the likelihood and impact of risks, and help monitor and prioritize the most critical risks. KRIs also help to trigger timely and appropriate risk responses, before the risk becomes unmanageable orunacceptable. The other options are not the main benefit of using KRIs, although they may be secondary benefits or outcomes. KRIs signal that a change in the control environment has occurred, provide a basis to set the risk appetite for an organization, and assist in the preparation of the organization’s risk profile. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.1, page 4-36.

The first thing that should be done when addressing security concerns associated with a new Internet of Things (IoT) solution is to develop new IoT risk scenarios. IoT is a network of physical devices, such as sensors, cameras, appliances, etc., that are connected to the internet and can collect, process, and exchange data. IoT introduces new security concerns, such as privacy, confidentiality, integrity, availability,and accountability of the data and devices, as well as new threats and vulnerabilities, such as unauthorized access, manipulation, or disruption of the data and devices. Developing new IoT risk scenarios is the first thing that should be done, because it helps to identify, analyze, and evaluate the potential risks that could affect the IoT solution’s objectives or operations. Developing new IoT risk scenarios also helps to select the most appropriate and effective controls to minimize the risks, such as avoiding, reducing, transferring, or accepting the risks. The other options are not the first thing that should be done, although theymay be part of or derived from the IoT risk scenarios. Implementing IoT device monitoring software, introducing controls to the new threat environment, and engaging external security reviews are all activities that can help to support or improve the security of the IoT solution, but they do not necessarily identify, analyze, or evaluate the risks that could affect the IoT solution. References = 1

 A vulnerability is a weakness or flaw in the IT system or environment that could be exploited by a threat. A threat event is an occurrence or action that exploits a vulnerability and causes harm or damage to the IT system or environment. The lack of data to measure threat events is the most important factor, because it may affect the accuracy and reliability of the risk assessment and evaluation, and consequently, the risk response and strategy. The lack of data to measure threat events may also create challenges or risks for the organization, such as compliance, legal, reputational, or operational risks, or conflicts or inconsistencies with the organization’s risk appetite, risk objectives, or risk policies. The other options are not as important as the lack of data to measure threat events, although they may also influence the risk response and strategy. The likelihood and impact of threat events, the cost to implement the risk response, and the monetary value of the asset are all factors that could affect the feasibility and sustainability of the risk response and strategy, but they do not necessarily affect the validity and quality of the risk assessment and evaluation

Optimizing resource utilization is the main reason for prioritizing IT risk responses, as it helps to allocate resources to the most critical and urgent risks. The other options are not the main reasons for prioritizing IT risk responses, although they may be related to the process.

An incentive program is most likely implemented to manage the risk associated with loss of employees, as it aims to motivate, retain, and reward the employees who have valuable skills, knowledge, and experience, and to reduce the risk of employee turnover, dissatisfaction, or underperformance. Data, reputation, and customer lists are not the organizational assets that are most likely managed by an incentive program, as they are more related to the information, image, or relationship of the organization, respectively, rather than the human capital of the organization. References = CRISC Review Manual, 7th Edition, page 100.

The best metric to demonstrate that servers are configured securely is the total number of servers meeting the baseline for hardening. Hardening is the process of applying security configurations and settings to servers to reduce their attack surface and vulnerability. A baseline is a standard or benchmark that defines the minimum level of security required for servers. By measuring the number of servers that meet the baseline, the organization can assess the effectiveness of its hardening efforts and identify any gaps or deviations. The other metrics, such as exceeding availability thresholds, experiencing hardware failures, or exceeding current patching standards, are not directly related to the security configuration of servers, but rather to their performance, reliability, or maintenance. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.2, page 2-25.

 The best course of action for the risk practitioner who has identified that the agreed RTO with a SaaS provider is longer than the business expectation is to document the gap in the risk register and report to senior management. The risk register is the document that records the details of all identified risks, including their sources, causes, impacts, likelihood, and responses. The risk register should be updated regularly to reflect any changes in the risk environment or the risk status. Reporting to senior management is also important, because senior management is the highest level of authority and responsibility in the organization, and they are responsible for setting the strategic direction, objectives, and risk appetite of the organization. Senior management should also oversee the risk management process, and ensure that the risks are aligned with the organization’s goals and values. By documenting the gap in the risk register and reporting to senior management, the risk practitioner can communicate the issue clearly and effectively, and seek guidance and support for resolving the problem. Collaborating with the risk owner, including a right to audit clause, or advising the risk owner to accept the risk are not the best courses of action, because they may not be feasible, effective, or desirable in some situations, or they may require senior management approval or involvement. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

Employee activity monitoring is the process of tracking and recording the actions and behaviors of employees on company owned IT systems, such as email, internet, applications, etc. Thepurpose of employee activity monitoring is to ensure compliance with the company’s policies and regulations, prevent data leakage and misuse, detect and deter inappropriate or malicious activities, and improve productivity and performance. The most likely way to deter an employee from engaging in inappropriate use of company owned IT systems is to communicate the employee activity monitoring policy and practice to the employees, and make them aware of the consequences of violating the policy. By doing so, the company can create a deterrent effect and discourage the employees from misusing the IT systems, as they know that their actions are being monitored and recorded, and that they will be held accountable for any misconduct. References = CRISC Review Manual, 7th Edition, page 181.

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.

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.

The best method to maintain a common view of IT risk within an organization is to establish and communicate the IT risk profile. An IT risk profile is a document that summarizes the key IT risks that the organization faces or accepts, and their likelihood, impact, and priority. An IT risk profile helps to identify and prioritize the most critical or relevant IT risks, and to align them with the organization’s objectives, strategy, and risk appetite. Establishing and communicating the IT risk profile is the best method to maintain a common view of IT risk, because it helps to create a shared understanding and awareness of the IT risks among the organization’s stakeholders, such as the board, management, business units, and IT functions. Establishing and communicating the IT risk profile also helps to facilitate the IT risk decision-making and reporting processes, and to monitor and control the IT risk performance and improvement. Theother options are not the best method to maintain a common view of IT risk, although they may be part of or derived from the IT risk profile. Collecting data for IT risk assessment, utilizing a balanced scorecard, and performing and publishing an IT risk analysis are all activitiesthat can help to support or update the IT risk profile, but they are not the best method to maintain a common view of IT risk. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.1, page 1-15.

The most important step to ensure regulatory requirements are adequately addressed within an organization is to develop a policy framework that addresses regulatory requirements. A policy framework is a set of principles, rules, and standards that guide the organization’s actions and decisions. By developing a policy framework that addresses regulatory requirements, the organization can establish a clear and consistent direction, expectation, and accountability for complying with the relevant laws and regulations. Obtaining necessary resources, performing a gap analysis, and employing IT solutions are other possible steps, but they are not as important as developing a policy framework. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.

 Developing and communicating fraud prevention policies is the most effective way to reduce potential losses due to ongoing expense fraud because it creates a culture of integrity and accountability, sets clear expectations and consequences for employees, and deters fraudulent behavior. Implementing user access controls, performing regular internal audits, and conducting fraud prevention awareness training are also important controls, but they are more reactive and detective than preventive. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 4-26.

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

The conditional approval of the CIO’s proposal indicates the organization’s risk appetite. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. By setting a limit for expenditures before final approval, senior management is expressing their willingness to take a calculated risk with the new technology, but also their desire to control the potential loss or harm. Risk capacity, management capability, and treatment strategy are other possible factors, but they are not as relevant as risk appetite. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97

Internal audit reports provide the most useful information to assess the magnitude of identified deficiencies in the IT control environment. Internal audit reports are independent and objective evaluations of the design and operating effectiveness of the IT controls, as well as the compliance with policies, standards, and regulations. Internal audit reports also provide recommendations for improvement and follow-up actions for the control deficiencies. Internal audit reports can help measure the impact and severity of the control deficiencies, and prioritize the remediation efforts. Peer benchmarks, business impact analysis (BIA) results, and threat analysis results are not as directly related to the assessment of the control deficiencies, although they may provide some contextual or comparative information. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.4.1, page 1-19.

Risk management is the process of identifying, analyzing, evaluating, treating, monitoring, and communicating the risks that may affect the achievement of an organization’s objectives. The activity that best facilitates effective risk management throughout the organization is conducting periodic risk assessments, which are the systematic and structured methods of identifying and analyzing the potential sources and consequences of risk events. By conducting periodic risk assessments, an organization can proactively identify and prioritize the risks that pose the greatest threat or opportunity, and implement theappropriate risk responses to optimize the risk exposure and align it with the risk appetite and tolerance. References = CRISC Review Manual, 7th Edition, page 63.

Conducting vulnerability scans is the best way for a risk practitioner to validate the effectiveness of a patching program. Vulnerability scans are automated tools that identify and report on the vulnerabilities in a system or network, such as missing patches, misconfigurations, or outdated software. Vulnerability scans can help the risk practitioner to verify that the patches have been applied correctly and consistently, and that there are no remaining or new vulnerabilities that need to be addressed. Conducting penetration testing, interviewing IT operations personnel, and reviewing change control board documentation are also useful methods to evaluate the patching program, but they are not as comprehensive, objective, or timely as vulnerability scans. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.3, page 2-28.

The internal auditor is the best suited to provide objective input when updating residual risk to reflect the results of control effectiveness. The internal auditor is an independent and impartial function that evaluates the adequacy and effectiveness of the internal controls and reports on the findings and recommendations. The internal auditor can provide an unbiased and reliable assessment of the residual risk, which is the risk that remains after the controls are applied. The other options are not as objective as the internal auditor, as they may have vested interests or conflicts of interest in the control environment. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.

It is most important that security controls for a new system be documented in the system requirements. The system requirements define the functional and non-functional specifications of the system, including the security controls that are needed to protect the system and its data. Documenting the security controls in the system requirements can help ensure that they are designed, developed, tested, and implemented as part of the system development life cycle. Testing requirements, the implementation plan, and the security policy are other documents that may include security controls, but they are not as important as the system requirements. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 5; CRISC Review Manual, 6th Edition, page 212.

The best way to resolve the concern where a control process has been implemented in response to a new regulatory requirement, but has significantly reduced productivity, is to escalate the issue to senior management. Senior management is the highest level of authority and responsibility in the organization, and they are responsible for setting the strategic direction, objectives, and risk appetite of the organization. Senior management should also oversee the risk management process, and ensure that the controls are aligned with the organization’s goals and values. Escalating the issue to senior management can help to find a balance between complying with the regulatory requirement and maintaining the productivity of the organization. The other options are not as effective or desirable as escalating the issue to senior management, because they either ignore the problem, violate the regulation, or compromise the control.

The greatest concern for an IT risk practitioner when an employee transfers to another department is that unnecessary access permissions have not been removed. Unnecessary access permissions are the access rights or privileges that are no longer needed, relevant, or appropriate for the employee’s new role or responsibility. If these access permissions are not removed, they may pose a significant security risk, as the employee may be able to access, modify, or delete sensitive or critical data and systems that are not related to their current function. This may result in data leakage, fraud, sabotage, or compliance violations. The other options are not as concerning as unnecessary access permissions, as they are related to the organizational, operational, or knowledge aspects of the employee transfer, not the security or risk aspects of the employee transfer. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

The most important activity when conducting a post-implementation review as part of the system development life cycle (SDLC) is to verify that the project objectives are met. The project objectives are the specific and measurable outcomes that the project aims to achieve. By verifying that the project objectives are met, the post-implementation review can evaluate the success and value of the project, and identify the lessons learned and best practices for future projects. Identifying project cost overruns, leveraging an independent review team, and reviewing the project initiation risk matrix are other possible activities, but they are not as important as verifying that the project objectives are met. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.

The relationship owner is the person who has the authority and responsibility for managing the relationship with the service provider. The relationship owner should be accountable for ensuring that risk responses are implemented, as they are the primary point of contact and communication with the service provider. The relationship owner can also monitor and evaluate the performance and compliance of the service provider, and enforce the contractual obligations and service level agreements. The other options are not as accountable as the relationship owner, as they are related to the assessment, security, or legal aspects of the service provider, not the management or oversight of the service provider. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

The best tool to help prioritize investment efforts in the organization’s cybersecurity program is to review the outcome of the latest security risk assessment. A security risk assessment is a process of identifying, analyzing, and evaluating the risks associated with the confidentiality, integrity, and availability of the organization’s information assets and systems. By reviewing the outcome of the security risk assessment, senior management can identify the most critical and urgent risks, and allocate the resources and fundsaccordingly. Analyzing cyber intelligence reports, engaging independent cybersecurity consultants, and increasing the frequency of updates to the risk register are other possible tools, but they are not as effective as reviewing the outcome of the security risk assessment. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

When performing a risk assessment of a new service to support a core business process, the first step is to identify the conditions that may cause disruptions to the service or the process. This involves identifying the sources and causes of potential risk events, such as natural disasters, cyberattacks, human errors, equipment failures, power outages, etc. that may affect the availability, integrity, or confidentiality of the service or the process. By identifying the conditions that may cause disruptions, the risk practitioner can then analyze the probability and impact of the risk events, evaluate the risk exposure, and determine theappropriate risk responses to ensure the continuity of operations. References = CRISC Review Manual, 7th Edition, page 66.

The standard operating procedure (SOP) statement that best illustrates appropriate risk register maintenance is to remove risk when mitigation results in residual risk within tolerance levels. Residual risk is the risk that remains after the risk response or mitigation has been applied. Tolerance levels are the acceptable or allowable ranges of variation or deviation from the expected or desired outcomes or objectives. When the mitigation results in residual risk within tolerance levels, it means that the risk has been reduced or managed to an acceptable or satisfactory level, and that no further action or monitoring is required. Therefore, the risk can be removed from the risk register, as it is no longer a significant or relevant risk for the organization. The other options are not as appropriate as removing risk when mitigation resultsin residual risk within tolerance levels, as they are related to the transfer, acceptance, or change of the risk, not the removal of the risk. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.

 The most likely cause of the situation where the recovery team does not know what steps to take to recover critical data backups following a major flood is the failure to test the disaster recovery plan (DRP). A DRP is a document that describes the procedures and resources needed to restore the normal operations of an organization after a disaster. Testing the DRP is essential to ensure that the plan is feasible, effective, and up-to-date. Testing the DRP also helps to train the recovery team members, identify and resolve any issues or gaps, and improve the confidence and readiness of the organization. The lack of a well-documented business impact analysis (BIA), the lack of annual updates to the DRP, and the significant changes in management personnel are also possible factors that could affect the recovery process, butthey are not as likely or as critical as the failure to test the DRP. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.1, page 5-19.

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

 The most important consideration when communicating the risk associated with technology end-of-life to business owners is the cost and benefit of the risk response options. Technology end-of-life is the situation when a technology product or service is no longer supported by the vendor or manufacturer, and may pose security, compatibility, or performance issues. The risk practitioner should communicate the cost and benefit of the possible risk responses, such as replacing, upgrading, or maintaining the technology, to the business owners, and help them to make informed and rational decisions. Security and availability, maintainability and reliability, and performance and productivity are other possible considerations, but they are not as important as the cost and benefit. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.

 Understanding vulnerabilities associated with the use of the assets is the primary reason for a risk practitioner to review an organization’s IT asset inventory, as it helps to identify and assess the potential threats and risks to the assets. The other options are not the primary reasons for a risk practitioner to review an organization’s IT asset inventory, although they may be related to the process.

A risk awareness program is a set of activities and communication methods that aim to increase the understanding and knowledge of risk among the stakeholders of an organization. The primary objective of a risk awareness program is to enhance the organizational risk culture, which is the shared values, beliefs, and attitudes that influence how risk is perceived and managed in the organization. A risk awareness program can help to promote a risk-aware culture by:

•Educating stakeholders on the concepts and benefits of risk management

•Aligning risk management with the organization’s vision, mission, and objectives

•Encouraging stakeholder participation and collaboration in risk management processes

•Fostering a positive attitude towards risk taking and learning from failures

•Reinforcing risk management roles and responsibilities

•Recognizing and rewarding good risk management practices

Business Impact Analysis (BIA):

Purpose: A BIA is a systematic process to evaluate the potential effects of an interruption to critical business operations as a result of a disaster, accident, or emergency.

Identification of Consequences: It identifies critical resources and the consequences of their loss, allowing an organization to determine the operational and financial impacts of such losses.

Steps Involved in BIA:

Identify Critical Functions: Determine which business functions and processes are essential to the organization's operations.

Assess Impact: Evaluate the impact of losing these functions on the organization’s ability to operate.

Estimate Downtime Tolerance: Determine the maximum allowable downtime for critical functions before significant harm occurs.

Identify Dependencies: Document dependencies between systems, processes, and resources to understand how disruptions to one part affect the whole.

Comparison with Other Options:

Risk Management Action Plans: These are detailed plans developed to address identified risks but do not specifically focus on the impact of losing critical resources.

What-if Technique: This is a brainstorming technique used to explore potential risks and their impacts but is not as structured as a BIA.

Tabletop Exercise Results: These exercises simulate disaster scenarios to test response plans but do not provide the comprehensive impact analysis that a BIA does.

Best Practices:

Regular Updates: Regularly update the BIA to reflect changes in the business environment and operational dependencies.

Integration with DR/BC Plans: Ensure that findings from the BIA are integrated into disaster recovery (DR) and business continuity (BC) plans to enhance overall preparedness.

The most effective way for a large and diversified organization to minimize risk associated with unauthorized software on company devices is to scan end points for applications not included in the asset inventory. An asset inventory is a document that records and tracks all the hardware and software assets that are owned, used, or managed by the organization, such as laptops, tablets, smartphones, servers, applications, etc. An asset inventory helps to identify and classify the assets based on their type, model, location, owner, status, etc. An asset inventory also helps to monitor and control the assets, such as enforcing security policies, applying patches and updates, detecting and resolving issues, etc. Scanningend points for applications not included in the asset inventory helps to minimize the risk of unauthorized software, because it helps to discover and remove any software that is not approved, authorized, or licensed by the organization, and that may pose security, legal, or operational risks, such as malware, spyware, pirated software, etc. The other options are not as effective as scanning end points for applications not included in the asset inventory, although they may provide some protection or compliance for the software assets. Prohibiting the use of cloud-based virtual desktop software, conducting frequent reviews of software licenses, and performing frequent internal audits of enterprise IT infrastructure are all examples of preventive or detective controls, which may help to prevent or deter the installation or use of unauthorized software, or to verify or validate the software assets, but they do not necessarily discover or remove the unauthorized software. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.

 A heat map is a graphical tool that displays the level of risk severity for various risk scenarios or categories using different colors, shapes, or sizes. A heat map is most helpful in providing a high-level overview of current IT risk severity, as it can show the relative importance and urgency of the risks, and highlight the areas that require attention or action. A heat map can also help to communicate the risk information to the stakeholders, and facilitate the risk prioritization and decision making. References = 5

The first thing that should be done from a governance perspective to secure the information assets of a newly incorporated enterprise is to establish an inventory of information assets. An inventory of information assets is a document that lists and categorizes all the information assets that the organization owns, uses, or manages, such as data, documents, systems, applications, and devices. An inventory of information assets helps to identify and classify the information assets based on their value, sensitivity, and criticality, and to determine the appropriate level of protection and control for each asset. An inventory of information assets also helps to support the development and implementation of other information security activities, such as risk assessment, policy formulation, awareness training, and incident response. The other options are not the first thing that should be done, although they may be important steps or components of the information security governance. Defining information retention requirements and policies, providing information security awareness training, and establishing security management processes and procedures are all activities that can help to secure the information assets, but theyrequire the prior knowledge and understanding of the information assets. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.1.1, page 3-3.

The most useful information for a risk practitioner when planning response activities after risk identification is the risk priorities. Risk priorities are the order or ranking of the risks based on their level of importance or urgency. Risk priorities help the risk practitioner to focus on the most critical risks, and allocate the resources and efforts accordingly. Risk priorities are usually determined by using a combination of factors, such as the likelihood and impact of the risks, the risk appetite and tolerance of the organization, and the cost and benefit of the risk responses. Theother options are not as useful as the risk priorities, although they may provide some input or context for the risk response planning. The risk register is the document that records the details of all identified risks, but it does not necessarily indicate the risk priorities. The risk appetite is the amount and type of risk that the organization is willing to pursue, retain, or take, but it does not specify the risk priorities. The risk heat maps are graphical tools that display the risk level of each risk based on the likelihood and impact, but they do not show the risk priorities. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.

 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.

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.

 Scenario analysis is the best method to identify significant events that could impact an organization. Scenario analysis is the process of creating and evaluating hypothetical situations or scenarios that represent plausible outcomes of various events or actions. Scenario analysis helps to anticipate and prepare for potential risks and opportunities, as well as to test the robustness and resilience of the organization’s strategies and plans. Control analysis, vulnerability analysis, and heat map analysis are not as effective as scenario analysis, because they focus on the existing or current state of the organization, rather than the future or alternative states. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

The most reliable evidence of a control’s effectiveness is a system-generated testing report. A system-generated testing report is a document that shows the results of automated tests performed by the system to verify that the control is functioning as intended and producing the expected outcomes. A system-generated testing report is reliable, because it is objective, consistent, accurate, and timely, and because it can provide a high level of assurance and confidence in the control’s effectiveness. The other options are not as reliable as a system-generated testing report, although they may provide some evidence of the control’s effectiveness. A risk and control self-assessment, senior management’s attestation, and a detailed process walk-through are all examples of manual or subjective evidence, which may be prone to errors, biases, or inconsistencies, and which may provide a lower level of assurance and confidence in the control’s effectiveness. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.1, page 3-32.

 The greatest concern for the risk practitioner when the potential vendor has offered to perform quarterly self-audits of its controls instead of having annual independent audits is that the controls may not be properly tested. Self-audits are audits that are performed by the vendor itself, without the involvement of an external or independent party. Self-audits may not be reliable, objective, or consistent, as the vendor may have biases, conflicts of interest, or lack of expertise in auditing its own controls. Self-audits may also not follow the same standards, criteria, or methodologies as independent audits, and may not provide sufficient assurance or evidence of the effectiveness of the controls. The other options are not as concerning as the possibility of improper testing of the controls, as they are related to the outcomes, expectations, or approaches of the controls, not the quality or validity of the controls. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: IT Control Assessment, page 6

 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 to do. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 2-12.

The most effective way to help ensure accountability for managing risk is to assign process owners to key risk areas. Process owners are the persons or entities that have the authority andresponsibility to manage a specific process or a group of related processes. Process owners help to identify, assess, and respond to the risks associated with the process, and to monitor and report on the process performance and improvement. Process owners also help to communicate and coordinate the process management activities with the relevant stakeholders, such as the board, management, business units, and IT functions. Assigning process owners to key risk areas helps to ensure accountability for managing risk, because it helps to define and clarify the roles and responsibilities of the process owners, and to establish and enforce the expectations and standards for the process owners. Assigning process owners to key risk areas also helps to measure and evaluate the effectiveness and efficiency of the process owners, and to identify and address any issues or gaps in the process management activities. The other options are not as effective as assigning process owners to key risk areas, although they may be related to the risk management process. Obtaining independent risk assessments, assigning incident response action plan responsibilities, and creating accurate process narratives are all activities that can help to support or improve the risk management process, but they do not necessarily ensure accountability for managing risk. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 2-11.

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

A risk profile is a summary of the nature and level of risk that an organization faces. It includes information such as the sources, causes, and consequences of the risks, their likelihood and impact, their interrelationships and dependencies, and their alignment with the risk appetite and tolerance. A risk profile is influenced by various factors, such as the organization’s objectives, strategies, activities, processes, resources, capabilities, culture, etc. When an organization configures a new business division, the factor that is most likely to be affected is the risk profile, as the new business division may introduce new or change existing risks, opportunities, and uncertainties that may affect the achievement of the organization’s objectives. Therefore, the organization should update its risk profile to reflect the currentand potential risks associated with the new business division, and implement the appropriate risk management actions to optimize the risk exposure and performance. References = 4

The greatest concern for a risk practitioner when reviewing the findings of a security awareness program assessment is that the program uses non-customized training modules. Non-customizedtraining modules are generic and may not address the specific security needs, issues, and challenges of the organization. They may also fail to engage and motivate the employees to follow the security policies and procedures, and to enhance their security knowledge and skills. The program not decreasing threat counts, not considering business impact, or being significantly revised are other possible findings, but they are not as concerning as the program using non-customized training modules. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 7; CRISC Review Manual, 6th Edition, page 202.

Business impact analysis (BIA) is the most useful analysis for prioritizing risk scenarios associated with loss of IT assets, because it evaluates the potential consequences of disruption tocritical business functions and processes. BIA helps to identify the most significant risks and the most urgent recovery needs. SWOT analysis, cost-benefit analysis, and root cause analysis are all useful tools for different purposes, but they do not directly address the impact of risk scenarios on business continuity and resilience. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 143

The best control criteria to evaluate the outsourced service provider would be based on a recognized industry control framework. A control framework is a set of best practices, guidelines, and methodologies that provide a comprehensive and consistent approach to designing, implementing, and assessing controls. A recognized industry control framework is a control framework that is widely accepted and adopted by the industry and the regulators, and that reflects the current and emerging standards andexpectations for the control environment. A recognized industry control framework can help to ensure that the outsourced service provider meets the minimum and acceptable level of control quality and effectiveness, and that the control evaluation is objective, reliable, and comparable. The other options are not as good as a recognized industry control framework, as they are related to the specific sources, aspects, or requirements of the control criteria, not the overall structure and quality of the control criteria. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: IT Control Assessment, page 69.

 The most important step when developing risk scenarios using a list of generic scenarios based on industry best practices is to validate the generic risk scenarios for relevance. The generic risk scenarios may not be applicable or suitable for the specific context, objectives, and environment of the organization. Therefore, the risk practitioner should validate the relevance of the generic risk scenarios by comparing them with the organization’s risk profile, risk appetite, and risk criteria. Assessing generic risk scenarios with business users, selecting the maximum possible risk scenarios from the list, and identifying common threats causing generic risk scenarios are other steps that may be useful, but they are not as important as validating the relevance of the generic risk scenarios. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

The main benefit of using a top-down approach to develop risk scenarios is that it establishes the relationship between risk events and organizational objectives. A top-down approach is a method of risk identification and analysis that starts with the organization’s strategic objectives and then identifies the potential risk events that could affect or prevent the achievement of those objectives. A top-down approach helps to establish the relationship between risk events and organizational objectives, because it links the risk scenarios to the organization’s mission, vision, values, and strategy, and it prioritizes the risk scenarios based on their impact and relevance to the organization’s objectives. A top-down approach also helps to align and communicate the risk scenarios with the organization’s stakeholders, such as the board, management, and business units, and to facilitate the risk response and monitoring activities. The other options are not the main benefit of using a top-down approach, although they may be part of or derived from the top-down approach. Describing risk events specific to technology used by the enterprise, using hypothetical and generic risk events specific to the enterprise, and helping management and the risk practitioner to refine risk scenarios are all activities or outcomes that could be performed or achieved by using a top-down approach, but they are not the primary purpose or result of the top-down approach. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

The most useful input to the parent company’s risk practitioner when developing risk scenarios for the post-acquisition phase is the risk registers of both companies. The risk register is a document that records the details of the risks, such as their sources, causes, consequences, likelihood, impact, and responses. By reviewing the risk registers of both companies, the risk practitioner can identify the existing and potential risks that may affect the post-acquisition integration, performance, and value. The risk management framework, the IT balanced scorecard, and the most recent internal audit findings are other possible inputs, but they are not as useful as the risk registers. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

 The main purpose of selecting a risk response is to mitigate the residual risk to be within tolerance. Residual risk is the risk that remains after applying a risk response. Risk tolerance is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk response is the process of selecting and implementing actions to address risk. The goal of risk response is to reduce the residual risk to a level that is acceptable to the organization and its stakeholders. The other options are not the main purpose of selecting a risk response, although they may be secondary benefits or outcomes. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.

According to the CRISC Review Manual, an enterprise-wide ethics training and awareness program is one of the key elements of a strong risk culture, as it helps to promote ethical behavior, raise awareness of risk management principles and practices, and foster a culture of accountability and transparency2

1: Developing Collective Risk Leadership Through CRISC - ISACA 2: CRISC Review Manual, 7th Edition, page 23

 Zero Trust Architecture:

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

 Basic Tenets of Zero Trust:

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

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

 Key Components:

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

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

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

 Other Options:

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

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

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

 References:

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

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 management process, respectively, rather than the early warning sign of the risk management process. References = CRISC Review Manual, 7th Edition, page 110.

The operational risk associated with attacks on a web application should be owned by the individual in charge of the business function, because they are the primary stakeholder and beneficiary of the web application, and they are responsible for defining and achieving the business objectives and requirements that the web application supports or enables. An operational risk is a risk of loss or damage resulting from inadequate or failed internal processes, people, or systems, or from external events. An attack on a web application is a type of operational risk that involves a malicious or unauthorized attempt to compromise the confidentiality, integrity, or availability of the web application, such as a denial-of-service attack, a SQL injection attack, or a cross-site scripting attack. A web application is an application that runs on a web server and can be accessed or used through a web browser, such as an online shopping site, a social media platform, or a web-based email service. A business function is a set of activities or tasks that support or enable the organization’s vision, mission, and strategy, such as marketing, sales, or customer service. A risk owner is a person or role that has the authority and accountability to manage a specific risk, and to implement and monitor the risk response and controls. The individual in charge of the business function should be the risk owner, as they have the best understanding and interest of the web application and its business value and impact, and they have the ability and responsibility to manage the operational risk associated with the attacks on the web application. The individual in charge of network operations, the cybersecurity function, or application development are all possible candidates for the risk owner, but they are not the best choice, as they may not have the same level of stake and influence in the web application and its business objectives and requirements, and they may have different orconflicting priorities or perspectives on the operational risk and its management. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.1, page 101

Social engineering exercises are simulations of real-world attacks that exploit human vulnerabilities, such as phishing, baiting, pretexting, or quid pro quo. Conducting social engineering exercises can help assess the risk associated with data loss due to human vulnerabilities by measuring the employees’ susceptibility to such attacks, their awareness of security policies and procedures, and their response to incidents. Reviewing password change history, performing periodic access recertifications, and reviewing the results of security awareness surveys are also useful, but they do not directly test the employees’ behavior and resilience in the face of social engineering attacks.

The most important factor for management to consider when deciding whether to invest in an IT initiative that exceeds management’s risk appetite is C. Risk tolerance1

According to the CRISC Review Manual, risk tolerance is the acceptable level of variation that management is willing to allow for any specific risk as the enterprise pursues its objectives. Risk tolerance reflects the degree of uncertainty that an organization is prepared to accept in relation to achieving its goals2

When an IT initiative exceeds management’s risk appetite, it means that the potential benefits of the initiative are outweighed by the potential negative consequences or losses that could result from the initiative. However, management may still decide to invest in the initiative if the level of uncertainty or variation is within the organization’s risk tolerance. For example, management may accept a higher level of risk for a strategic or innovative initiative that could provide a competitive advantage or a significant return on investment3

Integrating risk and security requirements in an organization’s enterprise architecture (EA) helps to ensure that information assets are consistently managed throughout their life cycle, and that the risks associated with them are identified and mitigated. (Risk and Information Systems Control Review Questions, Answers & Explanations Manual, 5th Edition, page 112)

Participation in the risk assessment may constitute a conflict of interest, because it may create a situation where the risk practitioner’s personal or professional interests or relationships interfere with their objectivity, independence, or impartiality in conducting the risk assessment. A conflict of interest is a type of risk that may compromise the integrity, quality, or validity of the risk assessment process and outcomes, and may damage the reputation or trust of the risk practitioner or the organization. A conflict of interest may arise when the risk practitioner has a direct or indirect connection or involvement with the subject or stakeholder of the risk assessment, such as a previous or current role, responsibility, or relationship, that may influence or bias theirjudgment or decision. Participation in the risk assessment may constitute a conflict of interest, as the risk practitioner may have a prior or residual interest or loyalty to the financial process team or the new critical application, and may not be able to assess the risk in a fair and unbiased manner.

The risk assessment team being overly confident of its ability to identify issues, the risk practitioner being unfamiliar with recent application and process changes, and the risk practitioner still having access rights to the financial system are all possible concerns with the request, but they are not the greatest concern, as they do not necessarily imply a conflict of interest, and they may be mitigated or resolved by other means, such as training, documentation, or review.

Requiring MFA increases the security of digital wallets by adding an additional layer of authentication, making it harder for unauthorized users to gain access. This aligns withAccess Control Standardsand significantly reduces the likelihood of fraud.

Automated asset management software is the best method to track asset inventory because it can provide real-time, accurate, and comprehensive data on the location, condition, value, and usage of assets. It can also help to optimize asset utilization, reduce costs, improve compliance, and enhance security.

References

•Free Asset Tracking Templates | Smartsheet

•5 Best Asset Management Software (2023) – Forbes Advisor

•What Is Asset Tracking? Benefits & How It Works - Forbes

•Inventory and Asset Tracking: Keep it Simple (But Powerful)

Verifying the deficiency and then notifying the business process owner is the best response when a potential IT control deficiency has been identified. This is because verifying the deficiency can help confirm the existence, nature, and extent of the deficiency, as well as its root causes and impacts. Notifying the business process owner can help ensure that the deficiency is communicated to the person who is responsible for the process and its outcomes, and who has the authority and accountability to take appropriate actions to address the deficiency. 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 business process owners1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, verifying the deficiency and then notifying the business process owner is the correct answer to this question2.

Remediating and reporting the deficiency to the enterprise risk committee or senior executive management are not the best responses when a potential IT control deficiency has been identified. These are possible actions that can be taken after the deficiency has been verified and notified to the business process owner, but they are not the first or immediate responses. Remediating the deficiency without verifying it can lead to ineffective or inappropriate solutions, as well as wasted time and resources. Reporting the deficiency to the enterprise risk committee or senior executive management without notifying the business process owner cancreate confusion, conflict, or delay in the risk response process, as well as undermine the ownership and accountability of the business process owner.

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

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

The best metric to verify adherence to the policy that requires critical security patches to be deployed in production within three weeks of patch availability is the maximum time gap between patch availability and deployment, as it measures the longest duration that the organization takes to apply the patches, and ensures that it does not exceed the policy limit. The other options are not the best metrics, as they may not reflect the actual or optimal compliance with the policy, or may not be relevant or measurable for the policy, respectively. References = CRISC Review Manual, 7th Edition, page 110.

The effective implementation of a risk treatment plan is best indicated by managing residual risk within the organization’s appetite and tolerance levels. Residual risk is the remaining risk after controls have been applied, and ensuring it is within acceptable levels demonstrates that the risk treatment plan is effective.

Managing Residual Risk within Appetite and Tolerance (Answer B):

Definition: Residual risk is the risk remaining after risk treatment measures have been implemented.

Significance: Managing residual risk within the set appetite and tolerance levels shows that the implemented controls are effective and aligned with the organization’s risk management objectives.

Outcome: It ensures that the organization's risk exposure is kept within acceptable boundaries, thereby protecting its assets and operations.

Comparison with Other Options:

A. Inherent risk is managed within an acceptable level:

Definition: Inherent risk is the risk before any controls are applied.

Limitation: The focus should be on residual risk post-treatment.

C. Risk treatments are aligned with industry peers:

Purpose: While benchmarking is useful, it does not directly indicate the effectiveness of risk treatment.

D. Key controls are identified and documented:

Purpose: Identifying and documenting controls is necessary, but effectiveness is shown by managing residual risk.

Embedding Risk Management:

Integrated Approach: Embedding risk management in business activities ensures that risk considerations are part of everyday decision-making processes and operations.

Cultural Shift: Promotes a risk-aware culture where all employees understand their role in managing risk, leading to more proactive and effective risk management practices.

Comparison with Other Options:

Communicating Risk Awareness Materials: Important for education but less impactful than embedding risk management in daily activities.

Establishing KRIs: Useful for monitoring but does not ensure risk management practices are integrated into all business processes.

Minimizing Inherent Risk: This is an outcome of effective risk management rather than a method to ensure its effectiveness.

Best Practices:

Training and Awareness: Provide ongoing training to employees to embed risk management practices in their roles.

Policy and Procedures: Develop and enforce policies and procedures that integrate risk management into all business activities.

Leadership Support: Ensure strong support from leadership to promote and sustain a risk-aware culture.

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

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

Enforcing segregation of duties between the vendor master file and invoicing is the best process control to mitigate the risk of an employee issuing fraudulent payments to a vendor. This is because segregation of duties is a key internal control that prevents or detects errors, fraud, or abuse by ensuring that no single person can perform incompatible or conflicting tasks. The vendor master file is a database that contains the information and settings for each vendor, such as name, address, bank account, payment terms, etc. Invoicing is the process of generating and sending bills to the vendors for the goods or services they provide. If the same person can access and modify the vendor master file and issue invoices, he or she could create fictitious vendors, alter vendor information, or generate false or duplicate invoices, and then divert the payments to his or her own account. By segregating these duties, the organization can reduce the opportunity and likelihood of such fraudulent activities. According to the CRISC Review Manual 2022, segregation of duties is one of the key IT control objectives and practices1. According to the web search results, segregation of duties between the vendor master file and invoicing is a common and recommended control to prevent vendor fraud

User acceptance testing (UAT) is a type of validation testing that ensures that the product meets the needs and expectations of the end users and the business stakeholders. UAT is usually conducted by the actual or representative users of the product, who perform various scenarios and tasks to verify that the product functions correctly and satisfies the business requirements. UAT is an important step in the software development life cycle, as it helps to identify and resolve any issues or gaps between the product and the requirements before the product is released.

If UAT is not conducted when implementing a new application, the greatest concern is that the application could fail to meet the defined business requirements, which could result in user dissatisfaction, loss of trust,reduced productivity, increased costs, and missed opportunities. The application may have technical defects, security vulnerabilities, or redundant processes, but these are not the primary purpose of UAT. UAT is focused on validating the business value and usability of the product, not the technical quality or security of the product. Therefore, the lack ofUAT could have a significant impact on the alignment of the product with the business objectives and user needs.

The MOST important aspect for the risk practitioner to confirm is:

A. Appropriate approvals for the control changes

Ensuring that the control design changes have the appropriate approvals is crucial. This confirms that the changes are recognized and sanctioned by the necessary authority within the organization, aligning with governance practices and maintaining the integrity of the risk management process.

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 profile is a summary or representation of the organization’s exposure or level of risk, based on the results of the risk assessment and evaluation. A risk profile can show the distribution and comparison of the risks based on various criteria, such as likelihood, impact, category, source, etc. A risk profile can also indicate the organization’s risk appetite and tolerance, and the gaps or opportunities for improvement.

The primary benefit of maintaining an up-to-date risk register is that it helps to build a risk profile for management review, because it provides the data and information that are necessary and relevant for creating and updating the risk profile, and for communicating and reporting the risk profile to the management. Maintaining an up-to-date risk register can help to build a risk profile for management review by providing the following benefits:

It can ensure that the risk profile reflects the current and accurate state and performance of the organization’s risk management function, and that it covers all the relevant and significant risks that may affect the organization’s objectives and operations.

It can provide useful references and benchmarks for the identification, analysis, evaluation, and communication of the risks and their responses, and for the alignment and integration of the risks and their responses with the organization’s strategy and culture.

It can support the decision making and planning for the risk management function, and for the allocation and optimization of the resources, time, and budget for the risk management function.

The other options are not the primary benefits of maintaining an up-to-date risk register, because they do not address the main purpose and benefit of building a risk profile for management review, which is to summarize and represent the organization’s exposure or level of risk, and to communicate and report it to the management.

Implementing uniform controls for common risk scenarios means applying and enforcing the same or similar controls or countermeasures for the risks that have the same or similar characteristics or features, such as source, cause, impact, etc. Implementing uniform controls for common risk scenarios can help to ensure the consistency and efficiency of the risk management function, but it is not the primary benefit of maintaining an up-to-date risk register, because it does not summarize or represent the organization’s exposure or level of risk, and it may not be relevant or appropriate for the organization’s objectives and needs.

Ensuring business unit risk is uniformly distributed means ensuring that the risks that are associated with the different business units or divisions of the organization are balanced or equalized, and that they do not exceed or fall below the organization’s risk appetite and tolerance. Ensuring business unit risk is uniformly distributed can help to optimize the performance and profitability of the organization, but it is not the primary benefit of maintaining an up-to-date risk register, because it does not summarize or represent the organization’s exposure or level of risk, and it may not be feasible or realistic for the organization.

Quantifying the organization’s risk appetite means measuring and expressing the amount and type of risk that the organization is willing and able to accept or take, in pursuit of its objectives and goals. Quantifying the organization’s risk appetite can help to establish and communicate the boundaries and expectations for the organization’s risk management function, but it is not the primary benefit of maintaining an up-to-date risk register, because it does not summarize or represent the organization’s exposure or level of risk, and it may not be consistent or compatible with the organization’s strategy and culture. 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 201

CRISC Practice Quiz and Exam Prep

If preventive controls cannot be implemented due to technology limitations, the first step to reduce risk is to evaluate alternative controls. Alternative controls are those that can achieve the same or similar objectives as the original preventive controls, but using different methods or technologies. For example, if a firewall cannot be installed due to hardware compatibility issues, an alternative control could be a network segmentation or a proxy server. Evaluating alternative controls requires assessing their feasibility, effectiveness, efficiency, and cost-benefit. Redefining the business process, developing a plan to upgrade technology, and defining a process for monitoring risk are also possible actions to reduce risk, but they are not the first step, and they may not be feasible or desirable in some situations. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.

A risk is the possibility of an event that may have a negative impact on the achievement of an organization’s objectives. A risk can be measured by the probability and impact of the event, which indicate the likelihood and consequence of the event. A risk manager is a person who is responsible for performing risk management activities, such as identifying, analyzing, evaluating, treating, monitoring, and communicating risks. When an organization retains footage from its data center security camera for 30 days when the policy requires 90-day retention, the risk manager’s best response to the business owner who challenges whether the situation is worth remediating is to evaluate the risk as a measure of probable loss, which means to estimate the potential harm or damage that may result from the non-compliance with the policy. By evaluating the risk as a measure of probable loss, the risk manager can provide the business owner with the rationale and justification for the risk remediation, and help the business owner to understand the cost-benefit analysis of the risk response. References = CRISC Review Manual, 7th Edition, page 63.

A key performance indicator (KPI) is a metric that measures the achievement of a specific goal or objective. A KPI should be relevant, measurable, achievable, realistic, and time-bound. For measuring the effectiveness of an antivirus program, a possible goal is to ensure that all IT assets are protected from malware infections. A KPI that can measure this goal is the percentage of IT assets with current malware definitions, which indicates how well the antivirus program can detect and prevent the latest malware threats. The higher the percentage, the more effective the antivirus program is. Therefore, this is the best KPI among the given options. References =

Cybersecurity KPIs to Track + Examples — RiskOptics - Reciprocity

Which of the following is the BEST key performance indicator (KPI) to …

Indicators - Program Evaluation - CDC

Involve the development team in planning is the best recommendation to help reduce IT risk associated with scheduling overruns when starting a new application development project. This is because involving the development team in planning can help ensure that the project scope, requirements, resources, and timeline are realistic, feasible, and agreed upon by all stakeholders. It can also help improve the communication, collaboration, and commitment of the development team, as well as identify and mitigate potential risks and issues early in the project life cycle. According to the CRISC Review Manual 2022, one of the key risk identification techniques for IT projects is to involve the project team and other relevant parties in the risk assessment process1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, involving the development team in planning is the correct answer to this question2.

Implementing a tool to track the development team’s deliverables, reviewing the software development life cycle, and assigning more developers to the project team are not the best recommendations to help reduce IT risk associated with scheduling overruns. These are possible actions that can be taken during or after the planning phase, but they do not address the root cause of the risk, which is the lack of involvement of the development team in planning. Implementing a tool to track the development team’s deliverables can help monitor the project progress and performance, but it does not guarantee that the deliverables are aligned with the project objectives and expectations. Reviewing the software development life cycle can help ensure that the project follows a structured and standardized process, but it does not account for the specific needs and challenges of the project. Assigning more developers to the project team can help increase the project capacity and productivity, but it can also introduce new risks such as coordination, communication, and quality issues.

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

References

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

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

•Risk Tolerance - ISACA

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

 Understanding the Question:

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

 Analyzing the Options:

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

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

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

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

 Detailed Explanation:

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

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

The greatest challenge for a risk practitioner during a merger of two organizations is the variances between organizational risk appetites, as they may indicate a significant difference in the risk culture, strategy, and objectives of the two organizations, and may require a complex and lengthy process of alignment and integration. Different taxonomies to categorize risk scenarios, disparate platforms for governance, risk, and compliance (GRC) systems, and dissimilar organizational risk acceptance protocols are not the greatest challenges, as they are more related to the technical, operational, or procedural aspects of risk management, rather than the strategicor cultural aspects of risk management. References = CRISC Review Manual, 7th Edition, page 109.

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

 Understanding Strategic Risk:

Strategic risk refers to the potential losses that can arise from adverse business decisions, improper implementation of decisions, or lack of responsiveness to changes in the business environment.

 Reputational Impact of Cybersecurity Breaches:

A cybersecurity breach can severely damage an organization's reputation, affecting customer trust, investor confidence, and market value.

Such impacts go beyond immediate financial losses and can have long-term strategic implications for the organization's competitive position and strategic objectives.

 Classification of Risk:

Financial Risk:Direct financial losses due to a breach (e.g., fines, legal costs) but does not cover reputational impacts.

Data Risk:Focuses on the loss or compromise of data but not the broader strategic impact.

Operational Risk:Pertains to disruptions in business operations, while reputational damage influences the organization’s strategic direction and goals.

 Strategic Risk and Reputation:

Reputational damage from a cybersecurity breach can lead to a loss of customer base, reduced market share, and difficulties in strategic partnerships, all of which are strategic concerns.

Addressing reputational risk requires strategic planning, proactive communication, and long-term efforts to rebuild trust and credibility.

 References:

The CRISC Review Manual highlights that reputational risk is a significant aspect of strategic risk, especially following cybersecurity incidents (CRISC Review Manual, Chapter 1: Governance, Section 1.1.3 Importance and Value of IT Risk Management)​​.

An independent review is typically sought to provide an objective assessment of the IT risk management program, ensuring that it aligns with the organization’s overall strategy andobjectives. The reviewer can identify areas where the program may not be effectively addressing the organization’s strategic goals or where improvements can be made to better manage IT risks.

Risk tolerance defines the boundaries for acceptable risk levels and directly impacts decision-making for mitigation strategies. A well-defined tolerance helps prioritize actions and allocate resources effectively, emphasizing its central role in theRisk Responsedomain.

Risk management is the process of identifying, analyzing, evaluating, treating, monitoring, and communicating the risks that may affect the achievement of an organization’s objectives. Risk management helps to optimize the risk exposure and performance of the organization, and support the business objectives and strategies. The primary reason to engage business unit managers in risk management processes is to enable better-informed business decisions, which are the decisions that incorporate the risk information and analysis into the strategic and operational choices of the organization. By engaging business unit managers in risk management processes, the organization can ensure that the business unit managers have the insight andunderstanding of the current and potential risks, their likelihood and impact, their interrelationships and dependencies, and their alignment with the risk appetiteand tolerance. This can help the business unit managers to prioritize the risks, allocate the resources, select the risk responses, monitor the risk performance, and evaluate the risk outcomes. References = 5

 User Access Management:

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

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

 Importance of KPI:

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

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

 Comparing Other KPIs:

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

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

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

 References:

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

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, as the process owner has the authority and responsibility to manage the production system and its associated risks and controls, and to decide on the optimal risk response. Recommending a program that minimizes the concerns of that production system, informing the IT manager of the concerns and proposing measures to reduce them, and informing the development team of the concerns and together formulating risk reduction measures are not the most appropriate actions, as they may not involve the process owner, who is the key stakeholder and decision maker for the production system and its risks. References = CRISC Review Manual, 7th Edition, page 101.

The primary objective of risk management is to achieve business objectives, as risk management involves identifying, assessing, responding, and monitoring the risks that may affect the desired outcomes and performance of the organization, and aligning them with the risk tolerance and appetite of the organization. Identifying and analyzing risk, minimizing business disruptions, andidentifying threats and vulnerabilities are not the primary objectives, as they are more related to the process, outcome, or source of risk management, respectively, rather than the purpose or value of risk management. References = CRISC Review Manual, 7th Edition, page 99.

The most important factor for the organization to consider before implementing a new in-house developed artificial intelligence (AI) solution is the expected algorithm outputs, as they define the desired outcomes and objectives of the AI solution, and guide the design, testing, and validation of the AI algorithm. The other options are not the most important factors, as they are more related to the research, input, or monitoring of the AI solution, respectively, rather than the output of the AI solution. References = CRISC Review Manual, 7th Edition, page 153.