Isaca IT-Risk-Fundamentals Exam With Confidence Using Practice Dumps

The board of directors is ultimately accountable for risk governance. While ERM, business units, and IT management all play crucial roles in managing risk, the governance of risk—setting the overall risk appetite, defining roles and responsibilities, and monitoring the effectiveness of risk management—rests with the board. They provide oversight and direction, ensuring that risk management is integrated with the organization's strategic objectives. The board's responsibility stems from their fiduciary duty to the organization and its stakeholders. They are responsible for the overall success and sustainability of the enterprise, which includes effectively managing risks.

A risk scenario is an example of a tangible and assessable representation of risk. Here’s the breakdown:

Enterprise Risk Policy: This is a document that outlines the organization's approach to risk management. While important, it is not a specific, tangible representation of risk.

Risk Treatment Plan: This outlines the actions to mitigate identified risks. It is a strategy rather than a representation of specific risks.

Risk Scenario: This provides a detailed and concrete representation of potential risk events, their causes, and impacts. It allows for assessment and preparation, making it a tangible and assessable representation of risk.

Therefore, a risk scenario is the best example of a tangible and assessable representation of risk.

References:

ISA 315 Anlage 5 and 6: Understanding risks, scenarios, and their impacts on IT systems and business objectives​​​​.

ISO-27001 and GoBD guidelines on risk management and identification​​​​.

These references provide a comprehensive understanding of the concepts and principles involved in IT risk and audit processes.

The use of risk scenarios to guide senior management through a rapidly changing market environment is considered a key risk management benefit. Here’s why:

Benefit: Using risk scenarios provides a strategic advantage by helping senior management understand potential future events and their impacts. It enables better decision-making and preparedness in navigating uncertainties.

Incentive: While risk scenarios may provide motivation to improve risk management practices, the primary aspect is the benefit they offer in strategic planning and risk mitigation.

Capability: This refers to the ability of the organization to manage risks. Using risk scenarios enhances the risk management capability but is primarily beneficial in understanding and preparing for risks.

Therefore, using risk scenarios is a key benefit as it enhances the ability of senior management to navigate a changing environment.