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According to the CRISC Review Manual (Digital Version), the percentage of systems with long recovery target times has decreased is the information that would have the most impact on the overall recovery profile, as it indicates that the organization has improved its ability to restore its critical systems and processes within the acceptable time frames after a disaster. The recovery target time, also known as the recovery time objective (RTO), is the maximum acceptable time that an application, computer, network, or system can be down after an unexpected disaster, failure, or comparable event takes place. The recovery profile, also known as the recovery point objective (RPO), is the maximum acceptable amount of data loss measured in time. A lower percentage of systems with long recovery target times means that the organization has:

Reduced the gap between the business requirements and the IT capabilities for disaster recovery

Enhanced the resilience and availability of its critical systems and processes

Minimized the potential losses and damages caused by prolonged downtime

Increased the confidence and satisfaction of its stakeholders and customers

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 174-1751

Detailed Explanation:Customizing the risk profile presentation ensures that stakeholders receive information in a format and context relevant to their roles. Tailored communication improves understanding, aligns risk discussions with decision-making needs, and ensures the stakeholders are equipped to act on the information effectively.

According to the CRISC Review Manual (Digital Version), risk management strategies are primarily adopted to achieve acceptable residual risk levels, which are the remaining risk levels after implementing risk response actions. Residual risk levels should be aligned with the organization’s risk appetite and risk tolerance, which are the amount and type of risk that the organization is willing to accept in pursuit of its objectives and the acceptable variation in outcomes related to specific performance measures linked to objectives. Risk management strategies are the approaches or methods used to address risks, such as avoidance, mitigation, transfer, sharing, or acceptance. Risk management strategies should be based on a cost-benefit analysis of the alternatives available and the value of the assets at risk.

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 166-1691

 According to the CRISC Review Manual (Digital Version), the next course of action when an organization has determined a risk scenario is outside the defined risk tolerance level is to identify risk responses, which are the actions or measures taken to address the risk. Identifying risk responses helps to:

Reduce the likelihood and/or impact of the risk to an acceptable level

Align the risk response with the organization’s risk appetite and risk tolerance

Optimize the value and benefits of the risk response

Balance the costs and efforts of the risk response with the potential losses or damages caused by the risk

Coordinate and communicate the risk response with the relevant stakeholders

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.2: Risk Response Process, pp. 161-1621

The business process owner should be the risk owner for the risk exposure due to weak technical controls in a newly implemented HR system, because they are responsible for the performance and outcomes of the HR business process, and they understand the business requirements, expectations, and impact of the HR system. The business process owner can also evaluate the trade-offs between the potential benefits and costs of the HR system, and the potential risks and consequences of a failure or breach of the system. The business process owner can also communicate and justify their risk acceptance or mitigation decision to the senior management and other stakeholders, and ensure that the risk is monitored and reviewed regularly. The other options are less appropriate to be the risk owner for this risk exposure. The chief risk officer is responsible for overseeing the enterprise-wide risk management framework and process, which includes ensuring the identification, assessment, and reporting of risks. However, they are not the owner of the HR system or the HR business process, and they may not have the full knowledge or authority to accept or mitigate the risk on behalf of the business. The project manager is responsible for managing the implementation of the HR system, which includes ensuring the delivery of the system within the scope, time, and budget constraints. However, they are not the owner of the HR system or the HR business process, and they may not have the full knowledge or authority to accept or mitigate the risk on behalf of the business. The chief information officer is responsible for managing the IT function and resources, which includes providing the technical support and security for the HR system. However, they are not the owner of the HR system or the HR business process, and they may not have the full knowledge or authority to accept or mitigate the risk on behalf of the business. References = Getting risk ownership right 1

 The results of risk analyses should be presented in quantitative or qualitative terms based primarily on the requirements of management, because they are the intended audience and users of the risk information, and they have the authority and responsibility to make risk-based decisions. The requirements of management may vary depending on the purpose, scope, and context of the risk analysis, and the level of detail, accuracy, and reliability that they need. Quantitative risk analysis uses numerical data and mathematical models to estimate the probability and impact of risks, and to express the risk exposure and value in monetary or other measurable units. Qualitative risk analysis uses descriptive data and subjective judgments to assess the likelihood and severity of risks, and to rank the risks according to their relative importance or priority. Both methods have their advantages and disadvantages, and they can be used separately or together, depending on the situation and the availability of data and resources. However, the primary factor that determines the choice of the method is the requirements of management, as they are the ones who will use the risk information to support their objectives, strategies, and actions. References = Risk IT Framework, ISACA, 2022, p. 141

A cost-benefit analysis is the best guidance when selecting an appropriate risk treatment plan. A risk treatment plan is a document that describes the actions or measures that are taken or planned to modify the risk, such as reducing, avoiding, transferring, or accepting the risk1. Selecting an appropriate risk treatment plan means choosing the most suitable and effective option for addressing the risk, based on the organization’s objectives, strategies, and risk criteria2. A cost-benefit analysis is a method of comparing the benefits and costs of different alternatives or options, and selecting the one that maximizes the net benefit or value3. A cost-benefit analysis is the best guidance when selecting an appropriate risk treatment plan, because it helps to:

Evaluate the feasibility, effectiveness, and efficiency of the risk treatment options, and compare them against the organization’s risk appetite and tolerance;

Balance the benefits and costs of the risk treatment options, and consider both the quantitative and qualitative aspects of the risk and the risk response;

Optimize the use of the organization’s resources and capabilities, and ensure that the risk treatment options are aligned and integrated with the organization’s goals and values;

Support the risk decision making and prioritization, and provide a rational and transparent basis for selecting the best risk treatment option. The other options are not the best guidance when selecting an appropriate risk treatment plan, as they are either less comprehensive or less relevant than a cost-benefit analysis. A risk mitigation budget is a document that allocates the financial resources for implementing and maintaining the risk mitigation actions or measures4. A risk mitigation budget can help to ensure the availability and adequacy of the funds for the risk treatment options, as well as to monitor and control the risk treatment expenditures. However, a risk mitigation budget is not the best guidance when selecting an appropriate risk treatment plan, as it does not address the benefits or value of the risk treatment options, or the suitability or effectiveness of the risk treatment options. A business impact analysis is a method of estimating the potential effects or consequences of a risk on the organization’s objectives, operations, or performance5. A business impact analysis can help to assess the severity and priority of the risk, as well as to identify the critical assets and resources that are involved or impacted by the risk. However, a business impact analysis is not the best guidance when selecting an appropriate risk treatment plan, as it does not address the costs or feasibility of the risk treatment options, or the alternatives or options for the risk treatment. A return on investment is a metric that measures the profitability or efficiency of an investment, project, or activity, by comparing the benefits and costs of the investment, project, or activity6. A return on investment can help to evaluate the performance and effectiveness of the risk treatment options, as well as to compare the risk treatment options with other investments, projects, or activities. However, a return on investment is not the best guidance when selecting an appropriate risk treatment plan, as it does not address the qualitative or intangible aspects of the risk and the risk response, or the risk appetite and tolerance of the organization. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.8, Page 61.

An intrusion detection system (IDS) is a network security tool that monitors and analyzes network traffic for signs of malicious or suspicious activity, such as unauthorized access, data exfiltration, malware infection, or denial-of-service attack. An IDS can detect and alert the organization to potential threats based on predefined rules or signatures, or based on anomalies or deviations from normal network behavior. An IDS can also generate logs that record the details of the network events and incidents, such as the source, destination, content, and context of the network traffic. By analyzing the IDS logs, the organization can identify and validate the suspicious network activity, and determine its scope, impact, and root cause. The organization can also use the IDS logs to support the incident response and remediation process, and to improve the network security and resilience. The other options are less effective ways to ensure that suspicious network activity is identified. Analyzing server logs can provide some information about the network activity, but it may not be sufficient or timely to detect and validate the suspicious or malicious activity, as server logs only capture the events or activities that occur on the server, and not on the entire network. Using a third-party monitoring provider can help to outsource the network monitoring and analysis function, but it may not be the best option, as it may introduce additional risks, such as data privacy, vendor reliability, or service quality issues. Coordinating events with appropriate agencies can help to share information and resources with other organizations or authorities, such as law enforcement, regulators, or industry peers, but it may not be the best option, as it may depend on the availability and cooperation of the agencies, and it may not be feasible or desirable to disclose the network activity to external parties. References = Monitoring for Suspicious Network Activity: Key Tips to Secure Your Network 1

The most important outcome of reviewing the risk management process is assuring that the risk profile supports the IT objectives, because this ensures that the organization is managing its IT-related risks in alignment with its business goals and priorities. The risk profile is a summary of the key risks that the organization faces, their likelihood, impact, and response strategies. The IT objectives are the specific and measurable outcomes that the organization expects to achieve from its IT investments and activities. By reviewing the risk management process, the organization can evaluate whether the risk profile is accurate, complete, and up-to-date, and whether the risk responses are effective, efficient, and consistent with the IT objectives. The review can also identify any gaps, issues, or opportunities for improvement in the risk management process, and provide recommendations for enhancing the process and its outcomes. The review can also help to communicate and report the value and performance of the risk management process to the senior management, the board of directors, and other stakeholders. References = Risk IT Framework, ISACA, 2022, p. 17

A disaster recovery test is a simulation of a disaster scenario that evaluates the effectiveness and readiness of the disaster recovery plan. The main purpose of a disaster recovery test is to ensure that the organization can resume its normal operations as quickly as possible after a disaster, with minimal or no data loss. Therefore, the most important objective of a disaster recovery test from a business perspective is to verify that all critical data can be recovered within the RTOs, which are the maximum acceptable time frames for restoring the data and systems after a disaster. If the RTOs are not met, the organization may face significant financial, operational, and reputational losses. The other options are not the most important objectives of a disaster recovery test, although they may be beneficial outcomes. Gaining assurance that the organization can recover from a disaster is a subjective and qualitative goal, while recovering data within RTOs is a measurable and quantitative goal. Discovering errors in the disaster recovery process is a valuable result of a disaster recovery test, but it is not the primary objective. The objective is to correct the errors and improve the process, not just to find them. Testing all business critical systems is a necessary step in a disaster recovery test, but it is not the ultimate goal. The goal is to ensure that the systems can be restored and function properly within the RTOs. References = CRISC Review Manual, pages 197-1981; CRISC Review Questions, Answers & Explanations Manual, page 572

A risk taxonomy is a classification or categorization system that defines and organizes the risks that may affect the organization’s objectives and operations. It includes the risk domains, categories, subcategories, elements, attributes, etc., and the relationships and dependencies among them. A risk taxonomy can help the organization to identify, analyze, evaluate, and communicate the risks, and to align them with the organization’s strategy and culture.

The most important consideration when developing an organization’s risk taxonomy is the business context, which is the set of internal and external factors and conditions that influence and shape the organization’s objectives, operations, and performance. It includes the organization’s vision, mission, values, goals, stakeholders, resources, capabilities, processes, systems, etc., as well as the market, industry, regulatory, social, environmental, etc., factors and conditions that affect the organization.

Considering the business context when developing an organization’s risk taxonomy ensures that the risk taxonomy is relevant, appropriate, and proportional to the organization’s needs and expectations, and that it supports the organization’s objectives and values. It also helps to ensure that the risk taxonomy is consistent and compatible with the organization’s governance, risk management, and control functions, and that it reflects the organization’s risk appetite and tolerance.

The other options are not the most important considerations when developing an organization’s risk taxonomy, because they do not address the fundamental question of whether the risk taxonomy is suitable and acceptable for the organization.

Leading industry frameworks are the established or recognized models or standards that provide the principles, guidelines, and best practices for the organization’s governance, risk management, and control functions. Leading industry frameworks can provide useful references and benchmarks when developing an organization’s risk taxonomy, but they are not the most important consideration, because they may not be specific or applicable to the organization’s business context, and they may not reflect the organization’s objectives and values.

Regulatory requirements are the rules or obligations that the organization must comply with, as imposed or enforced by the relevant authorities or regulators. Regulatory requirements can provide important inputs and constraints when developing an organization’s risk taxonomy, but they are not the most important consideration, because they may not be comprehensive or sufficient for the organization’s business context, and they may not support the organization’s objectives and values.

IT strategy is the plan or direction that the organization follows to achieve its IT objectives and to align its IT resources and capabilities with its business objectives and needs. IT strategy can provide important inputs and alignment when developing an organization’s risk taxonomy, but it is not the most important consideration, because it may not cover all the relevant or significant risks that may affect the organization’s business context, and it may not reflect the organization’s objectives and values. 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 175

CRISC Practice Quiz and Exam Prep

To reduce risk impact, the best course of action is to implement corrective measures, which are actions taken to eliminate or minimize the negative effects of a risk event after it has occurred12.

Corrective measures can include restoring normal operations, repairing or replacing damaged assets, recovering lost data, compensating affected stakeholders, and implementing lessons learned12.

Corrective measures can reduce risk impact by minimizing the duration, severity, and scope of the consequences of a risk event, as well as preventing recurrence or escalation of similar risks in the future12.

The other options are not the best course of action to reduce risk impact, but rather different types of risk responses that may have different objectives and effects. For example:

Creating an IT security policy is an example of a preventive measure, which is an action taken to avoid or reduce the likelihood of a risk event before it occurs12. A preventive measure can reduce risk exposure, but not risk impact.

Implementing detective controls is an example of a monitoring measure, which is an action taken to identify and measure the occurrence or status of a risk event during or after it occurs12. A monitoring measure can provide timely information and feedback, but not reduce risk impact.

Leveraging existing technology is an example of a mitigation measure, which is an action taken to reduce the likelihood or impact of a risk event before it occurs12. A mitigation measure can reduce risk exposure, but not necessarily risk impact. References =

1: Risk Management Guide for Information Technology Systems, NIST Special Publication 800-30, July 2002

2: Project Risk Management Handbook, California Department of Transportation, June 2011

A risk register is a tool that records and tracks the risks that may affect the organization, as well as the actions that are taken or planned to manage them1. A risk register provides the best evidence that the IT risk profile is up to date, because it reflects the current and potential IT risks that the organization faces, as well as their likelihood, impact, severity, owner, status, and response2. An IT risk profile is a document that describes the types, amounts, and priority of IT risk that the organization finds acceptable and unacceptable3. An IT risk profile is developed collaboratively with various stakeholders within the organization, including business leaders, data and process owners, enterprise risk management, internal and external audit, legal, compliance, privacy, and IT risk management and security4. By maintaining and updating the risk register regularly, the organization can ensure that the IT risk profile is aligned with the changing IT risk environment, and that the IT risk management activities and performance are consistent and effective. The other options are not the best evidence that the IT risk profile is up to date, as they are either less comprehensive or less relevant than the risk register. A risk questionnaire is a tool that collects and analyzes the opinions and perceptions of the stakeholders about the risks that may affect the organization5. A risk questionnaire can help to identify and assess the risks, as well as to communicate and report on the risk status and issues. However, a risk questionnaire is not the best evidence that the IT risk profile is up to date, as it may not capture all the IT risks that the organization faces, or reflect the actual or objective level and nature of the IT risks. A management assertion is a statement or declaration made by the management about the accuracy and completeness of the information or data that they provide or report. A management assertion can help to increase the confidence and trust of the stakeholders and auditors in the information or data, as well as to demonstrate the accountability and responsibility of the management. However, a management assertion is not the best evidence that the IT risk profile is up to date, as it does not provide the details or outcomes of the IT risk management activities or performance, or verify the validity and reliability of the IT risk information or data. A compliance manual is a document that contains the policies, procedures, and standards that the organization must follow to meet the legal, regulatory, or contractual requirements that apply to its activities or operations. A compliance manual can help to ensure the quality and consistency of the organization’s compliance activities or performance, as well as to avoid or reduce the penalties or sanctions for non-compliance. However, a compliance manual is not the best evidence that the IT risk profile is up to date, as it does not address the IT risks that the organization faces, or the IT risk management activities or performance. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.5, Page 55.

The recovery time objective (RTO) is a metric that defines the maximum acceptable time frame for restoring a system or service after a disruption. The RTO is determined by the business impact and requirements of the system or service, as well as the risk appetite and tolerance of the organization. The calculation of the RTO is necessary to determine the priority of restoration, which means the order and urgency of recovering the systems or services based on their criticality and dependency. The priority of restoration helps to optimize the use of resources and minimize the downtime and losses during a disaster recovery. The other options are not the correct answers, as they are not the main purpose of calculating the RTO. The time required to restore files is a factor that affects the RTO, but it is not the outcome of the RTO calculation. The point of synchronization is the point in time to which the data must be restored to ensure consistency and accuracy. The point of synchronization is related to the recovery point objective (RPO), not the RTO. The annual loss expectancy (ALE) is a measure of the expected loss per year due to a specific risk or threat. The ALE is calculated by multiplying the single loss expectancy (SLE) by the annualized rate of occurrence (ARO). The ALE is not directly related to the RTO, although it may influence the RTO determination. References = Recovery Time Objective (RTO) - What Is It, Examples, Calculation; CRISC Review Manual, pages 197-1981; CRISC Review Questions, Answers & Explanations Manual, page 842

 The primary consideration when implementing controls for monitoring user activity logs is ensuring that the control is proportional to the risk, because this helps to optimize the balance between the benefits and costs of the control, and to avoid over- or under-controlling the risk. User activity logs are records of the actions or events performed by users on IT systems, networks, or resources, such as accessing, modifying, or transferring data or files. Monitoring user activity logs can help to detect and prevent potential threats, such as unauthorized access, data leakage, or malicious activity, and to support the investigation and remediation of incidents. However, monitoring user activity logs also involves certain costs and challenges, such as collecting, storing, analyzing, and reporting large amounts of log data, ensuring the accuracy, completeness, and timeliness of the log data, protecting the privacy and security of the log data, and complying with the relevant laws and regulations. Therefore, when implementing controls for monitoring user activity logs, the organization should consider the level and impact of the risk that the control is intended to address, and the value and effectiveness of the control in reducing the risk exposure and impact. The organization should also consider the costs and feasibility of implementing and maintaining the control, and the potential negative consequences or side effects of the control, such as performance degradation, user dissatisfaction, or legal liability. By ensuring that the control is proportional to the risk, the organization can achieve the optimal level of risk management, and avoid wasting resources or creating new risks. References = Risk IT Framework, ISACA, 2022, p. 151

 A risk assessment is a process that identifies, analyzes, and evaluates the risks that an organization faces in relation to its objectives, assets, and operations. A risk assessment helps to determine the likelihood and impact of potential threats, as well as the adequacy and effectiveness of existing controls. A risk assessment also provides the basis for risk treatment, which involves selecting and implementing the appropriate risk responses, such as avoiding, transferring, mitigating, or accepting the risk. The client’s best course of action in this scenario is to perform their own risk assessment, rather than relying on the third-party service provider’s risk assessment. This is because the third-party service provider may have different risk criteria, assumptions, methods, or perspectives than the client, and may not fully understand or address the client’s specific risk context, needs, and expectations. The third-party service provider’s risk assessment may also be biased, outdated, or inaccurate, and may not reflect the current or future risk environment. By performing their own risk assessment, the client can ensure that the risk of their systems being hacked is properly identified, measured, and managed, and that the risk level is acceptable and aligned with their risk appetite and tolerance. The other options are not the best courses of action for the client, as they may expose the client to unnecessary or unacceptable risk. Implementing additional controls to address the risk may be costly, ineffective, or redundant, and may not be justified by the actual risk level. Accepting the risk based on the third-party service provider’s risk assessment may be risky, as the client may not have a clear or accurate understanding of the risk exposure or consequences. Performing an independent audit of the third party may be useful, but it may not be sufficient or timely to assess and address the risk of the client’s systems being hacked. References = CRISC Review Manual, pages 38-391; CRISC Review Questions, Answers & Explanations Manual, page 792

IT and business misalignment is the risk that the IT objectives, plans, and activities are not aligned with the business goals, needs, and expectations. This can result in wasted resources, missed opportunities, poor performance, and customer dissatisfaction. One of the best ways to mitigate this risk is to involve the business process owner in IT strategy. The business process owner is the person who has the authority and responsibility for a specific business process and its outcomes. By involving the business process owner in IT strategy, the organization can ensure that the IT initiatives and solutions are relevant, effective, and beneficial for the business process and its stakeholders. The business process owner can also provide valuable input, feedback, and support for the IT strategy and its implementation. The other options are not the best ways to mitigate the risk associated with IT and business misalignment, although they may be helpful and complementary. Establishing business key performance indicators (KPIs) is a technique to measure and monitor the achievement of business objectives and outcomes. However, KPIs do not necessarily ensure that the IT strategy is aligned with the business strategy or that the IT activities support the business activities. Introducing an established framework for IT architecture is a method to design and implement the IT infrastructure, systems, and services in a consistent and coherent manner. However, an IT architecture framework does not guarantee that the IT architecture is aligned with the business architecture or that the IT capabilities meet the business requirements. Establishing key risk indicators (KRIs) is a tool to monitor and communicate the level of exposure to a given risk or the potential impact of a risk. However, KRIs do not directly address the risk of IT and business misalignment or the actions needed to align them. References = CRISC Review Manual, pages 22-231; CRISC Review Questions, Answers & Explanations Manual, page 76

An IT risk and control self-assessment (RCSA) is a process that helps organizations identify and evaluate operational risks and assess the effectiveness of their control measures12. It is a structured approach that involves identifying, assessing, mitigating, and monitoring risks across all levels of an organization12.

A report to senior management is a document that summarizes and communicates the results and findings of the RCSA, and provides recommendations and action plans for improving the risk management and control processes34.

The most important aspect of an IT risk and control self-assessment to include in a report to senior management is an increase in residual risk, which is the risk remaining after risk treatment, and represents the exposure or potential impact of the risk on the organization’s objectives56.

An increase in residual risk is the most important aspect because it indicates the level of risk that the organization is willing to accept or tolerate, and the gap between the current and desired risk profile56.

An increase in residual risk is also the most important aspect because it requires the attention and decision of the senior management, who are responsible for defining the organization’s risk appetite, strategy, and criteria, and for ensuring that the residual risk is within the acceptable range56.

The other options are not the most important aspects, but rather possible components or outcomes of an IT risk and control self-assessment that may support or complement the report to senior management. For example:

Changes in control design are components of an IT risk and control self-assessment that involve modifying or updating the control measures to address the changes in the risk environment or the organization’s objectives56. However, changes in control design are not the most important aspect because they do not measure or reflect the residual risk, which is the ultimate goal of the risk treatment56.

A decrease in the number of key controls is an outcome of an IT risk and control self-assessment that indicates the improvement or optimization of the control processes, and the reduction of the complexity or redundancy of the control measures56. However, a decrease in the number of key controls is not the most important aspect because it does not indicate or imply the residual risk, which may depend on other factors such as the effectiveness or efficiency of the controls56.

Changes in control ownership are components of an IT risk and control self-assessment that involve assigning or reassigning the responsibility and accountability for the control processes to the appropriate individuals or groups within the organization56. However, changes in control ownership are not the most important aspect because they do not affect or determine the residual risk, which is independent of the control owners56. References =

1: Risk and control self-assessment - KPMG Global1

2: Control Self Assessments - PwC2

3: How-To Guide: Implementing Risk Control Self-Assessment Steps4

4: RISK MANAGEMENT SELF-ASSESSMENT TEMPLATE - Smartsheet5

5: Risk IT Framework, ISACA, 2009

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

Detailed Explanation:A cost-benefit analysis evaluates the financial implications of acquiring cyber insurance versus the potential loss exposure. This approach enables informed decision-making by comparing the insurance cost with the potential savings from covered risks.

IT control self-assessments are techniques that involve identifying and evaluating the effectiveness and efficiency of the IT controls that are designed and implemented to mitigate the IT risks, by the managers and staff within the organization12.

An ineffective control is a control that does not achieve its intended objective or purpose, or does not operate as designed or expected34.

A low residual risk scenario is a situation or occurrence that has a low likelihood and impact of affecting the organization’s objectives, performance, or value creation, after considering the existing controls and their effectiveness56.

The next course of action when reviewing management’s IT control self-assessments and noting an ineffective control that links to several low residual risk scenarios is to recommend management accept the low-risk scenarios, which is a risk response strategy that involves acknowledging and tolerating the level of risk exposure, and not taking any further action to reduce or eliminate it78.

Recommending management accept the low-risk scenarios is the next course of action because it is the most cost-effective and reasonable option, given that the level of risk exposure is low and acceptable, and the cost and effort of implementing or improving the control may outweigh the potential benefits or value78.

Recommending management accept the low-risk scenarios is also the next course of action because it is consistent with the risk management process and objectives, which are to identify and address the risks that may affect the achievement of the organization’s goals and the delivery of value to the stakeholders, and to optimize the balance between risk and reward78.

The other options are not the next course of action, but rather possible alternatives or steps that may be considered or followed in different circumstances or scenarios. For example:

Assessing management’s risk tolerance is a step that involves determining and communicating the acceptable or tolerable level of risk exposure for the organization or its business units, based on the organization’s risk appetite, criteria, and objectives78. However, this step is not the next course of action because it is usually done before or during the risk assessment process, and not after noting an ineffective control that links to several low residual risk scenarios78.

Proposing mitigating controls is a course of action that involves suggesting or recommending additional or alternative controls that can reduce or eliminate the level of risk exposure, and improve the effectiveness and efficiency of the risk management process78. However, this course of action is not the next course of action because it is not necessary or appropriate for low residual risk scenarios, as the cost and effort of implementing or improving the controls may outweigh the potential benefits or value78.

Re-evaluating the risk scenarios associated with the control is a course of action that involves revising and updating the likelihood and impact of the risk scenarios, and the level of risk exposure or tolerance for the organization, based on the current or changed conditions or factors that influence the risk landscape78. However, this course of action is not the next course of action because it is not required or relevant for low residual risk scenarios, as the level of risk exposure is already low and acceptable, and the ineffective control does not significantly affect the risk assessment78. References =

1: Control Self Assessments - PwC1

2: Control self-assessment - Wikipedia2

3: Ineffective Controls: What They Are and How to Identify Them3

4: Ineffective Controls: What They Are and How to Identify Them4

5: Residual Risk - Definition and Examples5

6: Residual Risk: Definition, Formula & Management6

7: Risk IT Framework, ISACA, 2009

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

Detailed Explanation:A high number of exceptions often indicate misalignment between policies and business needs. Reviewing policies helps determine if they are overly restrictive or need adjustments to reduce exceptions while maintaining security.

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

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

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

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

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

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

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 register update is a change or modification to the information or status of the risks and their responses in the risk register. It may be triggered by the occurrence or resolution of a risk event, the identification or evaluation of a new or emerging risk, the implementation or completion of a risk response, the monitoring or review of the risk performance, etc.

The most important risk register update for senior management to review is avoiding a risk that was previously accepted, which means that the organization has decided to eliminate or withdraw from the risk exposure or activity that may cause the risk, instead of tolerating or retaining the risk as before. This may indicate a significant change in the organization’s risk appetite, strategy, objectives, or environment, and it may have a major impact on the organization’s performance and value.

The other options are not the most important risk register updates for senior management to review, because they do not indicate a significant change or impact on the organization’s risk profile or performance.

Extending the date of a future action plan by two months means that the organization has postponed the implementation or completion of the planned actions or measures to address the risk, due to some reasons or constraints. This may indicate a delay or deviation from the expected or desired risk outcome, but it may not have a major impact on the organization’s performance and value, unless the risk is very urgent or critical.

Retiring a risk scenario no longer used means that the organization has removed or discarded the risk scenario that is no longer relevant or applicable to the organization’s objectives or operations, due to some changes or developments. This may indicate a reduction or improvement in the organization’s risk exposure or level, but it may not have a major impact on the organization’s performance and value, unless the risk scenario was very significant or influential.

Changing a risk owner means that the organization has assigned or transferred the responsibility and accountability for the risk and its response to a different person or role, due to some reasons or circumstances. This may indicate a change or improvement in the organization’s risk governance or culture, but it may not have a major impact on the organization’s performance and value, unless the risk owner was very ineffective or inappropriate. 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 160

CRISC Practice Quiz and Exam Prep

According to the CRISC Review Manual (Digital Version), the next course of action when a risk practitioner finds the IT department’s recovery time objective (RTO) for a key system does not align with the enterprise’s business continuity plan (BCP) is to consult with the IT department to update the RTO. The RTO is the maximum acceptable time that an application, computer, network, or system can be down after an unexpected disaster, failure, or comparable event takes place. The RTO should be aligned with the BCP, which is a set of policies, procedures, and resources that enable the organization to continue or resume its critical business functions in the event of a disruption. Consulting with the IT department to update the RTO helps to:

Ensure that the RTO reflects the current business requirements and expectations for the availability and recovery of the key system

Evaluate the feasibility and cost-effectiveness of achieving the RTO with the existing IT resources and capabilities

Identify and implement the necessary changes or improvements in the IT infrastructure, processes, and controls to meet the RTO

Test and validate the RTO and the IT recovery procedures and verify their compatibility and consistency with the BCP

Communicate and coordinate the RTO and the IT recovery plan with the relevant stakeholders, such as the business owner, the risk owner, and the senior management

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 174-1751

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

 The best method to identify unnecessary controls is reviewing system functionalities associated with business processes, because this can help to determine whether the controls are relevant, effective, and efficient for the current business needs and objectives. System functionalities are the capabilities and features of IT systems that support the execution and performance of business processes. Business processes are the set of interrelated activities that transform inputs into outputs to deliver value to customers or stakeholders. By reviewing system functionalities associated with business processes, an organization can assess whether the controls are aligned with the process requirements, expectations, and outcomes, and whether they add value or create waste. The review can also identify any gaps, overlaps, redundancies, or conflicts among the controls, and any changes or improvements that are needed to optimize the controls. The other options are less effective methods to identify unnecessary controls. Evaluating the impact of removing existing controls can help to measure the benefits and costs of the controls, but it does not address the root causes or sources of the unnecessary controls. Evaluating existing controls against audit requirements can help to ensure compliance and assurance, but it does not consider the business context or purpose of the controls. Monitoring existing key risk indicators (KRIs) can help to measure the level and impact of risks, but it does not evaluate the suitability or adequacy of the controls. References = Surveying Staff to Identify Unnecessary Internal Controls - Methodology and Results 

Risk responses are the actions or strategies that are taken to address the risks that may affect the organization’s objectives, performance, or value creation12.

The most effective way to increase the likelihood that risk responses will be implemented is to assign ownership, which is the process of identifying and appointing the individuals or groups who are responsible and accountable for the execution and monitoring of the risk responses34.

Assigning ownership is the most effective way because it ensures the clarity and commitment of the roles and responsibilities for the risk responses, and avoids the confusion or ambiguity that may arise from the lack of ownership34.

Assigning ownership is also the most effective way because it enhances the communication and collaboration among the stakeholders involved in the risk responses, and provides the feedback and input that are necessary for the improvement and optimization of the risk responses34.

The other options are not the most effective way, but rather possible steps or tools that may support or complement the assignment of ownership. For example:

Creating an action plan is a step that involves defining and documenting the specific tasks, resources, timelines, and deliverables for the risk responses34. However, this step is not the most effective way because it does not guarantee the implementation of the risk responses, especially if there is no clear or agreed ownership for the action plan34.

Reviewing progress reports is a tool that involves collecting and analyzing the information and data on the status and performance of the risk responses, and identifying the issues or gaps that need to be addressed34. However, this tool is not the most effective way because it does not ensure the implementation of the risk responses, especially if there is no ownership for the progress reports or the corrective actions34.

Performing regular audits is a tool that involves conducting an independent and objective assessment of the adequacy and effectiveness of the risk responses, and providing the findings and recommendations for improvement56. However, this tool is not the most effective way because it does not ensure the implementation of the risk responses, especially if there is no ownership for the audit results or the follow-up actions56. References =

1: Risk IT Framework, ISACA, 2009

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

3: Risk Response Plan in Project Management: Key Strategies & Tips1

4: ProjectManagement.com - How to Implement Risk Responses2

5: IT Audit and Assurance Standards, ISACA, 2014

6: IT Audit and Assurance Guidelines, ISACA, 2014

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

Codes of conduct or ethics

Policies or manuals

Training or awareness programs

Job descriptions or roles and responsibilities

Performance appraisals or incentives

Supervision or oversight

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

The best way to ensure that identified risk scenarios are addressed is to review the implementation of the risk response. The risk response is the action or plan that is taken to reduce, avoid, transfer, or accept the risk, depending on the chosen risk treatment option1. Reviewing the implementation of the risk response means checking whether the risk response actions are executed as planned, whether they are effective and efficient in mitigating the risk, and whether they are aligned with the organization’s objectives and risk appetite2. Reviewing the implementation of the risk response helps to monitor and control the risk, identify any gaps or issues, and make any necessary adjustments or improvements. The other options are not the best ways to ensure that identified risk scenarios are addressed, as they are either less comprehensive or less specific than reviewing the implementation of the risk response. Creating a separate risk register for key business units is a way of documenting and tracking the risks that affect different parts of the organization. However, this is not the same as addressing the risk scenarios, as it does not indicate how the risks are treated or resolved. Performing real-time monitoring of threats is a way of detecting and responding to any changes or events that may increase the likelihood or impact of the risks. However, this is not the same as addressing the risk scenarios, as it does not measure the effectiveness or efficiency of the risk response actions. Performing regular risk control self-assessments is a way of evaluating and testing the design and operation of the controls that are implemented to mitigate the risks. However, this is not the same as addressing the risk scenarios, as it does not cover the other aspects of the risk response, such as risk avoidance, transfer, or acceptance. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.7, Page 59.

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

In addition to the risk register, which is a tool to document and monitor the risks that affect the organization, a risk practitioner should review the business objectives of the organization to develop an understanding of its risk profile. The risk profile is a description of the set of risks that the organization faces in relation to its goals and strategies. By reviewing the business objectives, the risk practitioner can identify the sources, drivers, and consequences of the risks, as well as the alignment, prioritization, and tolerance of the risks. The business objectives also provide the context and criteria for evaluating and managing the risks. The other options are not the best choices to review for developing an understanding of the organization’s risk profile, as they do not capture the full scope and nature of the risks. The control catalog is a list of the existing controls that are implemented to mitigate the risks, but it does not reflect the effectiveness, efficiency, or sufficiency of the controls. The asset profile is a description of the resources and capabilities that the organization possesses or relies on, but it does not indicate the value, vulnerability, or interdependency of the assets. The key risk indicators (KRIs) are metrics that measure the level and trend of the risks, but they do not explain the causes, impacts, or responses to the risks. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.2, Page 49.

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

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

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

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

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

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

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

CRISC Practice Quiz and Exam Prep

Compensating controls are additional or alternative controls that are implemented when the existing controls are found to be ineffective or do not meet the required standards. Compensating controls are designed to reduce the risk exposure to an acceptable level and ensure that the organization can still comply with the relevant regulations and industry best practices. For an organization that processes credit cards, compensating controls may include enhanced encryption, monitoring, auditing, or authentication mechanisms. By having compensating controls in place, the organization can maintain an effective overall control environment despite the deficiencies in the existing controls. The other options are not correct because they do not ensure that the overall control environment is effective. A control mitigation plan is a document that outlines the actions and resources needed to address the control deficiencies, but it does not guarantee that the compensating controls will be implemented or effective. Risk management is a process that involves identifying, analyzing, evaluating, and treating risks, but it does not directly affect the control environment. Residual risk is the risk that remains after the risk treatment, and it may or may not be acceptable depending on the risk appetite of the organization. References = CRISC Review Manual, pages 153-1541; CRISC Review Questions, Answers & Explanations Manual, page 632

The percentage of system availability is the most important key performance indicator (KPI) to establish in the service level agreement (SLA) for an outsourced data center. This KPI measures the uptime or reliability of the systems hosted by the data center provider, and reflects the ability of the provider to meet the customer’s expectations and requirements for system performance and accessibility. A high percentage of system availability indicates that the provider is delivering consistent and quality service, while a low percentage of system availability indicates that the provider is experiencing frequent or prolonged system failures or disruptions, which can negatively affect the customer’s business operations and reputation. Therefore, the percentage of system availability is a critical factor for evaluating the effectiveness and efficiency of the data center provider, and should be clearly defined and monitored in the SLA. The other options are not the most important KPIs to establish in the SLA for an outsourced data center, as they do not directly measure the quality or reliability of the service provided. The percentage of systems included in recovery processes is a measure of the scope or coverage of the disaster recovery plan (DRP) of the data center provider, but it does not indicate how well the provider can execute the DRP or restore the systems in the event of a disaster. The number of key systems hosted is a measure of the capacity or utilization of the data center provider, but it does not indicate how efficiently or securely the provider can manage the systems. The average response time to resolve system incidents is a measure of the responsiveness or agility of the data center provider, but it does not indicate how effectively or proactively the provider can prevent or mitigate system incidents. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.3.4, Page 140.

A risk assessment is a process of identifying, analyzing, and evaluating the risks that may affect the enterprise’s objectives and operations. It involves determining the likelihood and impact of various risk scenarios, and prioritizing them based on their significance and urgency.

A WiFi access point is a device that allows wireless devices to connect to a wired network using radio signals. It can provide convenience and flexibility for users, but it can also introduce security risks, such as unauthorized access, data leakage, malware infection, or denial of service attacks.

If departments have installed their own WiFi access points on the enterprise network, without proper authorization, configuration, or monitoring, it means that they have bypassed the network security policy and controls, and created potential vulnerabilities and exposures for the enterprise.

The most important information to include in a report to senior management is the potential business impact of this risk, which is the estimated loss or damage that the enterprise may suffer if the risk materializes. The potential business impact can be expressed in terms of financial, operational, reputational, or legal consequences, and it can help senior management to understand the severity and urgency of the risk, and to decide on the appropriate risk response and allocation of resources.

The other options are not the most important information to include in a report to senior management, because they do not convey the magnitude and significance of the risk, and they may not be relevant or actionable for senior management.

The network security policy is the set of rules and guidelines that define the security objectives, requirements, and responsibilities for the enterprise network. It is important to have a clear and comprehensive network security policy, and to ensure that it is communicated, enforced, and monitored across the enterprise, but it is not the most important information to include in a report to senior management, because it does not indicate the actual or potential impact of the risk, and it may not reflect the current or desired state of the network security.

The WiFi access point configuration is the set of parameters and settings that define the functionality, performance, and security of the WiFi access point. It is important to have a secure and consistent WiFi access point configuration, and to follow the best practices and standards for wireless network security, but it is not the most important information to include in a report to senior management, because it does not indicate the actual or potential impact of the risk, and it may not be relevant or understandable for senior management.

The planned remediation actions are the steps and measures that are intended to mitigate, transfer, avoid, or accept the risk, and to restore the normal operation and security of the enterprise network. It is important to have a feasible and effective plan for remediation actions, and to implement and monitor them in a timely and efficient manner, but it is not the most important information to include in a report to senior management, because it does not indicate the actual or potential impact of the risk, and it may not be feasible or appropriate without senior management’s approval or support. References =

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

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 146

Risk mitigation procedures are the actions and plans that an organization implements to reduce the likelihood and impact of identified risks. Risk mitigation procedures should include the deployment of counter measures, which are the specific controls or solutions that address the root causes or sources of the risks, and prevent or minimize the potential losses or damages. For example, a counter measure for the risk of data breach could be encrypting the data or implementing a firewall. The deployment of counter measures should be based on a cost-benefit analysis, a risk assessment, and a risk response strategy. The other options are not necessarily part of risk mitigation procedures. Buying an insurance policy is an example of risk transfer, which is a risk response strategy that shifts the responsibility or burden of the risk to another party, such as an insurer or a vendor. However, risk transfer does not eliminate or reduce the risk itself, and it may involve additional costs or conditions. Acceptance of exposures is an example of risk acceptance, which is a risk response strategy that acknowledges the existence and consequences of the risk, and decides not to take any action to change the risk situation. However, risk acceptance does not mitigate the risk, and it may require contingency plans or reserves to deal with the potential outcomes. Enterprise architecture implementation is an example of a business process or project that may involve or create risks, but it is not a risk mitigation procedure itself. Enterprise architecture is the design and structure of an organization’s IT systems, networks, and resources, and how they align with the organization’s goals and strategies. Enterprise architecture implementation may require risk management activities, such as risk identification, assessment, and response, but it is not a risk mitigation procedure itself. References = Risk IT Framework, ISACA, 2022, p. 151

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

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

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

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

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

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

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

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

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

1: Business Continuity Plan (BCP) Definition1

2: Business Continuity Planning - Ready.gov2

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

4: Comprehensive Guide to Business Continuity Testing | Agility5

5: How to Conduct a Tabletop Exercise for Business Continuity3

6: Tabletop Exercises: A Guide to Success6

7: How to Conduct Testing of a Business Continuity Plan7

8: Business Continuity Plan Testing: Interviewing Techniques8

: Disaster Recovery Testing: A Step-by-Step Guide

: Disaster Recovery Testing Scenarios: A Guide to Success

: Functional Exercises: A Guide to Success

: Functional Exercise Toolkit

 Residual risk is the risk that remains after applying controls to mitigate the inherent risk. Inherent risk is the risk that exists before considering the controls. Risk appetite is 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 from the risk appetite. Improvements in the design and implementation of a control will most likely result in an update to the residual risk, because they will reduce the likelihood and impact of the risk event, and therefore lower the risk exposure and value. By improving the design and implementation of a control, the organization can enhance the effectiveness and efficiency of the control, and ensure that it is aligned with the risk objectives, expectations, and outcomes. The improvement can also address any gaps, overlaps, redundancies, or conflicts among the controls, and any changes or enhancements that are needed to optimize the controls. The other options are less likely to be updated due to improvements in the design and implementation of a control. The inherent risk will not change, as it is based on the nature and value of the asset and the threats and vulnerabilities that exist. The risk appetite and the risk tolerance will also not change, as they are based on the organization’s culture, strategy, and stakeholder expectations. Therefore, the most likely factor to be updated is the residual risk, as it reflects the actual risk level that the organization faces after applying the controls. References = Risk IT Framework, ISACA, 2022, p. 131

The audit planning process is the process of defining and describing the scope, objectives, and approach of the internal audit that is performed to assess and evaluate the adequacy and effectiveness of the organization’s governance, risk management, and control functions. The audit planning process involves identifying and prioritizing the audit areas, topics, or issues, and allocating the audit resources, time, and budget.

The most important information for a risk practitioner to provide to the internal audit department during the audit planning process is the annual risk assessment results, which are the outcomes or outputs of the risk assessment process that measures and compares the likelihood and impact of various risk scenarios, and prioritizes them based on their significance and urgency. The annual risk assessment results can help the internal audit department to plan the audit by providing the following information:

The level and priority of the risks that may affect the organization’s objectives and operations, and the potential consequences or impacts that they may cause for the organization if they materialize.

The gap or difference between the current and desired level of risk, and the extent or degree to which the risk responses or controls contribute to or affect the gap or difference.

The cost-benefit or feasibility analysis of the possible actions or plans to address or correct the risks and their responses, and the expected or desired outcomes or benefits that they may provide for the organization.

The other options are not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because they do not provide the same level of detail and insight that the annual risk assessment results provide, and they may not be relevant or actionable for the internal audit department.

Closed management action plans from the previous audit are the actions or plans that have been implemented or completed by the management to address or correct the findings or recommendations from the previous internal audit that was performed. Closed management action plans from the previous audit can provide useful information on the progress and performance of the management in improving and optimizing the organization’s governance, risk management, and control functions, but they are not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because they do not indicate the current or accurate state and performance of the organization’s risk profile, and they may not cover all the relevant or emerging risks that may exist or arise.

An updated vulnerability management report is a report that provides the information and status of the vulnerabilities or weaknesses in the organization’s assets, processes, or systems that can be exploited or compromised by the threats or sources of harm that may affect the organization’s objectives or operations. An updated vulnerability management report can provide useful information on the existence and severity of the vulnerabilities, and the actions or plans to mitigate or prevent them, but it is not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because it does not indicate the likelihood and impact of the risk scenarios that are associated with the vulnerabilities, and the potential consequences or impacts that they may cause for the organization.

A list of identified generic risk scenarios is a list that contains the descriptions or representations of the possible or hypothetical situations or events that may cause or result in a risk for the organization, without specifying the details or characteristics of the risk source, event, cause, or impact. A list of identified generic risk scenarios can provide useful information on the types or categories of the risks that may affect the organization, but it is not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because it does not indicate the level and priority of the risks, and the potential consequences or impacts that they may cause for the organization. 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 188

CRISC Practice Quiz and Exam Prep

The risk associated with an asset before controls are applied is also known as the inherent risk. It is the level of risk that exists in the absence of any mitigating actions or measures. To express the inherent risk, one needs to consider two factors: the likelihood and the impact of a potential threat. The likelihood is the probability or frequency of a threat occurring, while the impact is the magnitude or severity of the consequences if the threat materializes. The inherent risk can be calculated by multiplying the likelihood and the impact, or by using a risk matrix that assigns a risk rating based on the combination of these two factors. The other options are not correct ways of expressing the inherent risk, as they do not account for both the likelihood and the impact of a threat. The magnitude of an impact is only one component of the risk, and it does not reflect how likely the threat is to happen. The function of the cost and effectiveness of control is related to the residual risk, which is the risk that remains after controls are applied. The likelihood of a given threat is also only one component of the risk, and it does not indicate how severe the impact would be if the threat occurs. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.1, Page 47.

According to the CRISC Review Manual (Digital Version), threat analysis would be the most helpful when estimating the likelihood of negative events, as it involves identifying and evaluating the sources and causes of potential harm or loss to the IT assets and processes. Threat analysis helps to:

Determine the frequency and probability of occurrence of different types of threats, such as natural disasters, human errors, malicious attacks, system failures, etc.

Assess the impact and severity of the threats on the confidentiality, integrity and availability of the IT assets and processes

Prioritize the threats based on their likelihood and impact

Develop appropriate risk response strategies to prevent, mitigate, transfer or accept the threats

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.5: IT Risk Identification Methods and Techniques, pp. 35-361

A consolidated view into the organization’s risk profile is a comprehensive and integrated representation of the risks that may affect the organization’s objectives, performance, and value creation12.

The most helpful material to provide a consolidated view into the organization’s risk profile is the IT risk register, which is a document that records and tracks the IT-related risks, their sources, impacts, likelihoods, responses, owners, and statuses within the organization34.

The IT risk register is the most helpful material because it provides a complete and consistent overview of the IT risk landscape, and enables the identification, analysis, evaluation, treatment, monitoring, and communication of IT risks across the organization34.

The IT risk register is also the most helpful material because it supports the project prioritization and resource allocation decisions, by highlighting the most significant and relevant IT risks, and by showing the alignment of the IT risk responses with the organization’s risk appetite, strategy, and objectives34.

The other options are not the most helpful materials, but rather possible inputs or outputs of the IT risk register. For example:

A list of key risk indicators (KRIs) is a set of metrics that measure the occurrence or status of IT risks, and provide timely and relevant information and feedback to the organization56. However, a list of KRIs is not the most helpful material because it does not provide a comprehensive and integrated view of the IT risk profile, but rather a snapshot or a trend of selected IT risks56.

Internal audit reports are documents that present the findings and recommendations of the internal audit function, which evaluates the adequacy and effectiveness of the IT risk management and control processes within the organization78. However, internal audit reports are not the most helpful material because they do not provide a comprehensive and integrated view of the IT risk profile, but rather a periodic and independent assessment of specific IT risk areas78.

A list of approved projects is a document that records and tracks the IT projects that have been authorized and funded by the organization, and their objectives, scope, schedule, budget, and status . However, a list of approved projects is not the most helpful material because it does not provide a comprehensive and integrated view of the IT risk profile, but rather a summary of the IT project portfolio . References =

1: Risk IT Framework, ISACA, 2009

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

3: IT Risk Register Template, ISACA, 2019

4: IT Risk Register Toolkit, ISACA, 2019

5: KPIs for Security Operations & Incident Response, SecurityScorecard Blog, June 7, 2021

6: Key Performance Indicators (KPIs) for Security Operations and Incident Response, DFLabs White Paper, 2018

7: IT Audit and Assurance Standards, ISACA, 2014

8: IT Audit and Assurance Guidelines, ISACA, 2014

: IT Project Management Framework, University of Toronto, 2017

: IT Project Management Best Practices, ISACA Journal, Volume 1, 2018

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

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

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

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

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

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

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

Corporate culture is the set of values, beliefs, and norms that shape the behavior and attitude of an organization and its people. Corporate culture alignment is the degree of consistency and compatibility between the corporate culture and the organization’s vision, mission, strategy, and objectives. Corporate culture misalignment is the situation where the corporate culture is not aligned with the organization’s goals and expectations, and may hinder or undermine the achievement of those goals. The acceptance of control costs that exceed risk exposure is most likely an example of corporate culture misalignment, as it indicates that the organization is not following a rational and optimal approach to risk management. The organization is spending more resources on controlling risks than the potential benefits or losses that the risks entail, which may result in inefficiency, waste, or opportunity cost. The organization may also be overemphasizing the importance of risk avoidance or mitigation, and neglecting the potential value creation or innovation that may arise from taking or accepting some risks. The other options are not the best answers, as they do not explain the situation of accepting control costs that exceed risk exposure. Low risk tolerance is the degree of variation from the risk appetite that the organization is not willing to accept. Low risk tolerance may lead to excessive or unnecessary controls, but it does not necessarily mean that the control costs exceed the risk exposure. High risk tolerance is the degree of variation from the risk appetite that the organization is willing to accept. High risk tolerance may lead to insufficient or ineffective controls, but it does not imply that the control costs exceed the risk exposure. Corporate culture alignment is the situation where the corporate culture is aligned with the organization’s goals and expectations, and supports and facilitates the achievement of those goals. Corporate culture alignment would not result in accepting control costs that exceed risk exposure, as it would imply a balanced and rational approach to risk management. References = CRISC Review Manual, pages 22-231; CRISC Review Questions, Answers & Explanations Manual, page 812

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

A risk response action plan is a document that outlines the specific tasks, resources, timelines, and deliverables for the risk responses, which are the actions or strategies that are taken to address the risks that may affect the organization’s objectives, performance, or value creation12.

The most useful tool when measuring the progress of a risk response action plan is an up-to-date risk register, which is a document that records and tracks the significant risks that the organization faces, and the responses and actions that are taken to address them34.

An up-to-date risk register is the most useful tool because it provides a comprehensive and consistent view of the risk landscape, and the status and performance of the risk responses and actions34.

An up-to-date risk register is also the most useful tool because it enables the monitoring and evaluation of the risk response action plan, and the identification and communication of any issues or gaps that need to be resolved or improved34.

The other options are not the most useful tools, but rather possible metrics or indicators that may be used to measure the progress of a risk response action plan. For example:

Percentage of mitigated risk scenarios is a metric that measures the proportion of risk scenarios that have been reduced or eliminated by the risk responses and actions56. However, this metric is not the most useful tool because it does not provide a comprehensive and consistent view of the risk landscape, and it may not capture the residual or emerging risks that may arise after the risk responses and actions56.

Annual loss expectancy (ALE) changes is a metric that measures the difference between the expected annual losses before and after the risk responses and actions78. However, this metric is not the most useful tool because it does not provide a comprehensive and consistent view of the risk landscape, and it may not reflect the qualitative or intangible impacts of the risks or the risk responses and actions78.

Resource expenditure against budget is a metric that measures the amount of resources and funds that have been spent or allocated for the risk responses and actions, compared to the planned or estimated budget . However, this metric is not the most useful tool because it does not provide a comprehensive and consistent view of the risk landscape, and it may not indicate the effectiveness or efficiency of the risk responses and actions . References =

1: Risk Response Plan in Project Management: Key Strategies & Tips1

2: How to Create the Ultimate Risk Response Plan | Wrike2

3: Risk Register Template and Examples | Prioritize and Manage Risk3

4: Risk Register Examples for Cybersecurity Leaders4

5: Risk Scenarios Toolkit, ISACA, 2019

6: Risk Scenarios Starter Pack, ISACA, 2019

7: Annualized Loss Expectancy (ALE) - Definition and Examples5

8: Annualized Loss Expectancy (ALE) Calculator6

: Project Budgeting: How to Estimate Costs and Manage Budgets7

: Project Budget Template - Download Free Excel Template8

When using a third party to perform penetration testing, the most important control to minimize operational impact is to clearly define the project scope. This means specifying the objectives, boundaries, methods, and deliverables of the testing, as well as the roles and responsibilities of the parties involved. A clear project scope helps to avoid misunderstandings, conflicts, and disruptions that could compromise the security, availability, or integrity of the systems under test. It also helps to ensure that the testing is aligned with the organization’s risk appetite and compliance requirements. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.3.2, Page 137.

A threat risk assessment will best quantify the risk associated with malicious users in an organization, because it focuses on identifying and evaluating the potential sources of harm or damage to the organization’s assets, such as data, systems, or networks. A malicious user is a person who intentionally and unauthorizedly accesses, modifies, destroys, or steals the organization’s information or resources, for personal gain, revenge, espionage, or sabotage. A threat risk assessment can help the organization to estimate the likelihood and impact of malicious user attacks, based on factors such as the user’s motivation, capability, opportunity, and access level. A threat risk assessment can also help the organization to determine the appropriate risk response strategies, such as prevention, detection, mitigation, or transfer, to reduce the risk exposure and impact of malicious user attacks. References = Risk IT Framework, ISACA, 2022, p. 141

A decision tree is a technique that can be used during a risk assessment to demonstrate to stakeholders that all known alternatives were evaluated. A decision tree is a graphical tool that shows the possible outcomes and consequences of different choices or actions in a sequential and hierarchical manner. A decision tree can help to compare and contrast the alternatives based on their expected values, costs, benefits, and risks, as well as to identify the optimal or preferred alternative that maximizes the value or minimizes the risk. A decision tree can also help to communicate and explain the rationale and assumptions behind the decision-making process to the stakeholders. The other options are not the best techniques to demonstrate to stakeholders that all known alternatives were evaluated, although they may be useful and complementary. A control chart is a technique that monitors the performance and quality of a process or activity over time by plotting the data points and the control limits. A control chart can help to detect and analyze the variations or deviations from the expected or desired results, as well as to identify and correct the causes or sources of the variations. A sensitivity analysis is a technique that measures the impact of changes in one or more variables or parameters on the outcome or result of a model or a system. A sensitivity analysis can help to assess the uncertainty or variability of the outcome or result, as well as to determine the most influential or critical variables or parameters that affect the outcome or result. A trend analysis is a technique that examines the patterns or movements of data or information over time by using statistical or graphical methods. A trend analysis can help to forecast or predict the future behavior or direction of the data or information, as well as to identify and explain the factors or drivers that influence the data or information. References = CRISC Review Manual, pages 38-391; CRISC Review Questions, Answers & Explanations Manual, page 922; Risk Assessment and Analysis Methods: Qualitative and Quantitative - ISACA3; Risk Assessment: Process, Examples, & Tools | SafetyCulture4

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

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

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

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

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

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

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

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

1: Risk Assessment for the Production Process1

2: Risk Assessment for Industrial Equipment2

3: Risk IT Framework, ISACA, 2009

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

New risk exposures due to changes in the business environment are the possibilities and impacts of new or emerging threats or opportunities that may affect the organization’s objectives, performance, or value creation, as a result of changes in the internal or external factors that influence the organization’s operations, such as technology, competition, regulation, or customer behavior12.

The most helpful tool in identifying new risk exposures due to changes in the business environment is a SWOT analysis, which is a technique that involves identifying and analyzing the strengths, weaknesses, opportunities, and threats (SWOT) that are relevant to the organization’s situation, goals, and capabilities34.

A SWOT analysis is the most helpful tool because it helps the organization to scan and assess the business environment, and to identify and prioritize the new or emerging risk exposures that may arise from the changes in the environment34.

A SWOT analysis is also the most helpful tool because it helps the organization to align and adapt its strategy and actions to the changes in the environment, and to leverage its strengths and opportunities, and mitigate its weaknesses and threats34.

The other options are not the most helpful tools, but rather possible sources or inputs that may be used in a SWOT analysis. For example:

Standard operating procedures are documents that describe the routine tasks and processes that are performed by the organization, and the policies and standards that govern them56. However, these documents are not the most helpful tools because they may not reflect or capture the changes in the business environment, and they may need to be revised or updated to address the new or emerging risk exposures56.

Industry benchmarking is a technique that involves comparing and contrasting the performance and practices of the organization with those of the similar or leading organizations in the same or related industry, and identifying the gaps or opportunities for improvement78. However, this technique is not the most helpful tool because it may not provide a comprehensive or holistic view of the business environment, and it may not align with the organization’s specific situation, goals, or capabilities78.

Control gap analysis is a technique that involves assessing and evaluating the adequacy and effectiveness of the controls that are designed and implemented to mitigate the risks, and identifying and addressing the areas or aspects that need to be improved or added . However, this technique is not the most helpful tool because it is reactive rather than proactive, and it may not identify or anticipate the new or emerging risk exposures that may result from the changes in the business environment . References =

1: Risk IT Framework, ISACA, 2009

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

3: SWOT Analysis - ISACA1

4: SWOT Analysis: What It Is and When to Use It2

5: Standard Operating Procedure - Wikipedia3

6: How to Write Effective Standard Operating Procedures (SOP)4

7: Benchmarking - Wikipedia5

8: Benchmarking: Definition, Types, Process, Advantages & Examples6

: Control Gap Analysis - ISACA7

: Control Gap Analysis: A Step-by-Step Guide8

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

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

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

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

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

Enhance the security awareness and resilience of the organization

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

According to the CRISC Review Manual (Digital Version), the first course of action when a risk practitioner discovers several key documents detailing the design of a product currently in development have been posted on the Internet is to invoke the established incident response plan, which is a set of policies, procedures, and resources that enable the organization to respond to and recover from an incident that affects the confidentiality, integrity, or availability of its IT assets and processes. Invoking the incident response plan helps to:

Contain and isolate the incident and prevent further damage or loss

Identify and analyze the source, cause, and impact of the incident

Eradicate and eliminate the incident and restore normal operations

Communicate and coordinate the incident response activities and roles with the relevant stakeholders, such as the business owner, the risk owner, the senior management, and the external parties

Learn and improve from the incident and update the incident response plan and the risk register

References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.1: IT Risk Monitoring, pp. 219-2201

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

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

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

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

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

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

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

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

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

1: Risk IT Framework, ISACA, 2009

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

3: The Control Process | Principles of Management4

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

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

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

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

Detailed Explanation:Residual risk refers to the risk that remains after mitigation measures have been applied. It represents the exposure that an organization decides to accept, transfer, or further address, aligning with its risk appetite and tolerance.

According to the CRISC Review Manual (Digital Version), the risk register is the most useful component of the review of the overall risk profile from the targeted organization, as it provides a comprehensive and up-to-date record of the identified risks, their likelihood and impact, their risk response actions, and their residual risk levels. The risk register helps to:

Understand the current and potential threats and vulnerabilities that may affect the targeted organization’s objectives and performance

Evaluate the effectiveness and efficiency of the risk management processes and controls implemented by the targeted organization

Identify the gaps or weaknesses in the risk management practices and capabilities of the targeted organization

Assess the compatibility and alignment of the risk appetite and risk tolerance of the targeted organization with the acquiring organization

Estimate the value and benefits of the acquisition and the potential risks and costs involved

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.5: IT Risk Identification Methods and Techniques, pp. 38-391

A risk dashboard is a graphical tool that displays the key indicators and metrics of the organization’s IT risk profile, such as the risk level, status, trend, performance, etc., using charts, graphs, tables, etc. A risk dashboard can help the organization to monitor and communicate the IT risk profile, and to support the decision making and planning for the IT risk management.

A risk dashboard is the most effective tool in identifying trends in the IT risk profile, because it provides a visual and intuitive representation of the changes and variations in the IT risk profile over time, and highlights the most significant and relevant IT risks that need to be addressed or monitored. A risk dashboard can also help to compare and contrast the IT risk profile with the organization’s IT objectives and risk appetite, and to identify the gaps or opportunities for improvement.

The other options are not the most effective tools in identifying trends in the IT risk profile, because they do not provide the same level of visibility and clarity that a risk dashboard provides, and they may not be updated or aligned with the organization’s IT objectives and risk appetite.

A risk self-assessment is a process of identifying, analyzing, and evaluating the IT risks that may affect the organization’s objectives and operations, using the input and feedback from the individuals or groups that are involved or responsible for the IT activities or functions. A risk self-assessment can help the organization to understand and document the IT risk profile, and to align it with the organization’s IT strategy and culture, but it is not the most effective tool in identifying trends in the IT risk profile, because it may not reflect the current or accurate state and performance of the IT risk profile, and it may not cover all the relevant or emerging IT risks that may exist or arise.

A risk register is a document that records and tracks the information and status of the identified IT risks and their responses. It includes the IT risk description, category, source, cause, impact, probability, priority, response, owner, action plan, status, etc. A risk register can help the organization to identify, analyze, evaluate, and communicate the IT risks and their responses, and to align them with the organization’s IT strategy and culture, but it is not the most effective tool in identifying trends in the IT risk profile, because it may not provide a visual and intuitive representation of the changes and variations in the IT risk profile over time, and it may not highlight the most significant and relevant IT risks that need to be addressed or monitored.

A risk map is a graphical tool that displays the results of the IT risk analysis in a matrix format, using colors and symbols to indicate the level and priority of the IT risks. A risk map can show the distribution and comparison of the IT risks based on various criteria, such as likelihood, impact, category, source, etc. A risk map can help the organization to assess and prioritize the IT risks, and to design and implement appropriate controls or countermeasures to mitigate or prevent the IT risks, but it is not the most effective tool in identifying trends in the IT risk profile, because it may not provide a visual and intuitive representation of the changes and variations in the IT risk profile over time, and it may not reflect the organization’s IT objectives and risk appetite. 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 180

CRISC Practice Quiz and Exam Prep

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

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

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

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

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

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

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

The best information to present to business control owners when justifying costs related to controls is the return on IT security-related investments, because this shows the value and benefits of the controls in relation to their costs. Return on IT security-related investments is a metric that measures the effectiveness and efficiency of IT security controls by comparing the amount of money saved or gained from preventing or mitigating IT-related risks with the amount of money spent on implementing and maintaining the controls. By presenting this information, business control owners can see how the controls contribute to the achievement of the business objectives, such as reducing losses, increasing revenues, enhancing customer satisfaction, or improving compliance. This information can also help business control owners to prioritize and allocate resources for the most critical and beneficial controls, and to optimize the balance between risk and return. References = Cost Control: How Businesses Use It to Increase Profits

A risk map, also known as a risk heat map, is a visual tool that helps an enterprise prioritize risk scenarios by plotting them on a matrix based on their likelihood and impact. A risk map can help to compare and contrast different risk scenarios, as well as to identify the most critical and urgent risks that require attention. A risk map can also help to communicate and report the risk profile and status to the stakeholders and decision makers. Therefore, the placement on the risk map would best help an enterprise prioritize risk scenarios. The other options are not the best ways to help an enterprise prioritize risk scenarios, although they may be relevant and useful. Industry best practices are the standards or guidelines that are widely accepted and followed by the organizations in a specific industry or domain. Industry best practices can help to benchmark and improve the risk management process and performance, but they may not reflect the specific risk context and needs of the enterprise. Degree of variances in the risk is the measure of the variability or uncertainty of the risk, which may affect the accuracy or reliability of the risk assessment and response. Degree of variances in the risk can help to adjust and refine the risk analysis and treatment, but it may not indicate the priority or importance of the risk. Cost of risk mitigation is the amount of resources or expenses that are required or allocated to implement the risk response actions, such as avoiding, transferring, mitigating, or accepting the risk. Cost of risk mitigation can help to evaluate and optimize the risk response options, but it may not determine the priority or urgency of the risk. References = CRISC Review Manual, pages 38-391; CRISC Review Questions, Answers & Explanations Manual, page 892

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

The most important benefit of key risk indicators (KRIs) is providing an early warning to take proactive actions, because this helps organizations to prevent or mitigate potential risks that may impact their operations, objectives, or performance. KRIs are specific metrics that measure the level and impact of risks, and provide timely signals that something may be going wrong or needs urgent attention. By monitoring and analyzing KRIs, organizations can identify and assess emerging or existing risks, and initiate appropriate risk responses before the risks escalate into significant issues. This can enhance the organization’s resilience, competitiveness, and value creation. The other options are less important benefits of KRIs. Assisting in continually optimizing risk governance is a benefit of KRIs, but it is not the most important one. Risk governance is the framework and process that defines how an organization manages its risks, including the roles, responsibilities, policies, and standards. KRIs can help to evaluate and improve the effectiveness and efficiency of risk governance, but they are not the only factor that influences it. Enabling the documentation and analysis of trends is a benefit of KRIs, but it is not the most important one. Documenting and analyzing trends can help organizations to understand the patterns, causes, and consequences of risks, and to learn from their experiences. However, this benefit is more relevant for historical or retrospective analysis, rather than for proactive action. Ensuring compliance with regulatory requirements is a benefit of KRIs, but it is not the most important one. Compliance is the adherence to the laws, regulations, and standards that apply to an organization’s activities and operations. KRIs can help to monitor and demonstrate compliance, but they are not the only tool or objective for doing so. References = Why Key Risk Indicators Are Important for Risk Management 1

According to the Risk and Information Systems Control documents, implementing record retention tools and techniques is the best solution in this scenario. Record retention involves managing the lifecycle of records, including their creation, usage, storage, and disposal. By implementing record retention policies, organizations can define how long emails and other data should be retained before being deleted. This helps in efficiently managing storage space and reducing unnecessary storage costs.

Establishing e-discovery and data loss prevention (DLP) (Option B) focuses more on legal and compliance aspects and may not directly address the issue of reducing storage costs. Sending notifications when near storage quota (Option C) is a reactive approach and may not prevent the exponential increase in storage costs. Implementing a bring your own device (BYOD) policy (Option D) is unrelated to the issue of email storage costs.

References = Risk and Information Systems Control Study Manual

A baseline assessment is the first step in assessing the maturity of an organization’s internal control environment. A baseline assessment is a comprehensive evaluation of the current state of the internal control structure, processes, and activities across the organization. A baseline assessment helps to identify the strengths and weaknesses of the existing internal controls, as well as the gaps and opportunities for improvement. A baseline assessment also provides a reference point for measuring the progress and effectiveness of the internal control improvement initiatives. The other options are not the first steps in assessing the maturity of an internal control environment, although they may be part of the subsequent steps. Validating control process execution is a technique to verify that the internal control activities are performed as designed and intended. Determining if controls are effective is a process to evaluate the adequacy and efficiency of the internal controls in achieving the desired outcomes and mitigating the risks. Identifying key process owners is a task to assign the roles and responsibilities for the internal control design, implementation, and monitoring to the appropriate individuals or groups within the organization. References = CRISC Review Manual, pages 153-1541; CRISC Review Questions, Answers & Explanations Manual, page 742

A change management process is a set of procedures and activities that aim to ensure that changes in an organization’s IT systems and services are implemented in a controlled and coordinated manner. The effectiveness of a change management process can be measured by how well it reduces the risks and costs associated with changes, and how well it supports the business objectives and customer expectations. One of the best metrics to demonstrate the effectiveness of a change management process is the percent of unauthorized changes. Unauthorized changes are changes that are made without following the established change management process, such as obtaining approval, documenting the change, testing the change, and communicating the change. Unauthorized changes can introduce errors, defects, security breaches, and disruptions to the IT systems and services, and can negatively affect the business performance and customer satisfaction. Therefore, a low percent of unauthorized changes indicates that the change management process is effective in ensuring that changes are properly planned, approved, executed, and monitored. The other options are not the best metrics to demonstrate the effectiveness of a change management process, as they do not directly reflect the quality and control of the changes. An increase in the frequency of changes may indicate that the organization is agile and responsive to the changing business needs and customer demands, but it does not necessarily mean that the changes are well-managed and beneficial. An increase in the number of emergency changes may indicate that the organization is able to handle urgent and critical situations, but it may also suggest that the organization is reactive and lacks proper planning and analysis of the changes. The average time to complete changes may indicate the efficiency and speed of the change management process, but it does not measure the effectiveness and value of the changes. References = CRISC Review Manual, pages 156-1571; CRISC Review Questions, Answers & Explanations Manual, page 712

According to the CRISC Review Manual (Digital Version), the security management function is responsible for ensuring that effective cybersecurity controls are established and maintained. The security management function should:

Define the cybersecurity strategy and objectives aligned with the enterprise’s risk appetite and business goals

Establish and maintain the cybersecurity policies, standards, procedures and guidelines

Implement and monitor the cybersecurity controls and processes

Coordinate and communicate with other stakeholders, such as risk owners, IT management, enterprise risk function, internal and external auditors, regulators and third parties

Report on the cybersecurity performance and risk posture to senior management and the board

Continuously improve the cybersecurity capabilities and maturity

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.4: IT Risk Management Roles and Responsibilities, pp. 29-301

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

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

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

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

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

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

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

Detailed Explanation:A review of business processes is crucial for identifying risk owners, as risk ownership is tied to specific processes within the organization. Risk owners are accountable for managing and mitigating risks within their respective areas. This ensures that risks are effectively addressed where they arise and aligns mitigation efforts with business objectives. Properly identifying risk owners supports better governance, accountability, and alignment with the organization's risk management strategy.

An organization’s account provisioning process is the process of creating, modifying, or deleting user accounts and access rights for the organization’s information systems and resources. It involves defining the access requirements, policies, and standards, and implementing and enforcing them across the organization.

The best evidence of the effectiveness of an organization’s account provisioning process is entitlement reviews, which are the periodic or regular reviews and validations of the user accounts and access rights that are granted or assigned to the users or entities that interact with the organization’s information systems and resources. Entitlement reviews can provide assurance and verification that the account provisioning process is accurate, consistent, and compliant, and that it meets the organization’s security and business objectives and requirements.

Entitlement reviews can be performed using various techniques, such as automated tools, reports, audits, surveys, etc. Entitlement reviews can also be integrated with the organization’s governance, risk management, and compliance functions, and aligned with the organization’s policies and standards.

The other options are not the best evidence of the effectiveness of an organization’s account provisioning process, because they do not provide the same level of assurance and verification that the account provisioning process is accurate, consistent, and compliant, and that it meets the organization’s security and business objectives and requirements.

User provisioning is the process of creating, modifying, or deleting user accounts and access rights for a specific user or entity, based on their identity, role, or function in the organization. User provisioning is an important part of the account provisioning process, but it is not the best evidence of the effectiveness of the account provisioning process, because it does not indicate whether the user accounts and access rights are appropriate and authorized, and whether they comply with the organization’s policies and standards.

Role-based access controls are the controls that grant or restrict user accounts and access rights based on the predefined roles or functions that the users or entities perform or assume in the organization. Role-based access controls are an important part of the account provisioning process, but they are not the best evidence of the effectiveness of the account provisioning process, because they do not indicate whether the roles or functions are defined and assigned correctly and consistently, and whether they comply with the organization’s policies and standards.

Security log monitoring is the process of collecting, analyzing, and reporting on the security events or activities that are recorded or logged by the organization’s information systems and resources. Security log monitoring is an important part of the account provisioning process, but it is not the best evidence of the effectiveness of the account provisioning process, because it does not indicate whether the security events or activities are legitimate or authorized, and whether they comply with the organization’s policies and standards. References =

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

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 173

CRISC Practice Quiz and Exam Prep

The best method to ensure a terminated employee’s access to IT systems is revoked upon departure from the organization is to have the human resources (HR) system automatically revoke system access, which is a process that involves integrating the HR system with the IT system, and triggering the removal of access rights for the employee as soon as the termination is recorded in the HR system12.

This method is the best because it provides the most timely, accurate, and consistent way of revoking access, and reduces the risk of human error, oversight, or delay that may occur in manual or semi-automated processes12.

This method is also the best because it enhances the security and compliance of the organization, and prevents the terminated employee from accessing or compromising the IT systems or data after departure12.

The other options are not the best methods, but rather alternative or supplementary methods that may have some limitations or drawbacks. For example:

Login attempts are reconciled to a list of terminated employees is a method that involves monitoring and verifying the login activities of the IT systems, and comparing them with a list of terminated employees to identify and block any unauthorized access attempts34. However, this method is not the best because it is reactive rather than proactive, and may not prevent the terminated employee from accessing the IT systems before the reconciliation is done34.

A list of terminated employees is generated for reconciliation against current IT access is a method that involves creating and maintaining a list of terminated employees, and checking it against the current IT access rights to identify and remove any access that is no longer needed34. However, this method is not the best because it is manual and labor-intensive, and may introduce errors or inconsistencies in the list or the access rights34.

A process to remove employee access during the exit interview is implemented is a method that involves conducting an exit interview with the terminated employee, and revoking the employee’s access to the IT systems during or immediately after the interview34. However, this method is not the best because it depends on the availability and cooperation of the terminated employee, and may not cover all the IT systems or access rights that the employee had34. References =

1: IT Involvement in Employee Termination, A Checklist3

2: Best Practices to Ensure Departing Employees Retain No Access5

3: User Termination Best Practices - IT Security - Spiceworks2

4: IT Security for Employee Termination - Policies, Checklists, Templates - Endsight1

The most important requirement for monitoring key risk indicators (KRIs) using log analysis is providing accurate logs in a timely manner, because this ensures that the risk data is reliable, relevant, and up-to-date. Logs are records of events or activities that occur in IT systems, such as network traffic, user actions, system errors, or security incidents. Log analysis is the process of reviewing and interpreting logs to identify and assess risks, such as performance issues, operational failures, compliance violations, or cyberattacks. By providing accurate logs in a timely manner, an organization can monitor the current status and trends of its KRIs, which are metrics that measure the level and impact of risks. Accurate logs mean that the logs are complete, consistent, and free of errors or anomalies that may distort the risk data. Timely logs mean that the logs are available as soon as possible after the events or activities occur, and that they are updated frequently to reflect the latest changes. Providing accurate logs in a timely manner can help an organization to detect and respond to risks promptly, and to support risk-based decision making and reporting. References = Risk IT Framework, ISACA, 2022, p. 22

 IT risk assessments can best be used by management as input for decision-making, because they provide valuable information about the current and potential risks facing the organization’s IT systems, networks, and data, and their impact on the organization’s objectives and performance. IT risk assessments can help management to identify and prioritize the most critical and relevant risks, and to evaluate and select the most appropriate and effective risk responses. IT risk assessments can also help management to allocate and optimize the resources and budget for IT risk management, and to communicate and report the risk status and performance to the senior management, the board of directors, and other stakeholders. IT risk assessments can support management in making informed and balanced decisions that consider both the opportunities and the threats of IT-related activities and investments. References = Complete Guide to IT Risk Management 1

Detailed Explanation:Key Risk Indicators (KRIs) are metrics used to monitor changes in risk exposure, enabling proactive adjustments to keep risks within appetite. They provide early warnings of potential breaches in risk thresholds.

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

Service delivery and performance

Data security and privacy

Compliance with regulations and standards

Incident management and reporting

Business continuity and disaster recovery

Change management and configuration control

Intellectual property rights and licensing

Termination and data egress

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

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

 The most important element of a successful risk awareness training program is customizing content for the audience, because this ensures that the training is relevant, engaging, and effective for the learners. Customizing content for the audience means tailoring the training materials and methods to suit the specific needs, preferences, and characteristics of the target group, such as their roles, responsibilities, knowledge, skills, attitudes, and learning styles. Customizing content for the audience can help to achieve the following benefits:

Increase the motivation and interest of the learners, as they can see the value and applicability of the training to their work and goals.

Enhance the comprehension and retention of the learners, as they can relate the training content to their prior knowledge and experience, and use examples and scenarios that are familiar and realistic to them.

Improve the transfer and application of the learners, as they can practice and apply the training content to their actual work situations and challenges, and receive feedback and support that are relevant and useful to them. References = Implementing risk management training and awareness (part 1) 1

Data processing is the activity of collecting, organizing, transforming, and analyzing data to produce useful information for decision making or other purposes12.

The role of the internal IT team in this situation is data processors, which are the people or entities that process data on behalf of the data controllers, who are the people or entities that determine the purposes and means of the data processing34.

Data processors are the role of the internal IT team because they are responsible for managing information through the applications that are used by the organization, and they act under the instructions and authority of the organization, which is the data controller34.

Data processors are also the role of the internal IT team because they have to comply with the data protection laws and regulations that apply to the data processing, and they have to ensure the security and confidentiality of the data34.

The other options are not the role of the internal IT team, but rather possible roles or terms that are related to data processing. For example:

Data custodians are the people or entities that have physical or logical control over the data, and they are responsible for implementing and maintaining the technical and administrative safeguards to protect the data56. However, this role is not the role of the internal IT team because it is a subset or function of the data processor role, and it does not reflect the full scope of the data processing activities that the internal IT team performs56.

Data owners are the people or entities that have legal rights or authority over the data, and they are responsible for defining and enforcing the policies and rules for the data access, use, and quality . However, this role is not the role of the internal IT team because it is a different or separate role from the data processor role, and it does not reflect the relationship or agreement between the organization and the internal IT team . References =

1: Data Processing - Wikipedia1

2: Data Processing: Definition, Steps, and Types2

3: Data Controller vs Data Processor: What’s the Difference?3

4: Data controller vs data processor: What are the differences and responsibilities?4

5: Data Custodian - Wikipedia5

6: Data Custodian: Definition, Role & Responsibilities6

: Data Owner - Wikipedia

: Data Owner: Definition, Role & Responsibilities

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

Nonrepudiation is the ability to prevent or deny the parties involved in an electronic transaction from disputing or rejecting the validity or authenticity of the transaction. Nonrepudiation ensures that the parties cannot claim that they did not send or receive the transaction, or that the transaction was altered or tampered with.

The tool that helps ensure compliance with a nonrepudiation policy requirement for electronic transactions is digital signatures, which are the electronic equivalents of handwritten signatures that are used to verify the identity and integrity of the sender and the content of the transaction. Digital signatures are generated by applying a cryptographic algorithm to the transaction, using the sender’s private key, which is a secret and unique code that only the sender knows and possesses. The digital signature can be verified by the receiver or any third party, using the sender’s public key, which is a code that is publicly available and corresponds to the sender’s private key. The digital signature can prove that the transaction was sent by the sender, and that the transaction was not altered or tampered with during the transmission.

The other options are not the tools that help ensure compliance with a nonrepudiation policy requirement for electronic transactions, because they do not provide the same level of verification and validation that digital signatures provide, and they may not be sufficient or effective to prevent or deny the parties from disputing or rejecting the transaction.

Encrypted passwords are the passwords that are converted into a secret or unreadable form, using a cryptographic algorithm, to protect them from unauthorized access or disclosure. Encrypted passwords can help to ensure the confidentiality and security of the passwords, but they are not the tools that help ensure compliance with a nonrepudiation policy requirement for electronic transactions, because they do not verify the identity and integrity of the sender and the content of the transaction, and they may not prevent or deny the parties from disputing or rejecting the transaction.

One-time passwords are the passwords that are valid or usable for only one session or transaction, and that are randomly generated or derived from a dynamic factor, such as time, location, or device. One-time passwords can help to enhance the security and authentication of the parties involved in the transaction, but they are not the tools that help ensure compliance with a nonrepudiation policy requirement for electronic transactions, because they do not verify the identity and integrity of the sender and the content of the transaction, and they may not prevent or deny the parties from disputing or rejecting the transaction.

Digital certificates are the electronic documents that contain the information and credentials of the parties involved in the transaction, such as their name, public key, expiration date, etc., and that are issued and signed by a trusted authority or entity, such as a certificate authority or a digital signature provider. Digital certificates can help to establish and confirm the identity and trustworthiness of the parties involved in the transaction, but they are not the tools that help ensure compliance with a nonrepudiation policy requirement for electronic transactions, because they do not verify the identity and integrity of the sender and the content of the transaction, and they may not prevent or deny the parties from disputing or rejecting the transaction. References =

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

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 197

CRISC Practice Quiz and Exam Prep

An IT risk register is a document that records and tracks the IT-related risks that an organization faces, as well as the information and actions related to those risks, such as the risk description, assessment, response, status, and owner. An IT risk register is a valuable tool for managing and communicating IT risks and their impact on the organization’s objectives and operations. However, an IT risk register may also contain sensitive or confidential information that should not be disclosed or shared with unauthorized or irrelevant parties, as it may compromise the security, privacy, or reputation of the organization or its stakeholders. Therefore, the risk manager’s best approach to the request from the head of a business operations department to review the entire IT risk register is to determine the purpose of the request before sharing the register. This is a technique to understand and evaluate the reason and the need for the request, as well as the scope and the level of access that the requester requires or expects. By determining the purpose of the request, the risk manager can ensure that the request is legitimate, appropriate, and relevant, and that the requester has a clear and valid interest or stake in the IT risk register. The risk manager can also ensure that the request is aligned with the organization’s policies, procedures, and standards for IT risk management and information sharing. The risk manager can also use the purpose of the request to decide what and how much information to share with the requester, and what conditions or restrictions to apply, such as confidentiality, accuracy, or timeliness. The other options are not the best approaches to the request from the head of a business operations department to review the entire IT risk register, as they may be premature, unnecessary, or ineffective. Escalating to senior management is a technique to involve or inform the higher-level authorities or decision makers about the request, which may be useful or required in some cases, but it may not be the first or the best step to take, as it may delay or complicate the process, or undermine the risk manager’s authority or responsibility. Requiring a nondisclosure agreement is a technique to protect the confidentiality and integrity of the information in the IT risk register by legally binding the requester to not disclose or misuse the information. However, a nondisclosure agreement may not be needed or appropriate in every case, and it may not prevent or address other issues or risks related to the information sharing, such as relevance, accuracy, or timeliness. Sanitizing portions of the register is a technique to remove or redact the sensitive or confidential information from the IT risk register before sharing it with the requester, which may be necessary or prudent in some cases, but it may not be sufficient or satisfactory, as it may affect the completeness, usefulness, or validity of the information, or raise questions or concerns from the requester.

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

Detailed Explanation:Data bias in machine learning algorithms can lead to inaccurate predictions or decisions, as biases in training data are amplified in the output. Addressing bias is essential for ethical and reliable algorithm performance.

IT risk scenarios are hypothetical situations or occurrences that illustrate the potential impact of IT-related threats or opportunities on the organization’s objectives, performance, or value creation12.

Business risk scenarios are hypothetical situations or occurrences that illustrate the potential impact of business-related threats or opportunities on the organization’s objectives, performance, or value creation34.

The best way for the risk practitioner to address the concerns of the business executives who question why they have been assigned ownership of IT-related risk scenarios is to describe IT risk scenarios in terms of business risk, which is a technique that involves translating and communicating the IT risk scenarios into the language and context of the business risk scenarios, and highlighting the linkages and dependencies between them56.

Describing IT risk scenarios in terms of business risk is the best way because it helps the business executives to understand and appreciate the relevance and importance of IT risk scenarios, and how they affect the achievement of the organization’s goals and the delivery of value to the stakeholders56.

Describing IT risk scenarios in terms of business risk is also the best way because it helps the business executives to accept and fulfill their roles and responsibilities as the owners of IT risk scenarios, and to collaborate and coordinate with the IT team and other stakeholders in the risk management process56.

The other options are not the best ways, but rather possible alternatives or supplements that may support or enhance the description of IT risk scenarios in terms of business risk. For example:

Recommending the formation of an executive risk council to oversee IT risk is a way that involves establishing and empowering a group of senior leaders from different business units and functions to provide the strategic direction, guidance, and oversight for the IT risk management process78. However, this way is not the best way because it does not directly address the concerns of the business executives who question why they have been assigned ownership of IT risk scenarios, and it may not be feasible or effective without a clear and common understanding of IT risk scenarios among the council members78.

Providing an estimate of IT system downtime if IT risk materializes is a way that involves quantifying and communicating the potential loss or disruption of the IT systems or services that support the organization’s operations, if the IT risk scenarios occur9 . However, this way is not the best way because it does not fully capture or convey the impact of IT risk scenarios on the organization’s objectives, performance, or value creation, and it may not be relevant or meaningful for some IT risk scenarios that are not related to IT system downtime9 .

Educating business executives on IT risk concepts is a way that involves providing and delivering the knowledge and skills on the principles, frameworks, and techniques of IT risk management, and the roles and responsibilities of the IT risk owners and stakeholders . However, this way is not the best way because it does not specifically address the concerns of the business executives who question why they have been assigned ownership of IT risk scenarios, and it may not be sufficient or effective without a practical and contextual application of IT risk concepts to the organization’s situation and goals . References =

1: IT Scenario Analysis in Enterprise Risk Management - ISACA2

2: New Toolkit and Course From ISACA Help Practitioners Develop Risk Scenarios - ISACA1

3: Business Risk - Investopedia3

4: Business Risk: Definition, Types, Examples & How to Manage4

5: Risk IT Framework, ISACA, 2009

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

7: Executive Risk Council - ISACA5

8: Executive Risk Council: A Guide to Success6

9: IT System Downtime - ISACA7

: IT System Downtime: Causes, Costs, and How to Prevent It8

: IT Risk Education - ISACA9

: IT Risk Education: A Guide to Success

 The analysis of logs and system events will best help validate whether suspicious network activity is malicious, because they provide detailed and timely information about the source, destination, content, and context of the network traffic. Logs and system events can be collected from various sources, such as firewalls, routers, switches, servers, applications, and endpoints, and can be correlated and analyzed using tools such as security information and event management (SIEM) systems. By analyzing logs and system events, an organization can identify anomalies, patterns, trends, and indicators of compromise (IOCs) that may signal malicious network activity, such as unauthorized access, data exfiltration, malware infection, denial-of-service attack, or lateral movement. Logs and system events can also help determine the scope, impact, and root cause of the malicious network activity, and support the incident response and remediation process. References = Risk IT Framework, ISACA, 2022, p. 221

 According to the CRISC Review Manual (Digital Version), the main reason to continuously monitor IT-related risk is to ensure risk levels are within acceptable limits of the organization’s risk appetite and risk tolerance. The risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives, while the risk tolerance is the acceptable variation in outcomes related to specific performance measures linked to objectives. Continuous monitoring is a process that tracks the security state of an information system on an ongoing basis and maintains the security authorization for the system over time. Continuous monitoring helps to:

Provide ongoing assurance that the implemented security controls are operating effectively and efficiently

Detect changes in the risk profile of the information system and the environment of operation

Identify new or emerging threats and vulnerabilities that may affect the information system

Support risk-based decisions by providing timely and relevant risk information to stakeholders

Facilitate the implementation of corrective actions and risk mitigation strategies

Promote accountability and transparency in the risk management process

Enhance the security awareness and culture within the organization

References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.1: IT Risk Monitoring, pp. 213-2141

Key performance indicators (KPIs) are quantifiable measures of progress toward an intended result, such as a strategic objective or a desired outcome12.

The most important factor when developing KPIs is the alignment to risk responses, which are the actions taken to address the risks that may affect the achievement of the intended result12.

Alignment to risk responses means that the KPIs should reflect the effectiveness and efficiency of the risk responses, and provide feedback and guidance for improving the risk responses12.

Alignment to risk responses also means that the KPIs should be consistent and compatible with the risk responses, and support the risk management process and objectives12.

The other options are not the most important factor, but rather possible aspects or features of KPIs that may vary depending on the context and purpose of the KPIs. For example:

Alignment to management reports is an aspect of KPIs that relates to the communication and presentation of the KPIs to the relevant stakeholders, such as senior management, board members, or external parties12. However, this aspect does not determine the quality or validity of the KPIs, or the alignment to the intended result12.

Alerts when risk thresholds are reached is a feature of KPIs that relates to the monitoring and control of the KPIs, and the triggering of actions or decisions when the KPIs exceed or fall below a certain level or range12. However, this feature does not define the content or scope of the KPIs, or the alignment to the intended result12.

Identification of trends is a feature of KPIs that relates to the analysis and interpretation of the KPIs, and the identification of patterns or changes in the KPIs over time or across different dimensions12. However, this feature does not specify the criteria or methodology of the KPIs, or the alignment to the intended result12. References =

1: What is a Key Performance Indicator (KPI)? Guide & Examples - Qlik3

2: What is a Key Performance Indicator (KPI)? - KPI.org4

A control deficiency is a weakness or flaw in the design or implementation of a control that reduces its effectiveness or efficiency in achieving its intended objective or mitigating the risk that it is designed to address. A control deficiency may be caused by various factors, such as human error, system failure, process inefficiency, resource limitation, etc.

When determining which control deficiencies are most significant, the most useful information would be the risk analysis results, which are the outcomes or outputs of the risk analysis process that measures and compares the likelihood and impact of various risk scenarios, and prioritizes them based on their significance and urgency. The risk analysis results can help to determine which control deficiencies are most significant by providing the following information:

The level and priority of the risks that are associated with the control deficiencies, and the potential consequences or impacts that they may cause for the organization if they materialize.

The gap or difference between the current and desired level of risk, and the extent or degree to which the control deficiencies contribute to or affect the gap or difference.

The cost-benefit or feasibility analysis of the possible actions or plans to address or correct the control deficiencies, and the expected or desired outcomes or benefits that they may provide for the organization.

The other options are not the most useful information when determining which control deficiencies are most significant, because they do not provide the same level of detail and insight that the risk analysis results provide, and they may not be relevant or actionable for the organization.

An exception handling policy is a policy that defines and describes the procedures and guidelines for dealing with the situations or circumstances that deviate from the normal or expected operation or functionality of a control, and that may require special or alternative actions or measures to address or resolve them. An exception handling policy can provide useful information on how to handle or manage the control deficiencies, but it is not the most useful information when determining which control deficiencies are most significant, because it does not indicate the level and priority of the risks that are associated with the control deficiencies, and the potential consequences or impacts that they may cause for the organization.

A vulnerability assessment is an assessment that identifies and evaluates the weaknesses or flaws in the organization’s assets, processes, or systems that can be exploited or compromised by the threats or sources of harm that may affect the organization’s objectives or operations. A vulnerability assessment can provide useful information on the existence and severity of the control deficiencies, but it is not the most useful information when determining which control deficiencies are most significant, because it does not indicate the likelihood and impact of the risk scenarios that are associated with the control deficiencies, and the potential consequences or impacts that they may cause for the organization.

A benchmarking assessment is an assessment that compares and contrasts the organization’s performance, practices, or processes with those of other organizations or industry standards, and identifies the strengths, weaknesses, opportunities, or threats that may affect the organization’s objectives or operations. A benchmarking assessment can provide useful information on the best practices or improvement areas for the organization, but it is not the most useful information when determining which control deficiencies are most significant, because it does not indicate the level and priority of the risks that are associated with the control deficiencies, and the potential consequences or impacts that they may cause for the organization. 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 176

CRISC Practice Quiz and Exam Prep

The primary objective of promoting a risk-aware culture within an organization is enabling risk-based decision making, because this helps the organization to achieve its goals and objectives while managing its risks effectively and efficiently. A risk-aware culture is one where everyone understands the organization’s approach to risk, takes personal responsibility to manage risk in everything they do, and encourages others to follow their example. A risk-aware culture also fosters communication, collaboration, and learning about risk across the organization. By promoting a risk-aware culture, the organization can empower its employees to make informed and balanced decisions that consider both the potential benefits and the potential risks of their actions. This can enhance the organization’s performance, resilience, and competitiveness in a dynamic and uncertain environment. References = Risk IT Framework, ISACA, 2022, p. 17

An IT risk management framework is a set of principles, processes, and practices that guide and support the identification, analysis, evaluation, treatment, monitoring, and communication of IT-related risks within an organization12.

The primary advantage of implementing an IT risk management framework is the establishment of a reliable basis for risk-aware decision making, which enables the organization to balance the potential benefits and adverse effects of using IT, and to allocate resources and prioritize actions accordingly12.

A reliable basis for risk-aware decision making consists of the following elements12:

A common language and understanding of IT risk, its sources, impacts, and responses

A consistent and structured approach to IT risk identification, analysis, evaluation, and treatment

A clear and transparent governance structure and accountability for IT risk management

A comprehensive and up-to-date IT risk register and profile that reflects the organization’s risk appetite and tolerance

A regular and effective IT risk monitoring and reporting process that provides relevant and timely information to stakeholders

A continuous and proactive IT risk improvement process that incorporates feedback and lessons learned

The other options are not the primary advantage, but rather possible outcomes or benefits of implementing an IT risk management framework. For example:

Compliance with relevant legal and regulatory requirements is an outcome of implementing an IT risk management framework that ensures the organization meets its obligations and avoids penalties or sanctions12.

Improvement of controls within the organization and minimized losses is a benefit of implementing an IT risk management framework that reduces the likelihood and impact of IT-related incidents and events12.

Alignment of business goals with IT objectives is a benefit of implementing an IT risk management framework that ensures the IT strategy and activities support the organization’s mission and vision12. References =

1: Risk IT Framework, ISACA, 2009

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

According to the CRISC Review Manual, the risk owner is the person who has the authority and accountability to manage a specific risk and its associated controls1. The risk owner is also responsible for ensuring that the risk is within the acceptable level and that the risk response is effective and efficient2. Therefore, the most appropriate owner for a newly identified IT risk is the individual who has the authority to commit organizational resources to mitigate the risk, as they have the most interest and influence on the risk and its impact on the business objectives. The other options are not the most appropriate owners for a newly identified IT risk, as they may not have the authority or the accountability to manage the risk. The manager responsible for IT operations that will support the risk mitigation efforts may have the operational responsibility or the oversight of the risk management activities, but they may not have the authority to allocate the resources or approve the risk response. A project manager capable of prioritizing the risk remediation efforts may have the project management skills or the knowledge of the risk management process, but they may not have the accountability or the ownership of the risk or its outcomes. The individual with the most IT risk-related subject matter knowledge may have the technical expertise or the understanding of the risk and its causes, but they may not have the decision-making power or the responsibility to manage the risk or its controls. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 822

The organization’s risk appetite and tolerance are the most important topics to cover in a risk awareness training for senior management. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk tolerance is the level of variation from the risk appetite that the organization is prepared to accept. Senior management plays a key role in defining and communicating the risk appetite and tolerance, as well as ensuring that they are aligned with the organization’s strategy, culture, and values. By covering these topics in the training session, the risk practitioner can help senior management understand and articulate the risk preferences and boundaries of the organization, as well as monitor and adjust them as needed. The other options are not the most important topics to cover in a risk awareness training for senior management, although they may be relevant and useful. The organization’s strategic risk management projects are specific initiatives or activities that aim to identify, assess, and treat risks that may affect the organization’s objectives. Senior management roles and responsibilities are the duties and expectations that senior management has in relation to risk management, such as providing leadership, oversight, and support. Senior management allocation of risk management resources is the process of assigning and prioritizing the human, financial, and technical resources that are needed to implement and maintain risk management activities. These topics are more operational and tactical than strategic and may vary depending on the context and scope of the risk management function. References = CRISC Review Manual, pages 40-411; CRISC Review Questions, Answers & Explanations Manual, page 732

Key risk indicators (KRIs) are metrics that help organizations monitor and evaluate the level of risk they are exposed to. They provide early warning signals of potential issues that could affect the achievement of organizational goals12.

The most important data source for monitoring KRIs is automated logs collected from different systems, which are records that capture and store the details and history of the transactions or activities that are performed by the organization’s processes, systems, or controls34.

Automated logs collected from different systems are the most important data source because they provide timely and accurate data and information on the performance and status of the organization’s operations, and enable the detection and reporting of any deviations, anomalies, or issues that may indicate a risk event34.

Automated logs collected from different systems are also the most important data source because they support the accountability and auditability of the organization’s operations, and facilitate the investigation and resolution of any risk event34.

The other options are not the most important data sources, but rather possible inputs or factors that may influence or affect the KRIs. For example:

Directives from legal and regulatory authorities are documents that provide the expectations and obligations of the external authorities or bodies that govern or oversee the organization’s activities and operations, such as laws, regulations, standards, or contracts5 . However, these documents are not the most important data source because they do not directly measure or monitor the level of risk exposure, but rather provide the criteria or framework for risk compliance5 .

Audit reports from internal information systems audits are documents that provide the findings and recommendations of the independent and objective assessment of the adequacy and effectiveness of the organization’s information systems, processes, and controls . However, these documents are not the most important data source because they do not directly measure or monitor the level of risk exposure, but rather provide the assurance or improvement for risk management .

Trend analysis of external risk factors is a technique that involves analyzing and forecasting the changes and impacts of the external factors that influence the organization’s operations, such as technology, competition, regulation, or customer behavior . However, this technique is not the most important data source because it does not directly measure or monitor the level of risk exposure, but rather provide the insight or prediction for risk identification . References =

1: Key Risk Indicators: A Practical Guide | SafetyCulture1

2: Key risk indicator - Wikipedia2

3: Database Activity Monitoring - Wikipedia3

4: Database Activity Monitoring (DAM) | Imperva4

5: Regulatory Compliance - Wikipedia5

: Regulatory Compliance Management Software | MetricStream

: IT Audit and Assurance Standards, ISACA, 2014

: IT Audit and Assurance Guidelines, ISACA, 2014

: Trend Analysis - Investopedia

: Trend Analysis: A Definition and Examples

A third-party security assessment report is the most helpful to ensure effective security controls for a cloud service provider, because it provides an independent and objective evaluation of the cloud provider’s security posture, policies, and practices. A third-party security assessment report can help to verify and validate the cloud provider’s compliance with the relevant standards, regulations, and best practices, such as ISO 27001, PCI DSS, NIST, or CSA. A third-party security assessment report can also help to identify and address any gaps, weaknesses, or vulnerabilities in the cloud provider’s security controls, and to provide recommendations and guidance for improvement. A third-party security assessment report can also help to increase the trust and confidence of the cloud customers, and to facilitate the due diligence and risk management processes. The other options are less helpful to ensure effective security controls for a cloud service provider. A control self-assessment is a process that enables the cloud provider to assess its own security controls, using a predefined framework or questionnaire. However, a control self-assessment may not be as reliable or comprehensive as a third-party security assessment report, as it may be biased, incomplete, or inaccurate, and it may not cover all the aspects or dimensions of security. Internal audit reports from the vendor are documents that provide the results and findings of the internal audits conducted by the cloud provider’s own auditors, to verify and validate the effectiveness and efficiency of the security controls. However, internal audit reports from the vendor may not be as credible or trustworthy as a third-party security assessment report, as they may be influenced by the cloud provider’s interests, objectives, or agenda, and they may not follow the same standards or criteria as the external auditors. Service level agreement monitoring is a process that measures and evaluates the performance and availability of the cloud services, based on the predefined metrics and targets agreed between the cloud provider and the cloud customer. However, service level agreement monitoring may not be sufficient or relevant to ensure effective security controls for a cloud service provider, as it may not address the security aspects or requirements of the cloud services, such as confidentiality, integrity, or accountability, and it may not reflect the actual security risks or incidents that may occur in the cloud environment. References = Cloud Security Controls: Key Elements and 4 Control Frameworks 1

According to the CRISC Review Manual (Digital Version), the next course of action when there is a gap between the acceptable downtime and the actual recovery time of an application is to prepare a cost-benefit analysis of alternatives available to reduce the gap. The cost-benefit analysis should compare the costs of implementing different risk response options, such as avoidance, mitigation, transfer or acceptance, with the benefits of reducing the impact and likelihood of the risk. The cost-benefit analysis should also consider the alignment of the risk response options with the enterprise’s risk appetite, business objectives and strategy. The cost-benefit analysis should help the application owner and the risk owner to select the most appropriate risk response option that optimizes the value of the application and minimizes the residual risk.

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.2: Risk Response Process, pp. 162-1631

A systems interruption caused by a personal USB device plugged into the corporate network by an IT employee who bypassed internal control procedures is a serious breach of information security and IT risk management. The person who should be accountable for this incident is the chief information officer (CIO), who is responsible for overseeing the IT function and ensuring compliance with IT policies and standards. The CIO should also ensure that appropriate corrective and preventive actions are taken to prevent such incidents from recurring and to mitigate the impact of the systems interruption on the business operations and objectives. The CIO should also report the incident to the senior management and the board of directors, and communicate with the relevant stakeholders about the incident and the actions taken. References = Risk IT Framework, ISACA, 2022, p. 181

 The most effective way to promote organization-wide awareness of data security in response to an increase in regulatory penalties for data leakage is to require training on the data handling policy, as it educates the employees on the importance, requirements, and procedures of data protection, and enhances their knowledge and skills to prevent, detect, and respond to data leakage incidents. Enforcing sanctions for noncompliance with security procedures, conducting organization-wide phishing simulations, and requiring regular testing of the data breach response plan are not the most effective ways, as they are more related to the enforcement, evaluation, or improvement of the data security, respectively, rather than the promotion of the data security awareness. References = CRISC Review Manual, 7th Edition, page 155.

The most important consideration is that the risk framework and policies are adaptable and suitable for emerging technologies. This ensures that the organization's approach to risk management remains effective and relevant as new technologies are adopted, helping to mitigate potential risks associated with these technologies.

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

The second line of defense provides oversight to ensure risks and controls are effectively managed. This includes compliance, risk management policies, and performance monitoring, aligning with Risk Governance frameworks and enhancing the organization’s risk resilience.

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

A quantitative method provides objective metrics to establish impact levels, which is essential for tiering assets based on their criticality. This aligns with Risk Assessment Best Practices.

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

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

Addressing Technical Complexity:

Security Architecture Alignment: Aligning with a security architecture helps manage the complexity by providing a structured framework for implementing and managing security controls.

Comprehensive Framework: A security architecture ensures that all security controls are integrated and aligned with the organization’s overall security strategy, reducing the risk associated with technical complexity.

Steps Involved:

Develop or Adopt a Security Architecture: Use established frameworks such as SABSA, TOGAF, or Zachman.

Implementation: Apply the security architecture across all systems and processes to ensure consistency and integration.

Monitoring and Maintenance: Continuously monitor the security architecture and update it as necessary to address new threats and technologies.

Comparison with Other Options:

Documenting System Hardening Requirements: Important but does not address the overall complexity.

Minimizing Dependency on Technology: Not always feasible and does not fully address the inherent complexity.

Establishing Configuration Guidelines: Helpful but should be part of the broader security architecture.

Best Practices:

Continuous Improvement: Regularly update and improve the security architecture to adapt to evolving threats and technologies.

Training and Awareness: Ensure that all relevant personnel understand the security architecture and their role in maintaining it.

CRISC Review Manual: Discusses the importance of aligning with a security architecture to manage technical complexity and ensure comprehensive security controls​​.

ISACA Standards: Emphasize the role of security architecture in providing a structured approach to managing security across the organization​​.

References:

Integrity is the property of data that ensures its accuracy, completeness, and consistency2. If concurrent update transactions to an account are not processed properly, the integrity of the data may be compromised, as it may lead to concurrency problems such as lost update, unrepeatable read, or phantom read3. These problems can cause the data to be incorrect, incomplete, or inconsistent, which may affect the reliability and validity of the data. Therefore, option D is the correct answer, as it reflects the impact of improper concurrent update transactions on the data integrity. The other options are not correct, as they do not directly relate to the effect of concurrent update transactions on the data. Option A, confidentiality, is the property of data that ensures its protection from unauthorized access or disclosure2. Concurrent update transactions do not necessarily affect the confidentiality of the data, as they do not involve exposing the data to unauthorized parties. Option B, accountability, is the property of data that ensures its traceability and auditability2. Concurrent update transactions do not necessarily affect the accountability of the data, as they do not involve losing the records or logs of the data transactions. Option C, availability, is the property of data that ensures its accessibility and usability2. Concurrent update transactions do not necessarily affect the availability of the data, as they do not involve preventing the access or use of the data.

Social engineering attacks are attempts to manipulate or deceive people into revealing confidential or personal information, such as passwords, account numbers, or security codes. Customer service representatives are often targeted by social engineering attacks, as they have access to sensitive customer data and may be pressured to provide quick and satisfactory service. Therefore, it is most important to include in a risk awareness training session for the customer service department how to identify and prevent social engineering attacks, such as phishing, vishing, baiting, or impersonation.

References

•The role of customer service in cybersecurity - Security Intelligence

•How to Improve Risk Awareness in the Workplace [+ Template] - AlertMedia

•Top 4 Risks For Customer Service Teams | Resolver

The policy has not been approved by the organization’s board should be of most concern, as it indicates a lack of governance and oversight for the organization’s cybersecurity posture. The board is ultimately responsible for setting the strategic direction, objectives, and risk appetite of the organization, and for ensuring that the cybersecurity policy aligns with them. Without the board’s approval, the policy may not reflect the organization’s vision, mission, values, and culture, and may not be communicated, implemented, or enforced effectively. The board’s approval also demonstrates the commitment and support of the senior management for the cybersecurity program, and enhances the accountability and responsibility of the stakeholders involved.

References:

•ISACA, Essential Functions of a Cybersecurity Program1

•ISACA, Cybersecurity: Based on the NIST Cybersecurity Framework2

 Purpose of a Risk Register:

A risk register consolidates all identified risks, their status, and mitigation actions in one place. It serves as a tool for tracking and managing risks systematically.

 Facilitating Risk Management Functions:

By documenting risk scenarios, a risk register provides a comprehensive view of potential threats and their impact on the organization.

It enables effective communication and review of these scenarios with stakeholders, ensuring that all relevant parties are aware of and understand the risks.

 Engaging Stakeholders:

Reviewing the risk register with stakeholders helps in validating the risks, assessing their impact, and determining appropriate responses.

It fosters collaboration and ensures that risk management activities are aligned with the stakeholders' expectations and the organization's objectives.

 Comparing Other Functions:

Analyzing Risk Appetite: While important, this is not the primary function of a risk register.

Influencing Risk Culture: The risk register contributes to risk culture but is primarily a tracking and communication tool.

Articulating Senior Management's Intent: This is more related to policy and strategy documents, whereas the risk register is a practical tool for managing specific risks.

 References:

The CRISC Review Manual highlights the role of the risk register in consolidating risk information and facilitating stakeholder engagement (CRISC Review Manual, Chapter 2: IT Risk Assessment, Section 2.6 Risk Register)​​ .

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

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

Key control indicators measure the operational effectiveness of specific controls, such as those contributing to defense-in-depth strategies. Monitoring these indicators ensures controls are functioning as intended, aligning with Control Effectiveness Monitoring.

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

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

Reassessing the risk profile is the first course of action that a risk practitioner should take after a hospital recently implemented a new technology to allow virtual patient appointments. This is because reassessing the risk profile can help identify, analyze, and evaluate the new or changed risks that the new technology may introduce or affect, such as data privacy, security, quality, reliability, or compliance risks. Reassessing the risk profile can also help determine the appropriate risk response and mitigation strategies, as well as monitor and report the risk performance and outcomes. According to the CRISC Review Manual 2022, reassessing the risk profile is one of the key steps in the IT risk management process1. According to the web search results, reassessing the risk profile is a common and recommended practice for addressing the risks of virtual patient appointments

The most useful tool for measuring the existing risk management process against a desired state is the capability maturity model, as it provides a structured and standardized way to assess the current and target levels of maturity, performance, and effectiveness of the risk management process, and to identify the gaps and improvement opportunities. The balanced scorecard, the risk management framework, and the risk scenario analysis are not the most useful tools, as they are more related to the evaluation, design, or identification of the risk management process, respectively, rather than the measurement of the risk management process. References = CRISC Review Manual, 7th Edition, page 154.

Business impact analysis (BIA) is the most helpful tool in identifying loss magnitude during risk analysis of a new system, as it involves estimating the potential financial and operational losses resulting from the disruption or degradation of the system. Recovery time objective (RTO), cost-benefit analysis, and cyber insurance coverage are not the most helpful tools, as they are more related to the recovery, evaluation, and transfer of the risk, respectively, rather than the identification of the loss magnitude. References = CRISC Review Manual, 7th Edition, page 108.

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 strategic or cultural aspects of risk management. References = CRISC Review Manual, 7th Edition, page 109.

Updating the BCP to align with real-time recovery requirements ensures the organization’s resilience to disruptions while meeting regulatory standards. This action reflects Business Continuity and Disaster Recovery Planning best practices.

Biometric systems are preventive controls designed to restrict access to authorized personnel only. This aligns with Access Control and Authentication Standards in risk management frameworks.

Automated asset management software provides a continuous and efficient way to track assets throughout their lifecycle. It reduces the likelihood of human error, ensures up-to-date records, and can often integrate with other systems to provide comprehensive oversight of an organization’s assets.

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

References:

•ISACA, Risk IT Framework, 2nd Edition, 2019, p. 741

•Internal audit: three lines of defence model explained2

The principle of least privilege is a key concept in information security that aims to provide users with the minimum level of access—or permissions—necessary to perform their job functions. By ensuring that users only have the access they need, organizations can significantly reduce the risk associated with excessive access by authorized users.

Understanding Least Privilege

The principle of least privilege restricts access rights for users to the bare minimum permissions they need to perform their work. This minimizes the potential damage from accidents or malicious activities.

Least privilege should be applied to all user accounts, including administrative and service accounts.

Implementation

Implementing least privilege involves a detailed analysis of job functions and the necessary access required for each role.

Regularly review and update access permissions to ensure they remain aligned with current job responsibilities and organizational needs.

Mitigating Risk

By limiting access to only what is necessary, organizations can prevent users from having permissions that could be exploited, intentionally or unintentionally, to cause harm.

This also includes revoking unnecessary privileges when users change roles or no longer need access.

Comparison with Other Options

A. Monitoring user activity using security logs: While monitoring can detect inappropriate activity, it does not prevent it.

B. Revoking access for users changing roles: This is a necessary practice but does not address the initial allocation of excessive privileges.

D. Conducting periodic reviews of authorizations granted: Periodic reviews are important but are reactive rather than proactive.

References

Sybex-CISSP-Official-Study-Guide-9-Edition.pdf, p. 641, discussing the principle of least privilege and its implementation​​.

Obfuscating customer data minimizes privacy risks by rendering sensitive information unreadable during processing. This method complies with Data Privacy and Protection Standards, reducing the potential impact of data breaches.

Lack of common understanding of the organization’s risk culture is the greatest barrier to achieving the initiative’s objectives, because it hinders the alignment and integration of risk management across the organization. Risk culture is the set of shared values, beliefs, and behaviors that influence how risk is perceived and managed in an organization. A risk universe is a comprehensive and structured representation of all the sources and types of risk that an organization faces. Developing a risk universe requires a common understanding of the organization’s risk culture, as it affects the risk appetite, tolerance, and strategy of the organization. Lack of cross-functional risk assessment workshops, lack of quantitative methods to aggregate the total risk exposure, and lack of an integrated risk management system are all challenges that may affect the development of a risk universe, but they are not the greatest barrier, as they can be overcome with appropriate tools and techniques. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 44

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

Role of the Business Manager:

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

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

Assessment of Data Loss Impact:

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

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

References:

The CRISC Review Manual highlights the importance of involving business managers in assessing the impact of data loss due to their understanding of business operations and strategic objectives .

 Understanding the Question:

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

 Analyzing the Options:

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

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

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

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

 Detailed Explanation:

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

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

References:

CRISC Review Manual, Chapter 3: Risk Response and Reporting, details the importance of communicating risk assessment results for effective risk management and response prioritization​​.

Including action plans ensures that identified risks are appropriately addressed, providing clarity and accountability for treatment activities. This aligns with Risk Treatment and Reporting.

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

Internal audit provides independent assurance to the board and senior management regarding the effectiveness of risk management program implementation, consistent with Governance and Assurance Principles.

Assessing the threat and associated impact is the next thing that a risk practitioner should do after learning that Internet of Things (IoT) devices installed in the production environment lack appropriate security controls for sensitive data. This is because assessing the threat and associated impact can help determine the level and nature of the risk posed by the IoT devices, as well as the potential consequences and costs of a security breach or incident. Assessing the threat and associated impact can also provide the basis for further risk analysis and response steps, such as evaluating risk appetite and tolerance levels, recommending device management controls, or enabling role-based access control. According to the CRISC Review Manual 2022, assessing the threat and associated impact is one of the key steps in the IT risk assessment process1. According to the web search results, assessing the threat and associated impact is a common and recommended practice for addressing the security risks of IoT devices

 Segmenting the application within the existing network is the most effective control to manage a legacy application that relies on software that has reached the end of extended support, as it isolates the application from the rest of the network and reduces the attack surface and the potential impact of a compromise. Subscribing to threat intelligence, applying patches for a newer version of the application, and increasing the frequency of regular system and data backups are not the most effective controls, as they may not address the root cause of the risk, or may introduce additional costs or complexities, respectively. References = CRISC Review Manual, 7th Edition, page 153.

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

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

The risk owner should be someone who has the authority, responsibility, and knowledge to manage the risk effectively and align it with the organizational strategy and objectives. The risk owner should also be able to communicate the impact of the risk on the business operations and the value proposition of the risk response. Understanding the effect of loss events on business operations is a key criterion for assigning risk owners, as it helps to prioritize and mitigate the risks that matter most to the organization.

References

•Why Assigning a Risk Owner is Important and How to Do It Right

•How to Write Strong Risk Scenarios and Statements - ISACA

•What Everybody Ought To Know About Project Risk Owners

 Role of the System Owner:

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

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

 Effectiveness of Technical Controls:

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

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

 Comparing Other Roles:

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

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

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

 Supporting Information:

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

The primary reason for logging is to provide evidence of activities, ensuring accountability and traceability. This supports investigations, audits, and compliance requirements, aligning with Control Monitoring and Reporting standards.

According to the CRISC Review Manual, the most important time to involve business stakeholders in the development of bottom-up IT risk scenarios is when validating the risk scenarios, as they can provide valuable input on the relevance, completeness, and accuracy of the scenarios and their impact on the business objectives and processes2

1: CRISC Review Questions, Answers & Explanations Database, Question ID: 100001 2: CRISC Review Manual, 7th Edition, page 97

To ensure IT asset protection, having procedures for risk assessments on IT assets is the most important. These procedures enable an organization to systematically identify, evaluate, and mitigate risks associated with its IT assets. This process is crucial for understanding the vulnerabilities and threats that could potentially harm the assets and for implementing the necessary controls to protect them.

Procedures for Risk Assessments on IT Assets (Answer A):

Importance: Regular risk assessments help in identifying vulnerabilities and threats to IT assets, allowing the organization to prioritize and implement appropriate risk mitigation strategies.

Implementation: These procedures should be well-documented and regularly updated to reflect the changing threat landscape and the organization's evolving IT infrastructure.

Outcome: Effective risk assessments ensure that IT assets are protected from potential risks, thereby safeguarding the organization's data, systems, and overall IT environment.

Comparison with Other Options:

B. An IT asset management checklist:

Purpose: This helps in tracking and managing IT assets.

Limitation: It does not address risk assessment and mitigation directly.

C. An IT asset inventory populated by an automated scanning tool:

Purpose: Provides a detailed list of IT assets.

Limitation: While it helps in knowing what assets exist, it does not assess the risks associated with those assets.

D. A plan that includes processes for the recovery of IT assets:

Purpose: Focuses on recovery after an incident.

Limitation: It is reactive rather than proactive in protecting assets.

References:

ISACA CRISC Review Manual, Chapter 2, "IT Risk Assessment", which emphasizes the need for systematic risk assessments to manage and protect IT assets effectively.

 Understanding the Question:

The question asks which tool is best for aggregating data from multiple systems to identify abnormal behavior.

 Analyzing the Options:

A. Cyber threat intelligence: Provides information on potential threats but does not aggregate data from multiple systems for behavior analysis.

B. Anti-malware software: Focuses on detecting and removing malware, not aggregating data from multiple sources.

C. Endpoint detection and response (EDR): Monitors endpoints for suspicious activity but is more limited in scope compared to SIEM systems.

D. SIEM systems: Security Information and Event Management systems collect, aggregate, and analyze data from various sources to identify and respond to abnormal behavior.

 Detailed Explanation:

SIEM Systems: SIEM systems are designed to aggregate and analyze security data from multiple sources such as network devices, servers, and applications. They provide real-time analysis of security alerts generated by hardware and software.

Functionality: SIEM systems use advanced analytics to correlate data from different sources and detect patterns that indicate abnormal behavior. This makes them highly effective in identifying and responding to security incidents.

References:

CRISC Review Manual, Chapter 3: Risk Response and Reporting, mentions the importance of centralized monitoring systems like SIEM for effective risk management​​.

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

The second line of defense is responsible for monitoring risk responses to ensure they align with organizational risk strategies. This role supports governance and compliance as defined in the Three Lines of Defense Model.

A key performance indicator (KPI) is a metric that measures the achievement of a specific goal or objective. A KPI for the internal control that requires all access for employees be removed within 15 days of their termination date could be the percentage of employees whose access was removed within the specified time frame. This KPI would help the risk practitioner to monitor the compliance and effectiveness of the control and identify any deviations or issues.

References

•Key Performance Indicators (KPIs) - ISACA

•How to Improve Risk Awareness in the Workplace [+ Template] - AlertMedia

•[SITXWHS

The factor that primarily influences an organization’s capability to implement a risk management framework is the maturity of its risk culture, as it reflects the degree of awareness, understanding, and commitment of the organization’s stakeholders towards the risk management objectives, values, and practices, and affects the adoption and integration of the risk management framework across the organization. The other options are not the primary factors, as they are more related to the guidance, competence, or approval of the risk management framework, respectively, rather than the influence of the risk management framework. References = CRISC Review Manual, 7th Edition, page 99.

Data encryption is the best method to protect organizational data within a production cloud environment, as it ensures the confidentiality, integrity, and availability of the data. Data encryption is the process of transforming data into an unreadable format using a secret key or algorithm, so that only authorized parties can access and decrypt the data. Data encryption can protect data at rest (stored in the cloud) and data in transit (transferred over the network) from unauthorized access, modification, or deletion by malicious actors or accidental errors. Data encryption can also help organizations comply with legal, regulatory, and contractual requirements for data protection and privacy, such as GDPR, CCPA, and PCI DSS.

References:

•The Complexity Conundrum: Simplifying Data Security1

•Practical Data Security and Privacy for GDPR and CCPA2

Differences in regulatory requirements are the most important factor for a multinational organization to consider when developing its security policies and standards. This is because different countries or regions may have different laws, regulations, or standards that govern the protection of information and data, such as the General Data Protection Regulation (GDPR) in the European Union, the Health Insurance Portability and Accountability Act (HIPAA) in the United States, or the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada. A multinational organization must comply with the applicable regulatory requirements in each jurisdiction where it operates, or it may face legal, financial, or reputational risks. Therefore, the organization should develop its security policies and standards in a way that meets or exceeds the minimum regulatory requirements, and also aligns with its business objectives and risk appetite. According to the CRISC Review Manual 2022, one of the key elements of IT governance is to ensure compliance with external laws and regulations1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, differences in regulatory requirements is the correct answer to this question2.

Regional competitors’ policies and standards, ability to monitor and enforce compliance, and industry-standard templates are not the most important factors for a multinational organization to consider when developing its security policies and standards. These factors may be useful or relevant, but they are not as critical or mandatory as the differences in regulatory requirements. Regional competitors’ policies and standards may provide some insights or benchmarks, but they may not reflect the organization’s specific needs or risks. Ability to monitor and enforce compliance is an important aspect of implementing and maintaining security policies and standards, but it does not determine the content or scope of the policies and standards. Industry-standard templates may offer some guidance or best practices, but they may not cover all the regulatory requirements or the organization’s unique circumstances.

Obtaining a holistic view of IT strategy risk is the primary benefit of conducting a risk workshop using a top-down approach instead of a bottom-up approach, because it helps to identify and assess the risks that may affect the alignment and integration of IT with the organization’s objectives and strategy. A risk workshop is a collaborative and interactive method of conducting a risk assessment, where the risk practitioner facilitates a group discussion with the relevant stakeholders to identify, analyze, and evaluate the risks and their controls. A top-down approach is a method of conducting a risk workshop that starts from the high-level or strategic perspective, and then drills down to the lower-level or operational details. A bottom-up approach is a method of conducting a risk workshop that starts from the low-level or operational details, and then aggregates them to the higher-level or strategic perspective. A top-down approach can offer a holistic view of IT strategy risk, as it helps to understand the big picture and the interrelationships of the risks and their impacts across the organization. A bottom-up approach can offer a detailed view of specific project or process risk, as it helps to capture the granular and technical aspects of the risks and their controls. Therefore, obtaining a holistic view of IT strategy risk is the primary benefit of using a top-down approach, as it supports the strategic alignment and integration of IT with the organization. Identifying specific project risk, understanding risk associated with complex processes, and incorporating subject matter expertise are all possible benefits of conducting a risk workshop, but they are not the primary benefit of using a top-down approach, as they are more suitable for a bottom-up approach. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.2, page 87

Risk threshold exceptions are instances when a KRI exceeds or falls below a predefined level or point that triggers an action or a warning. An increase in the number of risk threshold exceptions indicates that the KRIs are not reflecting the current risk exposure or environment accurately or effectively. This may suggest that the KRIs are outdated, irrelevant, or poorly defined. Therefore, the KRIs should be revised to ensure that they are aligned with the organizational objectives, risk appetite, and risk management strategy.

References

•Key Risk Indicators: A Practical Guide | SafetyCulture

•Key Risk Indicators: Examples & Definitions - SolveXia

•Choosing and Using Key Risk Indicators - Institute of Risk Management

The introduction of a new product line is most likely to trigger the need to conduct a risk assessment. Here’s a detailed explanation:

Risk Assessment Triggers:

New Initiatives: New initiatives, such as the introduction of a new product line, significantly alter the business landscape. They introduce new processes, technologies, and potentially new regulatory requirements, all of which bring new risks that must be assessed.

Business Impact: A new product line can affect multiple areas of the business, including production, marketing, sales, and customer service. It can also impact the existing product portfolio and market position, requiring a thorough risk assessment to understand these impacts.

Comparison with Other Events:

Incident Resulting in Data Loss: While significant, an incident resulting in data loss is typically a reactive trigger for a specific security or forensic investigation rather than a comprehensive risk assessment.

Changes in Executive Management: Changes in executive management may necessitate a review of strategic risks but are less likely to trigger a comprehensive risk assessment compared to launching a new product.

Updates to the Information Security Policy: Updating the information security policy is an internal process that may not fundamentally alter the risk landscape like introducing a new product line.

Best Practices:

Comprehensive Planning: Before launching a new product, conduct a comprehensive risk assessment to identify potential risks, develop mitigation strategies, and ensure alignment with business objectives.

Stakeholder Involvement: Engage key stakeholders from various departments to provide insights and ensure all potential risks are considered.

CRISC Review Manual: Highlights the importance of conducting risk assessments in response to significant changes in the business environment, such as new product introductions.

ISACA Guidelines: Emphasize the need for risk assessments to ensure that new initiatives align with organizational risk appetite and tolerance.

References:

When a risk practitioner identifies an increasing trend of employees copying company information unrelated to their job functions to USB drives, the element of the risk register that should be updated is the risk likelihood. Here’s why:

Risk Likelihood:

Risk likelihood refers to the probability that a risk event will occur.

Observing an increasing trend of inappropriate behavior (such as copying sensitive information) indicates a higher probability of occurrence, thus increasing the risk likelihood.

Risk Impact:

While the impact of such actions could be significant, the increasing trend specifically affects the likelihood rather than the immediate impact.

The risk impact remains constant unless there is a change in the potential damage caused by the action.

Key Risk Indicator (KRI):

This observation might serve as a KRI, but the immediate action is to update the likelihood in the risk register, reflecting the increased probability.

Risk Appetite:

Risk appetite defines the level of risk an organization is willing to accept. This observation suggests a deviation but does not directly affect the risk appetite itself.

References:

The CRISC Review Manual emphasizes the importance of regularly updating the risk likelihood based on new observations and trends (CRISC Review Manual, Chapter 2: IT Risk Assessment, Section 2.9.1 Inherent Risk).

The second line of defense is responsible for challenging the risk decision making of the first line of defense, which is the business process owners and managers. The second line of defense also provides oversight, guidance, and support to the first line of defense in implementing and maintaining effective risk management practices. The second line of defense includes functions such as risk management, compliance, quality assurance, and internal audit. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.2: IT Risk Management Roles and Responsibilities, Page 14.

Determining Controls:

Acceptable Risk Level: The level of acceptable risk to the organization is the most important consideration because it directly influences the type and extent of controls implemented. Controls must be designed to keep risk within acceptable levels.

Risk Management Strategy: Aligning controls with the organization's risk appetite ensures that resources are used effectively and that critical information systems are adequately protected.

Comparison with Other Options:

Number of Threats: Important for understanding risk exposure but secondary to determining acceptable risk levels.

Available Budget: Budget constraints are important but should not compromise the implementation of necessary controls.

Number of Vulnerabilities: Identifying vulnerabilities is part of the risk assessment process, but controls are prioritized based on the acceptable risk level.

Best Practices:

Risk Assessment: Conduct thorough risk assessments to understand the potential impact of threats and vulnerabilities.

Control Effectiveness: Implement controls that are both cost-effective and capable of reducing risk to acceptable levels.

Continuous Monitoring: Regularly monitor and review controls to ensure they remain effective and aligned with the organization's risk tolerance.

CRISC Review Manual: Highlights the importance of aligning controls with the acceptable risk levels determined by the organization ​​.

ISACA Standards: Recommend focusing on acceptable risk levels to guide control implementation and ensure effective risk management .

References:

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

Using the risk management process will best ensure that controls adequately support business goals and objectives, as it involves identifying, assessing, responding, and monitoring the risks that may affect the achievement of the business goals and objectives, and designing and implementing controls to mitigate those risks. Enforcing strict disciplinary procedures in case of noncompliance, reviewing results of the annual company external audit, and adopting internationally accepted controls are also good practices, but they are not the best, as they do not necessarily align the controls with the business goals and objectives. References = CRISC Review Manual, 7th Edition, page 146.

The most important factor when identifying an organization’s risk exposure associated with IoT devices is visibility into all networked devices. This means having a comprehensive inventory of all the IoT devices connected to the organization’s network, as well as their configurations, functions, and security status. Visibility enables the organization to identify the potential threats and vulnerabilities that IoT devices pose, as well as the impact and likelihood of those risks. Visibility also helps the organization to monitor the behavior and performance of IoT devices, detect any anomalies or incidents, and respond accordingly. Without visibility, the organization may be unaware of the existence, location, or condition of some IoT devices, which could lead to undetected breaches, data loss, or operational disruptions. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.4: IT Risk Identification Methods and Techniques, Page 28; 8 Internet of Things Threats and Risks to Be Aware of - SecurityScorecard Blog.

The risk practitioner’s next course of action should be to review the contract and SLAs with the third-party cloud provider, as they define the roles, responsibilities, expectations, and obligations of both parties regarding the backup and recovery procedures. The contract and SLAs should specify the scope, frequency, quality, security, availability, and performance of the backup and recovery services, as well as the reporting, monitoring, auditing, and remediation mechanisms. The risk practitioner should ensure that the contract and SLAs are aligned with the organization’s business continuity and disaster recovery requirements, and that they provide sufficient assurance and accountability for the third-party provider.

References:

•ISACA, Risk and Information Systems Control Review Manual, 7th Edition, 2020, p. 2501

•ISACA, Cloud Computing: Business Benefits With Security, Governance and Assurance Perspectives, 2009, p. 142

•ISACA, Guidelines on outsourcing to cloud service providers, 2020, p. 63

 A change in the risk profile would be the most important information to communicate to stakeholders after an annual risk assessment is completed, as it indicates how the risk landscape of the organization has changed over time, and how it affects the achievement of the business goals and objectives. A decrease in threats, an increase in reported vulnerabilities, and an increase in identified risk scenarios are also important information, but they are not the most important, as they are specific aspects of the risk profile, and do not provide a holistic view of the risk exposure and appetite of the organization. References = CRISC Review Manual, 7th Edition, page 109.

 Risk appetite is the most important factor to consider first when creating a comprehensive IT risk register, as it defines the amount and type of risk that the organization is willing to accept in pursuit of its objectives, and guides the identification, assessment, response, and monitoring of the IT risks. The other options are not the most important factors, as they are more related to the resources, actions, or methods of the IT risk management, respectively, rather than the strategy or direction of the IT risk management. References = CRISC Review Manual, 7th Edition, page 109.

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

References:

•ISACA, Risk IT Framework, 2nd Edition, 2019, p. 751

•ISACA, Risk and Information Systems Control Review Manual, 7th Edition, 2020, p. 2122

 Understanding the Question:

The question asks what provides the best evidence that robust risk management practices are in place within an organization.

 Analyzing the Options:

A. Regularly updated risk management procedures: Important but not as comprehensive as a risk register.

B. A management-approved risk dashboard: Useful for reporting but not as comprehensive as a risk register.

C. A current control framework: Important but does not provide ongoing evidence of risk management practices.

D. A regularly updated risk register: Provides comprehensive and current information on risks, their status, and the effectiveness of risk management efforts.

 Detailed Explanation:

Risk Register: A regularly updated risk register reflects the organization's ongoing risk management activities. It includes details of identified risks, their assessments, mitigation strategies, and current status, providing a comprehensive view of the risk landscape.

Evidence of Practices: Keeping the risk register up-to-date demonstrates that the organization is actively monitoring and managing risks, making it a clear indicator of robust risk management practices.

References:

CRISC Review Manual, Chapter 3: Risk Response and Reporting, highlights the importance of maintaining an updated risk register as part of effective risk management practices​​.

Risk appetite is the best criterion to determine whether higher residual risk ratings in the risk register should be accepted, as it reflects the amount and type of risk that an organization is willing to take in pursuit of its objectives. Residual risk is the level of risk that remains after applying controls or other risk treatments. By comparing the residual risk ratings against the risk appetite, an organization can decide whether to accept, reduce, transfer, or avoid the risk. If the residual risk is within or below the risk appetite, the organization may accept the risk as tolerable. If the residual risk is above the risk appetite, the organization may not accept the risk as acceptable, and may seek further risk treatments or escalation.

References:

•ISACA, Risk IT Framework, 2nd Edition, 2019, p. 751

•ISACA, Risk and Information Systems Control Review Manual, 7th Edition, 2020, p. 2112

Preventive controls are the best types of controls to minimize the risk associated with a vulnerability, because they aim to avoid or reduce the occurrence of a threat or an exploit. Preventive controls can include physical, technical, or administrative measures, such as locks, firewalls, encryption, policies, training, or backup. Preventive controls can also involve eliminating or substituting the source of the vulnerability, such as outdated software or hardware.

References

•ISACA CRISC Review Manual, 7th Edition, Domain 3: Risk Response, Section 3.2.1: Control Types

•Hazard Controls - Princeton University

•Risk Control | Techniques and Importance of Risk Control - EDUCBA

Tracking the number of suspected malicious activities reported provides direct evidence of the policy’s effectiveness in detecting insider threats. This KPI aligns with Performance Metrics for Risk Mitigation.

The integrity of data should be the greatest concern for a risk practitioner upon learning of failures in a data migration activity, because it affects the accuracy, completeness, and consistency of the data that are transferred from one system or format to another. Data integrity is a property of data that ensures that the data are valid, reliable, and trustworthy, and that they have not been altered or corrupted by unauthorized or accidental means. Data migration is a process of moving or copying data from one system or format to another, usually as part of a system upgrade, consolidation, or transformation. Data migration can pose risks to the integrity of data, such as data loss, duplication, inconsistency, or corruption, due to factors such as incompatible formats, human errors, technical glitches, or malicious attacks. Therefore, the integrity of data should be the greatest concern, as it impacts the quality and usability of the data, and the performance and functionality of the system. The availability of test data, the cost overruns, and the system performance are all possible concerns for a risk practitioner, but they are not the greatest concern, as they do not directly affect the integrity of data. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158

Independent Assessment:

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

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

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

Comparison with Other Options:

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

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

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

Best Practices:

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

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

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

CRISC Review Manual: Recommends independent assessments as a best practice for validating control effectiveness and ensuring comprehensive risk management.

ISACA Standards: Support the use of independent assessments to provide objective and credible evaluations of control implementations.

References:

Requesting a formal risk acceptance sign-off is the most likely scenario when the residual risk in excess of the risk appetite cannot be mitigated, because it indicates that the organization is willing to tolerate a higher level of risk than it normally would, and that the risk owner has the authority and accountability to accept the risk and its consequences. Risk acceptance is a risk response strategy that involves acknowledging the existence of a risk and deciding not to take any action to reduce it. Risk acceptance is usually chosen when the cost or effort of mitigating the risk outweighs the potential benefits, or when no feasible mitigation options are available. Residual risk is the risk that remains after applying controls or mitigating factors. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Inherent risk, cancellation of an initiative, change of risk appetite, and constant residual risk are all possible scenarios that may affect the risk management process, but they are not the most likely to cause a risk practitioner to request a formal risk acceptance sign-off, as they do not necessarily involve a risk owner accepting a higher level of risk than the organization’s risk appetite. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.2, page 103

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

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

The primary consideration for determining recovery priorities in a disaster recovery situation is the impact of business disruption on the organization’s mission, objectives, and stakeholders. Business disruption can result in loss of revenue, reputation, customer satisfaction, market share, and competitive advantage. Therefore, the recovery priorities should be based on the criticality of the business processes and functions that support the organization’s value proposition and strategic goals. Data security (A), recovery costs (B), and recovery resource availability (D) are important factors, but they are secondary to the impact of business disruption. Data security should be ensured throughout the recovery process, but it does not determine the recovery order. Recovery costs should be balanced with the benefits of restoring the business operations, but they do not reflect the urgency of the recovery. Recovery resource availability should be assessed and allocated according to the recovery priorities, but it does not define the recovery sequence. (Risk and Information Systems Control Review Questions, Answers & Explanations Manual, 5th Edition, page 982)

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

References:

•ISACA, Risk and Information Systems Control Review Manual, 7th Edition, 2020, p. 2111

•ISACA, Practical Patch Management and Mitigation2

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

The first step in selecting a risk response after a penetration test reveals several vulnerabilities in a web-facing application is to assess the level of risk associated with the vulnerabilities, as it involves evaluating the likelihood and impact of the vulnerabilities being exploited, and comparing them with the risk tolerance and appetite of the organization. Correcting the vulnerabilities, developing a risk response action plan, and communicating the vulnerabilities are possible steps in selecting a risk response, but they are not the first step, as they require the prior knowledge of the risk level and the optimal risk response. References = CRISC Review Manual, 7th Edition, page 108.

Change management is the best way to prevent an unscheduled application of a patch, because it ensures that any changes to the IT environment are planned, approved, tested, and documented. Change management is a process that controls the implementation of changes to IT systems, applications, infrastructure, or processes. It aims to minimize the risk of disruption, errors, or failures caused by changes. Applying a patch is a type of change that may affect the security, functionality, or performance of an IT system or application. Therefore, applying a patch should follow the change management process and schedule, and avoid any unscheduled or unauthorized patching. Network-based access controls, compensating controls, and segregation of duties are all useful controls to protect the IT environment from unauthorized or malicious access, but they do not prevent an unscheduled application of a patch, as they do not address the change management process. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.4.2, page 211

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

 Understanding Reputational Risk:

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

 Mitigating Reputational Risk:

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

 Role of Public Relations:

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

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

 Monitoring and Awareness Training:

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

 Restricting Social Media:

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

 References:

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

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.

References:

ISACA CRISC Review Manual, Chapter 3, "Risk Response and Reporting", which highlights the importance of managing residual risk within the organization’s appetite and tolerance.

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

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

References:

•ISACA, IT Asset Valuation, Risk Assessment and Control Implementation Model1

•ISACA, Data Classification: What It Is, Why You Should Care and How to Perform It2

Senior management’s role in the RACI model when tasked with reviewing monthly status reports provided by risk owners is accountable, as it means that they have the ultimate authority and responsibility to approve or reject the risk management decisions and actions, and to oversee the risk management performance and outcomes. The other options are not the correct roles, as they imply different levels or types of involvement or participation in the risk management process, such as being informed, responsible, or consulted, respectively. References = CRISC Review Manual, 7th Edition, page 101.

Role of Internal Audit:

Independent Assurance: Internal audit provides an independent assessment of the effectiveness of the risk management program, offering assurance to the board of directors and senior management.

Objective Evaluation: They evaluate whether the risk management processes are properly designed and operating effectively.

Responsibilities of Internal Audit:

Review Risk Management Implementation: Assess how well the risk management program has been implemented and whether it meets the organization's goals.

Compliance Check: Ensure that the risk management program complies with relevant regulations and standards.

Reporting: Provide detailed reports to the board and senior management on the effectiveness and efficiency of the risk management program.

Comparison with Other Options:

Risk Management: While involved in the implementation, they are not independent and therefore cannot provide objective assurance.

Business Units: They are responsible for managing risks but not for providing independent assurance.

External Audit: While they provide assurance, their scope is generally broader and less frequent compared to the continuous oversight by internal audit.

Best Practices:

Regular Audits: Conduct regular audits to ensure continuous improvement and alignment with organizational goals.

Stakeholder Communication: Maintain clear communication channels between internal audit, the board, and senior management.

CRISC Review Manual: Emphasizes the importance of internal audit in providing assurance to the board and senior management on the effectiveness of the risk management program​​.

ISACA Standards: Highlight the critical role of internal audit in risk governance and compliance​​.

References:

Cybersecurity incident response procedures are the plans and actions that an organization takes to respond to and recover from a cybersecurity attack. They include identifying the source and scope of the attack, containing and eradicating the threat, restoring normal operations, and analyzing the root cause and lessons learned. Reviewing cybersecurity incident response procedures is the most effective course of action when the probability of a successful cybersecurity attack is increasing and the potential loss could exceed the organization’s risk appetite, as it helps to prepare the organization for minimizing the impact and duration of the attack, as well as improving the resilience and security posture of the organization.

Policies and standards are important components of the risk management process, as they define the objectives, expectations, and requirements for managing risk within the organization. Policies and standards are also the means by which senior management formally approves and communicates the risk practices to the stakeholders, ensuring that the risk management process is aligned with the organizational strategy, culture, and values. Policies and standards also provide the authority and accountability for the risk management roles and responsibilities, as well as the criteria and metrics for measuring and reporting risk performance.

The risk appetite set by senior management drives decisions on acceptable risk levels, including noncompliance risks. It reflects the enterprise's strategic tolerance and risk management philosophy, as described in Governance and Compliance Principles.

A KRI is a measure used by an organization to measure the health of a particular risk. In this case, the risk practitioner is developing a metric to measure the risk associated with security threats that were not identified by antivirus software12.

References

1Standardized Scoring for Security and Risk Metrics - ISACA

2Key Performance Indicators for Security Governance, Part 1 - ISACA

Risk owner approval ensures accountability and alignment of the changes with the enterprise’s risk management strategy. It reflects adherence to the principles of Risk Ownership and Governance, critical for maintaining control over mitigation activities.

The greatest benefit of having a mature enterprise architecture (EA) in place is efficient operations, as EA provides a holistic view of the organization’s business processes, information systems, and technology infrastructure, and enables alignment, integration, and optimization of these components. Standards-based policies, audit readiness, and regulatory compliance are also benefits of EA, but they are not the greatest benefit. References = CRISC Review Manual, 7th Edition, page 145.

When proposing a risk acceptance framework for an organization, the most important consideration for the risk practitioner is to clearly define the individuals or roles authorized to approve risk acceptance. This ensures that the process is controlled, accountable, and aligned with the organization’s risk management policies.

Risk Acceptance Framework:

Purpose: A risk acceptance framework provides structured criteria and processes for deciding whether to accept a risk. This includes evaluating the risk against the organization's risk appetite and tolerance.

Authorization: Identifying who has the authority to accept risk is critical. This ensures that only those with the appropriate knowledge, experience, and understanding of the organization's risk appetite and strategic objectives can make these decisions.

Importance of Authorized Individuals:

Accountability: Clearly defined roles for risk acceptance ensure accountability. It is essential that those making the decisions are accountable for the outcomes and understand the potential impact of their decisions.

Consistency: By defining specific roles, the organization ensures consistency in risk acceptance decisions, reducing the likelihood of ad-hoc or inconsistent risk management practices.

Alignment with Strategy: Authorized individuals are typically those who understand the strategic objectives of the organization, ensuring that risk acceptance aligns with these goals.

References:

The CRISC Review Manual emphasizes that risk acceptance must be formally authorized by individuals with the appropriate level of authority and responsibility within the organization​​.

According to ISACA’s guidelines, effective risk management frameworks must include clear definitions of who can accept risks to ensure proper oversight and alignment with organizational goals .

A multinational organization that operates in different countries should be aware of the legal and regulatory requirements of each jurisdiction. Some countries may have strict privacy laws that prohibit or limit the collection and use of personal information of employees, such as their criminal records, credit history, or medical conditions. Therefore, implementing standard background checks for all new employees may violate the laws in some countries and expose the organization to legal risks and reputational damage. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.4: IT Risk Factors, page 31.

 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 primary risk management responsibility of the first line of defense is to implement risk treatment plans. The first line of defense is the operational management and staff who are directly involved in the execution of the business activities and processes. They are responsible for identifying, assessing, and responding to the risks that affect their objectives and performance. Implementing risk treatment plans means applying the appropriate risk response strategies and actions to address the identified risks, and monitoring and reporting the results and outcomes of the risk treatment. The other options are not as primary as implementing risk treatment plans, as they are related to the validation, establishment, or review of the risk management process, not the execution of the risk management process. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Management Process, page 15.

 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 primary purpose of using key risk indicators (KRIs) to illustrate changes in the risk profile is to communicate risk trends to stakeholders. KRIs are metrics that provide an early warning of increasing risk exposure in various areas of the organization. By using KRIs to illustrate changes in the risk profile, the organization can communicate the risk trends to the stakeholders, such as the board, senior management, business units, and external parties, and enable them to take appropriate actions to manage the risk. Assigning ownership of emerging risk scenarios, highlighting noncompliance with the risk policy, and identifying threats to emerging technologies are other possible purposes, but they are not as important as communicating risk trends to stakeholders. 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 most useful information to determine mitigating controls when a core data center went offline abruptly for several hours affecting many transactions across multiple locations is the root cause analysis. Root cause analysis is a technique that identifies the underlying factors or reasons that caused the problem or incident. Root cause analysis can help to understand the nature, scope, and impact of the problem or incident, and to prevent or reduce the recurrence or severity of the problem or incident in the future. Root cause analysis can also help to identify and prioritize the appropriate mitigating controls that address the root causes of the problem or incident. The other options are not as useful as root cause analysis, as they are related to the investigation, evaluation, or measurement of the problem or incident, not the resolution or prevention of the problem or incident. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.

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.

Risk appetite should be primarily driven by stakeholder requirements. Stakeholder requirements are the needs and expectations of the internal and external parties that have an interest or influence in the organization’s objectives or operations, such as the board, management, employees, customers, regulators, investors, etc. Risk appetite is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives. Risk appetite should be driven by stakeholder requirements, because they reflect the organization’s mission, vision, values, and strategy, and they provide the basis and direction for the organization’s risk management activities. Risk appetite should also be aligned and communicated with stakeholder requirements, because they affect the organization’s performance and reputation, and they require the organization’s accountability and transparency. The other options are not the primary drivers of risk appetite, although they may be considered or influenced by risk appetite. Enterprise security architecture roadmap, legal and regulatory requirements, and business impact analysis (BIA) are all factors that could affect the organization’s risk profile, risk assessment, or risk response, but they do not necessarily determine or reflect the organization’s risk appetite. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.1, page 2-23.

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 potential scenario that presents the greatest risk to an organization when implementing a new database technology is that data may not be recoverable due to system failures. Data recovery is the process of restoring or retrieving data that has been lost, corrupted, or damaged due to system failures, such as hardware malfunctions, software errors, power outages, or natural disasters. Data recovery is essential for the continuity and integrity of the organization’s operations and information, as data is one of the most valuable and critical assets of the organization. Data recovery is also important for the compliance and accountability of the organization, as data may be subject to legal or regulatory requirements, such as retention, backup, or audit. Data recovery may be challenging or impossible when implementing a new database technology, because the new technology may not be compatible or interoperable with the existing systems, applications, or backups, or because the new technology may not have adequate or tested recovery mechanisms or procedures. Data recovery may also be costly or time-consuming when implementing a new database technology, because the new technology may require additional or specialized resources, tools, or expertise, or because the new technology may involve large or complex data sets or structures. The other options are not as risky as data recovery, although they may also pose some difficulties or limitations for the new database technology implementation. The organization may not have a sufficient number of skilled resources, application and data migration cost for backups may exceed budget, and the database system may not be scalable in the future are all factors that could affect the feasibility and sustainability of the new database technology, but they do not directly affect the continuity and integrity of the organization’s operations and information. References = 2

The next step to determine the risk exposure after a vulnerability assessment of a web-facing application is to perform a penetration test. A penetration test is a simulated attack on the application to exploit the identified vulnerabilities and measure the potential impact and likelihood of a successful breach. A penetration test can help to quantify and prioritize the risks associated with the web-facing application. Code review, gap assessment, and business impact analysis (BIA) are other possible steps, but they are not as effective as a penetration test. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 7; CRISC Review Manual, 6th Edition, page 202.

A legacy system is an old or outdated IT system that is still in use by an organization. A legacy system may pose various risks to the organization, such as security vulnerabilities, compatibility issues, performance degradation, maintenance challenges, etc. When an internal audit report reveals that a legacy system is no longer supported by the vendor or the manufacturer, the risk practitioner’s most important action before recommending a risk response is to assess the potential impact and cost of mitigation, which means to estimate the consequences and expenses of the risk event if the legacy system fails or malfunctions. By assessing the potential impact and cost of mitigation, the risk practitioner can evaluate the risk exposure and determine the appropriate risk response, such as accepting, avoiding, transferring, or reducing the risk. References = 4

The most important factor for an organization to consider when developing its IT strategy is the organizational goals and objectives. The organizational goals and objectives are the statements that define the purpose, direction, and desired outcomes of the organization. The organizational goals and objectives help to align the IT strategy with the organization’s mission, vision, values, and strategy, and to ensure that the IT strategy supports and enables the organization’s performance and improvement. The organizational goals and objectives also help to communicate and coordinate the IT strategy with the organization’s stakeholders, such as the board, management, business units, and IT functions, and to facilitate the IT decision-making and reporting processes. The other options are not as important as the organizational goals and objectives, although they may be related to the IT strategy. IT goals and objectives, the organization’s risk appetite statement, and legal and regulatory requirements are all factors that could affect the feasibility and sustainability of the IT strategy, but they do not necessarily reflect or influence the organization’s purpose, direction, and desired outcomes. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.1, page 1-9.

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.

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.

 The control environment is the set of standards, processes, and structures that provide the basis for carrying out internal control across the organization. The control environment is most effective when the controls perform as intended, meaning that they achieve their objectives, mitigate the risks, and comply with the policies and regulations. The other options are desirable attributes of the controls, but they do not necessarily indicate the effectiveness of the control environment. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: IT Control Assessment, page 69.

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.

To ensure that new IT policies address the enterprise’s requirements, it is important to involve the business owners who are the primary stakeholders of the IT services and processes. Business owners can provide valuable input on the business objectives, risks, and expectations that the IT policies should align with and support. By involving business owners in the policy development process, the IT policies will be more relevant, realistic, and acceptable to the business units. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.

The best way to provide assurance of the effectiveness of vendor security controls is to require independent control assessments. Independent control assessments are evaluations of the vendor’s security controls by a third-party auditor or assessor, such as an external auditor, a certification body, or a testing laboratory. Independent control assessments provide an objective and unbiased opinion on the adequacy and performance of the vendor’s security controls, as well as the compliance with relevant standards and regulations. Independent control assessments can also provide evidence and assurance to the customers of the vendor’s security posture and capabilities. Reviewing vendor control self-assessments (CSA), vendor service level agreement (SLA) metrics, or vendor references from existing customers are not as reliable or credible as independent control assessments, because they may be biased, incomplete, or outdated.

When assessing the potential risk exposure of a loss event involving personal data, the most important factor to determine is the composition and number of records in the information asset. The composition refers to the type and sensitivity of the personal data, such as name, address, phone number, email, social security number, health information, financial information, etc. The number of records refers to the quantity and scope of the personal data that is affected by the loss event. The composition and number of records in the information asset determine the severity and impact of the loss event, as they indicate the extent of the harm and damage that can be caused to the data subjects, the organization, and other stakeholders. The composition and number of records in the information asset also influence the cost of the incident response activities, the level of the regulatory fines, and the duration of the incident containment and recovery. References = CRISC Review Manual, 7th Edition, page 159.

 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 way to enable a risk-based decision when considering the use of an emerging technology for data processing is to perform a gap analysis. A gap analysis is a technique that compares the current state and the desired state of a process, system, or capability, and identifies the gaps or differences between them. A gap analysis can help to evaluate the benefits, costs, risks, and opportunities of using an emerging technology for data processing, and to determine the feasibility, suitability, and readiness of adopting the emerging technology. The other options are not as helpful as a gap analysis, as they are related to the specific aspects or components of the data processing, not the overall assessment and comparison of the current and desired state of the data processing. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.2: IT Risk Identification Methods, page 19.

Information asset classification is the process of assigning a level of sensitivity and criticality to an information asset based on its value, importance, and impact to the organization. The major reason to classify information assets is to determine their sensitivity and criticality, which are the measures of how confidential, proprietary, or sensitive the information is, and how essential, urgent, or time-sensitive the information is for the business operations. By determining the sensitivity and criticality of information assets, the organization can prioritize the protection and recovery of the information assets, implement the appropriate security controls and safeguards, comply with the regulatory and contractual requirements, and manage the information lifecycle and disposal. References = CRISC Review Manual, 7th Edition, page 74.

 The primary reason to report the information about the new risk scenarios identified after the implementation of Internet of Things (IoT) devices to risk owners is to confirm the impact to the risk profile. The risk profile is a summary of the level and nature of the risks that the organization faces or may face in the future. The risk profile reflects the risk appetite, tolerance, and capacity of the organization, and guides the risk management decisions and actions. The implementation of IoT devices may introduce new risks or increase the likelihood or impact of existing risks, such as data privacy, security, or interoperability issues. Therefore, the information about the new risk scenarios should be reported to the risk owners, who have the authority and responsibility for managing the risks and their responses, to confirm the impact to the risk profile and to determine the appropriate risk treatment plans. The other options are not as primary as confirming the impact to the risk profile, as they are related to the reevaluation, mitigation, or recommendation of the IoT devices, not the confirmation or assessment of the risk profile. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.2: IT Risk Register, page 19.

The primary reason to perform periodic vendor risk assessments is to monitor the vendor’s control effectiveness. A vendor risk assessment is a process of evaluating the risks associated with outsourcing a service or function to a third-party vendor. The assessment should be performed periodically to ensure that the vendor is complying with the contractual obligations, service level agreements, and security standards, and that the vendor’s controls are operating effectively to mitigate the risks. Providing input to the organization’s risk appetite, verifying the vendor’s ongoing financial viability, and assessing the vendor’s risk mitigation plans are other possible reasons, but they are not as important as monitoring the vendor’s control effectiveness. 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 best course of action for a risk practitioner when senior management is deciding whether to share confidential data with the organization’s business partners is to submit a report to senior management containing the possible risk and suggested mitigation plans. A risk practitioner is a professional who is responsible for identifying, assessing, and managing the risks that could affect the organization’s objectives or operations. A risk practitioner should provide senior management with the information and guidance they need to make informed and effective decisions regarding the sharing of confidential data. A risk practitioner should submit a report that outlines the possible risk scenarios, such as data loss, theft, or compromise, and their likelihood and impact. A risk practitioner should also suggest mitigation plans, such as encryption, access control, monitoring, or contractual agreements, that could reduce or transfer the risk. The other options are not as effective as submitting a report containing the possible risk and suggested mitigation plans, although they may be part of or derived from the report. Designing controls to encrypt the data to be shared, developing a project plan for classification of the data, and summarizing the data protection and privacy legislation are all activities or outcomes that could be included or referenced in the report, but they are not the best course of action for a risk practitioner. References = CISA Review Manual, 27th Edition, Chapter 2, Section 2.3.1, page 2-23

The best indicator of executive management’s support for IT risk mitigation efforts is the number of executives attending IT security awareness training. This shows that the executives are committed to enhancing their knowledge and skills on IT security issues, and that they are setting a positive example for the rest of the organization. The number of stakeholders involved in IT risk identification workshops, the percentage of corporate budget allocated to IT risk activities, and the percentage of incidents presented to the board are other possible indicators, but they are not as strong as the number of executives attending IT security awareness training. 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 best way to mitigate an identified risk scenario is to execute a risk response plan. A risk response plan is a document that describes the actions and resources that are needed to address the risk scenario. A risk response plan can include one or more of the following strategies: avoid, transfer, mitigate, accept, or exploit. By executing a risk response plan, the organization can reduce the likelihood and/or impact of the risk scenario, or take advantage of the opportunities that the risk scenario may present. The other options are not as effective as executing a risk response plan, as they are related to the awareness, assessment, or monitoring of the risk scenario, not the actual treatment of the risk scenario. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.2: IT Risk Response Options, page 133.

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. 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. When an information security audit identified a risk resulting from the failure of an automated control, the person who is responsible for ensuring the risk register is updated accordingly is the control owner. The control owner should update the risk register with the information about the failed control, such as the cause, consequence, status, and action plan. The control owner should also monitor the performance and compliance of the control, and recommend any improvements or adjustments as needed.

 Risk appetite is the broad-based amount of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite reflects the level of risk that the organization is prepared to take to achieve its strategic goals, and provides guidance and boundaries for the risk management activities and decisions. To define the risk management strategy, which is the plan and approach for managing the risks that may affect the achievement of the organization’s objectives, the factor that must be set by the board of directors is the risk appetite. The board of directors is the highest governing body of the organization, and has the ultimate responsibility and authority for setting the direction and oversight of the organization. By setting the risk appetite, the board of directors can communicate its expectations and preferences for the risk exposure and performance of the organization, and ensure alignment with the business objectives and strategies. References = 3

Risk scenario development is a process that involves identifying and describing the potential risk events that can affect an organization’s objectives and operations. Risk scenario development requires the input and participation of various stakeholders, such as the management, the staff, the customers, the suppliers, the regulators, and the competitors. The primary benefit of stakeholder involvement in risk scenario development is that it increases the awareness of emerging business threats, meaning that it helps to identify and anticipate the new or changing sources and impacts of risk that may not be captured by the existing risk assessment methods or tools. Stakeholder involvement can also help to improve the quality and completeness of the risk scenarios, as well as to enhance the communication and collaboration among the stakeholders regarding the risk management process. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1.1, p. 66-67

The most important concern when assigning multiple risk owners for an identified risk is that accountability may not be clearly defined. Accountability is the obligation of an individual or group to take responsibility for the risk and its associated actions and outcomes. If multiple risk owners are assigned for the same risk, there may be confusion, conflict, or overlap in their roles and responsibilities, and they may not be held accountable for the risk management performance. Risk ratings being inconsistently applied, different risk taxonomies being used, and mitigation efforts being duplicated are other possible concerns, but they are not as important as accountability not being clearly defined. 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 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.

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 the appropriate risk responses to ensure the continuity of operations. References = CRISC Review Manual, 7th Edition, page 66.

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 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 results in 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 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

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

 Performing a gap analysis is the best recommendation for a risk practitioner upon learning of an updated cybersecurity regulation that could impact the organization. A gap analysis can help identify the current state of compliance, the desired state of compliance, and the actions needed to achieve compliance. Conducting system testing, implementing compensating controls, and updating security policies are possible actions that may result from the gap analysis, but they are not the best initial recommendation. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 1; CRISC Review Manual, 6th Edition, page 143.

The most important element to update when an organization’s risk appetite changes is the key risk indicators (KRIs). KRIs are metrics that provide an early warning of increasing risk exposure in various areas of the organization. They help to monitor the level of risk and to trigger risk responses when the risk exceeds the risk appetite. The risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk reporting methodology, key performance indicators (KPIs), and risk taxonomy are other elements that may be updated, but they are not as important as the KRIs. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

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.

The next thing that the risk practitioner should do from a risk management perspective when the organization is considering the adoption of an aggressive business strategy to achieve desired growth is to identify new threats resulting from the new business strategy. A threat is a potential cause of an unwanted incident that may affect the achievement of the objectives. An aggressive business strategy is a strategy that involves pursuing high-risk, high-reward opportunities or initiatives to gain a competitive advantage or a significant market share. An aggressive business strategy may introduce new threats or increase the likelihood or impact of existing threats, such as market volatility, regulatory changes, customer dissatisfaction, or competitor retaliation. Therefore, the risk practitioner should identify the new threats resulting from the new business strategy, and assess their potential consequences and implications for the organization. The other options are not as immediate as identifying new threats resulting from the new business strategy, as they are related to the update, information, or measurement of the risk management process, not the identification or analysis of the risk. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.

 The business owner is the person who is responsible for approval when a change in an application system is ready for release to production. The business owner is the person who has the authority and accountability for the business process or function that is supported by the application system. The business owner should approve the change to ensure that it meets the business requirements, objectives, and expectations, and that it does not introduce any adverse impacts or risks to the business operations. The information security officer, the IT risk manager, and the chief risk officer (CRO) are not responsible for the approval of the change, although they may provide input, feedback, or oversight. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.1, page 3-32.

 The greatest benefit of identifying appropriate risk owners is that accountability is established for risk treatment decisions. Risk owners are the individuals or groups who are responsible and accountable for managing a specific risk and its associated actions and outcomes. By identifying appropriate risk owners, the organization can ensure that the risk treatment decisions are made by the people who have the authority, knowledge, and interest in the risk. Stakeholders being consulted, risk owners being informed, and responsibility being established are other possible benefits, but they are not as great as accountability being established. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.

Key risk indicators (KRIs) are metrics that provide an early warning of increasing risk exposure in various areas of the organization. They help to monitor changes in the level of risk and enable timely actions to mitigate the risk. The most useful information for developing KRIs is the possible causes of materialized risk, which are the factors or events that trigger or contribute to the occurrence of a risk. By identifying the possible causes of materialized risk, an organization can design KRIs that measure the likelihood and impact of the risk, and alert the management when the risk exceeds the acceptable level. References = CRISC Review Manual, 7th Edition, page 101.

The most important information to review from the acquired company to facilitate the task of updating the organization’s IT risk profile is the risk assessment and risk register. The risk assessment is a process of identifying, analyzing, and evaluating the IT risks of the acquired company. The risk register is a document that records the details of the IT risks, such as their sources, causes, consequences, likelihood, impact, and responses. By reviewing the risk assessment and risk register, the risk practitioner can gain a comprehensive and accurate understanding of the IT risk profile of the acquired company, and integrate it with the IT risk profile of the acquiring organization. Internal and external audit reports, risk disclosures in financial statements, and business objectives and strategies are other possible sources of information, but they are not as important as the risk assessment and risk register. 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 most important objective from a cost perspective for considering aggregated risk responses in an organization is to address more than one risk response. Aggregated risk responses are risk responses that can affect multiple risks or objectives simultaneously. By addressing more than one risk response, the organization can achieve cost efficiency and effectiveness in risk management. Prioritizing risk response options, reducing likelihood, and reducing impact are other possible objectives, but they are not as important from a cost perspective as addressing more than one risk response. 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 software version is the component of a software inventory that best enables the identification and mitigation of known vulnerabilities. The software version is the specific release or update of a software product that has a unique identifier, such as a number or a name. The software version indicates the features, functions, and security patches that are included in the software product. By knowing the software version, the organization can compare it with the latest available version and identify any missing or outdated security fixes. The organization can then mitigate the known vulnerabilities by updating or upgrading the software to the latest version. The other components of a software inventory, such as the assigned software manager, the software support contract expiration, and the software licensing information, are not as directly related to the identification and mitigation of known vulnerabilities, although they may provide some contextual or administrative information. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.2, page 2-25.

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

The best approach for selecting controls to minimize risk is to perform a risk assessment. A risk assessment is a process that identifies, analyzes, and evaluates the risks that could affect the organization’s objectives or operations. A risk assessment helps to determine the likelihood and impact of the risks, and to prioritize them based on their severity and relevance. A risk assessment also helps to select the most appropriate and effective controls to minimize the risks, such as avoiding, reducing, transferring, or accepting the risks. A risk assessment is the best approach for selecting controls, because it helps to align the controls with the organization’s risk profile, risk appetite, and risk objectives, and to ensure that the controls are adequate, suitable, and cost-effective. The other options are not the best approach for selecting controls, although they may be part of or derived from the risk assessment. Industry best practice review, cost-benefit analysis, and control-effectiveness evaluation are all activities that can help to support or improve the control selection, but they are not the best approach for selecting controls. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

The HR manager is the person or entity that has the authority and responsibility to collect, process, and protect the personal data of the employees in the organization. The HR manager helps to manage the employee personal data, because they help to establish and enforce the data policies and standards for the employees, and to comply with the legal and regulatory requirements, such as the GDPR. The HR manager also helps to monitor and report on the data performance and compliance for the employees, and to identify and address any issues or gaps in the data management activities. The other options are not the best person to manage the employee personal data, although they may be involved in the process. System administrator, data privacy manager, and compliance manager are all examples of roles or functions that can help to support or implement the data management activities, but they do not necessarily have the authority or responsibility to collect, process, or protect the employee personal data

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.

 A risk heat map is a graphical tool that displays the risk events in a matrix based on their likelihood and impact. Risk events that are coded with the same color will have a similar risk likelihood, which is the probability or frequency of occurrence of a risk event. Risk score, risk impact, and risk response are other possible attributes of risk events, but they are not represented by the color coding in a risk heat map. 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 primary objective of collecting information and reviewing documentation when performing periodic risk analysis is to identify new or emerging risk issues that may affect the enterprise’s objectives, processes, or resources. This helps to update the risk profile and prioritize the risk responses accordingly. Satisfying audit requirements, surveying and analyzing historical risk data, and understanding internal and external threat agents are secondary objectives that support the primary objective of risk identification. References = Risk IT Framework, 2nd Edition, page 22; CRISC Review Manual, 6th Edition, page 64.

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 in the 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.

The most helpful input to develop risk scenarios associated with hosting an organization’s key IT applications in a cloud environment is conducting a risk workshop with key stakeholders. A risk workshop is a facilitated session that involves brainstorming, discussing, and analyzing the potential risks and opportunities related to a specific topic or project. A risk workshop helps to identify and prioritize the most relevant and significant risk scenarios, as well as to explore the possible causes, impacts, and responses. A risk workshop also helps to engage and align the key stakeholders, such as the business owners, IT managers, cloud providers, and risk experts, and to leverage their knowledge, experience, and perspectives. The other options are not as helpful as conducting a risk workshop, although they may provide some input or information for the risk scenario development. Reviewing the results of independent audits, performing a site visit to the cloud provider’s data center, and performing a due diligence review are all activities that can help to assess the current state and performance of the cloud environment, but they do not necessarily generate or evaluate the risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

The completion of a project for implementing a new control would most likely require a risk practitioner to update the risk register. The risk register is a document that records the identified risks, their analysis, and their responses. The completion of a project for implementing a new control means that a risk response has been executed and a new control has been established. This may affect the likelihood and/or impact of the related risks, and the residual risk level. Therefore, the risk practitioner should update the risk register to reflect the current status and outcome of the risk response and the new control. The other options are not as likely to require a risk practitioner to update the risk register, as they are related to the reporting, planning, or assessment of the risks or the controls, not the implementation or completion of the risk response or the new control. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.

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 primary reason an organization should include background checks on roles with elevated access to production as part of its hiring process is to reduce internal threats. Internal threats are the risks that originate from within the organization, such as employees, contractors, or partners. Roles with elevated access to production have the privilege and ability to access, modify, or delete sensitive or critical data and systems. If these roles are assigned to individuals who have malicious intent, criminal records, or conflicts of interest, they may pose a significant threat to the organization’s security, integrity, and availability. By conducting background checks, the organization can verify the identity, credentials, and history of the candidates, and prevent or minimize the possibility of hiring untrustworthy or unsuitable individuals. The other options are not as important as reducing internal threats, as they are related to the outcomes, impacts, or requirements of the roles with elevated access to production, not the reasons for conducting background checks. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.