IT-Risk-Fundamentals Exam Dumps : IT Risk Fundamentals Certificate Exam

 Setting KPIs:

A Key Performance Indicator (KPI) should be set at a level that allows for early detection and response to deviations from desired performance levels.

In this case, management wants to be alerted when error rates meet or exceed 4%, even though the acceptable limit is 5%.

 Alert Threshold:

Setting the KPI at 4% ensures that management receives timely alerts before reaching the unacceptable error rate of 5%.

This approach enables proactive management and correction of processes to maintain error rates within acceptable limits.

 References:

ISA 315 (Revised 2019), Anlage 5 discusses the importance of monitoring and setting appropriate thresholds for performance and risk indicators to manage and mitigate risks effectively​​.

The objective of a frequency analysis is to determine how often a particular risk scenario might be expected to occur during a specified period of time. Here’s the explanation:

To Determine How Often Risk Mitigation Strategies Should Be Evaluated and Updated Within a Specific Timeframe: This pertains to the management and updating of mitigation strategies, not the core purpose of frequency analysis.

To Determine How Many Risk Scenarios Will Impact Business Objectives Over a Given Period of Time: This relates to impact analysis rather than frequency analysis. Frequency analysis focuses on the likelihood of specific events.

To Determine How Often a Particular Risk Scenario Might Be Expected to Occur During a Specified Period of Time: This is the primary objective of frequency analysis. It involves calculating the probability of specific risk events occurring within a certain timeframe, helping organizations understand and prepare for potential occurrences.

Therefore, the main objective of frequency analysis is to determine the expected occurrence rate of specific risk scenarios within a given period.

References:

ISA 315 Anlage 5 and 6: Detailed guidelines on risk assessment and analysis methodologies​​​​.

ISO-27001 and GoBD standards for risk management and business impact analysis​​​​.

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

By moving its data center from a flood-prone area to one that is not in a flood zone, the organization has chosen a risk avoidance strategy.

Risk Response Strategies Overview:

Risk Acceptance: Choosing to accept the risk without taking any action.

Risk Avoidance: Taking action to completely avoid the risk.

Risk Mitigation: Implementing measures to reduce the likelihood or impact of the risk.

Risk Transfer: Shifting the risk to another party (e.g., through insurance).

Explanation of Risk Avoidance:

Risk avoidance involves changing plans to circumvent the risk entirely.

In this case, relocating the data center to an area not prone to flooding eliminates the risk of flood-related disruptions.

References:

ISA 315 (Revised 2019), Anlage 6 discusses various risk response strategies and emphasizes the importance of taking actions to avoid risks when feasible​​.