CRISC Exam Results

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