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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 This may suggest that the KRIs are outdated, irrelevant, or poorly defined.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).