Exactprep CRISC Questions

The primary reason to implement a formalized risk taxonomy is to reduce subjectivity in risk management, as it provides a common and consistent language and structure for identifying, classifying, and reporting risks, and facilitates the comparison and aggregation of risks across the organization. The other options are not the primary reasons, as they are more related to the outcomes, benefits, or drivers of risk management, respectively, rather than the reason for risk management. References = CRISC Review Manual, 7th Edition, page 100.

 The ultimate goal of conducting a privacy impact analysis (PIA) is to identify gaps in data protection controls, as it involves assessing the privacy risks and impacts of collecting, using, storing, and disclosing personally identifiable information (PII), and determining the adequacy and effectiveness of the existing or proposed controls to mitigate those risks and impacts. Developing a customer notification plan, identifying PII, and determining gaps in data identification processes are possible steps or outcomes of conducting a PIA, but they are not the ultimate goal, as they do not address the root cause or solution of the privacy issues. References = CRISC Review Manual, 7th Edition, page 155.

The first course of action for the risk practitioner when identifying ineffective controls is to determine whether the impact of the control failure is outside the risk appetite of the organization. The risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. If the impact is within the risk appetite, the risk practitioner may decide to accept the risk or monitor the situation. If the impact is outside the risk appetite, the risk practitioner may need to escalate the issue, report the ineffective control, request a formal acceptance of risk, or deploy a compensating control.

References: The answer is based on the following sources:

•CRISC Review Manual, 7th Edition, Chapter 3: Risk Response and Reporting, pages 149-1501

•CRISC Review Questions, Answers & Explanations Database, 12 Month Subscription, Question ID: QID-10042

•Effective Risk Management Strategies | CRISC Exam Preparation3

The percentage of projects introduced into production without high-risk issues is the most important measure of the effectiveness of risk management in project implementation, as it reflects the ability of risk management to ensure that the project deliverables meet the quality, functionality, and security requirements, and do not introduce unacceptable risks to the organization. The percentage of projects having the risk register updated regularly, having key risk indicators (KRIs) established to measure risk, or having an action plan to remediate overdue issues are not the most important measures, as they are more related to the process, performance, or compliance of risk management, rather than the outcome or value of risk management. References = CRISC Review Manual, 7th Edition, page 110.