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 The business application owner should have the authority to accept the associated risk, because they are responsible for the performance and outcomes of the critical application, and they understand the business requirements, expectations, and impact of the application. The business application owner can also evaluate the trade-offs between the potential benefits and costs of the application, and the potential risks and consequences of a disruption or failure of the application. The business application owner can also communicate and justify their risk acceptance 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 have the authority to accept the associated risk. The business continuity director is responsible for overseeing the planning and execution of the business continuity strategy, which includes ensuring the availability and resilience of the critical business processes and applications. However, they are not the owner of the application, and they may not have the full knowledge or authority to accept the risk on behalf of the business. The disaster recovery manager is responsible for managing the recovery and restoration of the IT systems and applications in the event of a disaster or disruption. However, they are not the owner of the application, and they may not have the full knowledge or authority to accept the risk on behalf of the business. The data center manager is responsible for managing the operation and maintenance of the data center infrastructure, which includes providing the physical and environmental security, power, cooling, and network connectivity for the IT systems and applications. However, they are not the owner of the application, and they may not have the full knowledge or authority to accept the risk on behalf of the business. References = Risk IT Framework, ISACA, 2022, p. 181

The risk owner is the person who has the authority and accountability to manage a specific risk and its associated controls. The risk owner is also responsible for ensuring that the risk is within the acceptable level and that the risk response is effective and efficient. In this case, the risk owner is also the owner of the business service that depends on the managed hosting service. Therefore, the risk owner should be notified of the new information about the flood risk first, as they have the most interest and influence on the risk and its impact on the business objectives. The risk owner can then decide on the appropriate actions to take, such as reviewing the contract terms, requesting additional controls, or changing the service provider. The other options are not the correct answers because they are not the primary stakeholders of the risk and its consequences. The data center manager is an employee of the managed hosting service provider, not the organization that procured the service. The data center manager may not have the authority or the incentive to address the flood risk or inform the organization. The site manager is also an employee of the managed hosting service provider, and their role is to conduct annual risk assessments under the contract. The site manager may not be aware of the new information or have the responsibility to communicate it to the organization. The CIO is the senior executive who oversees the IT strategy and operations of the organization. The CIO may have a general interest in the managed hosting service and its risks, but they are not the direct owner or manager of the specific risk or the business service that relies on the service. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 702

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

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A key risk indicator (KRI) is a metric that provides information on the level of exposure to a given risk or the potential impact of a risk. KRIs are used to monitor changes in risk levels and alert management when a risk exceeds a predefined threshold or tolerance. KRIs can help provide early warning of a high-risk condition and enable timely response and mitigation actions. A risk register is a tool that records and tracks the identified risks, their likelihood, impact, and status. A risk assessment is a process that identifies, analyzes, and evaluates risks. A key performance indicator (KPI) is a metric that measures the achievement of a specific goal or objective. References = Risk IT Framework, pages 22-231; CRISC Review Manual, pages 44-452