Isaca IT-Risk-Fundamentals Actual Questions

The board of directors is ultimately accountable for risk governance. While ERM, business units, and IT management all play crucial roles in managing risk, the governance of risk—setting the overall risk appetite, defining roles and responsibilities, and monitoring the effectiveness of risk management—rests with the board. They provide oversight and direction, ensuring that risk management is integrated with the organization's strategic objectives. The board's responsibility stems from their fiduciary duty to the organization and its stakeholders. They are responsible for the overall success and sustainability of the enterprise, which includes effectively managing risks.

Defining the risk scope means determining what risks will be included in the risk management process. The most important factor is understanding the potential impacts of the risk environment on the organization. This involves analyzing both internal and external factors that could affect the organization's ability to achieve its objectives. Only by understanding these impacts can you effectively define the boundaries of your risk management efforts.

While a top-down approach (B) is often recommended for implementing ERM, it's not the most important factor in defining the scope. Risk reporting requirements (C) are important, but they are a result of defining the scope, not the other way around.

 Communicating Cybersecurity Profile:

When presenting the organization's cybersecurity profile to management, it is crucial to focus on the effectiveness of the security measures in place and their ability to minimize risks.

 Clarity and Relevance:

Statement A ("The probability of a cyber attack varies between unlikely and very likely") is too vague and does not provide actionable information.

Statement B ("Risk management believes the likelihood of a cyber attack is not imminent") lacks specificity and does not detail the measures taken.

 Effectiveness of Security Measures:

Statement C highlights the proactive steps taken to configure security measures to minimize risk. This approach is more likely to instill confidence in management about the current cybersecurity posture.

According to best practices in IT risk management, as outlined in various frameworks such as NIST and ISO 27001, focusing on the effectiveness and configuration of security controls is key to managing cybersecurity risks.

 Conclusion:

Thus, the statement best suited for presentation to management is: Security measures are configured to minimize the risk of a cyber attack.

The most important thing for a risk practitioner to ensure when preparing a risk report is that it is customized to stakeholder expectations. Different stakeholders have different needs and interests. A report that is relevant and useful for one audience may not be for another.

While transparency and awareness (A) are important, they are not the most important factor in preparing a specific report. Uniformity (B) can be helpful for some reports, but customization is often necessary.