PDF CRISC Study Guide

The best way to determine the value of information assets for risk management purposes is to assess the loss impact if the information is inadvertently disclosed, as this reflects the potential damage or harm that the organization may suffer due to a breach of confidentiality, integrity, or availability of the information. The loss impact can be measured in terms of financial, operational, reputational, legal, or regulatory consequences, depending on the nature, sensitivity, and criticality of the information. The loss impact can also help the organization to prioritize the protection and mitigation of the information assets, and to align the risk management strategy with the business objectives and risk appetite.

References:

•ISACA, IT Asset Valuation, Risk Assessment and Control Implementation Model1

•ISACA, Data Classification: What It Is, Why You Should Care and How to Perform It2

Senior management’s role in the RACI model when tasked with reviewing monthly status reports provided by risk owners is accountable, as it means that they have the ultimate authority and responsibility to approve or reject the risk management decisions and actions, and to oversee the risk management performance and outcomes. The other options are not the correct roles, as they imply different levels or types of involvement or participation in the risk management process, such as being informed, responsible, or consulted, respectively. References = CRISC Review Manual, 7th Edition, page 101.

Role of Internal Audit:

Independent Assurance: Internal audit provides an independent assessment of the effectiveness of the risk management program, offering assurance to the board of directors and senior management.

Objective Evaluation: They evaluate whether the risk management processes are properly designed and operating effectively.

Responsibilities of Internal Audit:

Review Risk Management Implementation: Assess how well the risk management program has been implemented and whether it meets the organization's goals.

Compliance Check: Ensure that the risk management program complies with relevant regulations and standards.

Reporting: Provide detailed reports to the board and senior management on the effectiveness and efficiency of the risk management program.

Comparison with Other Options:

Risk Management: While involved in the implementation, they are not independent and therefore cannot provide objective assurance.

Business Units: They are responsible for managing risks but not for providing independent assurance.

External Audit: While they provide assurance, their scope is generally broader and less frequent compared to the continuous oversight by internal audit.

Best Practices:

Regular Audits: Conduct regular audits to ensure continuous improvement and alignment with organizational goals.

Stakeholder Communication: Maintain clear communication channels between internal audit, the board, and senior management.

CRISC Review Manual: Emphasizes the importance of internal audit in providing assurance to the board and senior management on the effectiveness of the risk management program​​.

ISACA Standards: Highlight the critical role of internal audit in risk governance and compliance​​.

References:

Cybersecurity incident response procedures are the plans and actions that an organization takes to respond to and recover from a cybersecurity attack. They include identifying the source and scope of the attack, containing and eradicating the threat, restoring normal operations, and analyzing the root cause and lessons learned. Reviewing cybersecurity incident response procedures is the most effective course of action when the probability of a successful cybersecurity attack is increasing and the potential loss could exceed the organization’s risk appetite, as it helps to prepare the organization for minimizing the impact and duration of the attack, as well as improving the resilience and security posture of the organization.