Sure Pass Exam CRISC PDF

 Risk appetite is the most important factor to consider first when creating a comprehensive IT risk register, as it defines the amount and type of risk that the organization is willing to accept in pursuit of its objectives, and guides the identification, assessment, response, and monitoring of the IT risks. The other options are not the most important factors, as they are more related to the resources, actions, or methods of the IT risk management, respectively, rather than the strategy or direction of the IT risk management. References = CRISC Review Manual, 7th Edition, page 109.

Sensitivity and reliability are the most important criteria for selecting KRIs, as they indicate how well the KRIs reflect the changes in the risk level and how consistent and accurate the KRIs are in measuring the risk. Sensitivity means that the KRIs should respond quickly and proportionally to the variations in the risk exposure, and provide early warning signals of potential risk events. Reliability means that the KRIs should be based on valid and verifiable data sources, and produce consistent and comparable results over time and across different units or functions. Historical data availability, implementation and reporting effort, and ability to display trends are also useful criteria, but they are not as critical as sensitivity and reliability.

References:

•ISACA, Risk IT Framework, 2nd Edition, 2019, p. 751

•ISACA, Risk and Information Systems Control Review Manual, 7th Edition, 2020, p. 2122

 Understanding the Question:

The question asks what provides the best evidence that robust risk management practices are in place within an organization.

 Analyzing the Options:

A. Regularly updated risk management procedures: Important but not as comprehensive as a risk register.

B. A management-approved risk dashboard: Useful for reporting but not as comprehensive as a risk register.

C. A current control framework: Important but does not provide ongoing evidence of risk management practices.

D. A regularly updated risk register: Provides comprehensive and current information on risks, their status, and the effectiveness of risk management efforts.

 Detailed Explanation:

Risk Register: A regularly updated risk register reflects the organization's ongoing risk management activities. It includes details of identified risks, their assessments, mitigation strategies, and current status, providing a comprehensive view of the risk landscape.

Evidence of Practices: Keeping the risk register up-to-date demonstrates that the organization is actively monitoring and managing risks, making it a clear indicator of robust risk management practices.

References:

CRISC Review Manual, Chapter 3: Risk Response and Reporting, highlights the importance of maintaining an updated risk register as part of effective risk management practices​​.

Risk appetite is the best criterion to determine whether higher residual risk ratings in the risk register should be accepted, as it reflects the amount and type of risk that an organization is willing to take in pursuit of its objectives. Residual risk is the level of risk that remains after applying controls or other risk treatments. By comparing the residual risk ratings against the risk appetite, an organization can decide whether to accept, reduce, transfer, or avoid the risk. If the residual risk is within or below the risk appetite, the organization may accept the risk as tolerable. If the residual risk is above the risk appetite, the organization may not accept the risk as acceptable, and may seek further risk treatments or escalation.

References:

•ISACA, Risk IT Framework, 2nd Edition, 2019, p. 751

•ISACA, Risk and Information Systems Control Review Manual, 7th Edition, 2020, p. 2112