Whether the results of risk analyses should be presented in quantitative or qualitative terms should be based PRIMARILY on the:
requirements of management.
specific risk analysis framework being used.
organizational risk tolerance
results of the risk assessment.
 The results of risk analyses should be presented in quantitative or qualitative terms based primarily on the requirements of management, because they are the intended audience and users of the risk information, and they have the authority and responsibility to make risk-based decisions. The requirements of management may vary depending on the purpose, scope, and context of the risk analysis, and the level of detail, accuracy, and reliability that they need. Quantitative risk analysis uses numerical data and mathematical models to estimate the probability and impact of risks, and to express the risk exposure and value in monetary or other measurable units. Qualitative risk analysis uses descriptive data and subjective judgments to assess the likelihood and severity of risks, and to rank the risks according to their relative importance or priority. Both methods have their advantages and disadvantages, and they can be used separately or together, depending on the situation and the availability of data and resources. However, the primary factor that determines the choice of the method is the requirements of management, as they are the ones who will use the risk information to support their objectives, strategies, and actions. References = Risk IT Framework, ISACA, 2022, p. 141
Which of the following is the FIRST step in managing the risk associated with the leakage of confidential data?
Maintain and review the classified data inventor.
Implement mandatory encryption on data
Conduct an awareness program for data owners and users.
Define and implement a data classification policy
Which of the following will BEST quantify the risk associated with malicious users in an organization?
Business impact analysis
Risk analysis
Threat risk assessment
Vulnerability assessment
A threat risk assessment will best quantify the risk associated with malicious users in an organization, because it focuses on identifying and evaluating the potential sources of harm or damage to the organization’s assets, such as data, systems, or networks. A malicious user is a person who intentionally and unauthorizedly accesses, modifies, destroys, or steals the organization’s information or resources, for personal gain, revenge, espionage, or sabotage. A threat risk assessment can help the organization to estimate the likelihood and impact of malicious user attacks, based on factors such as the user’s motivation, capability, opportunity, and access level. A threat risk assessment can also help the organization to determine the appropriate risk response strategies, such as prevention, detection, mitigation, or transfer, to reduce the risk exposure and impact of malicious user attacks. References = Risk IT Framework, ISACA, 2022, p. 141
Which of the following facilitates a completely independent review of test results for evaluating control effectiveness?
Segregation of duties
Three lines of defense
Compliance review
Quality assurance review
The three lines of defense model is a framework that defines the roles and responsibilities of different functions in an organization for managing risks and ensuring effective internal control1. The three lines of defense are:
The three lines of defense model facilitates a completely independent review of test results for evaluating control effectiveness, because it ensures that the internal audit function, as the third line of defense, has the authority, independence, and competence to conduct objective and unbiased assessments of the internal control system and report its findings and recommendations to the board and senior management3. The internal audit function can also use the test results from the first and second lines of defense as inputs for its own audit planning and testing, and verify their validity and reliability4.
References = The Three Lines of Defense in Effective Risk Management and Control - IIA, The Three Lines Model - IIA, The Role of Internal Audit in the Three Lines of Defense - IIA, Evaluating and Improving Internal Control in Organizations - IFAC
Days before the realization of an acquisition, a data breach is discovered at the company to be acquired. For the accruing organization, this situation represents which of the following?
Threat event
Inherent risk
Risk event
Security incident
A risk event is an occurrence or situation that has a negative impact on the objectives, operations, or resources of an enterprise. A data breach at the company to be acquired is a risk event for the acquiring organization, because it can affect the value, reputation, or performance of the acquisition. A risk event can also trigger other risks or consequences that may require further actions or responses. The other options are not the correct answers, because they do not describe the situation accurately. A threat event is an occurrence or situation that exploits a vulnerability or causes harm to an asset or process. An inherent risk is the risk that exists before applying any controls or treatments. A security incident is an event that violates the security policies or procedures of an enterprise. References = CRISC: Certified in Risk & Information Systems Control Sample Questions
Which of the following should be included in a risk scenario to be used for risk analysis?
Risk appetite
Threat type
Risk tolerance
Residual risk
A risk scenario is a hypothetical situation that describes how a risk event could adversely affect an organization’s objectives, assets, or operations. A risk scenario can be used for risk analysis, which is the process of estimating the likelihood and impact of the risk event, and evaluating the effectiveness and efficiency of the risk response1.
One of the essential components of a risk scenario is the threat type, which is the source or cause of the risk event. The threat type can be classified into various categories, such as natural, human, technical, environmental, or legal. The threat type can help to define the characteristics, motivations, capabilities, and methods of the risk event, and to identify the potential vulnerabilities and exposures of the organization. The threat type can also help to determine the frequency and severity of the risk event, and to select the appropriate risk response strategies and controls23.
The other options are not the components of a risk scenario, but rather the outcomes or inputs of risk analysis. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite can help to guide the risk analysis by providing a high-level statement of the desired level of risk taking and tolerance4. Risk tolerance is the acceptable variation in the outcomes related to specific objectives or risks. Risk tolerance can help to measure the risk analysis by providing quantitative or qualitative indicators of the acceptable range of risk exposure and performance4. Residual risk is the remaining risk after the risk response has been implemented. Residual risk can help to monitor the risk analysis by providing feedback on the effectiveness and efficiency of the risk response and the need for further action. References =
Which of the following scenarios represents a threat?
Connecting a laptop to a free, open, wireless access point (hotspot)
Visitors not signing in as per policy
Storing corporate data in unencrypted form on a laptop
A virus transmitted on a USB thumb drive
A virus transmitted on a USB thumb drive is a scenario that represents a threat, as it involves a malicious or harmful event that could compromise the confidentiality, integrity, or availability of an information system. A virus is a type of malware that can infect and damage files, programs, or devices by replicating itself and spreading to other systems or networks. A USB thumb drive is a portable storage device that can be used to transfer data between computers or devices. A virus transmitted on a USB thumb drive can occur when a user inserts an infected USB thumb drive into a computer or device, or when a user downloads or copies an infected file from a USB thumb drive to a computer or device. A virus transmitted on a USB thumb drive can pose a serious risk to the information system, as it can corrupt or delete data, disrupt or degrade performance, steal or leak information, or allow unauthorized access or control.
The other options are not scenarios that represent a threat, but rather vulnerabilities or weaknesses that could increase the likelihood or impact of a threat. Connecting a laptop to a free, open, wireless access point (hotspot) is a vulnerability, as it exposes the laptop to potential eavesdropping, interception, or manipulation by malicious actors on the same network. Visitors not signing in as per policy is a vulnerability, as it creates a gap in the physical security and access control of the premises, and could allow unauthorized or malicious visitors to enter or access sensitive areas or assets. Storing corporate data in unencrypted form on a laptop is a vulnerability, as it reduces the protection and security of the data, and could enable unauthorized or malicious access, disclosure, or modification of the data in case of loss, theft, or compromise of the laptop. References = What is a Computer Virus? | McAfee, What is a USB Flash Drive? | Kingston Technology, Threats, Vulnerabilities, and Exploits – oh my!
Which of the following MUST be updated to maintain an IT risk register?
Expected frequency and potential impact
Risk tolerance
Enterprise-wide IT risk assessment
Risk appetite
An IT risk register is a document that records and tracks the significant IT risks that an organization faces across its various functions, processes, and activities. An IT risk register can help to provide a comprehensive and consistent view of the organization’s IT risk profile, and to support the decision making and reporting of the IT risk management function1.
One of the data that must be updated to maintain an IT risk register is the expected frequency and potential impact of each IT risk. The expected frequency is the probability or likelihood of the IT risk occurring, based on historical data, statistical analysis, expert judgment, or other methods. The potential impact is the magnitude or severity of the consequences or outcomes of the IT risk, measured in terms of cost, time, quality, reputation, or other criteria2.
Updating the expected frequency and potential impact of each IT risk is essential for maintaining an IT risk register, because it can help to:
The other options are not the data that must be updated to maintain an IT risk register, but rather the data that are used as inputs or outputs of the IT risk management process. Risk tolerance is the acceptable variation in the outcomes related to specific objectives or risks. Risk tolerance is used to measure the IT risk analysis and to guide the IT risk response. Enterprise-wide IT risk assessment is a process that identifies, analyzes, and evaluates the IT risks across the organization. Enterprise-wide IT risk assessment is used to populate the IT risk register and to inform the IT risk response. Risk appetite is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk appetite is used to guide the IT risk analysis and to align the IT risk response. References =
Which of the following should be the MOST important consideration for senior management when developing a risk response strategy?
Cost of controls
Risk tolerance
Risk appetite
Probability definition
Risk response strategy is the approach that an organization takes to address the risks that it faces across its various functions, processes, and activities. Risk response strategy involves selecting and implementing the appropriate risk response options, such as avoidance, mitigation, transfer, or acceptance, for each risk, based on the risk level, the risk appetite, and the cost-benefit analysis1.
The most important consideration for senior management when developing a risk response strategy is the risk appetite of the organization. Risk appetite is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk appetite reflects the organization’s risk attitude and its willingness to take on risk in specific scenarios. Risk appetite is usually expressed in a qualitative statement approved by the board of directors2.
Considering the risk appetite of the organization is essential for developing a risk response strategy, because it can help to:
The other options are not as important as the risk appetite of the organization for developing a risk response strategy, but rather some of the factors or outcomes of it. Cost of controls is the amount of resources and funds that are required to implement and maintain the risk response controls, such as policies, procedures, or technologies, that aim to prevent or reduce the negative effects of the risks. Cost of controls is a factor that can affect the selection and implementation of the risk response options, but it is not the primary consideration for developing the risk response strategy. Risk tolerance is the acceptable variation in the outcomes related to specific objectives or risks. Risk tolerance is a factor that can measure the risk analysis and guide the risk response, but it is not the primary consideration for developing the risk response strategy. Probability definition is the process of estimating the likelihood or frequency of the risk events, based on historical data, statistical analysis, expert judgment, or other methods. Probability definition is an outcome of the risk analysis that can inform the risk response, but it is not the primary consideration for developing the risk response strategy. References =
Which of the following would be the BEST key performance indicator (KPI) for monitoring the effectiveness of the IT asset management process?
Percentage of unpatched IT assets
Percentage of IT assets without ownership
The number of IT assets securely disposed during the past year
The number of IT assets procured during the previous month
The percentage of unpatched IT assets is a KPI that measures the effectiveness of the IT asset management process in ensuring that the IT assets are updated with the latest security patches and are protected from vulnerabilities. This KPI reflects the compliance of the IT assets with the enterprise’s security policy and standards, and the ability of the IT asset management process to identify and remediate any gaps or risks in the IT asset inventory. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 5. CRISC by Isaca Actual Free Exam Q&As, Question 4. Most Asked CRISC Exam Questions and Answers, Question 10. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 4.
Which of the following is the MOST important factor when deciding on a control to mitigate risk exposure?
Relevance to the business process
Regulatory compliance requirements
Cost-benefit analysis
Comparison against best practice
 The most important factor when deciding on a control to mitigate risk exposure is the cost-benefit analysis. This is a process that compares the costs and benefits of implementing a control, and determines whether the control is worth the investment. A cost-benefit analysis helps to ensure that the control is efficient and effective in reducing the risk to an acceptable level, and that it does not introduce new risks or adversely affect other objectives. A cost-benefit analysis also helps to prioritize the controls based on their value and feasibility, and to allocate the resources accordingly. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.5, page 1861
Which of the following would BEST help an enterprise define and communicate its risk appetite?
Gap analysis
Risk assessment
Heat map
Risk register
The best way to help an enterprise define and communicate its risk appetite is to use a risk register, which is a document that records and summarizes the key information and data about the identified risks and the risk responses1. A risk register can help to:
The other options are not the best ways to help an enterprise define and communicate its risk appetite, because:
References =
Which of the following is MOST important when developing key risk indicators (KRIs)?
Alignment with regulatory requirements
Availability of qualitative data
Properly set thresholds
Alignment with industry benchmarks
The most important factor when developing key risk indicators (KRIs) is to properly set thresholds, which are the predefined values or ranges that indicate the acceptable or unacceptable level of risk1. Thresholds can help to:
The other factors are not the most important when developing KRIs, because:
References =
Which of the following is the BEST key control indicator (KCI) for risk related to IT infrastructure failure?
Number of times the recovery plan is reviewed
Number of successful recovery plan tests
Percentage of systems with outdated virus protection
Percentage of employees who can work remotely
A key control indicator (KCI) is a metric that provides information on the extent to which a given control is meeting its intended objectives in terms of loss prevention, reduction, etc. A KCI should have an explicit relationship to both the specific control and the specific risk against which the control has been implemented. For risk related to IT infrastructure failure, a possible control is to have a recovery plan that can restore the critical IT services and minimize the impact of the failure. A KCI that can measure the effectiveness of this control is the number of successful recovery plan tests, which indicates how well the recovery plan can be executed in a real scenario. The higher the number of successful tests, the lower the risk of IT infrastructure failure. Therefore, this is the best KCI among the given options. References =
Which of the following is necessary to enable an IT risk register to be consolidated with the rest of the organization’s risk register?
Risk taxonomy
Risk response
Risk appetite
Risk ranking
According to the CRISC Review Manual, risk taxonomy is the system of classification and categorization of risks based on common characteristics and attributes. Risk taxonomy is necessary to enable an IT risk register to be consolidated with the rest of the organization’s risk register, because it helps to ensure consistency, comparability, and alignment of the risks across the organization. Risk taxonomy also helps to facilitate the communication, reporting, and aggregation of the risks. The other options are not the correct answers, because they are not essential for consolidating the risk registers. Risk response is the action taken to address the risk, which may vary depending on the risk level and strategy. Risk appetite is the amount and type of risk that an organization is willing to accept, which may differ across the organization’s units and functions. Risk ranking is the process of prioritizing the risks based on their impact and likelihood, which may change over time and context. References = CRISC Review Manual, 7th Edition, Chapter 2, Section 2.1.2, page 69.
Which of the following is the BEST control to detect an advanced persistent threat (APT)?
Utilizing antivirus systems and firewalls
Conducting regular penetration tests
Monitoring social media activities
Implementing automated log monitoring
Implementing automated log monitoring is the best control to detect an advanced persistent threat (APT), which is a stealthy and continuous attack on a target network or system. Automated log monitoring can help to identify anomalous or suspicious activities, such as unusual network traffic, unauthorized access attempts, or data exfiltration, that may indicate the presence of an APT. Utilizing antivirus systems and firewalls, conducting regular penetration tests, and monitoring social media activities are controls that help to prevent or mitigate APTs, but not to detect them. References = Most Asked CRISC Exam Questions and Answers - The Knowledge Academy, question 200.
An organization has allowed its cyber risk insurance to lapse while seeking a new insurance provider. The risk practitioner should report to management that the risk has been:
transferred
mitigated.
accepted
avoided
Cyber risk insurance is a type of insurance policy that provides coverage against losses and damages caused by cyber incidents such as data breaches, hacking, and other cyber attacks. When an organization decides to purchase cyber risk insurance, it transfers the risk of financial loss due to a cyber incident to the insurance company. In the scenario described in the question, the organization allowed its cyber risk insurance to lapse while seeking a new insurance provider. This means that the organization is currently not covered by any cyber risk insurance policy and is therefore exposed to financial losses due to cyber incidents. The risk practitioner should report to management that the risk has been accepted. Accepting risk means that the organization is aware of the potential consequences of the risk and has decided not to take any action to mitigate, transfer, or avoid it. The other options are not correct because they do not reflect the current situation of the organization. The organization has not transferred the risk to another party, as it has no cyber risk insurance policy in place. The organization has not mitigated the risk, as it has not implemented any controls or measures to reduce the likelihood or impact of the risk. The organization has not avoided the risk, as it has not eliminated the source or cause of the risk or changed its activities to prevent the risk from occurring. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 752
In an organization dependent on data analytics to drive decision-making, which of the following would BEST help to minimize the risk associated with inaccurate data?
Establishing an intellectual property agreement
Evaluating each of the data sources for vulnerabilities
Periodically reviewing big data strategies
Benchmarking to industry best practice
Periodically reviewing big data strategies is the best option to minimize the risk of inaccurate data, because it allows the organization to assess the quality, validity, and reliability of the data sources and the analytics methods. It also enables the organization to identify and address any gaps, errors, or inconsistencies in the data and the results. By reviewing the big data strategies, the organization can ensure that the data analytics are aligned with the business objectives and the risk appetite.
Establishing an intellectual property agreement is not relevant to the risk of inaccurate data, as it is a legal measure to protect the ownership and use of the data, not its quality or accuracy.
Evaluating each of the data sources for vulnerabilities is a good practice, but it is not sufficient to minimize the risk of inaccurate data, as it only focuses on the security aspect of the data, not the validity or reliability of the data itself.
Benchmarking to industry best practice is a useful way to compare the performance and results of the data analytics, but it does not directly address the risk of inaccurate data, as it assumes that the data and the methods are already valid and reliable. References = Risk IT Framework, 2nd Edition, ISACA, 2019, page 62-63.
Which of the following BEST supports ethical IT risk management practices?
Robust organizational communication channels
Mapping of key risk indicators (KRIs) to corporate strategy
Capability maturity models integrated with risk management frameworks
Rigorously enforced operational service level agreements (SLAs)
 Robust organizational communication channels are the best way to support ethical IT risk management practices, as they enable transparent and consistent sharing of risk information and decisions among all stakeholders. Ethical IT risk management requires that the risk management process and outcomes are aligned with the enterprise’s values, objectives, and obligations, and that the risk management activities are conducted with integrity, accountability, and respect. Robust organizational communication channels facilitate these aspects by ensuring that the risk management roles and responsibilities are clearly defined and communicated, that the risk management policies and procedures are widely disseminated and understood, that the risk management performance and results are regularly reported and reviewed, and that the risk management feedback and improvement suggestions are solicited and addressed. Mapping of key risk indicators (KRIs) to corporate strategy, capability maturity models integrated with risk management frameworks, and rigorously enforced operational service level agreements (SLAs) are not directly related to ethical IT risk management practices, but rather to the effectiveness and efficiency of the risk management process. References = CRISC Certified in Risk and Information Systems Control – Question201; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 201.
In an organization with a mature risk management program, which of the following would provide the BEST evidence that the IT risk profile is up to date?
Risk questionnaire
Risk register
Management assertion
Compliance manual
A risk register is a tool that records and tracks the risks that may affect the organization, as well as the actions that are taken or planned to manage them1. A risk register provides the best evidence that the IT risk profile is up to date, because it reflects the current and potential IT risks that the organization faces, as well as their likelihood, impact, severity, owner, status, and response2. An IT risk profile is a document that describes the types, amounts, and priority of IT risk that the organization finds acceptable and unacceptable3. An IT risk profile is developed collaboratively with various stakeholders within the organization, including business leaders, data and process owners, enterprise risk management, internal and external audit, legal, compliance, privacy, and IT risk management and security4. By maintaining and updating the risk register regularly, the organization can ensure that the IT risk profile is aligned with the changing IT risk environment, and that the IT risk management activities and performance are consistent and effective. The other options are not the best evidence that the IT risk profile is up to date, as they are either less comprehensive or less relevant than the risk register. A risk questionnaire is a tool that collects and analyzes the opinions and perceptions of the stakeholders about the risks that may affect the organization5. A risk questionnaire can help to identify and assess the risks, as well as to communicate and report on the risk status and issues. However, a risk questionnaire is not the best evidence that the IT risk profile is up to date, as it may not capture all the IT risks that the organization faces, or reflect the actual or objective level and nature of the IT risks. A management assertion is a statement or declaration made by the management about the accuracy and completeness of the information or data that they provide or report. A management assertion can help to increase the confidence and trust of the stakeholders and auditors in the information or data, as well as to demonstrate the accountability and responsibility of the management. However, a management assertion is not the best evidence that the IT risk profile is up to date, as it does not provide the details or outcomes of the IT risk management activities or performance, or verify the validity and reliability of the IT risk information or data. A compliance manual is a document that contains the policies, procedures, and standards that the organization must follow to meet the legal, regulatory, or contractual requirements that apply to its activities or operations. A compliance manual can help to ensure the quality and consistency of the organization’s compliance activities or performance, as well as to avoid or reduce the penalties or sanctions for non-compliance. However, a compliance manual is not the best evidence that the IT risk profile is up to date, as it does not address the IT risks that the organization faces, or the IT risk management activities or performance. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.5, Page 55.
Which of the following should be the HIGHEST priority when developing a risk response?
The risk response addresses the risk with a holistic view.
The risk response is based on a cost-benefit analysis.
The risk response is accounted for in the budget.
The risk response aligns with the organization's risk appetite.
Reviewing historical risk events is MOST useful for which of the following processes within the risk management life cycle?
Risk monitoring
Risk mitigation
Risk aggregation
Risk assessment
Reviewing historical risk events is most useful for the risk assessment process within the risk management life cycle. Risk assessment is the process of identifying, analyzing, and evaluating the risks that may affect the project or the organization1. Reviewing historical risk events can help to:
References = Risk and Information Systems Control Study Manual, Chapter 5: Risk Assessment Process3
Which of the following should be the FIRST consideration when a business unit wants to use personal information for a purpose other than for which it was originally collected?
Informed consent
Cross border controls
Business impact analysis (BIA)
Data breach protection
According to the GDPR, personal data shall be collected for specified, explicit and legitimate purposes and not further processed in a manner that is incompatible with those purposes1. This means that a business unit can only use personal information for a different purpose if it has obtained the consent of the data subject, or if it has a clear legal basis or obligation to do so2. Therefore, informed consent should be the first consideration when a business unit wants to use personal information for a purpose other than for which it was originally collected.
References = GDPR Article 5 (1) (b) and Article 6 (4)1, ICO Principle (b): Purpose limitation2
Which of the following is an IT business owner's BEST course of action following an unexpected increase in emergency changes?
Evaluating the impact to control objectives
Conducting a root cause analysis
Validating the adequacy of current processes
Reconfiguring the IT infrastructure
Conducting a root cause analysis is the best course of action for an IT business owner following an unexpected increase in emergency changes, as it helps to identify and address the underlying cause(s) of the problem and prevent it from recurring in the future. A root cause analysis is a systematic process of finding and resolving the fundamental factors that contribute to a specific issue or event. A root cause analysis can help to improve the quality and reliability of the IT services and processes, reduce the costs and risks associated with emergency changes, and enhance the customer satisfaction and trust.
The other options are not the best courses of action for an IT business owner following an unexpected increase in emergency changes. Evaluating the impact to control objectives is an important step to assess the potential consequences of the emergency changes on the IT governance and risk management, but it does not provide a solution or mitigation strategy for the problem. Validating the adequacy of current processes is a good practice to ensure that the IT processes are aligned with the business needs and objectives, but it does not address the specific cause(s) of the emergency changes. Reconfiguring the IT infrastructure is a possible action to implement the emergency changes, but it does not prevent the occurrence or recurrence of the problem. References = IT Business Owner’s Best Course of Action Following Unexpected Increase …, ITIL Change Types: Standard vs Normal vs Emergency - Freshworks, Emergency Change Management: Please Stop The Drama
Which of the following is the BEST course of action to help reduce the probability of an incident recurring?
Perform a risk assessment.
Perform root cause analysis.
Initiate disciplinary action.
Update the incident response plan.
An incident is an unplanned event that disrupts or degrades the normal operation or performance of an IT service, system, or network1. An incident can cause various negative impacts, such as service outages, data losses, security breaches, or customer dissatisfaction2. An incident can recur if the underlying cause or problem of the incident is not properly identified and resolved3.
The best course of action to help reduce the probability of an incident recurring is to perform root cause analysis. Root cause analysis is a systematic process of finding and eliminating the fundamental cause or problem that led to the incident4. Root cause analysis can help to:
References = What is an Incident?, Incident Management - Wikipedia, Problem Management - Wikipedia, Root Cause Analysis - Wikipedia, Root Cause Analysis: A Guide for Business Leaders
Which of the following is the BEST way to confirm whether appropriate automated controls are in place within a recently implemented system?
Perform a post-implementation review.
Conduct user acceptance testing.
Review the key performance indicators (KPIs).
Interview process owners.
 Performing a post-implementation review is the best way to confirm whether appropriate automated controls are in place within a recently implemented system, as it helps to evaluate the effectiveness and efficiency of the system and its controls after they have been deployed and operationalized. A post-implementation review is a process of assessing and validating the system and its controls against the predefined criteria and objectives, such as functionality, performance, security, compliance, and user satisfaction. A post-implementation review can help to confirm whether appropriate automated controls are in place within a recently implemented system by providing the following benefits:
The other options are not the best ways to confirm whether appropriate automated controls are in place within a recently implemented system. Conducting user acceptance testing is an important step to ensure that the system and its controls meet the user requirements and expectations, but it is usually performed before the system is implemented and operationalized, and it may not cover all aspects of the system and its controls. Reviewing the key performance indicators (KPIs) is a useful method to measure and monitor the performance of the system and its controls, but it may not provide a comprehensive or objective evaluation of the system and its controls. Interviewing process owners is a possible technique to collect and analyze information on the system and its controls, but it may not provide sufficient or reliable evidence to confirm the appropriateness of the system and its controls. References = Post-Implementation Review: The Key to a Successful Project, IT Risk Resources | ISACA, Post Implementation Review (PIR) - Project Management Knowledge
An IT department originally planned to outsource the hosting of its data center at an overseas location to reduce operational expenses. After a risk assessment, the department has decided to keep the data center in-house. How should the risk treatment response be reflected in the risk register?
Risk mitigation
Risk avoidance
Risk acceptance
Risk transfer
 The risk treatment response that should be reflected in the risk register when an IT department decides to keep the data center in-house instead of outsourcing it to an overseas location is risk avoidance. Risk avoidance is a risk response strategy that involves eliminating the source of the risk, or changing the plan or scope of the activity, to avoid the risk altogether. Risk avoidance can help to reduce the risk exposure and impact to zero, by removing the possibility of the risk occurrence. In this case, the IT department avoids the risk of outsourcing the data center to an overseas location, which could involve various threats, vulnerabilities, and uncertainties, such as data security, legal compliance, service quality, communication, or cultural issues. By keeping the data center in-house, the IT department maintains the control and ownership of the data center, and eliminates the potential risk associated with the outsourcing. Risk mitigation, risk acceptance, and risk transfer are not the correct risk treatment responses, as they do not reflect the actual decision and action taken by the IT department, and they do not eliminate the risk source or occurrence. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 51.
Which of the following is MOST important when developing risk scenarios?
Reviewing business impact analysis (BIA)
Collaborating with IT audit
Conducting vulnerability assessments
Obtaining input from key stakeholders
The most important factor when developing risk scenarios is obtaining input from key stakeholders. A risk scenario is a description of a possible event or situation that could affect the enterprise’s objectives, processes, or resources. Obtaining input from key stakeholders, such as business owners, process owners, subject matter experts, or external parties, helps to ensure that the risk scenarios are realistic, relevant, and comprehensive. It also helps to identify the sources, drivers, indicators, likelihood, impact, and responses of the risk scenarios, and to align them with the enterprise’s risk appetite and tolerance. Obtaining input from key stakeholders also fosters a collaborative and participatory approach to risk management, and enhances the risk awareness and ownership among the stakeholders. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.3, page 621
Which of the following is the BEST recommendation to senior management when the results of a risk and control assessment indicate a risk scenario can only be partially mitigated?
Implement controls to bring the risk to a level within appetite and accept the residual risk.
Implement a key performance indicator (KPI) to monitor the existing control performance.
Accept the residual risk in its entirety and obtain executive management approval.
Separate the risk into multiple components and avoid the risk components that cannot be mitigated.
 Implementing controls to bring the risk to a level within appetite and accept the residual risk is the best recommendation to senior management when the results of a risk and control assessment indicate a risk scenario can only be partially mitigated, as it helps to balance the costs and benefits of the risk management and control processes, and to align them with the organizational strategy and objectives. A risk and control assessment is a process of identifying, analyzing, and evaluating the risks and controls associated with a specific activity, process, or objective. A risk scenario is a description of a possible event or situation that could cause harm or loss to the organization or its stakeholders. A risk scenario can only be partially mitigated when the existing or proposed controls are not sufficient or effective to reduce the risk to an acceptable level. A risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. A residual risk is the risk that remains after the implementation of controls or risk treatments.
Implementing controls to bring the risk to a level within appetite and accept the residual risk helps to provide the following benefits:
The other options are not the best recommendations to senior management when the results of a risk and control assessment indicate a risk scenario can only be partially mitigated. Implementing a key performance indicator (KPI) to monitor the existing control performance is a useful method to measure and monitor the effectiveness and efficiency of the controls, but it does not address the residual risk or the risk appetite. Accepting the residual risk in its entirety and obtaining executive management approval is a possible option to deal with the risk scenario, but it may expose the organization to excessive or unacceptable risk, and it may not comply with the legal or regulatory obligations or requirements. Separating the risk into multiple components and avoiding the risk components that cannot be mitigated is a possible option to deal with the risk scenario, but it may not be feasible or practical, and it may create new or additional risks or challenges. References = Risk and Control Self-Assessment (RCSA) - Management Study Guide, IT Risk Resources | ISACA, Risk Mitigation: What It Is and How to Implement It (Free Templates …
An IT risk practitioner has determined that mitigation activities differ from an approved risk action plan. Which of the following is the risk practitioner's BEST course of action?
Report the observation to the chief risk officer (CRO).
Validate the adequacy of the implemented risk mitigation measures.
Update the risk register with the implemented risk mitigation actions.
Revert the implemented mitigation measures until approval is obtained
This can help to:
The other options are not the best course of action, because:
References =
Which of the following is a drawback in the use of quantitative risk analysis?
It assigns numeric values to exposures of assets.
It requires more resources than other methods
It produces the results in numeric form.
It is based on impact analysis of information assets.
The drawback in the use of quantitative risk analysis is that it requires more resources than other methods. Quantitative risk analysis is a method of risk analysis that assigns numeric values to the exposures of assets, the impact and likelihood of risk events, and the cost and benefit of risk responses. Quantitative risk analysis can provide more precise and objective results, and support the risk-based decision making process. However, quantitative risk analysis also requires more resources than other methods, such as data, time, expertise, and tools, to collect, validate, and analyze the quantitative information, and to perform the complex calculations and simulations. Quantitative risk analysis may also be limited by the availability, reliability, and accuracy of the data, and the assumptions and models used. Assigning numeric values to exposures of assets, producing the results in numeric form, and being based on impact analysis of information assets are not drawbacks, but characteristics of quantitative risk analysis. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 49.
Which of the following is the BEST evidence that risk management is driving business decisions in an organization?
Compliance breaches are addressed in a timely manner.
Risk ownership is identified and assigned.
Risk treatment options receive adequate funding.
Residual risk is within risk tolerance.
Risk treatment options are the actions or plans that are implemented to modify or reduce the risk exposure of the organization. Risk treatment options receive adequate funding when the organization allocates sufficient resources and budget to support the risk response actions, and to ensure that the risk controls are effective and efficient. This is the best evidence that risk management is driving business decisions in the organization, as it shows that the organization prioritizes and values the risk management process, and that it aligns its risk strategy and objectives with its business goals and value creation. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 245. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 245. CRISC Sample Questions 2024, Question 245.
To reduce the risk introduced when conducting penetration tests, the BEST mitigating control would be to:
require the vendor to sign a nondisclosure agreement
clearly define the project scope.
perform background checks on the vendor.
notify network administrators before testing
According to the CRISC Review Manual, notifying network administrators before testing is the best mitigating control to reduce the risk introduced when conducting penetration tests, because it helps to avoid any disruption or damage to the network services and systems. Penetration testing is a technique that simulates an attack on the network to identify and exploit the vulnerabilities and weaknesses. Notifying network administrators before testing allows them to prepare for the test, monitor the test activities, and respond to any incidents or issues that may arise during the test. The other options are not the best mitigating controls, because they do not address the risk of network disruption or damage. Requiring the vendor to sign a nondisclosure agreement is a legal measure that protects the confidentiality of the network information, but it does not prevent the vendor from causing any harm to the network. Clearly defining the project scope is a planning activity that sets the boundaries and objectives of the test, but it does not ensure the safety and availability of the network. Performing background checks on the vendor is a due diligence activity that verifies the vendor’s credentials and reputation, but it does not guarantee the vendor’s performance or behavior. References = CRISC Review Manual, 7th Edition, Chapter 4, Section 4.2.2, page 181.
The PRIMARY purpose of IT control status reporting is to:
ensure compliance with IT governance strategy.
assist internal audit in evaluating and initiating remediation efforts.
benchmark IT controls with Industry standards.
facilitate the comparison of the current and desired states.
IT control status reporting is the process of collecting and analyzing data about the effectiveness and efficiency of IT controls. IT controls are the policies, procedures, and practices that ensure the confidentiality, integrity, and availability of IT resources and information. IT control status reporting helps to monitor the performance of IT controls against the predefined objectives and criteria, and to identify any gaps or issues that need to be addressed. IT control status reporting also provides information to the stakeholders about the current status and progress of IT control implementation and improvement.
The primary purpose of IT control status reporting is to facilitate the comparison of the current and desired states of IT controls. This means that IT control status reporting helps to evaluate the gap between the actual and expected performance of IT controls, and to determine the actions and resources needed to close the gap. IT control status reporting also helps to align the IT controls with the business goals and strategies, and to ensure that the IT controls are delivering value to the organization. By comparing the current and desired states of IT controls, IT control status reporting enables continuous improvement and optimization of IT control processes and outcomes.
The other options are not the primary purpose of IT control status reporting, but rather some of the benefits or outcomes of it. IT control status reporting can help to ensure compliance with IT governance strategy, but it is not the main reason for doing it. IT governance is the framework that defines the roles, responsibilities, and relationships among the stakeholders involved in IT decision making and oversight. IT control status reporting can support IT governance by providing relevant and reliable information to the stakeholders, and by demonstrating the accountability and transparency of IT control activities. However, IT control status reporting is not the same as IT governance, and it is not the only way to ensure compliance with IT governance strategy.
IT control status reporting can also assist internal audit in evaluating and initiating remediation efforts, but it is not the main objective of it. Internal audit is an independent and objective assurance and consulting activity that evaluates the adequacy and effectiveness of IT controls, and provides recommendations for improvement. IT control status reporting can provide input and evidence to the internal audit process, and help to identify the areas of IT control that need further review or testing. IT control status reporting can also help to monitor and track the implementation of the audit findings and recommendations, and to verify the results of the remediation efforts. However, IT control status reporting is not the same as internal audit, and it is not the only source of information for internal audit.
Finally, IT control status reporting can benchmark IT controls with industry standards, but it is not the main goal of it. Industry standards are the best practices or guidelines that define the minimum requirements or expectations for IT control performance and quality. IT control status reporting can help to compare the IT controls with the industry standards, and to identify the areas of IT control that need to be enhanced or updated. IT control status reporting can also help to demonstrate the compliance or conformance of IT controls with the industry standards, and to provide assurance to the external parties or regulators. However, IT control status reporting is not the same as industry standards, and it is not the only way to benchmark IT controls. References =
Which of the following is a risk practitioner's BEST recommendation to address an organization's need to secure multiple systems with limited IT resources?
Apply available security patches.
Schedule a penetration test.
Conduct a business impact analysis (BIA)
Perform a vulnerability analysis.
The best recommendation to address an organization’s need to secure multiple systems with limited IT resources is to perform a vulnerability analysis. A vulnerability analysis is a process of identifying, assessing, and prioritizing the weaknesses or flaws in the systems that could be exploited by threats or risks. A vulnerability analysis helps to determine the level and nature of the exposure and impact of the systems, and to select and implement the appropriate security controls or mitigations. Performing a vulnerability analysis is the best recommendation, as it helps to optimize the use of the limited IT resources, by focusing on the most critical or significant vulnerabilities, and by applying the most effective or efficient security solutions. Performing a vulnerability analysis also helps to improve the security posture and performance of the systems, and to reduce the likelihood and consequences of security incidents or breaches. Applying available security patches, scheduling a penetration test, and conducting a business impact analysis (BIA) are not the best recommendations, as they are either the outputs or the inputs of the vulnerability analysis process, and they do not address the primary need of securing the systems with limited IT resources. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.
Which of the following BEST mitigates the risk of sensitive personal data leakage from a software development environment?
Tokenized personal data only in test environments
Data loss prevention tools (DLP) installed in passive mode
Anonymized personal data in non-production environments
Multi-factor authentication for access to non-production environments
 Anonymizing personal data in non-production environments means replacing the real data with fictitious but realistic data that does not allow identification of the individuals. This is a good way to mitigate the risk of sensitive personal data leakage from a software development environment, as it reduces the exposure of the data to unauthorized access or misuse. Tokenizing personal data only in test environments is not sufficient, as the data may still be exposed in other non-production environments, such as development or staging. Data loss prevention tools (DLP) installed in passive mode may detect and report data leakage incidents, but they do not prevent them from happening. Multi-factor authentication for access to non-production environments may enhance the security of the access, but it does not protect the data from being leaked by authorized users or compromised by other means. References = CRISC Review Manual (Digital Version), page 226; CRISC Review Questions, Answers & Explanations Database, question 195.
Which of the following is the FIRST step when conducting a business impact analysis (BIA)?
Identifying critical information assets
Identifying events impacting continuity of operations;
Creating a data classification scheme
Analyzing previous risk assessment results
 The first step when conducting a business impact analysis (BIA) is identifying critical information assets. A BIA is a process of analyzing the potential impacts of disruptive events on the business processes, functions, and resources. A BIA identifies the criticality, dependencies, recovery priorities, and recovery objectives of the business processes, and quantifies the financial and non-financial impacts of disruption. Information assets are the data, information, and knowledge that are essential for the operation and performance of the business processes. Identifying critical information assets is the first step of the BIA, as it helps to determine which information assets are vital for the continuity and recovery of the business processes, and which information assets are most vulnerable or exposed to the disruptive events. Identifying critical information assets also helps to scope and focus the BIA on the most important and relevant information assets, and to avoid unnecessary or redundant analysis. Identifying events impacting continuity of operations, creating a data classification scheme, and analyzing previous risk assessment results are not the first steps of the BIA, as they are either the inputs or the outputs of the BIA, and they depend on the identification of critical information assets. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 130.
The BEST metric to monitor the risk associated with changes deployed to production is the percentage of:
changes due to emergencies.
changes that cause incidents.
changes not requiring user acceptance testing.
personnel that have rights to make changes in production.
Changes deployed to production are those that affect the functionality, performance, or security of the system in a way that is visible or accessible to the end users1. These changes can introduce new risks or vulnerabilities, such as errors, bugs, compatibility issues, or unauthorized access2. Therefore, it is important to monitor the risk associated with these changes and measure how often they cause incidents in production.
One metric that can be used to monitor this risk is the percentage of changes that cause incidents in production. This metric indicates how effective the change management process is and how well the organization can prevent or mitigate potential problems caused by changes3. A high percentage of incidents indicates a high level of risk and a need for improvement in the change management process.
References = IT Change Management for SOC: Process and Best Practices, Determining and Managing Risk when Deploying Code, 6 Deployment Risks and How To Mitigate Them
An organization has provided legal text explaining the rights and expected behavior of users accessing a system from geographic locations that have strong privacy regulations. Which of the following control types has been applied?
Detective
Directive
Preventive
Compensating
The type of control that has been applied when an organization provides legal text explaining the rights and expected behavior of users accessing a system from geographic locations that have strong privacy regulations is directive. A directive control is a control that guides or instructs the users or the staff on the policies, procedures, or standards that they need to follow or comply with when performing their tasks or activities. A directive control can help to prevent or reduce the risk of non-compliance, errors, or violations, by ensuring that the users or the staff are aware and informed of the expectations and requirements of the organization or the system. A directive control can also help to enforce the accountability and responsibility of the users or the staff, and to support the audit and monitoring of their actions and behaviors. Providing legal text explaining the rights and expected behavior of users accessing a system from geographic locations that have strong privacy regulations is an example of a directive control, as it informs the users of the legal obligations and consequences of using the system, and instructs them on how to protect their privacy and the privacy of others. Detective, preventive, and compensating are not the correct types of control, as they do not match the definition or the purpose of the control that has been applied. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.
An organizations chief technology officer (CTO) has decided to accept the risk associated with the potential loss from a denial-of-service (DoS) attack. In this situation, the risk practitioner's BEST course of action is to:
identify key risk indicators (KRls) for ongoing monitoring
validate the CTO's decision with the business process owner
update the risk register with the selected risk response
recommend that the CTO revisit the risk acceptance decision.
The references for this answer are:
Which of the following would BEST indicate to senior management that IT processes are improving?
Changes in the number of intrusions detected
Changes in the number of security exceptions
Changes in the position in the maturity model
Changes to the structure of the risk register
The best indicator to senior management that IT processes are improving is the changes in the position in the maturity model. A maturity model is a framework that defines the levels of capability and performance of a process, such as IT processes, based on the criteria such as governance, management, control, measurement, and improvement. A maturity model can help to assess the current state and the desired state of the IT processes, and to identify the gaps, strengths, and opportunities for improvement. A maturity model can also help to communicate the progress and the value of the IT processes to the senior management, and to support the strategic alignment and integration of the IT processes with the business objectives. Changes in the position in the maturity model indicate that the IT processes are improving, as they show that the IT processes are moving from a lower level to a higher level of maturity, and that they are achieving higher standards of quality, efficiency, and effectiveness. Changes in the number of intrusions detected, changes in the number of security exceptions, and changes to the structure of the risk register are not as good as changes in the position in the maturity model, as they do not provide a comprehensive and consistent measure of the IT processes improvement, and they may not reflect the actual impact and performance of the IT processes. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 36.
Which of the following will BEST support management reporting on risk?
Control self-assessment (CSA)
Risk policy requirements
A risk register
Key performance indicators (KPIs)
Key performance indicators (KPIs) will best support management reporting on risk, as they help to measure and monitor the effectiveness and efficiency of the risk management and control processes. KPIs are metrics or measures that provide information on the current or potential performance of a specific activity, process, or objective. KPIs can be classified into two types: leading and lagging. Leading KPIs are predictive indicators that provide early warning signals or trends of future performance. Lagging KPIs are outcome indicators that reflect the actual or historical performance.
KPIs help to support management reporting on risk by providing the following benefits:
The other options are not the best choices to support management reporting on risk. Control self-assessment (CSA) is a process that involves the participation and involvement of the staff and managers in assessing the effectiveness and efficiency of the internal controls within their areas of responsibility, but it does not provide a comprehensive or objective view of the risk performance. Risk policy requirements are the documents that define the principles, rules, and guidelines for the risk management and control processes, but they do not provide actual or potential information on the risk performance. A risk register is a tool that records and tracks the information and status of the identified risks and their responses, but it does not measure or monitor the risk performance. References = Key Performance Indicators (KPIs) for Risk Management - Resolver, IT Risk Resources | ISACA, Risk Reporting - Open Risk Manual
Which of the following should be of GREATEST concern lo a risk practitioner reviewing the implementation of an emerging technology?
Lack of alignment to best practices
Lack of risk assessment
Lack of risk and control procedures
Lack of management approval
Risk assessment is a key process that identifies, analyzes, and evaluates the risks associated with the implementation of an emerging technology. It helps to determine the potential impact and likelihood of the risks, as well as the appropriate risk responses and controls. Lack of risk assessment can lead to poor decision making, inadequate risk mitigation, and unexpected consequences. Therefore, it should be of greatest concern to a risk practitioner reviewing the implementation of an emerging technology. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.2.1, p. 226-227
Which of the following should be an element of the risk appetite of an organization?
The effectiveness of compensating controls
The enterprise's capacity to absorb loss
The residual risk affected by preventive controls
The amount of inherent risk considered appropriate
Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. One of the elements of risk appetite is the enterprise’s capacity to absorb loss, which is the maximum amount of loss that an organization can withstand without jeopardizing its existence or strategic objectives. The effectiveness of compensating controls, the residual risk affected by preventive controls, and the amount of inherent risk considered appropriate are not elements of risk appetite, but rather factors that influence the risk assessment and response processes. References = [CRISC Review Manual (Digital Version)], page 41; CRISC Review Questions, Answers & Explanations Database, question 196.
Of the following, who is accountable for ensuing the effectiveness of a control to mitigate risk?
Control owner
Risk manager
Control operator
Risk treatment owner
The control owner is the person who is accountable for ensuring that a control is designed, implemented, and operated effectively to mitigate risk. The control owner is also responsible for monitoring the performance of the control and reporting any issues or deficiencies. The risk manager is the person who oversees the risk management process and ensures that risks are identified, assessed, and treated appropriately. The control operator is the person who executes the control activities on a day-to-day basis. The risk treatment owner is the person who is accountable for implementing the risk response strategy and ensuring that the residual risk is within the acceptable level. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1, p. 181.
What information is MOST helpful to asset owners when classifying organizational assets for risk assessment?
Potential loss to tie business due to non-performance of the asset
Known emerging environmental threats
Known vulnerabilities published by the asset developer
Cost of replacing the asset with a new asset providing similar services
The potential loss to the business due to non-performance of the asset is the most helpful information for asset owners when classifying organizational assets for risk assessment, because it reflects the value and criticality of the asset to the business objectives and processes. The potential loss can be measured in terms of financial, operational, reputational, or legal impacts. The known emerging environmental threats are not relevant for asset classification, because they are external factors that affect the risk level, not the asset value. The known vulnerabilities published by the asset developer are not relevant for asset classification, because they are internal factors that affect the risk level, not the asset value. The cost of replacing the asset with a new asset providing similar services is not relevant for asset classification, because it does not reflect the business impact of losing the asset functionality or availability. References = CRISC Sample Questions 2024
When developing a risk awareness training program, which of the following training topics would BEST facilitate a thorough understanding of risk scenarios?
Mapping threats to organizational objectives
Reviewing past audits
Analyzing key risk indicators (KRIs)
Identifying potential sources of risk
Identifying potential sources of risk is the first step in the risk identification process, which is essential for developing a thorough understanding of risk scenarios. Sources of risk can be internal or external, and can include factors such as people, processes, technology, environment, regulations, and events. Identifying potential sources of risk can help to generate a comprehensive list of risk scenarios that can affect the organization’s objectives and operations. Identifying potential sources of risk can also help to raise risk awareness among the employees and to foster a risk culture within the organization. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, p. 66-67
Which of the following should be a risk practitioner's PRIMARY focus when tasked with ensuring organization records are being retained for a sufficient period of time to meet legal obligations?
Data duplication processes
Data archival processes
Data anonymization processes
Data protection processes
Data archival processes should be the primary focus of a risk practitioner when ensuring that organization records are being retained for a sufficient period of time to meet legal obligations, because data archival processes ensure that records are stored securely, reliably, and accessibly for as long as they are needed. Data archival processes also help to manage the storage capacity, retention policies, and disposal procedures of records. Data duplication processes are not the primary focus, because they are mainly used for backup and recovery purposes, not for long-term retention. Data anonymization processes are not the primary focus, because they are mainly used for privacy and confidentiality purposes, not for legal compliance. Data protection processes are not the primary focus, because they are mainly used for security and integrity purposes, not for retention requirements. References = Free ISACA CRISC Sample Questions and Study Guide
Which of the following is the MOST important reason to link an effective key control indicator (KCI) to relevant key risk indicators (KRIs)?
To monitor changes in the risk environment
To provide input to management for the adjustment of risk appetite
To monitor the accuracy of threshold levels in metrics
To obtain business buy-in for investment in risk mitigation measures
 Key control indicators (KCIs) are metrics that measure how well a specific control is performing in reducing the causes, consequences, or likelihood of a risk1. Key risk indicators (KRIs) are metrics that measure changes in the risk exposure or the potential impact of a risk2. By linking an effective KCI to relevant KRIs, the organization can monitor changes in the risk environment and assess how the control is influencing the risk level3. This can help the organization to:
References = Risk and Information Systems Control Study Manual, Chapter 6: Risk Response and Mitigation4
The risk associated with an asset after controls are applied can be expressed as:
a function of the cost and effectiveness of controls.
the likelihood of a given threat.
a function of the likelihood and impact.
the magnitude of an impact.
The risk associated with an asset after controls are applied can be expressed as a function of the likelihood and impact, as it helps to measure and quantify the residual risk level and exposure. Residual risk is the risk that remains after the implementation of controls or risk treatments. Residual risk can be calculated by multiplying the likelihood and impact of a risk event, where likelihood is the probability or frequency of the risk event occurring, and impact is the consequence or severity of the risk event on the asset or objective. Residual risk can be expressed as:
ResidualRisk=Likelihood×Impact
Expressing the risk associated with an asset after controls are applied as a function of the likelihood and impact helps to provide the following benefits:
The other options are not the best ways to express the risk associated with an asset after controls are applied. A function of the cost and effectiveness of controls is a measure of the inputs or outputs of the risk management and control processes, but it does not indicate the risk level or exposure. The likelihood of a given threat is a component of the risk calculation, but it does not reflect the impact or consequence of the threat. The magnitude of an impact is a component of the risk calculation, but it does not reflect the likelihood or probability of the risk event. References = Risk Assessment and Analysis Methods: Qualitative and Quantitative, IT Risk Resources | ISACA, Residual Risk: Definition, Formula & Management - Video & Lesson …
Which of the following is the MOST important factor affecting risk management in an organization?
The risk manager's expertise
Regulatory requirements
Board of directors' expertise
The organization's culture
According to the CRISC Review Manual (Digital Version), the organization’s culture is the most important factor affecting risk management in an organization, as it influences the risk awareness, risk attitude, risk behavior and risk communication of all stakeholders. The organization’s culture is defined as the shared values, beliefs, norms and expectations that guide the actions and interactions of the members of the organization. The organization’s culture affects how risk management is perceived, supported, implemented and integrated within the organization. A strong risk culture is one that:
References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.3: IT Risk Culture, pp. 23-251
The PRIMARY reason a risk practitioner would be interested in an internal audit report is to:
plan awareness programs for business managers.
evaluate maturity of the risk management process.
assist in the development of a risk profile.
maintain a risk register based on noncompliance.
According to the CRISC Review Manual (Digital Version), the primary reason a risk practitioner would be interested in an internal audit report is to evaluate the maturity of the risk management process, as it provides an independent and objective assessment of the effectiveness and efficiency of the risk management activities and controls. An internal audit report helps to:
References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.2: IT Risk Reporting, pp. 223-2241
During the risk assessment of an organization that processes credit cards, a number of existing controls have been found to be ineffective and do not meet industry standards. The overall control environment may still be effective if:
compensating controls are in place.
a control mitigation plan is in place.
risk management is effective.
residual risk is accepted.
Compensating controls are additional or alternative controls that are implemented when the existing controls are found to be ineffective or do not meet the required standards. Compensating controls are designed to reduce the risk exposure to an acceptable level and ensure that the organization can still comply with the relevant regulations and industry best practices. For an organization that processes credit cards, compensating controls may include enhanced encryption, monitoring, auditing, or authentication mechanisms. By having compensating controls in place, the organization can maintain an effective overall control environment despite the deficiencies in the existing controls. The other options are not correct because they do not ensure that the overall control environment is effective. A control mitigation plan is a document that outlines the actions and resources needed to address the control deficiencies, but it does not guarantee that the compensating controls will be implemented or effective. Risk management is a process that involves identifying, analyzing, evaluating, and treating risks, but it does not directly affect the control environment. Residual risk is the risk that remains after the risk treatment, and it may or may not be acceptable depending on the risk appetite of the organization. References = CRISC Review Manual, pages 153-1541; CRISC Review Questions, Answers & Explanations Manual, page 632
IT management has asked for a consolidated view into the organization's risk profile to enable project prioritization and resource allocation. Which of the following materials would
be MOST helpful?
IT risk register
List of key risk indicators
Internal audit reports
List of approved projects
It is MOST appropriate for changes to be promoted to production after they are:
communicated to business management
tested by business owners.
approved by the business owner.
initiated by business users.
A risk assessment has identified that departments have installed their own WiFi access points on the enterprise network. Which of the following would be MOST important to include in a report to senior management?
The network security policy
Potential business impact
The WiFi access point configuration
Planned remediation actions
When using a third party to perform penetration testing, which of the following is the MOST important control to minimize operational impact?
Perform a background check on the vendor.
Require the vendor to sign a nondisclosure agreement.
Require the vendor to have liability insurance.
Clearly define the project scope
When using a third party to perform penetration testing, the most important control to minimize operational impact is to clearly define the project scope. This means specifying the objectives, boundaries, methods, and deliverables of the testing, as well as the roles and responsibilities of the parties involved. A clear project scope helps to avoid misunderstandings, conflicts, and disruptions that could compromise the security, availability, or integrity of the systems under test. It also helps to ensure that the testing is aligned with the organization’s risk appetite and compliance requirements. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.3.2, Page 137.
Who is the MOST appropriate owner for newly identified IT risk?
The manager responsible for IT operations that will support the risk mitigation efforts
The individual with authority to commit organizational resources to mitigate the risk
A project manager capable of prioritizing the risk remediation efforts
The individual with the most IT risk-related subject matter knowledge
According to the CRISC Review Manual, the risk owner is the person who has the authority and accountability to manage a specific risk and its associated controls1. The risk owner is also responsible for ensuring that the risk is within the acceptable level and that the risk response is effective and efficient2. Therefore, the most appropriate owner for a newly identified IT risk is the individual who has the authority to commit organizational resources to mitigate the risk, as they have the most interest and influence on the risk and its impact on the business objectives. The other options are not the most appropriate owners for a newly identified IT risk, as they may not have the authority or the accountability to manage the risk. The manager responsible for IT operations that will support the risk mitigation efforts may have the operational responsibility or the oversight of the risk management activities, but they may not have the authority to allocate the resources or approve the risk response. A project manager capable of prioritizing the risk remediation efforts may have the project management skills or the knowledge of the risk management process, but they may not have the accountability or the ownership of the risk or its outcomes. The individual with the most IT risk-related subject matter knowledge may have the technical expertise or the understanding of the risk and its causes, but they may not have the decision-making power or the responsibility to manage the risk or its controls. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 822
The risk associated with an asset before controls are applied can be expressed as:
a function of the likelihood and impact
the magnitude of an impact
a function of the cost and effectiveness of control.
the likelihood of a given threat
The risk associated with an asset before controls are applied is also known as the inherent risk. It is the level of risk that exists in the absence of any mitigating actions or measures. To express the inherent risk, one needs to consider two factors: the likelihood and the impact of a potential threat. The likelihood is the probability or frequency of a threat occurring, while the impact is the magnitude or severity of the consequences if the threat materializes. The inherent risk can be calculated by multiplying the likelihood and the impact, or by using a risk matrix that assigns a risk rating based on the combination of these two factors. The other options are not correct ways of expressing the inherent risk, as they do not account for both the likelihood and the impact of a threat. The magnitude of an impact is only one component of the risk, and it does not reflect how likely the threat is to happen. The function of the cost and effectiveness of control is related to the residual risk, which is the risk that remains after controls are applied. The likelihood of a given threat is also only one component of the risk, and it does not indicate how severe the impact would be if the threat occurs. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.1, Page 47.
An organization wants to assess the maturity of its internal control environment. The FIRST step should be to:
validate control process execution.
determine if controls are effective.
identify key process owners.
conduct a baseline assessment.
A baseline assessment is the first step in assessing the maturity of an organization’s internal control environment. A baseline assessment is a comprehensive evaluation of the current state of the internal control structure, processes, and activities across the organization. A baseline assessment helps to identify the strengths and weaknesses of the existing internal controls, as well as the gaps and opportunities for improvement. A baseline assessment also provides a reference point for measuring the progress and effectiveness of the internal control improvement initiatives. The other options are not the first steps in assessing the maturity of an internal control environment, although they may be part of the subsequent steps. Validating control process execution is a technique to verify that the internal control activities are performed as designed and intended. Determining if controls are effective is a process to evaluate the adequacy and efficiency of the internal controls in achieving the desired outcomes and mitigating the risks. Identifying key process owners is a task to assign the roles and responsibilities for the internal control design, implementation, and monitoring to the appropriate individuals or groups within the organization. References = CRISC Review Manual, pages 153-1541; CRISC Review Questions, Answers & Explanations Manual, page 742
The PRIMARY benefit of maintaining an up-to-date risk register is that it helps to:
implement uniform controls for common risk scenarios.
ensure business unit risk is uniformly distributed.
build a risk profile for management review.
quantify the organization's risk appetite.
Which of the following would be the BEST recommendation if the level of risk in the IT risk profile has decreased and is now below management's risk appetite?
Optimize the control environment.
Realign risk appetite to the current risk level.
Decrease the number of related risk scenarios.
Reduce the risk management budget.
Which of the following is MOST critical when designing controls?
Involvement of internal audit
Involvement of process owner
Quantitative impact of the risk
Identification of key risk indicators
The most critical factor when designing controls is the involvement of the process owner, who is the person responsible for the performance and outcomes of a business process. The process owner has the best knowledge and understanding of the process objectives, activities, inputs, outputs, resources, and risks. The process owner can provide valuable input and feedback on the design of controls that are relevant, effective, efficient, and aligned with the process goals. The process owner can also ensure that the controls are implemented, monitored, and improved as needed. The involvement of the process owner can also increase the acceptance and ownership of the controls by the process participants and stakeholders. The other options are less critical when designing controls. The involvement of internal audit can provide assurance and advice on the adequacy and effectiveness of the controls, but internal audit is not responsible for the design or implementation of the controls. The quantitative impact of the risk can help to prioritize and justify the controls, but it is not sufficient to determine the appropriate type and level of controls. The identification of key risk indicators can help to monitor and measure the risk and the performance of the controls, but it is not the main driver of the control design. References = Risk IT Framework, ISACA, 2022, p. 181
A risk practitioner has determined that a key control does not meet design expectations. Which of the following should be done NEXT?
Document the finding in the risk register.
Invoke the incident response plan.
Re-evaluate key risk indicators.
Modify the design of the control.
 The next step after determining that a key control does not meet design expectations is to document the finding in the risk register, because this helps to record and track the information about the identified risk, such as its description, likelihood, impact, response, and status. A key control is a control that addresses a significant risk or supports a critical business process or objective. A control design expectation is a criterion or requirement that defines how the control should operate or perform to achieve its objective. If a key control does not meet its design expectation, it means that there is a gap, weakness, or deficiency in the control that may compromise its effectiveness or efficiency, and increase the risk exposure or impact. By documenting the finding in the risk register, the risk practitioner can communicate and report the risk issue to the relevant stakeholders, such as the risk owner, the management, or the auditor, and initiate the appropriate risk response actions, such as modifying the design of the control, implementing a compensating control, or accepting the risk. The other options are not the best next steps after determining that a key control does not meet design expectations. Invoking the incident response plan is a reactive measure that is triggered when a risk event occurs or is imminent, and requires immediate action to contain, mitigate, or recover from the incident. However, in this case, the risk event has not occurred yet, and there may be time to prevent or reduce it by improving the control design. Re-evaluating key risk indicators is a monitoring activity that measures and evaluates the level and impact of risks, and provides timely signals that something may be going wrong or needs urgent attention. However, in this case, the risk practitioner has already identified the risk issue, and needs to document and address it, rather than re-evaluate it. Modifying the design of the control is a possible risk response action that may be taken to improve the control and reduce the risk, but it is not the next step after determining that the key control does not meet design expectations. The next step is to document the finding in the risk register, and then decide on the best risk response action, which may or may not be modifying the design of the control, depending on the cost-benefit analysis, the risk assessment, and the risk response strategy. References = Risk IT Framework, ISACA, 2022, p. 13
A risk practitioner has identified that the organization's secondary data center does not provide redundancy for a critical application. Who should have the authority to accept the associated risk?
Business continuity director
Disaster recovery manager
Business application owner
Data center manager
 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
Which of the following would BEST help minimize the risk associated with social engineering threats?
Enforcing employees’ sanctions
Conducting phishing exercises
Enforcing segregation of dunes
Reviewing the organization's risk appetite
Conducting phishing exercises would best help minimize the risk associated with social engineering threats, because they can help to raise awareness and educate employees about the common techniques and tactics used by social engineers, such as sending deceptive emails or text messages that ask for sensitive information or direct users to malicious websites. Phishing exercises are simulated attacks that test the employees’ ability to recognize and respond to social engineering attempts, and provide feedback and guidance on how to improve their security behavior. By conducting phishing exercises, the organization can measure and improve the employees’ level of security awareness and resilience, and reduce the likelihood and impact of falling victim to social engineering attacks. The other options are less effective ways to minimize the risk associated with social engineering threats. Enforcing employees’ sanctions can help to deter and punish employees who violate the security policies or procedures, but it may not prevent or reduce the occurrence of social engineering attacks, as they may target employees who are unaware, careless, or coerced by the attackers. Enforcing segregation of duties can help to prevent or limit the damage caused by social engineering attacks, by restricting the access and authority of employees to perform certain tasks or functions, but it may not address the root cause or source of the attacks, which is the human factor. Reviewing the organization’s risk appetite can help to define and communicate the amount and type of risk that the organization is willing to accept in pursuit of its objectives, but it may not directly affect or influence the employees’ behavior or attitude toward social engineering threats, which may depend on their individual or situational factors. References = How to Prevent and Mitigate Social Engineering Attacks 1
A risk assessment has identified that an organization may not be in compliance with industry regulations. The BEST course of action would be to:
conduct a gap analysis against compliance criteria.
identify necessary controls to ensure compliance.
modify internal assurance activities to include control validation.
collaborate with management to meet compliance requirements.
 According to the CRISC Review Manual (Digital Version), the best course of action when a risk assessment has identified that an organization may not be in compliance with industry regulations is to conduct a gap analysis against compliance criteria, which is a method of comparing the current state of compliance with the desired or required state of compliance. Conducting a gap analysis against compliance criteria helps to:
References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.5: IT Risk Identification Methods and Techniques, pp. 34-351
A business unit is updating a risk register with assessment results for a key project. Which of the following is MOST important to capture in the register?
The team that performed the risk assessment
An assigned risk manager to provide oversight
Action plans to address risk scenarios requiring treatment
The methodology used to perform the risk assessment
 A risk register is a tool that records and tracks the risks that may affect a project, as well as the actions that are taken or planned to manage them1. A risk register should include information such as the risk description, category, source, impact, likelihood, severity, owner, status, and response2. Among these, the most important information to capture in the risk register is the action plans to address risk scenarios requiring treatment. This is because the action plans are the specific steps that are taken to reduce, avoid, transfer, or accept the risks, depending on the chosen risk treatment option3. The action plans should be clear, realistic, measurable, and aligned with the project objectives and constraints4. The action plans should also be monitored and updated regularly to ensure that they are effective and appropriate for the changing risk environment5. The action plans are essential for managing the risks and ensuring the successful delivery of the project. The other options are not the most important information to capture in the risk register, as they are either less relevant or less actionable than the action plans. The team that performed the risk assessment is the group of people who identified, analyzed, and evaluated the risks, using various tools and techniques6. While this information may be useful for accountability and communication purposes, it is not as important as the action plans, as it does not indicate how the risks are treated or resolved. The assigned risk manager to provide oversight is the person who has the responsibility and authority to oversee the risk management process and ensure that the risks are properly identified, assessed, treated, and reported. While this information may be useful for governance and coordination purposes, it is not as important as the action plans, as it does not specify what actions are taken or planned to manage the risks. The methodology used to perform the risk assessment is the approach or framework that is used to identify, analyze, and evaluate the risks, based on the project context, scope, and objectives. While this information may be useful for consistency and transparency purposes, it is not as important as the action plans, as it does not describe how the risks are addressed or mitigated. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.5, Page 55.
Which of the following is the BEST course of action to reduce risk impact?
Create an IT security policy.
Implement corrective measures.
Implement detective controls.
Leverage existing technology
Which of the following is a PRIMARY benefit of engaging the risk owner during the risk assessment process?
Identification of controls gaps that may lead to noncompliance
Prioritization of risk action plans across departments
Early detection of emerging threats
Accurate measurement of loss impact
A primary benefit of engaging the risk owner during the risk assessment process is prioritization of risk action plans across departments, because this helps to ensure that the most critical and relevant risks are addressed first, and that the resources and efforts are allocated and coordinated efficiently and effectively. A risk owner is the person or group who is responsible for the day-to-day management and mitigation of a specific risk, and who has the authority and accountability to make risk-related decisions. A risk assessment is the process of identifying, analyzing, and evaluating the risks that may affect the organization’s objectives, performance, or value. A risk action plan is the set of actions and tasks that are designed and implemented to reduce the likelihood and impact of a risk, or to exploit the opportunities that a risk may create. By engaging the risk owner during the risk assessment process, the organization can benefit from the following advantages:
An organization that has been the subject of multiple social engineering attacks is developing a risk awareness program. The PRIMARY goal of this program should be to:
reduce the risk to an acceptable level.
communicate the consequences for violations.
implement industry best practices.
reduce the organization's risk appetite
According to the CRISC Review Manual (Digital Version), the primary goal of a risk awareness program is to reduce the risk to an acceptable level by increasing the knowledge and understanding of the risk among the stakeholders. A risk awareness program should:
References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.2: IT Risk Reporting, pp. 224-2251
An application owner has specified the acceptable downtime in the event of an incident to be much lower than the actual time required for the response team to recover the application. Which of the following should be the NEXT course of action?
Invoke the disaster recovery plan during an incident.
Prepare a cost-benefit analysis of alternatives available
Implement redundant infrastructure for the application.
Reduce the recovery time by strengthening the response team.
According to the CRISC Review Manual (Digital Version), the next course of action when there is a gap between the acceptable downtime and the actual recovery time of an application is to prepare a cost-benefit analysis of alternatives available to reduce the gap. The cost-benefit analysis should compare the costs of implementing different risk response options, such as avoidance, mitigation, transfer or acceptance, with the benefits of reducing the impact and likelihood of the risk. The cost-benefit analysis should also consider the alignment of the risk response options with the enterprise’s risk appetite, business objectives and strategy. The cost-benefit analysis should help the application owner and the risk owner to select the most appropriate risk response option that optimizes the value of the application and minimizes the residual risk.
References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.2: Risk Response Process, pp. 162-1631
An organization outsources the processing of us payroll data A risk practitioner identifies a control weakness at the third party trial exposes the payroll data. Who should own this risk?
The third party's IT operations manager
The organization's process owner
The third party's chief risk officer (CRO)
The organization's risk practitioner
The organization’s process owner should own the risk of exposing the payroll data due to a control weakness at the third party, because the process owner is the person who is responsible for the business process that generates, uses, or transfers the payroll data. The process owner should also ensure that the third party complies with the contractual obligations and service level agreements that define the expected performance and security standards of the payroll data processing. The other options are not the correct answers, because they are not the primary owners of the risk, although they may also be involved in the risk management process. The third party’s IT operations manager, the third party’s chief risk officer (CRO), and the organization’s risk practitioner are examples of secondary owners or stakeholders of the risk, who may provide support, guidance, or oversight to the risk owner, but they are not accountable for the risk or the risk response strategy. References = CRISC: Certified in Risk & Information Systems Control Sample Questions
Which of the following is the PRIMARY reason to use key control indicators (KCIs) to evaluate control operating effectiveness?
To measure business exposure to risk
To identify control vulnerabilities
To monitor the achievement of set objectives
To raise awareness of operational issues
 Key control indicators (KCIs) are metrics that measure how well a specific control is performing in reducing the causes, consequences, or likelihood of a risk1. KCIs are used to evaluate the control operating effectiveness, which is the degree to which a control achieves its intended objectives and mitigates the risk2.
The primary reason to use KCIs to evaluate control operating effectiveness is to monitor the achievement of set objectives. This means that KCIs help to:
References = Key Control Indicator (KCI) - CIO Wiki, Evaluating and Improving Internal Control in Organizations - IFAC, A Methodical Approach to Key Control Indicators
To reduce costs, an organization is combining the second and third tines of defense in a new department that reports to a recently appointed C-level executive. Which of the following is the GREATEST concern with this situation?
The risk governance approach of the second and third lines of defense may differ.
The independence of the internal third line of defense may be compromised.
Cost reductions may negatively impact the productivity of other departments.
The new structure is not aligned to the organization's internal control framework.
 The greatest concern with the situation of combining the second and third lines of defense in a new department that reports to a recently appointed C-level executive is that the independence of the internal third line of defense may be compromised. The second line of defense is the function that oversees and supports the risk management activities of the first line of defense, which is the function that owns and manages the risks. The third line of defense is the function that provides independent assurance of the risk management activities, such as the internal audit function. Combining the second and third lines of defense in a new department may compromise the independence of the internal third line of defense, as it may create a conflict of interest, bias, or influence among the functions, and impair the objectivity, credibility, and quality of the assurance activities. The independence of the internal third line of defense is essential for ensuring that the risk management activities are performed in a consistent and effective manner, and that the issues and gaps are identified and reported without fear or favor. The risk governance approach of the second and third lines of defense may differ, cost reductions may negatively impact the productivity of other departments, and the new structure may not be aligned to the organization’s internal control framework are also concerns, but they are not as great as the compromise of the independence of the internal third line of defense, as they do not directly affect the assurance and accountability of the risk management activities. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 36.
Which of the following is MOST appropriate to prevent unauthorized retrieval of confidential information stored in a business application system?
Implement segregation of duties.
Enforce an internal data access policy.
Enforce the use of digital signatures.
Apply single sign-on for access control.
The references for this answer are:
Which of the following practices MOST effectively safeguards the processing of personal data?
Personal data attributed to a specific data subject is tokenized.
Data protection impact assessments are performed on a regular basis.
Personal data certifications are performed to prevent excessive data collection.
Data retention guidelines are documented, established, and enforced.
Personal data is any information that relates to an identified or identifiable individual, such as name, address, email, phone number, etc. Processing personal data involves collecting, storing, using, disclosing, or deleting it. Processing personal data poses various risks to the privacy and security of the data subjects, such as unauthorized access, disclosure, modification, or loss. Therefore, processing personal data requires appropriate technical and organizational measures to safeguard the data and to comply with the relevant laws and regulations. One of the most effective practices to safeguard the processing of personal data is to use tokenization. Tokenization is a technique that replaces sensitive data elements with non-sensitive equivalents, called tokens, that have no meaning or value outside of a specific system or context. Tokenization reduces the risk of exposing personal data to unauthorized parties, as the tokens cannot be reversed or linked back to the original data without the proper key or algorithm. Tokenization also helps to minimize the amount of personal data that is stored or transmitted, and to limit the scope of compliance requirements. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2.2, p. 196-197
An organization has been notified that a disgruntled, terminated IT administrator has tried to break into the corporate network. Which of the following discoveries should be of GREATEST concern to the organization?
Authentication logs have been disabled.
An external vulnerability scan has been detected.
A brute force attack has been detected.
An increase in support requests has been observed.
Authentication logs are records of the attempts and results of logging into an IT system, network, or application, such as the user name, password, date, time, location, or device1. Authentication logs can help to verify and audit the identity and access of the users, and to detect and investigate any unauthorized or suspicious login activities, such as failed or repeated attempts, or unusual patterns or locations2.
Among the four options given, the discovery that authentication logs have been disabled should be of greatest concern to the organization. This is because disabling authentication logs can:
References = What is Authentication Logging?, Authentication Logging - Wikipedia, Fired admin cripples former employer’s network using old credentials
Vulnerabilities have been detected on an organization's systems. Applications installed on these systems will not operate if the underlying servers are updated. Which of the following is the risk practitioner's BEST course of action?
Recommend the business change the application.
Recommend a risk treatment plan.
Include the risk in the next quarterly update to management.
Implement compensating controls.
A risk treatment plan typically includes the following elements2:
By recommending a risk treatment plan, the risk practitioner can help the organization to:
The other options are not the best course of action, because:
References =
Which of the following should be management's PRIMARY focus when key risk indicators (KRIs) begin to rapidly approach defined thresholds?
Designing compensating controls
Determining if KRIs have been updated recently
Assessing the effectiveness of the incident response plan
Determining what has changed in the environment
The primary focus of management when key risk indicators (KRIs) begin to rapidly approach defined thresholds is to determine what has changed in the environment. KRIs are metrics that provide information and insight on the current level and trend of the risk exposure, and help to monitor and report the risk status and performance. Defined thresholds are the values or ranges of the KRIs that indicate the acceptable or unacceptable level of the risk exposure, and trigger the risk response actions. When KRIs begin to rapidly approach defined thresholds, it means that the risk exposure is increasing or decreasing significantly, and that the risk situation and status may have changed. Therefore, the primary focus of management is to determine what has changed in the environment, which is the internal or external context that influences or affects the risk exposure and impact. Determining what has changed in the environment helps to identify and analyze the causes, drivers, or factors of the risk change, and to evaluate the implications and consequences of the risk change. Determining what has changed in the environment also helps to update and adjust the risk assessment and response, and to communicate and escalate the risk change to the relevant stakeholders. Designing compensating controls, determining if KRIs have been updated recently, and assessing the effectiveness of the incident response plan are not the primary focus of management, as they are either the outputs or the inputs of the risk change analysis, and they do not address the primary need of understanding the risk change. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 50.
Which of the following is MOST important to communicate to senior management during the initial implementation of a risk management program?
Regulatory compliance
Risk ownership
Best practices
Desired risk level
The most important factor to communicate to senior management during the initial implementation of a risk management program is the desired risk level, which is the level of risk that the organization aims to achieve in order to fulfill its objectives and strategy1. The desired risk level can help to:
The other factors are not the most important to communicate to senior management, because:
References =
Which of the following statements BEST illustrates the relationship between key performance indicators (KPIs) and key control indicators (KCIs)?
KPIs measure manual controls, while KCIs measure automated controls.
KPIs and KCIs both contribute to understanding of control effectiveness.
A robust KCI program will replace the need to measure KPIs.
KCIs are applied at the operational level while KPIs are at the strategic level.
Key performance indicators (KPIs) are metrics or measures that provide information on the progress and performance of an organization or a team toward an intended result or objective. KPIs can help to monitor and evaluate the achievement of strategic, operational, or tactical goals, and to support the decision making and improvement of the organization or the team1.
Key control indicators (KCIs) are metrics or measures that provide information on the status and effectiveness of the controls or safeguards that are implemented to manage the risks or threats that an organization or a team faces. KCIs can help to identify and assess the strengths and weaknesses of the controls or safeguards, and to ensure the compliance and accountability of the organization or the team2.
The statement that best illustrates the relationship between KPIs and KCIs is that KPIs and KCIs both contribute to understanding of control effectiveness, because they can help to:
The other statements do not illustrate the relationship between KPIs and KCIs accurately, but rather some of the differences or misconceptions between them. KPIs measure manual controls, while KCIs measure automated controls is a difference between KPIs and KCIs, but not a general one. KPIs and KCIs can measure both manual and automated controls, depending on the type and nature of the controls or safeguards. A robust KCI program will replace the need to measure KPIs is a misconception about KPIs and KCIs, as they are not mutually exclusive or substitutable. KPIs and KCIs complement and support each other, as they provide different but related information on the performance and risk management of the organization or the team. KCIs are applied at the operational level while KPIs are at the strategic level is a difference between KPIs and KCIs, but not a universal one. KPIs and KCIs can be applied at different levels of the organization or the team, depending on the scope and purpose of the measurement and evaluation. References =
Which of the following is the BEST key control indicator (KCI) for a vulnerability management program?
Percentage of high-risk vulnerabilities missed
Number of high-risk vulnerabilities outstanding
Defined thresholds for high-risk vulnerabilities
Percentage of high-risk vulnerabilities addressed
A key control indicator (KCI) is a metric that measures the effectiveness of a control in mitigating a risk. A good KCI for a vulnerability management program should reflect how well the program is reducing the exposure to high-risk vulnerabilities. The percentage of high-risk vulnerabilities addressed is a KCI that shows the proportion of identified high-risk vulnerabilities that have been remediated or mitigated within a defined time frame. This KCI can help monitor the progress and performance of the vulnerability management program and identify areas for improvement.
The other options are not the best KCI for a vulnerability management program because they do not measure the effectiveness of the control. The percentage of high-risk vulnerabilities missed is a measure of the completeness of the vulnerability scanning process, not the control. The number of high-risk vulnerabilities outstanding is a measure of the current risk exposure, not the control. The defined thresholds for high-risk vulnerabilities are a measure of the risk appetite, not the control. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3: IT Risk Assessment, Section 3.4: Risk Indicators, p. 133-134.
Senior management has asked the risk practitioner for the overall residual risk level for a process that contains numerous risk scenarios. Which of the following should be provided?
The sum of residual risk levels for each scenario
The loss expectancy for aggregated risk scenarios
The highest loss expectancy among the risk scenarios
The average of anticipated residual risk levels
Residual risk is the remaining risk after the risk response has been implemented. Residual risk can be expressed as a combination of the probability and impact of the risk scenario, or as a single value such as loss expectancy. Residual risk can be compared with the inherent risk, which is the risk level before considering the existing controls or responses, to evaluate the risk reduction and value creation of the risk response. Senior management has asked the risk practitioner for the overall residual risk level for a process that contains numerous risk scenarios. The best way to provide this information is to calculate the average of anticipated residual risk levels for each risk scenario, and to present it as a single value or a range. This can help to provide a comprehensive and consistent view of the residual risk exposure and performance of the process, as well as to align it with the organization’s risk appetite and tolerance. The sum of residual risk levels for each scenario, the loss expectancy for aggregated risk scenarios, or the highest loss expectancy among the risk scenarios are not the best ways to provide the overall residual risk level, as they may overestimate or underestimate the risk exposure and performance of the process, and may not reflect the actual risk reduction and value creation of the risk response. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.2, p. 108-109
Winch of the following is the BEST evidence of an effective risk treatment plan?
The inherent risk is below the asset residual risk.
Remediation cost is below the asset business value
The risk tolerance threshold s above the asset residual
Remediation is completed within the asset recovery time objective (RTO)
The best evidence of an effective risk treatment plan is that the risk tolerance threshold is above the asset residual risk, because this means that the risk treatment plan has reduced the risk to a level that is acceptable to the enterprise. The risk tolerance threshold is the maximum amount of risk that the enterprise is willing to accept for a given asset or process. The asset residual risk is the remaining risk after applying the risk treatment plan. The risk treatment plan is effective if the asset residual risk is lower than or equal to the risk tolerance threshold. The other options are not the best evidence, although they may also be indicators of an effective risk treatment plan. The inherent risk being below the asset residual risk, the remediation cost being below the asset business value, and the remediation being completed within the asset recovery time objective (RTO) are examples of desirable or expected outcomes of the risk treatment plan, but they do not directly measure the effectiveness of the risk treatment plan. References = CRISC: Certified in Risk & Information Systems Control Sample Questions
Which of the following provides the MOST up-to-date information about the effectiveness of an organization's overall IT control environment?
Key performance indicators (KPIs)
Risk heat maps
Internal audit findings
Periodic penetration testing
The IT control environment is the set of standards, processes, and structures that provide the basis for carrying out IT internal control across the organization1. The IT control environment comprises the IT governance, IT policies and procedures, IT organizational structure, IT roles and responsibilities, IT competencies and training, and IT culture and ethics2. The effectiveness of the IT control environment can be measured by how well it supports the achievement of the organization’s IT objectives, such as IT reliability, security, compliance, and performance3.
One of the best ways to provide the most up-to-date information about the effectiveness of the organization’s overall IT control environment is to perform periodic penetration testing. Penetration testing is the process of simulating real-world cyberattacks on the organization’s IT systems, networks, and applications, to identify and exploit any vulnerabilities, weaknesses, or gaps in the IT control environment4. Penetration testing can help to:
References = COSO – Control Environment - Deloitte, How to use COSO to assess IT controls - Journal of Accountancy, What is Penetration Testing?, [Penetration Testing: A Guide for Business Leaders]
A highly regulated organization acquired a medical technology startup company that processes sensitive personal information with weak data protection controls. Which of the following is the BEST way for the acquiring company to reduce its risk while still enabling the flexibility needed by the startup company?
Identify previous data breaches using the startup company’s audit reports.
Have the data privacy officer review the startup company’s data protection policies.
Classify and protect the data according to the parent company's internal standards.
Implement a firewall and isolate the environment from the parent company's network.
Data protection is the process of safeguarding sensitive personal information from unauthorized access, use, disclosure, modification, or destruction. Data protection can help to ensure the privacy and security of the data subjects, and to comply with the legal and regulatory requirements that apply to the data processing activities1.
A highly regulated organization that acquired a medical technology startup company that processes sensitive personal information with weak data protection controls faces a high risk of data breaches, fines, lawsuits, reputational damage, or loss of customer trust. The best way for the acquiring company to reduce its risk while still enabling the flexibility needed by the startup company is to classify and protect the data according to the parent company’s internal standards, because it can help to:
The other options are not the best ways for the acquiring company to reduce its risk while still enabling the flexibility needed by the startup company, but rather some of the steps or aspects of data protection. Identify previous data breaches using the startup company’s audit reports is a step that can help to assess the current data protection status and gaps of the startup company, and to learn from the past incidents and mistakes, but it does not address the future data protection needs and challenges of the startup company. Have the data privacy officer review the startup company’s data protection policies is an aspect that can help to ensure the legal and regulatory compliance of the data protection activities of the startup company, and to provide guidance and oversight for the data protection issues and risks, but it does not ensure the technical and operational effectiveness and efficiency of the data protection controls of the startup company. Implement a firewall and isolate the environment from the parent company’s network is a control that can help to prevent or limit the external or internal attacks or threats to the data of the startup company, and to reduce the exposure or impact of a data breach, but it does not ensure the availability or accessibility of the data for the legitimate and authorized purposes of the startup company. References =
Which of the following controls BEST helps to ensure that transaction data reaches its destination?
Securing the network from attacks
Providing acknowledgments from receiver to sender
Digitally signing individual messages
Encrypting data-in-transit
 Providing acknowledgments from receiver to sender is a control that helps to ensure that transaction data reaches its destination, as it confirms the successful delivery of the data and allows the sender to resend the data in case of failure. Securing the network from attacks, digitally signing individual messages, and encrypting data-in-transit are controls that help to ensure the integrity and confidentiality of the data, but not the availability or delivery of the data. References = CRISC by Isaca Actual Free Exam Q&As, question 199.
Which of the following is the GREATEST risk associated with an environment that lacks documentation of the architecture?
Unknown vulnerabilities
Legacy technology systems
Network isolation
Overlapping threats
Architecture is the design and structure of a system or a process, such as an IT system or a business process. Architecture documentation is the document that describes and explains the architecture, such as its components, functions, relationships, requirements, constraints, or standards. Architecture documentation can help to understand, communicate, and improve the system or the process1.
An environment that lacks documentation of the architecture faces a great risk of unknown vulnerabilities, which are the weaknesses or flaws in the system or the process that could be exploited by threats or attackers, but are not identified or addressed by the organization. Unknown vulnerabilities can pose a serious risk to the organization, because they can:
Lack of documentation of the architecture can increase the risk of unknown vulnerabilities, because it can:
The other options are not the greatest risks associated with an environment that lacks documentation of the architecture, but rather some of the possible causes or consequences of it. Legacy technology systems are outdated or obsolete systems that are still in use by the organization, but are no longer supported or maintained by the vendors or developers. Legacy technology systems can be a cause of lack of documentation of the architecture, as they may have been developed or acquired without proper documentation, or the documentation may have been lost or discarded over time. Network isolation is the separation or segregation of a network or a system from other networks or systems, either physically or logically, to prevent or limit the access or communication between them. Network isolation can be a consequence of lack of documentation of the architecture, as it may result from the inability or difficulty to integrate or connect the system or the process with other systems or processes. Overlapping threats are threats that affect more than one system or process, or have similar or related sources or causes, such as natural disasters, cyberattacks, or human errors. Overlapping threats can be a consequence of lack of documentation of the architecture, as they may arise from the lack of understanding or coordination of the system or the process with other systems or processes. References =
Which of the following will be the GREATEST concern when assessing the risk profile of an organization?
The risk profile was not updated after a recent incident
The risk profile was developed without using industry standards.
The risk profile was last reviewed two years ago.
The risk profile does not contain historical loss data.
The greatest concern when assessing the risk profile of an organization is that the risk profile was last reviewed two years ago. A risk profile is a snapshot of the current risk exposure and appetite of the organization, based on the identification, analysis, and evaluation of the risks that could affect the achievement of the organization’s objectives. A risk profile should be reviewed and updated regularly, at least annually, or whenever there are significant changes in the internal or external environment, such as new projects, strategies, regulations, or incidents. A risk profile that was last reviewed two years ago may not reflect the current risk situation and status of the organization, and may lead to inaccurate or incomplete risk assessment and response. The risk profile not being updated after a recent incident, the risk profile being developed without using industry standards, and the risk profile not containing historical loss data are also concerns, but they are not as critical as the risk profile being outdated. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 48.
Which of the following is the MOST important consideration for protecting data assets m a Business application system?
Application controls are aligned with data classification lutes
Application users are periodically trained on proper data handling practices
Encrypted communication is established between applications and data servers
Offsite encrypted backups are automatically created by the application
 The most important consideration for protecting data assets in a business application system is to ensure that the application controls are aligned with the data classification rules. Data classification rules define the level of sensitivity, confidentiality, and criticality of the data, and the corresponding security requirements and controls. Application controls are the policies, procedures, and technical measures that are implemented at the application level to ensure the security, integrity, and availability of the data. Application controls should be designed and configured to match the data classification rules, so that the data is protected according to its value and risk. For example, if the data is classified as highly confidential, the application controls should enforce strong authentication, encryption, access control, logging, and auditing mechanisms. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 214.
A risk practitioner identifies a database application that has been developed and implemented by the business independently of IT. Which of the following is the BEST course of action?
Escalate the concern to senior management.
Document the reasons for the exception.
Include the application in IT risk assessments.
Propose that the application be transferred to IT.
The best course of action when a risk practitioner identifies a database application that has been developed and implemented by the business independently of IT is to include the application in IT risk assessments. IT risk assessments are the process of identifying, analyzing, and evaluating the IT-related risks that could affect the achievement of the enterprise’s objectives. By including the application in IT risk assessments, the risk practitioner can identify the potential threats, vulnerabilities, and impacts associated with the application, and recommend the appropriate controls and mitigation strategies to reduce the risk to an acceptable level. Escalating the concern to senior management, documenting the reasons for the exception, and proposing that the application be transferred to IT are not the best courses of action, as they do not address the risk exposure and impact of the application, and may not be feasible or desirable for the business. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 47.
Which of the following BEST represents a critical threshold value for a key control indicator (KCI)?
The value at which control effectiveness would fail
Thresholds benchmarked to peer organizations
A typical operational value
A value that represents the intended control state
A critical threshold value for a key control indicator (KCI) is the value that indicates that the control is no longer performing its intended function of mitigating a risk. If the KCI reaches or exceeds this value, it means that the control effectiveness has failed and corrective actions are needed. The other options are not the best representations of a critical threshold value for a KCI, because they do not reflect the actual performance or outcome of the control. Thresholds benchmarked to peer organizations, a typical operational value, and a value that represents the intended control state are examples of target or acceptable values for a KCI, not critical or unacceptable values. References = CRISC: Certified in Risk & Information Systems Control Sample Questions
Which of the following controls are BEST strengthened by a clear organizational code of ethics?
Detective controls
Administrative controls
Technical controls
Preventive controls
Administrative controls are the best controls to be strengthened by a clear organizational code of ethics, because they are the policies, procedures, standards, and guidelines that define the expected behavior and conduct of the employees and management. A code of ethics is an example of an administrative control that sets the ethical principles and values of the organization and helps to prevent or deter unethical or illegal actions. The other options are not the best controls to be strengthened by a clear organizational code of ethics, because they are not directly related to the ethical culture or governance of the organization. Detective controls are the controls that monitor and report the occurrence of unwanted events or incidents. Technical controls are the controls that use hardware, software, or network devices to protect the information systems and data. Preventive controls are the controls that prevent or avoid the occurrence of unwanted events or incidents. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers
A risk practitioner has become aware of production data being used in a test environment. Which of the following should be the practitioner's PRIMARY concern?
Sensitivity of the data
Readability of test data
Security of the test environment
Availability of data to authorized staff
The references for this answer are:
The PRIMARY goal of conducting a business impact analysis (BIA) as part of an overall continuity planning process is to:
obtain the support of executive management.
map the business processes to supporting IT and other corporate resources.
identify critical business processes and the degree of reliance on support services.
document the disaster recovery process.
The primary goal of conducting a business impact analysis (BIA) as part of an overall continuity planning process is to identify critical business processes and the degree of reliance on support services. A BIA is a process of assessing the potential impact and consequences of a disruption or interruption of the business activities, operations, or functions. A continuity planning process is a process of developing, implementing, and maintaining a plan to ensure the continuity and recovery of the business activities, operations, or functions in the event of a disruption or interruption. The primary goal of conducting a BIA is to identify critical business processes and the degree of reliance on support services, which are the business processes that are essential for the survival and success of the business, and the support services that are required to enable or facilitate the critical business processes, such as IT systems, human resources, facilities, or suppliers. Identifying critical business processes and the degree of reliance on support services helps to determine the priorities and requirements for the continuity and recovery of the business activities, operations, or functions, and to select and implement the appropriate continuity and recovery strategies and solutions. Obtaining the support of executive management, mapping the business processes to supporting IT and other corporate resources, and documenting the disaster recovery process are not the primary goals of conducting a BIA, as they are either the benefits or the outputs of the BIA process, and they do not address the primary need of assessing the impact and consequences of the business disruption or interruption. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 50.
The acceptance of control costs that exceed risk exposure MOST likely demonstrates:
corporate culture alignment
low risk tolerance
high risk tolerance
corporate culture misalignment.
The acceptance of control costs that exceed risk exposure most likely demonstrates corporate culture misalignment, as it indicates that the organization is not following the principles and values of effective risk management, and that there is a lack of communication and coordination among the risk owners and stakeholders. Corporate culture misalignment can also result in inefficient and wasteful use of resources, and reduced risk-return trade-off. The organization should align its corporate culture with its risk appetite and tolerance, and ensure that the control costs are proportional and justified by the risk exposure and the expected benefits. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 255. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 255. CRISC by Isaca Actual Free Exam Q&As, Question 9.
Which of the following is MOST useful when communicating risk to management?
Risk policy
Audit report
Risk map
Maturity model
A risk map is a visual tool that helps to communicate risk to management by showing the likelihood and impact of different risks on a matrix1. A risk map can help to:
References = Risk and Information Systems Control Study Manual, Chapter 5: Risk Assessment Process3
Which of the following is the MOST important consideration when implementing ethical remote work monitoring?
Monitoring is only conducted between official hours of business
Employees are informed of how they are bong monitored
Reporting on nonproductive employees is sent to management on a scheduled basis
Multiple data monitoring sources are integrated into security incident response procedures
 The most important consideration when implementing ethical remote work monitoring is to inform the employees of how they are being monitored, because this respects their privacy rights and expectations, and ensures their consent and compliance with the monitoring policy. Informing the employees of how they are being monitored also helps to build trust and transparency between the employer and the employees, and reduces the potential legal or ethical issues that may arise from the monitoring activities. The other options are not the most important considerations, although they may also be relevant for ethical remote work monitoring. Monitoring only during official hours of business, reporting on nonproductive employees to management, and integrating multiple data monitoring sources into security incident response procedures are examples of operational or technical aspects of remote work monitoring, not ethical aspects. References = CRISC: Certified in Risk & Information Systems Control Sample Questions
Which of the following would present the MOST significant risk to an organization when updating the incident response plan?
Obsolete response documentation
Increased stakeholder turnover
Failure to audit third-party providers
Undefined assignment of responsibility
The most significant risk to an organization when updating the incident response plan is the undefined assignment of responsibility. An incident response plan is a document that defines the roles, responsibilities, procedures, and resources for responding to an incident that could disrupt the normal operations of the organization, or compromise its assets, reputation, or compliance. An incident response plan should clearly assign the responsibility for each task and activity involved in the incident response process, such as detection, containment, analysis, eradication, recovery, and reporting. Undefined assignment of responsibility could lead to confusion, duplication, conflict, or omission among the stakeholders, and impair the effectiveness and efficiency of the incident response process. Undefined assignment of responsibility could also increase the risk of escalation, recurrence, or impact of the incident, and affect the accountability and performance of the organization. Obsolete response documentation, increased stakeholder turnover, and failure to audit third-party providers are also risks, but they are not as significant as undefined assignment of responsibility, as they do not directly affect the execution and outcome of the incident response process. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 130.
Which of the following is the GREATEST concern associated with redundant data in an organization's inventory system?
Poor access control
Unnecessary data storage usage
Data inconsistency
Unnecessary costs of program changes
Data inconsistency is the greatest concern associated with redundant data in an organization’s inventory system, as it can lead to inaccurate, unreliable, and conflicting information that can affect the decision-making and performance of the organization. Redundant data can occur when the same data is stored in multiple locations or formats, or when data is not updated or synchronized properly. Data inconsistency can cause errors, confusion, and inefficiency in the inventory management process, and can also increase the risk of fraud, theft, or loss of inventory. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 238. CRISC by Isaca Actual Free Exam Q&As, Question 9. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 238. CRISC Sample Questions 2024, Question 238.
Which of the following is the GREATEST benefit when enterprise risk management (ERM) provides oversight of IT risk management?
Aligning IT with short-term and long-term goals of the organization
Ensuring the IT budget and resources focus on risk management
Ensuring senior management's primary focus is on the impact of identified risk
Prioritizing internal departments that provide service to customers
Enterprise risk management (ERM) is a holistic and strategic approach to managing the risks that an organization faces across its various functions, processes, and activities. ERM aims to align the organization’s risk appetite and tolerance with its objectives and vision, and to optimize the value and performance of the organization1.
IT risk management is a subset of ERM that focuses on identifying, assessing, and mitigating the risks related to the use of information technology (IT) in the organization. IT risk management aims to ensure the confidentiality, integrity, and availability of IT resources and information, and to support the IT governance and strategy of the organization2.
The greatest benefit when ERM provides oversight of IT risk management is aligning IT with short-term and long-term goals of the organization, because it can help to:
The other options are not the greatest benefit when ERM provides oversight of IT risk management, but rather some of the outcomes or consequences of it. Ensuring the IT budget and resources focus on risk management is a benefit that can help to allocate and prioritize the IT resources and funds according to the IT risk level and the business needs. Ensuring senior management’s primary focus is on the impact of identified risk is a benefit that can help to increase the senior management’s involvement and accountability in IT risk management, and to support the IT risk decision making and reporting. Prioritizing internal departments that provide service to customers is a benefit that can help to improve the quality and efficiency of the IT service delivery and customer satisfaction. References =
An organization learns of a new ransomware attack affecting organizations worldwide. Which of the following should be done FIRST to reduce the likelihood of infection from the attack?
Identify systems that are vulnerable to being exploited by the attack.
Confirm with the antivirus solution vendor whether the next update will detect the attack.
Verify the data backup process and confirm which backups are the most recent ones available.
Obtain approval for funding to purchase a cyber insurance plan.
The first step to reduce the likelihood of infection from the attack is to identify systems that are vulnerable to being exploited by the attack. This would help the organization to assess the scope and severity of the risk, and to prioritize the systems that need immediate protection. Identifying systems that are vulnerable to being exploited by the attack would also help the organization to apply the appropriate patches, updates, or configurations to prevent or mitigate the attack, and to isolate or disconnect the systems that are already infected or compromised. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.2, page 60123
Which of the following is the GREATEST benefit for an organization with a strong risk awareness culture?
Reducing the involvement by senior management
Using more risk specialists
Reducing the need for risk policies and guidelines
Discussing and managing risk as a team
 Discussing and managing risk as a team is the greatest benefit for an organization with a strong risk awareness culture, as it enables the organization to share and communicate the risk information and knowledge among all the stakeholders, and to collaborate and coordinate the risk management activities and responsibilities. Discussing and managing risk as a team can also help to foster a positive and proactive attitude toward risk, and to align the risk management process with the organization’s strategy and objectives. Discussing and managing risk as a team can also enhance the risk governance and accountability, and support the risk learning and improvement. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 252. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 252. CRISC by Isaca Actual Free Exam Q&As, Question 9.
When formulating a social media policy lo address information leakage, which of the following is the MOST important concern to address?
Sharing company information on social media
Sharing personal information on social media
Using social media to maintain contact with business associates
Using social media for personal purposes during working hours
The most important concern to address when formulating a social media policy to address information leakage is sharing company information on social media. Information leakage is the unauthorized or unintentional disclosure of confidential or sensitive information to unauthorized parties. Social media is a platform that enables the users to create and share content, such as text, images, videos, or links, with other users or the public. Sharing company information on social media is the most important concern, as it could expose the company’s trade secrets, intellectual property, customer data, financial data, or strategic plans to competitors, hackers, or regulators. Sharing company information on social media could also damage the company’s reputation, trust, or credibility, and result in legal or regulatory penalties, fines, or lawsuits. Therefore, a social media policy should clearly define what constitutes company information, and what are the rules and guidelines for sharing or not sharing company information on social media. A social media policy should also specify the roles and responsibilities of the employees, managers, and the social media team, and the consequences and sanctions for violating the policy. Sharing personal information on social media, using social media to maintain contact with business associates, and using social media for personal purposes during working hours are not as important as sharing company information on social media, as they do not directly involve the leakage of company information, and they may not have significant impact or risk on the company. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217
Which of the following is MOST important to compare against the corporate risk profile?
Industry benchmarks
Risk tolerance
Risk appetite
Regulatory compliance
Risk tolerance is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk tolerance is an important component of the corporate risk profile, as it defines the boundaries and limits of the acceptable risk exposure for the organization. Comparing the risk tolerance against the corporate risk profile can help to ensure that the organization’s risk strategy and objectives are aligned with its risk appetite and capacity, and that the organization is not taking on more risk than it can handle or afford. Comparing the risk tolerance against the corporate risk profile can also help to monitor and adjust the risk management process and controls, and to optimize the risk-return trade-off. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 249. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 249. CRISC Sample Questions 2024, Question 249. CRISC by Isaca Actual Free Exam Q&As, Question 9.
Which of the following is MOST important for an organization to update following a change in legislation requiring notification to individuals impacted by data breaches?
Insurance coverage
Security awareness training
Policies and standards
Risk appetite and tolerance
Policies and standards are the primary documents that define the organization’s expectations and requirements for information security and risk management. They provide the basis for establishing controls, procedures, roles, and responsibilities. Policies and standards should be updated following a change in legislation requiring notification to individuals impacted by data breaches, to ensure compliance with the new legal obligations and to align with the organization’s risk appetite and tolerance. Updating policies and standards can also help to communicate the changes to the relevant stakeholders and to provide guidance for implementing and monitoring the controls. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, p. 28-29
What should be the PRIMARY driver for periodically reviewing and adjusting key risk indicators (KRIs)?
Risk impact
Risk likelihood
Risk appropriate
Control self-assessments (CSAs)
Risk appetite should be the primary driver for periodically reviewing and adjusting key risk indicators (KRIs), because it reflects the level of risk that the enterprise is willing to accept in pursuit of its objectives. KRIs should be aligned with the risk appetite and adjusted accordingly when the risk appetite changes due to internal or external factors. The other options are not the primary drivers, although they may also influence the review and adjustment of KRIs. Risk impact, risk likelihood, and control self-assessments (CSAs) are secondary drivers that depend on the risk appetite. References = Most Asked CRISC Exam Questions and Answers
While reviewing the risk register, a risk practitioner notices that different business units have significant variances in inherent risk for the same risk scenario. Which of the following is the BEST course of action?
Update the risk register with the average of residual risk for both business units.
Review the assumptions of both risk scenarios to determine whether the variance is reasonable.
Update the risk register to ensure both risk scenarios have the highest residual risk.
Request that both business units conduct another review of the risk.
The risk register is a document that records the identified risks, their analysis, and their responses. It is a useful tool for monitoring and controlling the risks throughout the project lifecycle. However, the risk register is not a static document and it should be updated regularly to reflect the changes in the risk environment and the project status. Therefore, when reviewing the risk register, a risk practitioner should not only look at the risk ratings, but also the assumptions and the rationale behind them. Different business units may have different perspectives, contexts, and data sources for the same risk scenario, which can result in significant variances in inherent risk. Inherent risk is the risk level before considering the existing controls or responses. Therefore, the best course of action is to review the assumptions of both risk scenarios to determine whether the variance is reasonable or not. This can help to identify any errors, inconsistencies, or biases in the risk assessment process, and to ensure that the risk register reflects the current and accurate state of the risks. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, p. 106-107
Which of the following should be done FIRST when information is no longer required to support business objectives?
Archive the information to a backup database.
Protect the information according to the classification policy.
Assess the information against the retention policy.
Securely and permanently erase the information
The references for this answer are:
An organization moved its payroll system to a Software as a Service (SaaS) application. A new data privacy regulation stipulates that data can only be processed within the country where it is collected. Which of the following should be done FIRST when addressing this situation?
Analyze data protection methods.
Understand data flows.
Include a right-to-audit clause.
Implement strong access controls.
The first step when addressing the situation of moving the payroll system to a SaaS application and complying with the new data privacy regulation is to understand the data flows. This means identifying where the data is collected, stored, processed, and transferred, and who has access to it. Understanding the data flows can help to determine the scope and impact of the regulation, as well as the potential risks and gaps in the current state. It can also help to identify the roles and responsibilities of the organization and the SaaS provider regarding data protection and compliance. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.1.2, p. 237-238
Which of the following is the MOST effective control to maintain the integrity of system configuration files?
Recording changes to configuration files
Implementing automated vulnerability scanning
Restricting access to configuration documentation
Monitoring against the configuration standard
According to the CRISC Review Manual, monitoring against the configuration standard is the most effective control to maintain the integrity of system configuration files, because it ensures that any unauthorized or unintended changes are detected and corrected. Monitoring against the configuration standard involves comparing the actual configuration of the system with the approved baseline and identifying any deviations or discrepancies. The other options are not the most effective controls, because they do not ensure the integrity of the system configuration files. Recording changes to configuration files is a good practice, but it does not prevent unauthorized or unintended changes from occurring. Implementing automated vulnerability scanning is a preventive control that helps to identify and remediate potential weaknesses in the system, but it does not verify the integrity of the configuration files. Restricting access to configuration documentation is a security measure that limits the exposure of sensitive information, but it does not prevent unauthorized or unintended changes to the configuration files. References = CRISC Review Manual, 7th Edition, Chapter 4, Section 4.2.3, page 184.
The BEST indication that risk management is effective is when risk has been reduced to meet:
risk levels.
risk budgets.
risk appetite.
risk capacity.
 The best indication that risk management is effective is when risk has been reduced to meet the risk appetite of the enterprise. Risk appetite is the amount and type of risk that an enterprise is willing to accept in pursuit of its objectives. Risk appetite reflects the enterprise’s risk culture, strategy, and values, and provides a basis for setting risk tolerance levels and risk response strategies. Risk management is effective when it enables the enterprise to align its risk exposure with its risk appetite, and to optimize the risk-return trade-off. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.1, page 181
A risk practitioner observed Vial a high number of pokey exceptions were approved by senior management. Which of the following is the risk practitioner’s BEST course of action to determine root cause?
Review the risk profile
Review pokey change history
interview the control owner
Perform control testing
The best course of action to determine the root cause of the high number of policy exceptions approved by senior management is to interview the control owner. The control owner is the person who has the authority and responsibility for designing, implementing, and monitoring the controls that enforce the policy. The control owner can provide insight into the reasons, circumstances, and impacts of the policy exceptions, and the effectiveness and efficiency of the controls. The control owner can also suggest possible improvements or alternatives to the policy or the controls. The other options are not as useful as interviewing the control owner, as they are related to the review, analysis, or testing of the policy or the controls, not the investigation or understanding of the policy exceptions. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.
Which of the following is the BEST method of creating risk awareness in an organization?
Marking the risk register available to project stakeholders
Ensuring senior management commitment to risk training
Providing regular communication to risk managers
Appointing the risk manager from the business units
 The best method of creating risk awareness in an organization is to ensure senior management commitment to risk training. Senior management plays a vital role in setting the tone and direction of the risk culture and governance in the organization. By demonstrating their support and participation in risk training, they can influence and motivate the employees to follow the risk policies and procedures, and to enhance their risk knowledge and skills. Marking the risk register available to project stakeholders, providing regular communication to risk managers, and appointing the risk manager from the business units are other methods of creating risk awareness, but they are not as effective as ensuring senior management commitment to risk training. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.
An organization control environment is MOST effective when:
control designs are reviewed periodically
controls perform as intended.
controls are implemented consistently.
controls operate efficiently
The organization control environment is most effective when the controls perform as intended. The controls are the mechanisms or measures that are designed and implemented to prevent, detect, or correct the risks that may affect the achievement of the objectives. The controls perform as intended when they provide reasonable assurance that the risks are mitigated or managed to an acceptable level, and that the objectives are met or exceeded. The performance of the controls can be measured and evaluated by using key performance indicators (KPIs) and key risk indicators (KRIs). The other options are not as indicative of the effectiveness of the control environment, as they are related to the review, implementation, or efficiency of the controls, not the performance or assurance of the controls. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: IT Control Assessment, page 69.
Which of the following is the MOST critical factor to consider when determining an organization's risk appetite?
Fiscal management practices
Business maturity
Budget for implementing security
Management culture
The most critical factor to consider when determining an organization’s risk appetite is the management culture. The management culture reflects the values, beliefs, and attitudes of the senior management and the board of directors toward risk management. The management culture influences how the organization defines, communicates, and implements its risk appetite and tolerance. Fiscal management practices, business maturity, and budget for implementing security are other factors that may affect the risk appetite, but they are not as critical as the management culture. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.
Which of the following is PRIMARILY a risk management responsibly of the first line of defense?
Implementing risk treatment plans
Validating the status of risk mitigation efforts
Establishing risk policies and standards
Conducting independent reviews of risk assessment results
The primary risk management responsibility of the first line of defense is to implement risk treatment plans. The first line of defense is the operational management and staff who are directly involved in the execution of the business activities and processes. They are responsible for identifying, assessing, and responding to the risks that affect their objectives and performance. Implementing risk treatment plans means applying the appropriate risk response strategies and actions to address the identified risks, and monitoring and reporting the results and outcomes of the risk treatment. The other options are not as primary as implementing risk treatment plans, as they are related to the validation, establishment, or review of the risk management process, not the execution of the risk management process. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Management Process, page 15.
Which of the following is the BEST way for a risk practitioner to present an annual risk management update to the board''
A summary of risk response plans with validation results
A report with control environment assessment results
A dashboard summarizing key risk indicators (KRIs)
A summary of IT risk scenarios with business cases
A dashboard summarizing key risk indicators (KRIs) is the best way for a risk practitioner to present an annual risk management update to the board because it provides a concise and visual overview of the current risk status, trends, and performance of the organization. KRIs are metrics that measure the likelihood and impact of risks, and help the board monitor and prioritize the most critical risks. A summary of risk response plans, a report with control environment assessment results, and a summary of IT risk scenarios are all useful information, but they are too detailed and technical for the board, who needs a high-level and strategic view of the risk management program. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.1, page 4-36.
Which of the following BEST enables a risk practitioner to understand management's approach to organizational risk?
Organizational structure and job descriptions
Risk appetite and risk tolerance
Industry best practices for risk management
Prior year's risk assessment results
The best way to enable a risk practitioner to understand management’s approach to organizational risk is to know the risk appetite and risk tolerance of the organization. Risk appetite is the amount and type of risk that an organization is willing to pursue, retain, or take in order to achieve its objectives. Risk tolerance is the amount and type of risk that an organization is willing to accept in relation to specific performance measures, such as availability, reliability, or security. Risk appetite and risk tolerance reflect the management’s attitude, preferences, and expectations towards risk, and guide the risk management process, such as risk identification, assessment, response, and monitoring. The other options are not as effective as knowing the risk appetite and risk tolerance, although they may provide some input or context for understanding the management’s approach to organizational risk. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.1, page 1-8.
Which of the following provides the MOST useful information to assess the magnitude of identified deficiencies in the IT control environment?
Peer benchmarks
Internal audit reports
Business impact analysis (BIA) results
Threat analysis results
Internal audit reports provide the most useful information to assess the magnitude of identified deficiencies in the IT control environment. Internal audit reports are independent and objective evaluations of the design and operating effectiveness of the IT controls, as well as the compliance with policies, standards, and regulations. Internal audit reports also provide recommendations for improvement and follow-up actions for the control deficiencies. Internal audit reports can help measure the impact and severity of the control deficiencies, and prioritize the remediation efforts. Peer benchmarks, business impact analysis (BIA) results, and threat analysis results are not as directly related to the assessment of the control deficiencies, although they may provide some contextual or comparative information. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.4.1, page 1-19.
A risk practitioner implemented a process to notify management of emergency changes that may not be approved. Which of the following is the BEST way to provide this information to management?
Change logs
Change management meeting minutes
Key control indicators (KCIs)
Key risk indicators (KRIs)
 The best way to provide information to management about emergency changes that may not be approved is to use key risk indicators (KRIs). KRIs are metrics that measure the likelihood and impact of risks, and help monitor and prioritize the most critical risks. KRIs help to provide information to management about emergency changes, because they help to alert and inform management about the potential risks and consequences of the changes, and to support the risk decision-making and reporting processes. KRIs also help to provide information to management about emergency changes, because they help to track and evaluate the effectiveness and performance of the changes, and to identify and address any issues or gaps that may arise from the changes. The other options are not the best way to provide information to management about emergency changes, although they may be part of or derived from the KRIs. Change logs, change management meeting minutes, and key control indicators (KCIs) are all examples of documentation or communication tools, which may help to record or report the details and status of the changes, but they do not necessarily measure or monitor the risks and outcomes of the changes. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.5.1, page 4-38.
Which of the following is the BEST way to determine whether system settings are in alignment with control baselines?
Configuration validation
Control attestation
Penetration testing
Internal audit review
The best way to determine whether system settings are in alignment with control baselines is to perform configuration validation. Configuration validation is the process of verifying that the system settings and parameters are consistent with the predefined standards and requirements, and that they reflect the current and desired state of the system. Configuration validation helps to ensure that the system is configured correctly and securely, and that it complies with the relevant policies, regulations, and best practices. Configuration validation also helps to identify and correct any deviations or errors in the system settings, and to prevent or mitigate any potential risks or issues. The other options are not as effective as configuration validation, although they may provide some input or information for the system alignment. Control attestation, penetration testing, and internal audit review are all activities that can help to assess or evaluate the system alignment, but they do not necessarily determine or validate the system settings. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.
When performing a risk assessment of a new service to support a core business process, which of the following should be done FIRST to ensure continuity of operations?
Define metrics for restoring availability.
Identify conditions that may cause disruptions.
Review incident response procedures.
Evaluate the probability of risk events.
When performing a risk assessment of a new service to support a core business process, the first step is to identify the conditions that may cause disruptions to the service or the process. This involves identifying the sources and causes of potential risk events, such as natural disasters, cyberattacks, human errors, equipment failures, power outages, etc. that may affect the availability, integrity, or confidentiality of the service or the process. By identifying the conditions that may cause disruptions, the risk practitioner can then analyze the probability and impact of the risk events, evaluate the risk exposure, and determine the appropriate risk responses to ensure the continuity of operations. References = CRISC Review Manual, 7th Edition, page 66.
Which of the following stakeholders are typically included as part of a line of defense within the three lines of defense model?
Board of directors
Vendors
Regulators
Legal team
The three lines of defense model is a framework that describes the roles and responsibilities of different stakeholders in the risk management and internal control processes of an organization. The three lines of defense are:
Which of the following is the MOST important consideration for effectively maintaining a risk register?
An IT owner is assigned for each risk scenario.
The register is updated frequently.
The register is shared with executive management.
Compensating controls are identified.
A risk register is a tool that records and tracks the information about the identified risks, such as the risk description, category, owner, probability, impact, response strategy, status, and action plan. The most important consideration for effectively maintaining a risk register is to update it frequently, as the risk environment is dynamic and subject to change. By updating the risk register regularly, an organization can ensure that the risk information is current, accurate, and relevant, and that the risk responses are timely, appropriate, and effective. References = CRISC Review Manual, 7th Edition, page 99.
Which of the following BEST reduces the risk associated with the theft of a laptop containing sensitive information?
Cable lock
Data encryption
Periodic backup
Biometrics access control
The best way to reduce the risk associated with the theft of a laptop containing sensitive information is to use data encryption. Data encryption is a process that transforms the data into an unreadable or unintelligible format, using a secret key or algorithm, to protect the data from unauthorized access or disclosure. Data encryption helps to reduce the risk of data theft, because even if the laptop is stolen, the data on the laptop cannot be accessed or used by the thief without the proper key or algorithm. Data encryption also helps to comply with the relevant laws, regulations, standards, and contracts that may require the protection of sensitive data. The other options are not as effective as data encryption, although they may provide some protection for the laptop or the data. A cable lock, a periodic backup, and a biometrics access control are all examples of physical or logical controls, which may help to prevent or deter the theft of the laptop, or to recover or restore the data on the laptop, but they do not necessarily protect the data from unauthorized access or disclosure if the laptop is stolen. References = 8
Which of the following would BEST facilitate the implementation of data classification requirements?
Implementing a data toss prevention (DLP) solution
Assigning a data owner
Scheduling periodic audits
Implementing technical controls over the assets
 The best way to facilitate the implementation of data classification requirements is to assign a data owner. A data owner is a person who has the authority and responsibility for defining, classifying, and protecting the data. A data owner can help to facilitate the implementation of data classification requirements by providing the criteria, categories, roles, and procedures for classifying the data according to its sensitivity, value, and criticality. A data owner can also ensure that the data is handled and stored appropriately, and that the data classification policy is enforced and monitored. The other options are not as effective as assigning a data owner, as they are related to the prevention, audit, or control of the data, not the classification or protection of the data. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.
Which of the following is the MOST important step to ensure regulatory requirements are adequately addressed within an organization?
Obtain necessary resources to address regulatory requirements
Develop a policy framework that addresses regulatory requirements
Perform a gap analysis against regulatory requirements.
Employ IT solutions that meet regulatory requirements.
The most important step to ensure regulatory requirements are adequately addressed within an organization is to develop a policy framework that addresses regulatory requirements. A policy framework is a set of principles, rules, and standards that guide the organization’s actions and decisions. By developing a policy framework that addresses regulatory requirements, the organization can establish a clear and consistent direction, expectation, and accountability for complying with the relevant laws and regulations. Obtaining necessary resources, performing a gap analysis, and employing IT solutions are other possible steps, but they are not as important as developing a policy framework. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.
Which of the following is the BEST control to minimize the risk associated with scope creep in software development?
An established process for project change management
Retention of test data and results for review purposes
Business managements review of functional requirements
Segregation between development, test, and production
 The best control to minimize the risk associated with scope creep in software development is an established process for project change management. Scope creep is the uncontrolled expansion of the project scope due to changes in requirements, specifications, or expectations. A project change management process can help to prevent or reduce scope creep by defining the procedures for requesting, reviewing, approving, and implementing changes in the project. Retention of test data and results, business management review of functional requirements, and segregation between development, test, and production are other possible controls, but they are not as effective as a project change management process. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.
An organization is planning to move its application infrastructure from on-premises to the cloud. Which of the following is the BEST course of the actin to address the risk associated with data transfer if the relationship is terminated with the vendor?
Meet with the business leaders to ensure the classification of their transferred data is in place
Ensure the language in the contract explicitly states who is accountable for each step of the data transfer process
Collect requirements for the environment to ensure the infrastructure as a service (IaaS) is configured appropriately.
Work closely with the information security officer to ensure the company has the proper security controls in place.
The best course of action to address the risk associated with data transfer if the relationship is terminated with the vendor is to ensure the language in the contract explicitly states who is accountable for each step of the data transfer process. This can help to avoid ambiguity, confusion, or disputes over the ownership, responsibility, and liability of the data and the data transfer process. Meeting with the business leaders, collecting requirements, and working with the information security officer are important activities, but they are not as effective as ensuring the contractual agreement is clear and enforceable. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.
A highly regulated enterprise is developing a new risk management plan to specifically address legal and regulatory risk scenarios What should be done FIRST by IT governance to support this effort?
Request a regulatory risk reporting methodology
Require critical success factors (CSFs) for IT risks.
Establish IT-specific compliance objectives
Communicate IT key risk indicators (KRIs) and triggers
The first thing that should be done by IT governance to support the development of a new risk management plan to specifically address legal and regulatory risk scenarios is to establish IT-specific compliance objectives. Compliance objectives are the goals or targets that the organization sets to ensure that its IT activities and processes comply with the relevant laws, regulations, standards, and contracts. Compliance objectives help to define the scope, criteria, and expectations for the IT compliance program, and to align the IT compliance activities with the organization’s strategy, risk appetite, and performance measures. Compliance objectives also help to communicate and demonstrate the organization’s commitment and accountability for IT compliance to the internal and external stakeholders, such as the board, management, regulators, auditors, and customers. The other options are not the first thing that should be done, although they may be useful or necessary steps or components of the IT compliance program. Requesting a regulatory risk reporting methodology, requiring critical success factors (CSFs) for IT risks, and communicating IT key risk indicators (KRIs) and triggers are all activities that can help to implement and monitor the IT compliance program, but they require the prior definition and agreement of the IT compliance objectives. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.4.1, page 2-37.
A risk practitioner has collaborated with subject matter experts from the IT department to develop a large list of potential key risk indicators (KRIs) for all IT operations within the organization of the following, who should review the completed list and select the appropriate KRIs for implementation?
IT security managers
IT control owners
IT auditors
IT risk owners
 IT risk owners are the most appropriate people to review the completed list of potential key risk indicators (KRIs) and select the ones that should be implemented. IT risk owners are the individuals who have the authority and accountability to manage the IT risks within their scope of responsibility. They are also responsible for defining the risk appetite, tolerance, and thresholds for their IT operations, and for ensuring that the KRIs are aligned with the business objectives and risk management strategy. IT security managers, IT control owners, and IT auditors are also involved in the risk management process, but they do not have the same level of authority and accountability as IT risk owners, and they may have different perspectives and priorities on the selection of KRIs. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.1, page 1-13.
When of the following standard operating procedure (SOP) statements BEST illustrates appropriate risk register maintenance?
Remove risk that has been mitigated by third-party transfer
Remove risk that management has decided to accept
Remove risk only following a significant change in the risk environment
Remove risk when mitigation results in residual risk within tolerance levels
The standard operating procedure (SOP) statement that best illustrates appropriate risk register maintenance is to remove risk when mitigation results in residual risk within tolerance levels. Residual risk is the risk that remains after the risk response or mitigation has been applied. Tolerance levels are the acceptable or allowable ranges of variation or deviation from the expected or desired outcomes or objectives. When the mitigation results in residual risk within tolerance levels, it means that the risk has been reduced or managed to an acceptable or satisfactory level, and that no further action or monitoring is required. Therefore, the risk can be removed from the risk register, as it is no longer a significant or relevant risk for the organization. The other options are not as appropriate as removing risk when mitigation results in residual risk within tolerance levels, as they are related to the transfer, acceptance, or change of the risk, not the removal of the risk. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.
A newly incorporated enterprise needs to secure its information assets From a governance perspective which of the following should be done FIRST?
Define information retention requirements and policies
Provide information security awareness training
Establish security management processes and procedures
Establish an inventory of information assets
The first thing that should be done from a governance perspective to secure the information assets of a newly incorporated enterprise is to establish an inventory of information assets. An inventory of information assets is a document that lists and categorizes all the information assets that the organization owns, uses, or manages, such as data, documents, systems, applications, and devices. An inventory of information assets helps to identify and classify the information assets based on their value, sensitivity, and criticality, and to determine the appropriate level of protection and control for each asset. An inventory of information assets also helps to support the development and implementation of other information security activities, such as risk assessment, policy formulation, awareness training, and incident response. The other options are not the first thing that should be done, although they may be important steps or components of the information security governance. Defining information retention requirements and policies, providing information security awareness training, and establishing security management processes and procedures are all activities that can help to secure the information assets, but they require the prior knowledge and understanding of the information assets. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.1.1, page 3-3.
Which of the following will BEST help to ensure key risk indicators (KRIs) provide value to risk owners?
Ongoing training
Timely notification
Return on investment (ROI)
Cost minimization
The best way to ensure key risk indicators (KRIs) provide value to risk owners is to provide timely notification of the changes in the risk exposure. KRIs are metrics that provide an early warning of increasing risk exposure in various areas of the organization. By providing timely notification of the KRI values, the risk owners can be alerted of the risk situation and take appropriate actions to manage the risk. Ongoing training, return on investment (ROI), and cost minimization are other possible ways to ensure KRIs provide value, but they are not as effective as timely notification. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 10; CRISC Review Manual, 6th Edition, page 140.
Which of the following is MOST important to update when an organization's risk appetite changes?
Key risk indicators (KRIs)
Risk reporting methodology
Key performance indicators (KPIs)
Risk taxonomy
The most important element to update when an organization’s risk appetite changes is the key risk indicators (KRIs). KRIs are metrics that provide an early warning of increasing risk exposure in various areas of the organization. They help to monitor the level of risk and to trigger risk responses when the risk exceeds the risk appetite. The risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk reporting methodology, key performance indicators (KPIs), and risk taxonomy are other elements that may be updated, but they are not as important as the KRIs. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.
Following an acquisition, the acquiring company's risk practitioner has been asked to update the organization's IT risk profile What is the MOST important information to review from the acquired company to facilitate this task?
Internal and external audit reports
Risk disclosures in financial statements
Risk assessment and risk register
Business objectives and strategies
The most important information to review from the acquired company to facilitate the task of updating the organization’s IT risk profile is the risk assessment and risk register. The risk assessment is a process of identifying, analyzing, and evaluating the IT risks of the acquired company. The risk register is a document that records the details of the IT risks, such as their sources, causes, consequences, likelihood, impact, and responses. By reviewing the risk assessment and risk register, the risk practitioner can gain a comprehensive and accurate understanding of the IT risk profile of the acquired company, and integrate it with the IT risk profile of the acquiring organization. Internal and external audit reports, risk disclosures in financial statements, and business objectives and strategies are other possible sources of information, but they are not as important as the risk assessment and risk register. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.
Recovery the objectives (RTOs) should be based on
minimum tolerable downtime
minimum tolerable loss of data.
maximum tolerable downtime.
maximum tolerable loss of data
Recovery time objectives (RTOs) are the acceptable timeframes within which business processes must be restored after a disruption. RTOs should be based on the maximum tolerable downtime (MTD), which is the longest time that a business process can be inoperable without causing irreparable harm to the organization. The other options are not directly related to RTOs, as they refer to the amount of data loss or corruption that can be tolerated, not the time to restore the business processes. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.3: Key Risk Indicators, page 197.
Which of the following would BEST facilitate the implementation of data classification requirements?
Assigning a data owner
Implementing technical control over the assets
Implementing a data loss prevention (DLP) solution
Scheduling periodic audits
Assigning a data owner would best facilitate the implementation of data classification requirements. A data owner is responsible for defining the classification of the data, ensuring that the data is properly labeled, and approving access requests. Implementing technical control over the assets, implementing a data loss prevention (DLP) solution, and scheduling periodic audits are important activities, but they are not as effective as assigning a data owner. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.
Which of the following is the MOST important key performance indicator (KPI) to monitor the effectiveness of disaster recovery processes?
Percentage of IT systems recovered within the mean time to restore (MTTR) during the disaster recovery test
Percentage of issues arising from the disaster recovery test resolved on time
Percentage of IT systems included in the disaster recovery test scope
Percentage of IT systems meeting the recovery time objective (RTO) during the disaster recovery test
 The most important key performance indicator (KPI) to monitor the effectiveness of disaster recovery processes is the percentage of IT systems meeting the recovery time objective (RTO) during the disaster recovery test. The RTO is the maximum acceptable time that a system or process can be unavailable after a disruption. The disaster recovery test is a simulation of a disaster scenario to evaluate the readiness and capability of the organization to restore its critical functions and systems. By measuring the percentage of IT systems meeting the RTO during the test, the organization can assess how well the disaster recovery processes meet the predefined objectives and standards. Percentage of IT systems recovered within the mean time to restore (MTTR), percentage of issues arising from the disaster recovery test resolved on time, and percentage of IT systems included in the disaster recovery test scope are other possible KPIs, but they are not as important as the percentage of IT systems meeting the RTO. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.
Which of the following presents the GREATEST challenge to managing an organization's end-user devices?
Incomplete end-user device inventory
Unsupported end-user applications
Incompatible end-user devices
Multiple end-user device models
The greatest challenge to managing an organization’s end-user devices is having an incomplete end-user device inventory. An end-user device inventory is a document that records and tracks all the devices that are owned, used, or managed by the organization’s end-users, such as laptops, tablets, smartphones, etc. An end-user device inventory helps to identify and classify the devices based on their type, model, location, owner, status, etc. An end-user device inventory also helps to monitor and control the devices, such as enforcing security policies, applying patches and updates, detecting and resolving issues, etc. Having an incomplete end-user device inventory could lead to a lack of visibility and accountability for the devices, which could increase the risk of data loss, theft, or compromise, as well as the cost and complexity of device management. The other options are not as challenging as having an incomplete end-user device inventory, although they may also pose some difficulties or limitations for the device management. Unsupported end-user applications, incompatible end-user devices, and multiple end-user device models are all factors that could affect the functionality and compatibility of the devices, but they do not necessarily affect the visibility and accountability of the devices. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.
A zero-day vulnerability has been discovered in a globally used brand of hardware server that allows hackers to gain
access to affected IT systems. Which of the following is MOST likely to change as a result of this situation?
Control effectiveness
Risk appetite
Risk likelihood
Key risk indicator (KRI)
The most likely factor to change as a result of a zero-day vulnerability being discovered in a globally used brand of hardware server that allows hackers to gain access to affected IT systems is the risk likelihood. Risk likelihood is the probability or frequency of a risk event occurring, or the possibility of a risk event occurring within a given time period. Risk likelihood is one of the key dimensions of risk analysis, along with the risk impact. Risk likelihood helps to determine the severity and priority of the risk, and to select the most appropriate and effective risk response. Risk likelihood also helps to evaluate the cost-benefit and trade-off of the risk response, and to measure the residual risk and the risk performance. The risk likelihood is likely to change as a result of a zero-day vulnerability, because a zero-day vulnerability is a security flaw that has been discovered but not yet patched by the vendor, which means that it can be exploited by hackers before the affected systems can be updated or protected. A zero-day vulnerability increases the risk likelihood, because it creates a window of opportunity for hackers to launch attacks that could compromise the affected systems, and because it may not be detected or prevented by the existing security controls or measures. The other options are not as likely to change as the risk likelihood, although they may also be affected or influenced by the zero-day vulnerability. Control effectiveness, risk appetite, and key risk indicator (KRI) are all factors that could change as a result of a zero-day vulnerability, but they are not the most likely factor to change. Control effectiveness is the extent to which the risk controls or responses achieve the intended risk objectives or outcomes. Control effectiveness could change as a result of a zero-day vulnerability, because the existing controls may not be able to detect or prevent the exploitation of the vulnerability, or because new or additional controls may be needed to address the vulnerability. However, control effectiveness is not the most likely factor to change, because it depends on the type and level of the controls that are already in place or that can be implemented, and because it may not change until the vulnerability is actually exploited or the risk response is executed. Risk appetite is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives. Risk appetite could change as a result of a zero-day vulnerability, because the vulnerability could affect the organization’s objectives or operations, and because the organization may need to adjust its risk tolerance or threshold to cope with the vulnerability. However, risk appetite is not the most likely factor to change, because it is a strategic and long-term decision that is driven by the organization’s mission, vision, values, and strategy, and because it may not change until the vulnerability is resolved or the risk impact is realized. Key risk indicator (KRI) is a metric that measures the likelihood and impact of risks, and helps monitor and prioritize the most critical risks. KRI could change as a result of a zero-day vulnerability, because the vulnerability could increase the likelihood and impact of the risks, and because the organization may need to update or revise its KRI to reflect the current risk situation. However, KRI is not the most likely factor to change, because it is a monitoring and reporting tool that is derived from the risk analysis and response, and because it may not change until the vulnerability is exploited or the risk response is implemented. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-25.
Which of the following is MOST helpful to understand the consequences of an IT risk event?
Fault tree analysis
Historical trend analysis
Root cause analysis
Business impact analysis (BIA)
Business impact analysis (BIA) is a process that involves analyzing the potential consequences of an IT risk event on the organization’s critical business functions and processes. BIA can help to understand the severity and duration of the disruption, the financial and operational losses, the recovery time objectives, and the recovery point objectives. BIA can also help to prioritize the recovery activities and resources, as well as to determine the acceptable level of risk and the risk mitigation strategies. BIA is the most helpful tool to understand the consequences of an IT risk event, as it provides a comprehensive and quantitative assessment of the impact and the recovery requirements. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.2, p. 206-207
Which of the following is the MOST effective way to help ensure accountability for managing risk?
Assign process owners to key risk areas.
Obtain independent risk assessments.
Assign incident response action plan responsibilities.
Create accurate process narratives.
The most effective way to help ensure accountability for managing risk is to assign process owners to key risk areas. Process owners are the persons or entities that have the authority and responsibility to manage a specific process or a group of related processes. Process owners help to identify, assess, and respond to the risks associated with the process, and to monitor and report on the process performance and improvement. Process owners also help to communicate and coordinate the process management activities with the relevant stakeholders, such as the board, management, business units, and IT functions. Assigning process owners to key risk areas helps to ensure accountability for managing risk, because it helps to define and clarify the roles and responsibilities of the process owners, and to establish and enforce the expectations and standards for the process owners. Assigning process owners to key risk areas also helps to measure and evaluate the effectiveness and efficiency of the process owners, and to identify and address any issues or gaps in the process management activities. The other options are not as effective as assigning process owners to key risk areas, although they may be related to the risk management process. Obtaining independent risk assessments, assigning incident response action plan responsibilities, and creating accurate process narratives are all activities that can help to support or improve the risk management process, but they do not necessarily ensure accountability for managing risk. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 2-11.
Which of the following is MOST important for mitigating ethical risk when establishing accountability for control ownership?
Ensuring processes are documented to enable effective control execution
Ensuring regular risk messaging is Included in business communications from leadership
Ensuring schedules and deadlines for control-related deliverables are strictly monitored
Ensuring performance metrics balance business goals with risk appetite
The most important thing for mitigating ethical risk when establishing accountability for control ownership is to ensure that the performance metrics balance business goals with risk appetite. Performance metrics are the measures that evaluate the achievement of the objectives or the performance of the processes or controls. Business goals are the desired or expected outcomes or results of the business activities or processes. Risk appetite is the amount and type of risk that the organization is willing and able to take. Ethical risk is the risk that arises from the violation or breach of the ethical principles or standards of the organization or the profession. To mitigate ethical risk, the performance metrics should balance business goals with risk appetite, meaning that they should not encourage or reward excessive or inappropriate risk-taking or unethical behavior, but rather promote and support responsible and ethical risk management and decision making. The other options are not as important as ensuring performance metrics balance business goals with risk appetite, as they are related to the documentation, communication, or monitoring of the processes or controls, not the evaluation or alignment of the performance metrics. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Key Performance Indicators, page 183.
An organization has experienced several incidents of extended network outages that have exceeded tolerance. Which of the following should be the risk practitioner's FIRST step to address this situation?
Recommend additional controls to address the risk.
Update the risk tolerance level to acceptable thresholds.
Update the incident-related risk trend in the risk register.
Recommend a root cause analysis of the incidents.
The first step for the risk practitioner to address the situation of extended network outages that have exceeded tolerance is to recommend a root cause analysis of the incidents. A root cause analysis is a process of identifying and resolving the underlying causes of a problem or an event. By performing a root cause analysis, the risk practitioner can determine why the network outages occurred, what factors contributed to them, and how they can be prevented or reduced in the future. Recommending additional controls, updating the risk tolerance level, and updating the incident-related risk trend are possible steps that may follow the root cause analysis, but they are not the first step. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.
An organization has made a decision to purchase a new IT system. During when phase of the system development life cycle (SDLC) will identified risk MOST likely lead to architecture and design trade-offs?
Acquisition
Implementation
Initiation
Operation and maintenance
The acquisition phase of the system development life cycle (SDLC) is the phase where the organization decides to purchase a new IT system from an external vendor or develop it internally. During this phase, the identified risks will most likely lead to architecture and design trade-offs, as the organization will have to balance the cost, quality, functionality, security, and performance of the new IT system. The organization will have to evaluate the different options and alternatives available, and select the one that best meets the business needs and the risk appetite. The other phases of the SDLC are not as likely to involve architecture and design trade-offs, as they are more focused on implementing, testing, deploying, and maintaining the new IT system. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.2: IT Risk Response Options, page 133.
Which of the following is the MOST effective way for a large and diversified organization to minimize risk associated with unauthorized software on company devices?
Scan end points for applications not included in the asset inventory.
Prohibit the use of cloud-based virtual desktop software.
Conduct frequent reviews of software licenses.
Perform frequent internal audits of enterprise IT infrastructure.
The most effective way for a large and diversified organization to minimize risk associated with unauthorized software on company devices is to scan end points for applications not included in the asset inventory. An asset inventory is a document that records and tracks all the hardware and software assets that are owned, used, or managed by the organization, such as laptops, tablets, smartphones, servers, applications, etc. An asset inventory helps to identify and classify the assets based on their type, model, location, owner, status, etc. An asset inventory also helps to monitor and control the assets, such as enforcing security policies, applying patches and updates, detecting and resolving issues, etc. Scanning end points for applications not included in the asset inventory helps to minimize the risk of unauthorized software, because it helps to discover and remove any software that is not approved, authorized, or licensed by the organization, and that may pose security, legal, or operational risks, such as malware, spyware, pirated software, etc. The other options are not as effective as scanning end points for applications not included in the asset inventory, although they may provide some protection or compliance for the software assets. Prohibiting the use of cloud-based virtual desktop software, conducting frequent reviews of software licenses, and performing frequent internal audits of enterprise IT infrastructure are all examples of preventive or detective controls, which may help to prevent or deter the installation or use of unauthorized software, or to verify or validate the software assets, but they do not necessarily discover or remove the unauthorized software. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.
Which of the following provides the BEST assurance of the effectiveness of vendor security controls?
Review vendor control self-assessments (CSA).
Review vendor service level agreement (SLA) metrics.
Require independent control assessments.
Obtain vendor references from existing customers.
The best way to provide assurance of the effectiveness of vendor security controls is to require independent control assessments. Independent control assessments are evaluations of the vendor’s security controls by a third-party auditor or assessor, such as an external auditor, a certification body, or a testing laboratory. Independent control assessments provide an objective and unbiased opinion on the adequacy and performance of the vendor’s security controls, as well as the compliance with relevant standards and regulations. Independent control assessments can also provide evidence and assurance to the customers of the vendor’s security posture and capabilities. Reviewing vendor control self-assessments (CSA), vendor service level agreement (SLA) metrics, or vendor references from existing customers are not as reliable or credible as independent control assessments, because they may be biased, incomplete, or outdated.
An organization is implementing robotic process automation (RPA) to streamline business processes. Given that implementation of this technology is expected to impact existing controls, which of the following is the risk practitioner's BEST course of action?
Reassess whether mitigating controls address the known risk in the processes.
Update processes to address the new technology.
Update the data governance policy to address the new technology.
Perform a gap analysis of the impacted processes.
Robotic process automation (RPA) is the use of software robots or artificial intelligence (AI) agents to automate repetitive, rule-based tasks that are normally performed by humans. RPA can improve efficiency, accuracy, and scalability of business processes, but it can also introduce new risks or change the existing risk profile. Therefore, the risk practitioner’s best course of action is to reassess whether the mitigating controls that were designed for the human-performed processes are still effective and adequate for the RPA-enabled processes. This may involve reviewing the control objectives, testing the control performance, identifying the control gaps, and recommending the control enhancements or modifications. References = CRISC Review Manual, 7th Edition, page 177.
Which of the following would MOST likely require a risk practitioner to update the risk register?
An alert being reported by the security operations center.
Development of a project schedule for implementing a risk response
Completion of a project for implementing a new control
Engagement of a third party to conduct a vulnerability scan
The completion of a project for implementing a new control would most likely require a risk practitioner to update the risk register. The risk register is a document that records the identified risks, their analysis, and their responses. The completion of a project for implementing a new control means that a risk response has been executed and a new control has been established. This may affect the likelihood and/or impact of the related risks, and the residual risk level. Therefore, the risk practitioner should update the risk register to reflect the current status and outcome of the risk response and the new control. The other options are not as likely to require a risk practitioner to update the risk register, as they are related to the reporting, planning, or assessment of the risks or the controls, not the implementation or completion of the risk response or the new control. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.
Which of the following is the BEST method to maintain a common view of IT risk within an organization?
Collecting data for IT risk assessment
Establishing and communicating the IT risk profile
Utilizing a balanced scorecard
Performing and publishing an IT risk analysis
The best method to maintain a common view of IT risk within an organization is to establish and communicate the IT risk profile. An IT risk profile is a document that summarizes the key IT risks that the organization faces or accepts, and their likelihood, impact, and priority. An IT risk profile helps to identify and prioritize the most critical or relevant IT risks, and to align them with the organization’s objectives, strategy, and risk appetite. Establishing and communicating the IT risk profile is the best method to maintain a common view of IT risk, because it helps to create a shared understanding and awareness of the IT risks among the organization’s stakeholders, such as the board, management, business units, and IT functions. Establishing and communicating the IT risk profile also helps to facilitate the IT risk decision-making and reporting processes, and to monitor and control the IT risk performance and improvement. The other options are not the best method to maintain a common view of IT risk, although they may be part of or derived from the IT risk profile. Collecting data for IT risk assessment, utilizing a balanced scorecard, and performing and publishing an IT risk analysis are all activities that can help to support or update the IT risk profile, but they are not the best method to maintain a common view of IT risk. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.1, page 1-15.
Which of the following is the MOST effective way to reduce potential losses due to ongoing expense fraud?
Implement user access controls
Perform regular internal audits
Develop and communicate fraud prevention policies
Conduct fraud prevention awareness training.
 Developing and communicating fraud prevention policies is the most effective way to reduce potential losses due to ongoing expense fraud because it creates a culture of integrity and accountability, sets clear expectations and consequences for employees, and deters fraudulent behavior. Implementing user access controls, performing regular internal audits, and conducting fraud prevention awareness training are also important controls, but they are more reactive and detective than preventive. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 4-26.
An organization is participating in an industry benchmarking study that involves providing customer transaction records for analysis Which of the following is the MOST important control to ensure the privacy of customer information?
Nondisclosure agreements (NDAs)
Data anonymization
Data cleansing
Data encryption
Data anonymization is the most important control to ensure the privacy of customer information when participating in an industry benchmarking study that involves providing customer transaction records for analysis. Data anonymization is the process of removing or modifying personally identifiable information (PII) from data sets, such as names, addresses, phone numbers, email addresses, etc., so that the data cannot be traced back to specific individuals. Data anonymization protects the confidentiality and privacy of customers, while still allowing for meaningful analysis and comparison of data. Nondisclosure agreements (NDAs), data cleansing, and data encryption are also useful controls, but they do not eliminate the risk of data breaches or unauthorized access to PII. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, page 3-21.
Reviewing which of the following BEST helps an organization gam insight into its overall risk profile''
Risk register
Risk appetite
Threat landscape
Risk metrics
 A risk register is a tool that records and tracks the information about the identified risks, such as the risk description, category, owner, probability, impact, response strategy, status, and action plan. Reviewing the risk register is the best way to help an organization gain insight into its overall risk profile, which is the summary of the nature and level of risk that the organization faces. By reviewing the risk register, the organization can obtain a comprehensive and holistic view of the sources, causes, and consequences of the risks, their likelihood and impact, their interrelationships and dependencies, and their alignment with the risk appetite and tolerance. The risk register can also help the organization to prioritize the risks, allocate the resources, select the risk responses, monitor the risk performance, and evaluate the risk outcomes. References = CRISC Review Manual, 7th Edition, page 99.
A segregation of duties control was found to be ineffective because it did not account for all applicable functions when evaluating access. Who is responsible for ensuring the control is designed to effectively address risk?
Risk manager
Control owner
Control tester
Risk owner
The control owner is the person who is responsible for ensuring that the control is designed to effectively address risk. The control owner is also responsible for implementing, operating, monitoring, and maintaining the control. The control owner should ensure that the control is aligned with the risk owner’s risk appetite and tolerance, and that the control is periodically reviewed and updated to reflect changes in the risk environment. The risk manager, the control tester, and the risk owner are not directly responsible for the design of the control, although they may provide input, feedback, or approval. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, page 1-15.
What is the BEST recommendation to reduce the risk associated with potential system compromise when a vendor stops releasing security patches and updates for a business-critical legacy system?
Segment the system on its own network.
Ensure regular backups take place.
Virtualize the system in the cloud.
Install antivirus software on the system.
The best recommendation to reduce the risk associated with potential system compromise when a vendor stops releasing security patches and updates for a business-critical legacy system is to segment the system on its own network. Network segmentation is the process of dividing a network into smaller subnetworks or segments, based on different criteria, such as function, location, or security level. Network segmentation helps to isolate the system from the rest of the network, and limit the exposure and access to the system. Network segmentation also helps to improve the performance and security of the network, by reducing the network traffic and congestion, and enhancing the monitoring and control capabilities. The other options are not as effective as segmenting the system on its own network, although they may provide some additional protection or recovery options. Ensuring regular backups take place, virtualizing the system in the cloud, and installing antivirus software on the system are all measures that can help to reduce the risk of data loss or system damage, but they do not address the root cause of the risk, which is the lack of security patches and updates for the system. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.
Which of the following is the BEST way to ensure data is properly sanitized while in cloud storage?
Deleting the data from the file system
Cryptographically scrambling the data
Formatting the cloud storage at the block level
Degaussing the cloud storage media
The best way to ensure data is properly sanitized while in cloud storage is to cryptographically scramble the data. Cryptographic scrambling is the process of transforming data into an unreadable form using a secret key or algorithm. Cryptographic scrambling protects the data from unauthorized access, modification, or deletion, even if the cloud storage provider or a third party gains access to the data. Cryptographic scrambling also ensures that the data can be restored to its original form using the same key or algorithm, if needed. The other options are not as effective as cryptographic scrambling, because they either do not completely remove the data, or they make it impossible to recover the data. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, page 3-21.
Which of the following is the MOST important outcome of a business impact analysis (BIA)?
Understanding and prioritization of critical processes
Completion of the business continuity plan (BCP)
Identification of regulatory consequences
Reduction of security and business continuity threats
 The most important outcome of a business impact analysis (BIA) is understanding and prioritization of critical processes. A BIA is a process that identifies and evaluates the potential effects of disruptions or disasters on the organization’s business functions and processes. A BIA helps to understand the dependencies, interrelationships, and impacts of the business processes, and to prioritize them based on their importance and urgency. A BIA also helps to determine the recovery objectives, strategies, and resources for the business processes, such as the recovery time objective (RTO), the recovery point objective (RPO), and the minimum operating requirements (MOR). The other options are not as important as understanding and prioritization of critical processes, although they may be part of or derived from the BIA. Completion of the business continuity plan (BCP), identification of regulatory consequences, and reduction of security and business continuity threats are all activities or outcomes that can be supported or facilitated by the BIA, but they are not the primary purpose or result of the BIA. References = CISA Review Manual, 27th Edition, Chapter 5, Section 5.2.1, page 5-9.
Which of the following is the BEST approach for selecting controls to minimize risk?
Industry best practice review
Risk assessment
Cost-benefit analysis
Control-effectiveness evaluation
The best approach for selecting controls to minimize risk is to perform a risk assessment. A risk assessment is a process that identifies, analyzes, and evaluates the risks that could affect the organization’s objectives or operations. A risk assessment helps to determine the likelihood and impact of the risks, and to prioritize them based on their severity and relevance. A risk assessment also helps to select the most appropriate and effective controls to minimize the risks, such as avoiding, reducing, transferring, or accepting the risks. A risk assessment is the best approach for selecting controls, because it helps to align the controls with the organization’s risk profile, risk appetite, and risk objectives, and to ensure that the controls are adequate, suitable, and cost-effective. The other options are not the best approach for selecting controls, although they may be part of or derived from the risk assessment. Industry best practice review, cost-benefit analysis, and control-effectiveness evaluation are all activities that can help to support or improve the control selection, but they are not the best approach for selecting controls. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.
Of the following, who is responsible for approval when a change in an application system is ready for release to production?
Information security officer
IT risk manager
Business owner
Chief risk officer (CRO)
 The business owner is the person who is responsible for approval when a change in an application system is ready for release to production. The business owner is the person who has the authority and accountability for the business process or function that is supported by the application system. The business owner should approve the change to ensure that it meets the business requirements, objectives, and expectations, and that it does not introduce any adverse impacts or risks to the business operations. The information security officer, the IT risk manager, and the chief risk officer (CRO) are not responsible for the approval of the change, although they may provide input, feedback, or oversight. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.1, page 3-32.
An organization is considering the adoption of an aggressive business strategy to achieve desired growth From a risk management perspective what should the risk practitioner do NEXT?
Identify new threats resorting from the new business strategy
Update risk awareness training to reflect current levels of risk appetite and tolerance
Inform the board of potential risk scenarios associated with aggressive business strategies
Increase the scale for measuring impact due to threat materialization
The next thing that the risk practitioner should do from a risk management perspective when the organization is considering the adoption of an aggressive business strategy to achieve desired growth is to identify new threats resulting from the new business strategy. A threat is a potential cause of an unwanted incident that may affect the achievement of the objectives. An aggressive business strategy is a strategy that involves pursuing high-risk, high-reward opportunities or initiatives to gain a competitive advantage or a significant market share. An aggressive business strategy may introduce new threats or increase the likelihood or impact of existing threats, such as market volatility, regulatory changes, customer dissatisfaction, or competitor retaliation. Therefore, the risk practitioner should identify the new threats resulting from the new business strategy, and assess their potential consequences and implications for the organization. The other options are not as immediate as identifying new threats resulting from the new business strategy, as they are related to the update, information, or measurement of the risk management process, not the identification or analysis of the risk. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.
Which of the following is the GREATEST benefit of identifying appropriate risk owners?
Accountability is established for risk treatment decisions
Stakeholders are consulted about risk treatment options
Risk owners are informed of risk treatment options
Responsibility is established for risk treatment decisions.
 The greatest benefit of identifying appropriate risk owners is that accountability is established for risk treatment decisions. Risk owners are the individuals or groups who are responsible and accountable for managing a specific risk and its associated actions and outcomes. By identifying appropriate risk owners, the organization can ensure that the risk treatment decisions are made by the people who have the authority, knowledge, and interest in the risk. Stakeholders being consulted, risk owners being informed, and responsibility being established are other possible benefits, but they are not as great as accountability being established. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.
Senior management is deciding whether to share confidential data with the organization's business partners. The BEST course of action for a risk practitioner would be to submit a report to senior management containing the:
possible risk and suggested mitigation plans.
design of controls to encrypt the data to be shared.
project plan for classification of the data.
summary of data protection and privacy legislation.
The best course of action for a risk practitioner when senior management is deciding whether to share confidential data with the organization’s business partners is to submit a report to senior management containing the possible risk and suggested mitigation plans. A risk practitioner is a professional who is responsible for identifying, assessing, and managing the risks that could affect the organization’s objectives or operations. A risk practitioner should provide senior management with the information and guidance they need to make informed and effective decisions regarding the sharing of confidential data. A risk practitioner should submit a report that outlines the possible risk scenarios, such as data loss, theft, or compromise, and their likelihood and impact. A risk practitioner should also suggest mitigation plans, such as encryption, access control, monitoring, or contractual agreements, that could reduce or transfer the risk. The other options are not as effective as submitting a report containing the possible risk and suggested mitigation plans, although they may be part of or derived from the report. Designing controls to encrypt the data to be shared, developing a project plan for classification of the data, and summarizing the data protection and privacy legislation are all activities or outcomes that could be included or referenced in the report, but they are not the best course of action for a risk practitioner. References = CISA Review Manual, 27th Edition, Chapter 2, Section 2.3.1, page 2-23
Which of the following management action will MOST likely change the likelihood rating of a risk scenario related to remote network access?
Updating the organizational policy for remote access
Creating metrics to track remote connections
Implementing multi-factor authentication
Updating remote desktop software
The management action that will most likely change the likelihood rating of a risk scenario related to remote network access is implementing multi-factor authentication. Multi-factor authentication is a technique that requires the user to provide two or more pieces of evidence to verify their identity, such as a password, a token, or a biometric factor. Multi-factor authentication can help to reduce the likelihood of unauthorized or malicious access to the remote network, as it adds an extra layer of security and makes it harder for the attackers to compromise the user credentials. The other options are not as likely to change the likelihood rating of the risk scenario, as they are related to the update, creation, or maintenance of the remote network access, not the verification or protection of the remote network access. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.
Which of the following would be of MOST concern to a risk practitioner reviewing risk action plans for documented IT risk scenarios?
Individuals outside IT are managing action plans for the risk scenarios.
Target dates for completion are missing from some action plans.
Senior management approved multiple changes to several action plans.
Many action plans were discontinued after senior management accepted the risk.
The most concerning factor for a risk practitioner reviewing risk action plans for documented IT risk scenarios is that many action plans were discontinued after senior management accepted the risk. Risk action plans are documents that define the roles, responsibilities, procedures, and resources for implementing the risk responses and strategies for the IT risk scenarios. Risk action plans help to reduce, transfer, avoid, or accept the IT risks, and to monitor and report on the IT risk performance and improvement. Discontinuing risk action plans after senior management accepted the risk is a major concern, because it may indicate that the risk acceptance decision was not based on a proper risk analysis or evaluation, or that the risk acceptance decision was not communicated or coordinated with the relevant stakeholders, such as the board, management, business units, and IT functions. Discontinuing risk action plans after senior management accepted the risk may also create challenges or risks for the organization, such as compliance, legal, reputational, or operational risks, or conflicts or inconsistencies with the organization’s risk appetite, risk objectives, or risk policies. The other options are not as concerning as discontinuing risk action plans after senior management accepted the risk, although they may also pose some difficulties or limitations for the risk management process. Individuals outside IT managing action plans for the risk scenarios, target dates for completion missing from some action plans, and senior management approving multiple changes to several action plans are all factors that could affect the quality and timeliness of the risk management process, but they do not necessarily indicate a lack of risk management accountability or oversight. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.1, page 4-32.
Which of the following is the MOST important benefit of reporting risk assessment results to senior management?
Promotion of a risk-aware culture
Compilation of a comprehensive risk register
Alignment of business activities
Facilitation of risk-aware decision making
Reporting risk assessment results to senior management is an essential part of risk communication, which is the process of sharing relevant and timely information about the risk exposure and risk management activities with the stakeholders. The most important benefit of reporting risk assessment results to senior management is to facilitate risk-aware decision making, which is the process of incorporating the risk information and analysis into the strategic and operational decisions of the organization. By reporting the risk assessment results, the risk practitioner can provide senior management with the insight and understanding of the current and potential risks, their likelihood and impact, their interrelationships and dependencies, and their alignment with the risk appetite and tolerance. This can help senior management to prioritize the risks, allocate the resources, select the risk responses, monitor the risk performance, and evaluate the risk outcomes. References = CRISC Review Manual, 7th Edition, page 105.
An organization recently implemented an automated interface for uploading payment files to its banking system to replace manual processing. Which of the following elements of the risk register is MOST appropriate for the risk practitioner to update to reflect the improved control?
Risk scenarios
Risk ownership
Risk impact
Risk likelihood
Updating the risk likelihood in the risk register is appropriate when an improved control, such as an automated interface, is implemented. This change affects the probability of the risk occurring, thus reflecting the enhanced control environment.
Which of the following is the BEST way to protect sensitive data from administrators within a public cloud?
Use an encrypted tunnel lo connect to the cloud.
Encrypt the data in the cloud database.
Encrypt physical hard drives within the cloud.
Encrypt data before it leaves the organization.
 Encrypting data before it leaves the organization is the best way to protect sensitive data from administrators within a public cloud, as it ensures that the data is secured at the source and remains encrypted throughout the transmission and storage in the cloud. Using an encrypted tunnel to connect to the cloud, encrypting the data in the cloud database, and encrypting physical hard drives within the cloud are not the best ways, as they may not prevent the cloud administrators from accessing the data or the encryption keys, or may not protect the data from unauthorized interception or modification during the transmission. References = CRISC Review Manual, 7th Edition, page 153.
Which of the following is the MOST important reason to restrict access to the risk register on a need-to-know basis?
It contains vulnerabilities and threats.
The risk methodology is intellectual property.
Contents may be used as auditable findings.
Risk scenarios may be misinterpreted.
Restricting access to the risk register on a need-to-know basis is important because it contains vulnerabilities and threats that could expose the organization to potential harm or loss if they are disclosed or exploited by unauthorized parties. The risk register is a tool that captures and documents the risk identification, analysis, evaluation, and treatment processes1. The risk register contains sensitive information such as the sources and causes of risk, the potential impacts and consequences of risk, the likelihood and frequency of risk occurrence, and the risk response actions and plans1. If this information is accessed by unauthorized parties, such as competitors, hackers, or malicious insiders, they could use it to launch attacks, sabotage operations, or gain an unfair advantage over the organization. Therefore, access to the risk register should be limited to those who have a legitimate need and authorization to view, modify, or use the information, such as the risk owners, managers, or practitioners
A recent risk workshop has identified risk owners and responses for newly identified risk scenarios. Which of the following should be the risk practitioner s NEXT step? r
Prepare a business case for the response options.
Identify resources for implementing responses.
Develop a mechanism for monitoring residual risk.
Update the risk register with the results.
The risk practitioner’s next step after identifying risk owners and responses for newly identified risk scenarios in a recent risk workshop is to update the risk register with the results, as it involves documenting and communicating the risk information and decisions, and maintaining the accuracy and completeness of the risk register. Preparing a business case for the response options, identifying resources for implementing responses, and developing a mechanism for monitoring residual risk are possible steps, but they are not the next step, as they require the prior update of the risk register with the new risk information and decisions. References = CRISC Review Manual, 7th Edition, page 109.
An organization's risk management team wants to develop IT risk scenarios to show the impact of collecting and storing credit card information. Which of the following is the MOST comprehensive approach to capture this scenario?
Top-down analysis
Event tree analysis
Control gap analysis
Bottom-up analysis
According to the ISACA Risk and Information Systems Control study guide and handbook, the most comprehensive approach to capture the risk scenario of collecting and storing credit card information is event tree analysis (ETA). ETA is a forward, top-down, logical modeling technique that explores the responses and outcomes of a single initiating event, such as a data breach or a cyberattack. ETA can help to identify all possible consequences of the scenario, such as financial losses, reputational damages, legal liabilities, regulatory penalties, and customer dissatisfaction. ETA can also help to assess the probabilities of the outcomes and the effectiveness of the controls and mitigation strategies12
1: ISACA Risk and Information Systems Control Study Guide, 4th Edition, page 33 2: ISACA Risk and Information Systems Control Handbook, 1st Edition, page 25
Which strategy employed by risk management would BEST help to prevent internal fraud?
Require control owners to conduct an annual control certification.
Conduct regular internal and external audits on the systems supporting financial reporting.
Ensure segregation of duties are implemented within key systems or processes.
Require the information security officer to review unresolved incidents.
Ensuring segregation of duties are implemented within key systems or processes is the best strategy employed by risk management to prevent internal fraud, because it reduces the opportunity for a single person to manipulate or misuse the system or process for fraudulent purposes. Segregation of duties is a control that assigns different roles and responsibilities to different individuals, such that no one person can perform all the steps of a transaction or process. Requiring control owners to conduct an annual control certification, conducting regular internal and external audits on the systems supporting financial reporting, and requiring the information security officer to review unresolved incidents are all useful strategies to detect or deter internal fraud, but they are not the best strategy to prevent it, as they do not directly address the root cause of fraud. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.1, page 197
An assessment of information security controls has identified ineffective controls. Which of the following should be the risk practitioner's FIRST course of action?
Determine whether the impact is outside the risk appetite.
Request a formal acceptance of risk from senior management.
Report the ineffective control for inclusion in the next audit report.
Deploy a compensating control to address the identified deficiencies.
The risk practitioner’s first course of action when an assessment of information security controls has identified ineffective controls should be A. Determine whether the impact is outside the risk appetite1
According to the CRISC Review Manual, risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite reflects the organization’s risk culture, strategy, and values2
When an assessment of information security controls has identified ineffective controls, it means that the controls are not providing the expected level of protection or assurance for the information assets or processes. This may result in increased exposure or vulnerability to threats, or reduced ability to achieve objectives. Therefore, the risk practitioner should first determine whether the impact of the ineffective controls is outside the risk appetite, as this would indicate the need for urgent action or escalation3
The other options are not the first course of action when an assessment of information security controls has identified ineffective controls, because:
•B. Requesting a formal acceptance of risk from senior management may be appropriate if the impact of the ineffective controls is within the risk appetite, and the organization decides to accept the risk as it is. However, this should not be the first course of action, as it may not address the root cause of the ineffective controls, or the potential consequences or opportunities for improvement4
•C. Reporting the ineffective control for inclusion in the next audit report may be part of the risk communication and reporting process, but it should not be the first course of action, as it may delay the resolution or mitigation of the issue, or the implementation of corrective actions. Moreover, the next audit report may not be timely or relevant for the decision-makers or stakeholders who need to be informed of the ineffective controls5
•D. Deploying a compensating control to address the identified deficiencies may be a possible risk response option, but it should not be the first course of action, as it may require further analysis, evaluation, and approval. Moreover, deploying a compensating control may not be the most effective or efficient solution, as it may introduce additional complexity, cost, or risk.
1: CRISC Review Questions, Answers & Explanations Database, Question ID: 100003 2: CRISC Review Manual, 7th Edition, page 28 3: CRISC Review Manual, 7th Edition, page 223 4: CRISC Review Manual, 7th Edition, page 224 5: CRISC Review Manual, 7th Edition, page 225 : CRISC Review Manual, 7th Edition, page 226
A risk practitioner discovers that an IT operations team manager bypassed web filtering controls by using a mobile device, in violation of the network security policy. Which of the following should the risk practitioner do FIRST?
Report the incident.
Plan a security awareness session.
Assess the new risk.
Update the risk register.
According to the CRISC exam content outline2, one of the tasks of a risk practitioner is to “report on risk, in line with organizational reporting requirements, to enable decision making and escalationâ€. Therefore, the first thing that the risk practitioner should do after discovering a policy violation is to report the incident to the appropriate authority, such as the IT security manager or the risk management committee. This will ensure that the incident is properly documented, investigated, and resolved, and that any potential impact or consequences are minimized.
The other options are not the first actions that the risk practitioner should take. Planning a security awareness session (B) may be a preventive measure to avoid future incidents, but it does not address the current one. Assessing the new risk © may be part of the risk response process, but it should be done after reporting the incident and gathering more information. Updating the risk register (D) may be a result of the risk assessment and response, but it should not be done before reporting the incident and following the organizational procedures.
Which of the following should be a risk practitioner's GREATEST concern upon learning of failures in a data migration activity?
Availability of test data
Integrity of data
Cost overruns
System performance
The integrity of data should be the greatest concern for a risk practitioner upon learning of failures in a data migration activity, because it affects the accuracy, completeness, and consistency of the data that are transferred from one system or format to another. Data integrity is a property of data that ensures that the data are valid, reliable, and trustworthy, and that they have not been altered or corrupted by unauthorized or accidental means. Data migration is a process of moving or copying data from one system or format to another, usually as part of a system upgrade, consolidation, or transformation. Data migration can pose risks to the integrity of data, such as data loss, duplication, inconsistency, or corruption, due to factors such as incompatible formats, human errors, technical glitches, or malicious attacks. Therefore, the integrity of data should be the greatest concern, as it impacts the quality and usability of the data, and the performance and functionality of the system. The availability of test data, the cost overruns, and the system performance are all possible concerns for a risk practitioner, but they are not the greatest concern, as they do not directly affect the integrity of data. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158
A business impact analysis (BIA) enables an organization to determine appropriate IT risk mitigation actions by:
validating whether critical IT risk has been addressed.
assigning accountability for IT risk to business functions.
identifying IT assets that support key business processes.
defining the requirements for an IT risk-aware culture
Which of the following should be the PRIMARY driver for an organization on a multi-year cloud implementation to publish a cloud security policy?
Evaluating gaps in the on-premise and cloud security profiles
Establishing minimum cloud security requirements
Enforcing compliance with cloud security parameters
Educating IT staff on variances between on premise and cloud security
The primary driver for an organization on a multi-year cloud implementation to publish a cloud security policy is to establish minimum cloud security requirements, as they specify the standards and expectations for the protection of the data and systems in the cloud environment, and ensure the alignment and compliance of the cloud security strategy with the organizational objectives and regulations. The other options are not the primary drivers, as they are more related to the evaluation, enforcement, or education of the cloud security policy, respectively, rather than the establishment of the cloud security policy. References = CRISC Review Manual, 7th Edition, page 155.
Who should be responsible for determining which stakeholders need to be involved in the development of a risk scenario?
Risk owner
Risk practitioner
Compliance manager
Control owner
The risk practitioner is responsible for determining which stakeholders need to be involved in the development of a risk scenario, as they have the knowledge and skills to facilitate the process and ensure that the relevant perspectives and information are considered. The risk owner, the compliance manager, and the control owner are examples of stakeholders who may participate in the risk scenario development, but they are not responsible for determining who should be involved. References = Risk Scenarios Toolkit, page 9; CRISC Review Manual, 7th Edition, page 101.
Which of the following is a risk practitioner's BEST course of action after identifying risk scenarios related to noncompliance with new industry regulations?
Escalate to senior management.
Transfer the risk.
Implement monitoring controls.
Recalculate the risk.
The risk practitioner’s best course of action after identifying risk scenarios related to noncompliance with new industry regulations is to escalate to senior management, as they have the authority and responsibility to decide on the appropriate risk response and allocate the necessary resources. Transferring the risk, implementing monitoring controls, and recalculating the risk are possible risk responses, but they require senior management approval and direction. References = Risk Scenarios Toolkit, page 19; CRISC Review Manual, 7th Edition, page 107.
Which of the following will MOST likely change as a result of the decrease in risk appetite due to a new privacy regulation?
Key risk indicator (KRI) thresholds
Risk trends
Key performance indicators (KPIs)
Risk objectives
KRI thresholds are the levels or points that trigger an action or a response when a KRI reaches or exceeds them. They reflect the risk appetite of the organization, which is the amount and type of risk that it is willing to accept in pursuit of its objectives. A new privacy regulation may reduce the risk appetite of the organization, as it may impose stricter requirements and penalties for non-compliance. Therefore, the organization may need to adjust its KRI thresholds to lower levels, to ensure that it can identify and manage privacy risks more effectively and proactively
Which group has PRIMARY ownership of reputational risk stemming from unethical behavior within the organization?
Board of directors
Human resources (HR)
Risk management committee
Audit committee
The group that has primary ownership of reputational risk stemming from unethical behavior within the organization is A. Board of directors. According to the CFA Institute, the board of directors is responsible for setting the tone at the top and ensuring that the company adheres to high ethical standards and values. The board of directors also oversees the company’s culture, governance, and risk management practices, and holds the management accountable for any misconduct or breach of trust1 The board of directors may delegate some of its oversight functions to other committees, such as the human resources, risk management, or audit committee, but ultimately, the board of directors bears the ultimate responsibility for the company’s reputation and integrity
An organization's IT team has proposed the adoption of cloud computing as a cost-saving measure for the business. Which of the following should be of GREATEST concern to the risk practitioner?
Due diligence for the recommended cloud vendor has not been performed.
The business can introduce new Software as a Service (SaaS) solutions without IT approval.
The maintenance of IT infrastructure has been outsourced to an Infrastructure as a Service (laaS) provider.
Architecture responsibilities may not be clearly defined.
The lack of due diligence for the recommended cloud vendor should be of greatest concern to the risk practitioner, because it exposes the organization to potential risks and issues related to the security, reliability, performance, and compliance of the cloud service provider. Due diligence is a process of conducting a thorough investigation and evaluation of a potential vendor or partner before entering into a contractual relationship. Due diligence helps to verify the vendor’s credentials, capabilities, reputation, and track record, and to identify any red flags or gaps that may affect the quality or suitability of the service. Cloud computing is a model of delivering IT services over the internet, where the service provider owns and manages the IT infrastructure, platforms, or applications, and the customer pays only for the resources or functions they use. Cloud computing can offer cost savings, scalability, and flexibility for the business, but it also introduces new risks and challenges, such as data privacy, security breaches, vendor lock-in, service outages, or regulatory compliance. Therefore, performing due diligence for the recommended cloud vendor is essential to ensure that the organization’s expectations and requirements are met, and that the risks and issues are identified and addressed. The business introducing new SaaS solutions without IT approval, the maintenance of IT infrastructure being outsourced to an IaaS provider, and the architecture responsibilities not being clearly defined are all possible concerns for the risk practitioner, but they are not the greatest concern, as they can be mitigated or resolved with appropriate controls, policies, or agreements. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.2.1, page 183
Which of the following will BEST ensure that controls adequately support business goals and objectives?
Using the risk management process
Enforcing strict disciplinary procedures in case of noncompliance
Reviewing results of the annual company external audit
Adopting internationally accepted controls
Using the risk management process will best ensure that controls adequately support business goals and objectives, as it involves identifying, assessing, responding, and monitoring the risks that may affect the achievement of the business goals and objectives, and designing and implementing controls to mitigate those risks. Enforcing strict disciplinary procedures in case of noncompliance, reviewing results of the annual company external audit, and adopting internationally accepted controls are also good practices, but they are not the best, as they do not necessarily align the controls with the business goals and objectives. References = CRISC Review Manual, 7th Edition, page 146.
Which of the following is the MOST likely reason an organization would engage an independent reviewer to assess its IT risk management program?
To ensure IT risk management is focused on mitigating emerging risk
To confirm that IT risk assessment results are expressed in quantitative terms
To evaluate threats to the organization's operations and strategy
To identify gaps in the alignment of IT risk management processes and strategy
An independent review is typically sought to provide an objective assessment of the IT risk management program, ensuring that it aligns with the organization’s overall strategy and objectives. The reviewer can identify areas where the program may not be effectively addressing the organization’s strategic goals or where improvements can be made to better manage IT risks.
A risk practitioner is advising management on how to update the IT policy framework to account for the organization s cloud usage. Which of the following should be the FIRST step in this process?
Consult with industry peers regarding cloud best practices.
Evaluate adherence to existing IT policies and standards.
Determine gaps between the current state and target framework.
Adopt an industry-leading cloud computing framework.
A poster has been displayed in a data center that reads. "Anyone caught taking photographs in the data center may be subject to disciplinary action." Which of the following control types has been implemented?
Corrective
Detective
Deterrent
Preventative
 A deterrent control is a type of control that has been implemented by displaying a poster that reads “Anyone caught taking photographs in the data center may be subject to disciplinary action.â€, as it aims to discourage or prevent unauthorized or malicious activities by warning the potential perpetrators of the consequences or sanctions. The other options are not the correct types of control, as they are more related to the correction, detection, or prevention of unauthorized or malicious activities, respectively, rather than the deterrence of unauthorized or malicious activities. References = CRISC Review Manual, 7th Edition, page 154.
An organization has updated its acceptable use policy to mitigate the risk of employees disclosing confidential information. Which of the following is the BEST way to reinforce the effectiveness of this policy?
Communicate sanctions for policy violations to all staff.
Obtain signed acceptance of the new policy from employees.
Train all staff on relevant information security best practices.
Implement data loss prevention (DLP) within the corporate network.
Train all staff on relevant information security best practices, because it helps to increase the awareness and understanding of the employees regarding the acceptable use policy and its purpose, and to improve their skills and knowledge on how to protect and handle confidential information. An acceptable use policy is a document that outlines the standards and expectations for the proper usage of the organization’s IT resources, such as systems, applications, networks, or devices, and the consequences of non-compliance. Confidential information is information that is sensitive or proprietary, and may cause harm or damage to the organization or its stakeholders if disclosed or compromised, such as trade secrets, customer data, or financial records. Training all staff on relevant information security best practices is the best way to reinforce the effectiveness of the policy, as it helps to ensure that the employees are aware of and comply with the policy, and that they adopt the appropriate behaviors and techniques to prevent or mitigate the risk of disclosing confidential information.
Communicating sanctions for policy violations to all staff, obtaining signed acceptance of the new policy from employees, and implementing data loss prevention (DLP) within the corporate network are all possible ways to reinforce the effectiveness of the policy, but they are not the best way, as they do not directly address the awareness and understanding of the employees regarding the policy and its purpose, and they may not be sufficient or effective to prevent or mitigate the risk of disclosing confidential information.
Which of the following would BEST facilitate the maintenance of data classification requirements?
Scheduling periodic audits
Assigning a data custodian
Implementing technical controls over the assets
Establishing a data loss prevention (DLP) solution
Scheduling periodic audits is the best way to facilitate the maintenance of data classification requirements, because it helps to verify and validate that the data are classified and handled according to the established policies, standards, and guidelines, and that the data classification requirements are updated and aligned with the changes in the data environment or regulations. Data classification is a process of categorizing data according to their sensitivity, confidentiality, and value to the organization, and specifying the appropriate handling and protection measures for each category. Data classification requirements are the rules or criteria that define how data should be classified and treated. Scheduling periodic audits is the best way to ensure that the data classification requirements are followed and maintained, and that any issues or gaps are identified and addressed. Assigning a data custodian, implementing technical controls over the assets, and establishing a data loss prevention (DLP) solution are all useful ways to facilitate the maintenance of data classification requirements, but they are not the best way, as they do not provide a comprehensive and independent review and assessment of the data classification process and outcomes. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158
Which of the following is the PRIMARY objective of a risk awareness program?
To demonstrate senior management support
To enhance organizational risk culture
To increase awareness of risk mitigation controls
To clearly define ownership of risk
A risk awareness program is a set of activities and communication methods that aim to increase the understanding and knowledge of risk among the stakeholders of an organization. The primary objective of a risk awareness program is to enhance the organizational risk culture, which is the shared values, beliefs, and attitudes that influence how risk is perceived and managed in the organization. A risk awareness program can help to promote a risk-aware culture by:
•Educating stakeholders on the concepts and benefits of risk management
•Aligning risk management with the organization’s vision, mission, and objectives
•Encouraging stakeholder participation and collaboration in risk management processes
•Fostering a positive attitude towards risk taking and learning from failures
•Reinforcing risk management roles and responsibilities
•Recognizing and rewarding good risk management practices
References: The answer is based on the following sources:
•CRISC Review Manual, 7th Edition, Chapter 2: IT Risk Assessment, page 781
•Developing Collective Risk Leadership Through CRISC2
Which of the following observations from a third-party service provider review would be of GREATEST concern to a risk practitioner?
Service level agreements (SLAs) have not been met over the last quarter.
The service contract is up for renewal in less than thirty days.
Key third-party personnel have recently been replaced.
Monthly service charges are significantly higher than industry norms.
The observation from a third-party service provider review that would be of greatest concern to a risk practitioner is that the service level agreements (SLAs) have not been met over the last quarter, as it indicates a significant performance issue or breach that may affect the quality, functionality, or security of the outsourced services, and may require a remediation or escalation action. The other options are not the greatest concerns, as they may not indicate a performance issue or breach, but rather a contractual, personnel, or financial issue, respectively, that may not affect the outsourced services directly or significantly. References = CRISC Review Manual, 7th Edition, page 111.
A risk practitioner learns that a risk owner has been accepting gifts from a supplier of IT products. Some of these IT products are used to implement controls and to mitigate risk to acceptable levels. Which of the following should the risk practitioner do FIRST?
Initiate disciplinary action against the risk owner.
Reassess the risk and review the underlying controls.
Review organizational ethics policies.
Report the activity to the supervisor.
Reporting the activity to the supervisor is the first thing that the risk practitioner should do when learning that a risk owner has been accepting gifts from a supplier of IT products. This is because accepting gifts from a supplier of IT products can create a conflict of interest, compromise the integrity and objectivity of the risk owner, and violate the organizational ethics policies. Reporting the activity to the supervisor can help ensure that the issue is escalated to the appropriate authority, investigated, and resolved in a timely and transparent manner. According to the CRISC Review Manual 2022, one of the key risk response techniques is to report the risk to the relevant stakeholders, such as the supervisor1. According to the web search results, reporting the activity to the supervisor is a common and recommended action when encountering a potential ethical violation in the workplace
A multinational company needs to implement a new centralized security system. The risk practitioner has identified a conflict between the organization's data-handling policy and local privacy regulations. Which of the following would be the BEST recommendation?
Request a policy exception from senior management.
Comply with the organizational policy.
Report the noncompliance to the local regulatory agency.
Request an exception from the local regulatory agency.
A legacy application used for a critical business function relies on software that has reached the end of extended support Which of the following is the MOST effective control to manage this application?
Subscribe to threat intelligence to monitor external attacks.
Apply patches for a newer version of the application.
Segment the application within the existing network.
Increase the frequency of regular system and data backups.
 Segmenting the application within the existing network is the most effective control to manage a legacy application that relies on software that has reached the end of extended support, as it isolates the application from the rest of the network and reduces the attack surface and the potential impact of a compromise. Subscribing to threat intelligence, applying patches for a newer version of the application, and increasing the frequency of regular system and data backups are not the most effective controls, as they may not address the root cause of the risk, or may introduce additional costs or complexities, respectively. References = CRISC Review Manual, 7th Edition, page 153.
An online payment processor would be severely impacted if the fraud detection system has an outage. Which of the following is the BEST way to address this risk?
Implement continuous control monitoring.
Communicate the risk to management.
Introduce recovery control procedures.
Document a risk response plan.
Introducing recovery control procedures is the best way to address the risk of an outage of the fraud detection system for an online payment processor, because it helps to restore the functionality and availability of the system as quickly and effectively as possible, and to minimize the impact and disruption to the business operations and customers. A fraud detection system is a system that monitors and analyzes the transactions and activities of an online payment processor, and detects and prevents any fraudulent or suspicious behavior, such as identity theft, money laundering, or chargebacks. An outage is a situation where the system is unavailable or inaccessible, due to factors such as technical failure, human error, or malicious attack. An outage of the fraud detection system may have severe consequences for the online payment processor, such as financial losses, reputational damage, customer dissatisfaction, or regulatory penalties. A recovery control procedure is a procedure that defines the steps and actions to be taken to recover the system from an outage, such as identifying the root cause, isolating the affected components, restoring the data and functionality, testing the system, and reporting the incident. Introducing recovery control procedures is the best way to address the risk, as it helps to ensure that the system is back online and operational as soon as possible, and that the risk exposure and impact are reduced and contained. Implementing continuous control monitoring, communicating the risk to management, and documenting a risk response plan are all possible ways to address the risk, but they are not the best way, as they do not directly address the recovery of the system from an outage, and they may not be sufficient or effective to mitigate the risk. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.4.1, page 208
A migration from an in-house developed system to an external cloud-based solution is affecting a previously rated key risk scenario related to payroll processing. Which part of the risk register should be updated FIRST?
Payroll system risk factors
Payroll system risk mitigation plans
Payroll process owner
Payroll administrative controls
Payroll system risk mitigation plans are the actions that are taken to reduce or eliminate the risk associated with payroll processing. When a migration from an in-house developed system to an external cloud-based solution is affecting a previously rated key risk scenario related to payroll processing, the first part of the risk register that should be updated is the payroll system risk mitigation plans. This is because the migration may introduce new risks or change the existing risks, and the risk mitigation plans may need to be revised or replaced accordingly. Updating the payroll system risk mitigation plans can help ensure that the risk level is acceptable and the payroll process is secure and reliable. According to the CRISC Review Manual 2022, one of the key risk treatment techniques is to update the risk action plan, which is a document that outlines the risk mitigation plans1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, updating the risk mitigation plans is the correct answer to this question2.
Payroll system risk factors, payroll process owner, and payroll administrative controls are not the first part of the risk register that should be updated when a migration is affecting a key risk scenario. Payroll system risk factors are the sources or causes of risk, such as threats, vulnerabilities, or uncertainties. Payroll process owner is the person who is responsible for the payroll process and its outcomes. Payroll administrative controls are the policies, procedures, or guidelines that govern the payroll process. These parts of the risk register may also need to be updated, but they are not as urgent or critical as the risk mitigation plans. Updating the risk factors, process owner, and administrative controls can help identify, assess, and monitor the risk, but they do not directly address the risk response. The risk response is the most important part of the risk management process, as it determines how the risk is handled and controlled.
An organization uses one centralized single sign-on (SSO) control to cover many applications. Which of the following is the BEST course of action when a new application is added to the environment after testing of the SSO control has been completed?
Initiate a retest of the full control
Retest the control using the new application as the only sample.
Review the corresponding change control documentation
Re-evaluate the control during (he next assessment
The best course of action when a new application is added to the environment after testing of the SSO control has been completed is to initiate a retest of the full control, as it may reveal any new issues or gaps that the new application may introduce to the SSO control, and ensure that the control remains effective and adequate. Retesting the control using the new application as the only sample, reviewing the corresponding change control documentation, and re-evaluating the control during the next assessment are not the best courses of action, as they may not provide sufficient assurance, evidence, or timeliness of the control testing, respectively. References = CRISC Review Manual, 7th Edition, page 154.
Which of the following should be the FIRST course of action if the risk associated with a new technology is found to be increasing?
Re-evaluate current controls.
Revise the current risk action plan.
Escalate the risk to senior management.
Implement additional controls.
A risk action plan is a document that outlines the actions to be taken to mitigate or avoid a risk. A risk action plan should be revised when the risk associated with a new technology is found to be increasing, as this indicates that the current plan is not effective or sufficient. Revising the risk action plan can help identify the root causes of the risk increase, evaluate the effectiveness of current controls, and implement additional or alternative controls as needed. Re-evaluating current controls, escalating the risk to senior management, and implementing additional controls are possible steps in the revision process, but they are not the first course of action. The first course of action should be to update the risk action plan to reflect the current risk situation and the appropriate risk response.
A failed IT system upgrade project has resulted in the corruption of an organization's asset inventory database. Which of the following controls BEST mitigates the impact of this incident?
Encryption
Authentication
Configuration
Backups
Backups are the best control to mitigate the impact of a failed IT system upgrade project that has resulted in the corruption of an organization’s asset inventory database, as they allow the organization to restore the data from a previous state and resume normal operations. Encryption, authentication, and configuration are not the best controls, as they do not address the data corruption issue, but rather the data security, access, and quality issues, respectively. References = CRISC Review Manual, 7th Edition, page 153.
Which of the following is the BEST approach for obtaining management buy-in
to implement additional IT controls?
List requirements based on a commonly accepted IT risk management framework.
Provide information on new governance, risk, and compliance (GRC) platform functionalities.
Describe IT risk impact on organizational processes in monetary terms.
Present new key risk indicators (KRIs) based on industry benchmarks.
Presenting the impact of IT risks on organizational processes in monetary terms is effective for obtaining management buy-in because it directly relates to the organization's financial health and decision-making. It provides a clear and tangible understanding of the potential financial implications of risks, making it easier for management to appreciate the need for additional controls.
Which of the following is the PRIMARY benefit of integrating risk and security requirements in an organization's enterprise architecture (EA)?
Adherence to legal and compliance requirements
Reduction in the number of test cases in the acceptance phase
Establishment of digital forensic architectures
Consistent management of information assets
Integrating risk and security requirements in an organization’s enterprise architecture (EA) helps to ensure that information assets are consistently managed throughout their life cycle, and that the risks associated with them are identified and mitigated. (Risk and Information Systems Control Review Questions, Answers & Explanations Manual, 5th Edition, page 112)
One of an organization's key IT systems cannot be patched because the patches interfere with critical business application functionalities. Which of the following would be the risk practitioner's BEST recommendation?
Additional mitigating controls should be identified.
The system should not be used until the application is changed
The organization's IT risk appetite should be adjusted.
The associated IT risk should be accepted by management.
The risk practitioner’s best recommendation when one of an organization’s key IT systems cannot be patched because the patches interfere with critical business application functionalities is to identify additional mitigating controls, as they may reduce the likelihood or impact of the vulnerabilities being exploited, and align the residual risk with the risk tolerance and appetite of the organization. The other options are not the best recommendations, as they may not address the risk adequately, or may introduce unacceptable consequences, such as disrupting the business operations, changing the risk strategy, or accepting excessive risk. References = CRISC Review Manual, 7th Edition, page 111.
Which of the following should be the PRIMARY consideration when assessing the risk of using Internet of Things (loT) devices to collect and process personally identifiable information (PII)?
Business strategies and needs
Security features and support
Costs and benefits
Local laws and regulations
Local laws and regulations should be the primary consideration when assessing the risk of using IoT devices to collect and process PII, because they define the legal obligations and liabilities of the organization and the individuals involved. Non-compliance with local laws and regulations can result in fines, lawsuits, reputational damage, and loss of trust. Therefore, it is essential to understand and adhere to the applicable laws and regulations in the jurisdictions where the IoT devices operate and where the PII is stored, processed, and transferred.
References
•Considerations for Managing Internet of Things (IoT) Cybersecurity and Privacy Risks
•The Internet of Things (IoT) and Digitally Stored PII: Avoidable or Inevitable?
•Security Issues in IoT: Challenges and Countermeasures
Which of the following is the PRIMARY reason for an organization to include an acceptable use banner when users log in?
To reduce the likelihood of insider threat
To eliminate the possibility of insider threat
To enable rapid discovery of insider threat
To reduce the impact of insider threat
The primary reason for an organization to include an acceptable use banner when users log in is to reduce the likelihood of insider threat, as it informs the users of the policies, rules, and expectations for the use of the organization’s IT resources, and deters them from engaging in unauthorized or malicious activities. The other options are not the primary reasons, as they are more related to the detection, prevention, or mitigation of insider threat, respectively, rather than the reduction of the likelihood of insider threat. References = CRISC Review Manual, 7th Edition, page 155.
Which of the following is MOST important to consider when determining the value of an asset during the risk identification process?
The criticality of the asset
The vulnerability profile of the asset
The monetary value of the asset
The size of the asset's user base
The criticality of the asset is the most important factor to consider when determining its value during the risk identification process, because it reflects how essential the asset is for the organization’s mission, objectives, and operations. The criticality of the asset can be measured by the potential impact of its loss or compromise on the organization’s performance, reputation, compliance, and continuity. The higher the criticality, the higher the value of the asset.
References
•IT Asset Valuation, Risk Assessment and Control Implementation Model - ISACA
•Identifying Assets for IT Risk Analysis — RiskOptics - Reciprocity
•Asset Valuation - Definition, Methods, and Importance
An organization's IT department wants to complete a proof of concept (POC) for a security tool. The project lead has asked for approval to use the production data for testing purposes as it will yield the best results. Which of the following is the risk practitioner's BEST recommendation?
Accept the risk of using the production data to ensure accurate results.
Assess the risk of using production data for testing before making a decision.
Benchmark against what peer organizations are doing with POC testing environments.
Deny the request, as production data should not be used for testing purposes.
Assessing the risk of using production data for testing before making a decision is the best recommendation for the risk practitioner, because it helps to balance the benefits and drawbacks of using real data for the proof of concept (POC) of a security tool. A POC is a demonstration or trial of a proposed solution or product to verify its feasibility, functionality, and value. A security tool is a software or hardware device that helps to protect the IT systems or networks from threats or attacks. Using production data for testing purposes can yield the best results, as it reflects the actual data that the security tool will handle in the operational environment. However, using production data for testing also poses risks, such as data leakage, data corruption, data privacy violation, or regulatory non-compliance. Therefore, assessing the risk of using production data for testing before making a decision is the best recommendation, as it helps to identify and evaluate the potential risks and issues, and to determine the appropriate controls or mitigating factors to reduce or eliminate them. Accepting the risk of using the production data, benchmarking against what peer organizations are doing, and denying the request are all possible recommendations, but they are not the best recommendation, as they do not consider the risk assessment process and the trade-offs involved in using production data for testing. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.4.1, page 208
WhichT5f the following is the MOST effective way to promote organization-wide awareness of data security in response to an increase in regulatory penalties for data leakage?
Enforce sanctions for noncompliance with security procedures.
Conduct organization-w>de phishing simulations.
Require training on the data handling policy.
Require regular testing of the data breach response plan.
 The most effective way to promote organization-wide awareness of data security in response to an increase in regulatory penalties for data leakage is to require training on the data handling policy, as it educates the employees on the importance, requirements, and procedures of data protection, and enhances their knowledge and skills to prevent, detect, and respond to data leakage incidents. Enforcing sanctions for noncompliance with security procedures, conducting organization-wide phishing simulations, and requiring regular testing of the data breach response plan are not the most effective ways, as they are more related to the enforcement, evaluation, or improvement of the data security, respectively, rather than the promotion of the data security awareness. References = CRISC Review Manual, 7th Edition, page 155.
An application development team has a backlog of user requirements for a new system that will process insurance claim payments for customers. Which of the following should be the MOST important consideration for a risk-based review of the user requirements?
Number of claims affected by the user requirements
Number of customers impacted
Impact to the accuracy of claim calculation
Level of resources required to implement the user requirements
According to the CRISC Review Manual, one of the key objectives of risk identification is to assess the potential impact of risk events on the achievement of business objectives2. In this case, the business objective of the system is to process insurance claim payments for customers, which depends on the accuracy of claim calculation. Therefore, the impact to the accuracy of claim calculation should be the most important consideration for a risk-based review of the user requirements. The other options are less relevant or less critical for the business objective.
The MOST important measure of the effectiveness of risk management in project implementation is the percentage of projects:
introduced into production without high-risk issues.
having the risk register updated regularly.
having key risk indicators (KRIs) established to measure risk.
having an action plan to remediate overdue issues.
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.
If concurrent update transactions to an account are not processed properly, which of the following will MOST likely be affected?
Confidentiality
Accountability
Availability
Integrity
Integrity is the property of data that ensures its accuracy, completeness, and consistency2. If concurrent update transactions to an account are not processed properly, the integrity of the data may be compromised, as it may lead to concurrency problems such as lost update, unrepeatable read, or phantom read3. These problems can cause the data to be incorrect, incomplete, or inconsistent, which may affect the reliability and validity of the data. Therefore, option D is the correct answer, as it reflects the impact of improper concurrent update transactions on the data integrity. The other options are not correct, as they do not directly relate to the effect of concurrent update transactions on the data. Option A, confidentiality, is the property of data that ensures its protection from unauthorized access or disclosure2. Concurrent update transactions do not necessarily affect the confidentiality of the data, as they do not involve exposing the data to unauthorized parties. Option B, accountability, is the property of data that ensures its traceability and auditability2. Concurrent update transactions do not necessarily affect the accountability of the data, as they do not involve losing the records or logs of the data transactions. Option C, availability, is the property of data that ensures its accessibility and usability2. Concurrent update transactions do not necessarily affect the availability of the data, as they do not involve preventing the access or use of the data.
A risk practitioner has been asked to evaluate the adoption of a third-party blockchain integration platform based on the value added by the platform and the organization's risk appetite. Which of the following is the risk practitioner's BEST course of action?
Conduct third-party resilience tests.
Review risk related to standards and regulations.
Update the risk register with the process changes.
Conduct a risk assessment with stakeholders.
A risk assessment with stakeholders is the best course of action because it will help the risk practitioner to evaluate the value and risk of the third-party blockchain integration platform in relation to the organization’s objectives, risk appetite, and risk tolerance. A risk assessment will also help to identify and prioritize the risks and opportunities associated with the platform, and to develop appropriate risk responses and controls.
References: The answer is based on the following sources:
•CRISC Review Manual, 7th Edition, Chapter 2: IT Risk Assessment, pages 75-761
•CRISC Review Questions, Answers & Explanations Database, 12 Month Subscription, Question ID: QID-10012
Which of the following BEST supports the management of identified risk scenarios?
Collecting risk event data
Maintaining a risk register
Using key risk indicators (KRIs)
Defining risk parameters
The best tool to support the management of identified risk scenarios is maintaining a risk register, as it provides a comprehensive and structured record of the risk information and decisions, such as the risk description, rating, ownership, response, and status, and facilitates the communication and accountability of the risk management process and activities. The other options are not the best tools, as they are more related to the collection, measurement, or definition of the risk scenarios, respectively, rather than the management of the risk scenarios. References = CRISC Review Manual, 7th Edition, page 101.
An insurance company handling sensitive and personal information from its customers receives a large volume of telephone requests and electronic communications daily. Which of the following
is MOST important to include in a risk awareness training session for the customer service department?
Archiving sensitive information
Understanding the incident management process
Identifying social engineering attacks
Understanding the importance of using a secure password
Social engineering attacks are attempts to manipulate or deceive people into revealing confidential or personal information, such as passwords, account numbers, or security codes. Customer service representatives are often targeted by social engineering attacks, as they have access to sensitive customer data and may be pressured to provide quick and satisfactory service. Therefore, it is most important to include in a risk awareness training session for the customer service department how to identify and prevent social engineering attacks, such as phishing, vishing, baiting, or impersonation.
References
•The role of customer service in cybersecurity - Security Intelligence
•How to Improve Risk Awareness in the Workplace [+ Template] - AlertMedia
•Top 4 Risks For Customer Service Teams | Resolver
Which of the following changes would be reflected in an organization's risk profile after the failure of a critical patch implementation?
Risk appetite is decreased.
Inherent risk is increased.
Risk tolerance is decreased.
Residual risk is increased.
Residual risk is the level of risk that remains after applying controls or other risk treatments. A critical patch is a type of control that aims to reduce the risk of a known vulnerability being exploited by attackers. If the patch implementation fails, the control is ineffective and the risk is not reduced. Therefore, the residual risk is increased, as the organization is still exposed to the potential negative consequences of the vulnerability.
References:
•ISACA, Risk and Information Systems Control Review Manual, 7th Edition, 2020, p. 2111
•ISACA, Practical Patch Management and Mitigation2
Which of the following would MOST effectively reduce the potential for inappropriate exposure of vulnerabilities documented in an organization's risk register?
Limit access to senior management only.
Encrypt the risk register.
Implement role-based access.
Require users to sign a confidentiality agreement.
A risk register is a document that contains information about potential cybersecurity risks that could threaten a project’s success, or even the business itself2. Therefore, it is important to protect the confidentiality and integrity of the risk register from unauthorized or inappropriate access, modification, or disclosure. One way to do this is to implement role-based access, which is a method of restricting access to the risk register based on the roles or responsibilities of the users1. This way, only authorized users who need to view or edit the risk register for legitimate purposes can do so, and the access rights can be revoked or modified as needed. This would most effectively reduce the potential for inappropriate exposure of vulnerabilities documented in the risk register. The other options are not as effective or feasible as option C, as they do not address the need to balance the security and availability of the risk register. Option A, limiting access to senior management only, would compromise the availability and usefulness of the risk register, as other stakeholders such as project managers, risk owners, or auditors may need to access the risk register for risk identification, analysis, response, or monitoring purposes3. Option B, encrypting the risk register, would enhance the security of the risk register, but it would not prevent authorized users from exposing the vulnerabilities to unauthorized parties, either intentionally or unintentionally. Encryption also adds complexity and cost to the risk register management process, and may affect the performance or usability of the risk register4. Option D, requiring users to sign a confidentiality agreement, would rely on the compliance and ethics of the users, but it would not prevent or detect any breaches of the agreement. A confidentiality agreement also does not specify the access rights or roles of the users, and may not be legally enforceable in some cases5.
Which of the following should be considered FIRST when creating a comprehensive IT risk register?
Risk management budget
Risk mitigation policies
Risk appetite
Risk analysis techniques
 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.
A risk practitioner has been notified of a social engineering attack using artificial intelligence (Al) technology to impersonate senior management personnel. Which of the following would BEST mitigate the impact of such attacks?
Training and awareness of employees for increased vigilance
Increased monitoring of executive accounts
Subscription to data breach monitoring sites
Suspension and takedown of malicious domains or accounts
Well-developed, data-driven risk measurements should be:
reflective of the lowest organizational level.
a data feed taken directly from operational production systems.
reported to management the same day data is collected.
focused on providing a forward-looking view.
Well-developed, data-driven risk measurements should be focused on providing a forward-looking view, as they enable the organization to anticipate and prepare for the potential changes and impacts of the risk level and exposure, and to take proactive and appropriate actions to address the risk. The other options are not the characteristics of well-developed, data-driven risk measurements, as they may not reflect the strategic, comprehensive, or timely aspects of the risk measurements, respectively. References = CRISC Review Manual, 7th Edition, page 110.
When reporting to senior management on changes in trends related to IT risk, which of the following is MOST important?
Materiality
Confidentiality
Maturity
Transparency
The most important factor when reporting to senior management on changes in trends related to IT risk is materiality. Materiality is the extent to which the information reported is significant, relevant, and useful for decision-making purposes. Materiality helps to prioritize the most important risks and communicate them effectively to senior management12
1: Integrating KRIs and KPIs for Effective Technology Risk Management - ISACA 2: CRISC Review Manual, 7th Edition, page 271
Which of the following scenarios presents the GREATEST risk of noncompliance with data privacy best practices?
Making data available to a larger audience of customers
Data not being disposed according to the retention policy
Personal data not being de-identified properly
Data being used for purposes the data subjects have not opted into
A risk practitioner has been asked to evaluate the adoption of a third-party blockchain integration platform based on the value added by the platform and the organization's risk appetite. Which of the following is the risk practitioner's BEST course of action?
Conduct a risk assessment with stakeholders.
Conduct third-party resilience tests.
Update the risk register with the process changes.
Review risk related to standards and regulations.
Conducting a risk assessment with stakeholders is the best course of action for the risk practitioner to evaluate the adoption of a third-party blockchain integration platform, because it helps to identify, analyze, and evaluate the risks and opportunities associated with the platform, and to compare them with the organization’s risk appetite and value proposition. A risk assessment is a process of systematically identifying and assessing the sources and types of risk that an organization faces, and estimating their likelihood and impact. A risk assessment also involves identifying and evaluating the existing or proposed controls or mitigating factors that can reduce or eliminate the risk. A stakeholder is a person or group that has an interest or influence in the organization or its activities, such as customers, employees, shareholders, suppliers, regulators, or partners. A blockchain integration platform is a software solution that enables the organization to connect and interact with blockchain networks or applications, such as cryptocurrencies, smart contracts, or distributed ledgers. A blockchain integration platform can offer benefits such as transparency, security, efficiency, and innovation, but it can also pose risks such as technical complexity, interoperability issues, regulatory uncertainty, or cyberattacks. Therefore, conducting a risk assessment with stakeholders is the best way to evaluate the adoption of a third-party blockchain integration platform, as it helps to understand the benefits and risks of the platform, and to align them with the organization’s objectives and risk appetite. Conducting third-party resilience tests, updating the risk register with the process changes, and reviewing risk related to standards and regulations are all important tasks to perform after conducting a risk assessment, but they are not the best course of action, as they depend on the results of the risk assessment. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.2, page 87
Which of the following is MOST helpful in identifying loss magnitude during risk analysis of a new system?
Recovery time objective (RTO)
Cost-benefit analysis
Business impact analysis (BIA)
Cyber insurance coverage
Business impact analysis (BIA) is the most helpful tool in identifying loss magnitude during risk analysis of a new system, as it involves estimating the potential financial and operational losses resulting from the disruption or degradation of the system. Recovery time objective (RTO), cost-benefit analysis, and cyber insurance coverage are not the most helpful tools, as they are more related to the recovery, evaluation, and transfer of the risk, respectively, rather than the identification of the loss magnitude. References = CRISC Review Manual, 7th Edition, page 108.
An organizational policy requires critical security patches to be deployed in production within three weeks of patch availability. Which of the following is the BEST metric to verify adherence to the policy?
Maximum time gap between patch availability and deployment
Percentage of critical patches deployed within three weeks
Minimum time gap between patch availability and deployment
Number of critical patches deployed within three weeks
The best metric to verify adherence to the policy that requires critical security patches to be deployed in production within three weeks of patch availability is the maximum time gap between patch availability and deployment, as it measures the longest duration that the organization takes to apply the patches, and ensures that it does not exceed the policy limit. The other options are not the best metrics, as they may not reflect the actual or optimal compliance with the policy, or may not be relevant or measurable for the policy, respectively. References = CRISC Review Manual, 7th Edition, page 110.
An organization plans to implement a new Software as a Service (SaaS) speech-to-text solution Which of the following is MOST important to mitigate risk associated with data privacy?
Secure encryption protocols are utilized.
Multi-factor authentication is set up for users.
The solution architecture is approved by IT.
A risk transfer clause is included in the contact
 Utilizing secure encryption protocols is the most important factor to mitigate risk associated with data privacy when implementing a new Software as a Service (SaaS) speech-to-text solution, as it ensures that the data is protected from unauthorized access, interception, or modification during the transmission and storage in the cloud. Setting up multi-factor authentication for users, approving the solution architecture by IT, and including a risk transfer clause in the contract are not the most important factors, as they may not address the data privacy issue, but rather the data access, quality, or liability issue, respectively. References = CRISC Review Manual, 7th Edition, page 153.
Which of the following is the BEST key performance indicator (KPI) for a server patch management process?
The percentage of servers with allowed patching exceptions
The number of servers with local credentials to install patches
The percentage of servers patched within required service level agreements
The number of servers running the software patching service
This KPI measures how well the server patch management process meets the agreed-upon standards and expectations for timeliness, quality, and security. It reflects the efficiency and effectiveness of the patch deployment and the compliance with the patch policy. It also helps to identify and address any issues or delays that may affect the patching performance.
References
•Patch Management KPI Metrics - Motadata
•KPI Examples for Patch and Vulnerability Management - Heimdal Security
•Measuring the Effectiveness of Your Patch Management Strategy - Automox
Who should be responsible for approving the cost of controls to be implemented for mitigating risk?
Risk practitioner
Risk owner
Control owner
Control implementer
The percentage of unpatched systems is a:
threat vector.
critical success factor (CSF).
key performance indicator (KPI).
key risk indicator (KRI).
Which of the following is the GREATEST risk associated with inappropriate classification of data?
Inaccurate record management data
Users having unauthorized access to data
Inaccurate recovery time objectives (RTOs)
Lack of accountability for data ownership
Which of the following is MOST important to identify when developing top-down risk scenarios?
Key procedure control gaps
Business objectives
Senior management's risk appetite
Hypothetical scenarios
The most important factor to identify when developing top-down risk scenarios is B. Business objectives12
Top-down risk scenarios are based on the organization’s strategic goals, objectives, and key performance indicators (KPIs), and they aim to identify the potential events or situations that could prevent or hinder the achievement of those goals and objectives12
By identifying the business objectives, the risk practitioner can align the risk scenarios with the organization’s mission, vision, and values, and ensure that the risk scenarios are relevant, realistic, and meaningful for the senior management and other stakeholders12
The other factors are not as important as the business objectives when developing top-down risk scenarios, because they are either more relevant for bottom-up risk scenarios (A and D), or they are derived from the business objectives and the risk scenarios ©12
After conducting a risk assessment for regulatory compliance, an organization has identified only one possible mitigating control. The cost of the control has been determined to be higher than the penalty of noncompliance. Which of the following would be the risk practitioner's BEST recommendation?
Accept the risk with management sign-off.
Ignore the risk until the regulatory body conducts a compliance check.
Mitigate the risk with the identified control.
Transfer the risk by buying insurance.
•Risk acceptance is a status quo risk response, where the risk owner acknowledges the risk exists but accepts it with minimal response1. Risk acceptance may be appropriate when the cost of other risk responses exceeds the value that would be gained, or when the risk is below the risk acceptance criteria2.
•Risk acceptance criteria are the criteria used as a basis for decisions about acceptable risk2. They should be established before conducting a risk assessment, and they may be influenced by factors such as utility, equality, technology, and risk perception2. Different organizations and countries may have different risk acceptance criteria, depending on their context and values3.
•In this scenario, the organization has conducted a risk assessment for regulatory compliance, and has identified only one possible mitigating control. However, the cost of the control is higher than the penalty of noncompliance, which implies that the risk is below the risk acceptance criteria. Therefore, the best recommendation is to accept the risk with management sign-off, which means that the management agrees to take the risk and is accountable for the consequences.
•Ignoring the risk until the regulatory body conducts a compliance check (option B) is not a good recommendation, as it may expose the organization to legal, financial, or reputational damage. Moreover, ignoring the risk may violate the principle of risk reduction, which states that risks should be reduced wherever practicable2.
•Mitigating the risk with the identified control (option C) is not a good recommendation, as it may not be cost-effective or efficient for the organization. The cost of the control is higher than the penalty of noncompliance, which means that the organization would spend more resources than necessary to reduce the risk. Moreover, mitigating the risk may not be aligned with the principle of utility, which states that resources should be used as efficiently as possible for the society as a whole2.
•Transferring the risk by buying insurance (option D) is not a good recommendation, as it may not be feasible or beneficial for the organization. Transferring the risk means that the organization shifts the responsibility or burden of the risk to another party, such as an insurer, a contractor, or a partner1. However, transferring the risk does not eliminate the risk, and it may incur additional costs or complications for the organization. Moreover, transferring the risk may not be possible or acceptable for some types of regulatory compliance risks, such as those related to health, safety, or environmental standards3.
References:
•Compliance risk assessments - Deloitte United States
•Compliance Risk Assessment [5 Key Steps] | Hyperproof
•Compliance Risk Assessments | Deloitte US
•Risk Acceptance Criteria: Overview of ALARP and Similar Methodologies as Practiced Worldwide
•Risk Assessment 4. Risk acceptance criteria - Norwegian University of Science and Technology
•Risk Acceptance - Institute of Internal Auditors
An organization operates in an environment where the impact of ransomware attacks is high, with a low likelihood. After quantifying the impact of the risk associated with ransomware attacks exceeds the organization's risk appetite and tolerance, which of the following is the risk practitioner's BEST recommendation?
Obtain adequate cybersecurity insurance coverage.
Ensure business continuity assessments are up to date.
Adjust the organization's risk appetite and tolerance.
Obtain certification to a global information security standard.
Which of the following is MOST important for the organization to consider before implementing a new in-house developed artificial intelligence (Al) solution?
Industry trends in Al
Expected algorithm outputs
Data feeds
Alert functionality
The most important factor for the organization to consider before implementing a new in-house developed artificial intelligence (AI) solution is the expected algorithm outputs, as they define the desired outcomes and objectives of the AI solution, and guide the design, testing, and validation of the AI algorithm. The other options are not the most important factors, as they are more related to the research, input, or monitoring of the AI solution, respectively, rather than the output of the AI solution. References = CRISC Review Manual, 7th Edition, page 153.
An organization is increasingly concerned about loss of sensitive data and asks the risk practitioner to assess the current risk level. Which of the following should the risk practitioner do FIRST?
Review assignments of data ownership for key assets.
Identify staff who have access to the organization’s sensitive data.
Identify recent and historical incidents involving data loss.
Review the organization's data inventory.
An organization recently implemented a machine learning-based solution to monitor IT usage and analyze user behavior in an effort to detect internal fraud. Which of the following is MOST likely to be reassessed as a result of this initiative?
Risk likelihood
Risk culture
Risk appetite
Risk capacity
Risk likelihood is most likely to be reassessed as a result of implementing a machine learning-based solution to monitor IT usage and analyze user behavior in an effort to detect internal fraud, as it may change the probability of fraud occurrence or detection, and affect the risk assessment and response. Risk culture, risk appetite, and risk capacity are not the most likely to be reassessed, as they are more stable and strategic aspects of risk management, and are not directly influenced by the implementation of a specific solution. References = CRISC Review Manual, 7th Edition, page 108.
An organization is moving its critical assets to the cloud. Which of the following is the MOST important key performance indicator (KPI) to include in the service level agreement (SLA)?
Percentage of standard supplier uptime
Average time to respond to incidents
Number of assets included in recovery processes
Number of key applications hosted
When moving critical assets to the cloud, the most important KPI to include in the SLA is the percentage of standard supplier uptime, which measures the availability and reliability of the cloud service provider. This KPI indicates how often the cloud service is operational and accessible, and how well it meets the agreed service level objectives. A high percentage of standard supplier uptime means that the cloud service provider can deliver the expected performance and functionality of the critical assets, and minimize the risk of service disruptions, downtime, or data loss. The percentage of standard supplier uptime should be aligned with the organization’s business continuity and disaster recovery requirements, and should be monitored and reported regularly by the cloud service provider. The SLA should also specify the compensation or remediation actions in case of any breach of the agreed percentage of standard supplier uptime.
References:
•ISACA, Risk and Information Systems Control Review Manual, 7th Edition, 2020, p. 2501
•ISACA, Cloud Computing: Business Benefits With Security, Governance and Assurance Perspectives, 2009, p. 142
•What is an SLA? Best practices for service-level agreements3
Which of the following is the BEST method to track asset inventory?
Periodic asset review by management
Asset registration form
IT resource budgeting process
Automated asset management software
Automated asset management software provides a continuous and efficient way to track assets throughout their lifecycle. It reduces the likelihood of human error, ensures up-to-date records, and can often integrate with other systems to provide comprehensive oversight of an organization’s assets.
The PRIMARY focus of an ongoing risk awareness program should be to:
enable better risk-based decisions.
define appropriate controls to mitigate risk.
determine impact of risk scenarios.
expand understanding of risk indicators.
The primary focus of an ongoing risk awareness program should be to enable better risk-based decisions, as this can help the organization to achieve its objectives, optimize its performance, and manage its risks effectively. An ongoing risk awareness program is a process of educating, communicating, and engaging the stakeholders about the organization’s risk management framework, methodology, and practices. An ongoing risk awareness program can help the stakeholders to understand the risk context, criteria, appetite, and profile of the organization, and to identify, assess, treat, monitor, and review the risks that may affect their roles and responsibilities. By doing so, an ongoing risk awareness program can empower the stakeholders to make informed and rational decisions that balance the benefits and costs of risk-taking, and that align with the organization’s strategy and goals.
References:
•ISACA, Risk IT Framework, 2nd Edition, 2019, p. 761
•ISACA, Managing Human Risk Requires More Than Just Awareness Training2
Which of the following is MOST important for a multinational organization to consider when developing its security policies and standards?
Regional competitors' policies and standards
Ability to monitor and enforce compliance
Industry-standard templates
Differences in regulatory requirements
Differences in regulatory requirements are the most important factor for a multinational organization to consider when developing its security policies and standards. This is because different countries or regions may have different laws, regulations, or standards that govern the protection of information and data, such as the General Data Protection Regulation (GDPR) in the European Union, the Health Insurance Portability and Accountability Act (HIPAA) in the United States, or the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada. A multinational organization must comply with the applicable regulatory requirements in each jurisdiction where it operates, or it may face legal, financial, or reputational risks. Therefore, the organization should develop its security policies and standards in a way that meets or exceeds the minimum regulatory requirements, and also aligns with its business objectives and risk appetite. According to the CRISC Review Manual 2022, one of the key elements of IT governance is to ensure compliance with external laws and regulations1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, differences in regulatory requirements is the correct answer to this question2.
Regional competitors’ policies and standards, ability to monitor and enforce compliance, and industry-standard templates are not the most important factors for a multinational organization to consider when developing its security policies and standards. These factors may be useful or relevant, but they are not as critical or mandatory as the differences in regulatory requirements. Regional competitors’ policies and standards may provide some insights or benchmarks, but they may not reflect the organization’s specific needs or risks. Ability to monitor and enforce compliance is an important aspect of implementing and maintaining security policies and standards, but it does not determine the content or scope of the policies and standards. Industry-standard templates may offer some guidance or best practices, but they may not cover all the regulatory requirements or the organization’s unique circumstances.
A robotic process automation (RPA) project has implemented new robots to enhance the efficiency of a sales business process. Which of the following provides the BEST evidence that the new controls have been implemented successfully?
A post-implementation review has been conducted by key personnel.
A qualified independent party assessed the new controls as effective.
Senior management has signed off on the design of the controls.
Robots have operated without human interference on a daily basis.
Which of the following process controls BEST mitigates the risk of an employee issuing fraudulent payments to a vendor?
Performing credit verification of third-party vendors prior to payment
Conducting system access reviews to ensure least privilege and appropriate access
Performing regular reconciliation of payments to the check registers
Enforcing segregation of duties between the vendor master file and invoicing
Enforcing segregation of duties between the vendor master file and invoicing is the best process control to mitigate the risk of an employee issuing fraudulent payments to a vendor. This is because segregation of duties is a key internal control that prevents or detects errors, fraud, or abuse by ensuring that no single person can perform incompatible or conflicting tasks. The vendor master file is a database that contains the information and settings for each vendor, such as name, address, bank account, payment terms, etc. Invoicing is the process of generating and sending bills to the vendors for the goods or services they provide. If the same person can access and modify the vendor master file and issue invoices, he or she could create fictitious vendors, alter vendor information, or generate false or duplicate invoices, and then divert the payments to his or her own account. By segregating these duties, the organization can reduce the opportunity and likelihood of such fraudulent activities. According to the CRISC Review Manual 2022, segregation of duties is one of the key IT control objectives and practices1. According to the web search results, segregation of duties between the vendor master file and invoicing is a common and recommended control to prevent vendor fraud
Which of the following is MOST important when identifying an organization's risk exposure associated with Internet of Things (loT) devices?
Defined remediation plans
Management sign-off on the scope
Manual testing of device vulnerabilities
Visibility into all networked devices
The most important factor when identifying an organization’s risk exposure associated with IoT devices is visibility into all networked devices. This means having a comprehensive inventory of all the IoT devices connected to the organization’s network, as well as their configurations, functions, and security status. Visibility enables the organization to identify the potential threats and vulnerabilities that IoT devices pose, as well as the impact and likelihood of those risks. Visibility also helps the organization to monitor the behavior and performance of IoT devices, detect any anomalies or incidents, and respond accordingly. Without visibility, the organization may be unaware of the existence, location, or condition of some IoT devices, which could lead to undetected breaches, data loss, or operational disruptions. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.4: IT Risk Identification Methods and Techniques, Page 28; 8 Internet of Things Threats and Risks to Be Aware of - SecurityScorecard Blog.
Which of the following is MOST important to ensure risk management practices are effective at all levels within the organization?
Communicating risk awareness materials regularly
Establishing key risk indicators (KRIs) to monitor risk management processes
Ensuring that business activities minimize inherent risk
Embedding risk management in business activities
Which of the following is the PRIMARY purpose of a risk register?
To assign control ownership of risk
To provide a centralized view of risk
To identify opportunities to transfer risk
To mitigate organizational risk
According to ISACA, a risk register is a tool to record and track the identified risks, their ratings, responses, and status. The primary purpose of a risk register is to provide a centralized view of risk for the organization, as it enables the consolidation, communication, and reporting of risk information across different levels, units, and functions. A risk register can also support the risk management process, such as risk identification, assessment, treatment, monitoring, and review.
References:
•ISACA, Risk IT Framework, 2nd Edition, 2019, p. 761
•ISACA, Capability Maturity Model and Risk Register Integration: The Right Approach to Enterprise Governance2
During a recent security framework review, it was discovered that the marketing department implemented a non-fungible token asset program. This was done without following established risk procedures. Which of the following should the risk practitioner do FIRST?
Report the infraction.
Perform a risk assessment.
Conduct risk awareness training.
Discontinue the process.
A risk practitioner notices that a particular key risk indicator (KRI) has remained below its established trigger point for an extended period of time. Which of the following should be done FIRST?
Recommend a re-evaluation of the current threshold of the KRI.
Notify management that KRIs are being effectively managed.
Update the risk rating associated with the KRI In the risk register.
Update the risk tolerance and risk appetite to better align to the KRI.
 The FIRST thing that should be done when a KRI has remained below its established trigger point for an extended period of time is to recommend a re-evaluation of the current threshold of the KRI, because it may indicate that the trigger point is set too high or too low, or that the KRI is not relevant or effective in measuring the risk exposure. A re-evaluation of the current threshold of the KRI may result in adjusting the trigger point, changing the KRI, or removing the KRI. The other options are not the first thing that should be done, because:
Which of the following is the MOST relevant information to include in a risk management strategy?
Quantified risk triggers
Cost of controls
Regulatory requirements
Organizational goals
The most relevant information to include in a risk management strategy is the organizational goals, because they provide the direction and purpose for the risk management activities. A risk management strategy is a document that outlines the objectives, scope, approach, roles, and responsibilities for managing risks in an organization. A risk management strategy should align with the organizational goals, which are the desired outcomes or results that the organization wants to achieve. The organizational goals should be specific, measurable, achievable, relevant, and time-bound (SMART), and they should reflect the organization’s vision, mission, values, and strategy. By including the organizational goals in the risk management strategy, the risk practitioner can ensure that the risk management process supports and enables the achievement of the organizational goals. The risk practitioner can also use the organizational goals as a basis for identifying, assessing, prioritizing, and responding to the risks that may affect the organization’s performance and success. The risk practitioner can also monitor and measure the progress and effectiveness of the risk management process by comparing the actual results with the expected results based on the organizational goals. Therefore, the organizational goals are the most relevant information to include in a risk management strategy, as they provide the foundation and framework for the risk management process. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Management Strategy, pp. 3-61
Which of the following is the GREATEST concern when using a generic set of IT risk scenarios for risk analysis?
Quantitative analysis might not be possible.
Risk factors might not be relevant to the organization
Implementation costs might increase.
Inherent risk might not be considered.
 According to the CRISC 351-400 topic3 Flashcards, the greatest concern when using a generic set of IT risk scenarios for risk analysis is that the risk factors might not be relevant to the organization. This is because generic risk scenarios are not tailored to the specific context, objectives, and environment of the organization, and they may not capture the unique threats, vulnerabilities, and impacts that the organization faces. Therefore, using generic risk scenarios may result in inaccurate or incomplete risk assessment and analysis, and may lead to ineffective or inappropriate risk responses. To avoid this, the organization should customize the risk scenarios to reflect its own situation and needs, and involve the relevant stakeholders and experts in the process. References = CRISC 351-400 topic3 Flashcards, Generic IT Risk Scenarios for Risk Analysis: The Greatest Concern
A recent audit identified high-risk issues in a business unit though a previous control self-assessment (CSA) had good results. Which of the following is the MOST likely reason for the difference?
The audit had a broader scope than the CSA.
The CSA was not sample-based.
The CSA did not test control effectiveness.
The CSA was compliance-based, while the audit was risk-based.
The references for this answer are:
Due to a change in business processes, an identified risk scenario no longer requires mitigation. Which of the following is the MOST important reason the risk should remain in the risk register?
To support regulatory requirements
To prevent the risk scenario in the current environment
To monitor for potential changes to the risk scenario
To track historical risk assessment results
 A risk register is a document that records and tracks the identified risks, their causes, impacts, likelihood, responses, and status. A risk register can help manage and communicate risks throughout the risk management process. A risk register should be updated regularly to reflect the current state of risks and their responses. Due to a change in business processes, an identified risk scenario may no longer require mitigation, as the risk level may have decreased or the risk may have been eliminated. However, the risk should remain in the risk register, as the most important reason is to monitor for potential changes to the risk scenario. This means keeping track of the internal and external factors that may affect the risk scenario, such as new threats, vulnerabilities, opportunities, or controls. Monitoring for potential changes to the risk scenario can help identify and respond to any emerging or reoccurring risks, and ensure that the risk register is accurate and complete. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: Risk Register, p. 41-43.
Who is accountable for risk treatment?
Enterprise risk management team
Risk mitigation manager
Business process owner
Risk owner
Risk treatment is the process of selecting and implementing the appropriate risk response strategy and actions to address the identified risks. Risk treatment can involve different strategies, such as avoiding, reducing, transferring, or accepting the risk. Risk owner is the person or group who has the authority and accountability to manage the risk and its response. Risk owner is accountable for risk treatment, as they are responsible for deciding, approving, and executing the risk treatment plan, and for monitoring and reporting the results and outcomes of the risk treatment. The other options are not accountable for risk treatment, as they have different roles or responsibilities in the risk management process:
Which of the following is the PRIMARY objective for automating controls?
Improving control process efficiency
Facilitating continuous control monitoring
Complying with functional requirements
Reducing the need for audit reviews
According to the CRISC Review Manual1, control process efficiency is the degree to which a control process achieves its intended objectives with minimum resources, time, and cost. The primary objective for automating controls is to improve control process efficiency, as automation can help to reduce human errors, increase consistency and accuracy, enhance scalability and flexibility, and optimize performance and productivity. Automation can also help to achieve other objectives, such as facilitating continuous control monitoring, complying with functional requirements, and reducing the need for audit reviews, but these are not the primary objective for automating controls. References = CRISC Review Manual1, page 202.
Which of the following would MOST likely drive the need to review and update key performance indicators (KPIs) for critical IT assets?
The outsourcing of related IT processes
Outcomes of periodic risk assessments
Changes in service level objectives
Findings from continuous monitoring
Key performance indicators (KPIs) are metrics used to measure and evaluate the achievement of the organization’s objectives and strategies1. KPIs for critical IT assets are KPIs that focus on the performance and value of the IT assets that are essential for the organization’s operations and functions2. KPIs for critical IT assets may include metrics such as availability, reliability, utilization, cost, and security of the IT assets3. The need to review and update KPIs for critical IT assets may be driven by various factors, such as changes in the business environment, customer expectations, or regulatory requirements. However, the most likely factor that would drive the need to review and update KPIs for critical IT assets is the outcomes of periodic risk assessments. A risk assessment is a process that involves identifying, analyzing, and evaluating the risks and their potential impacts on the organization’s objectives and performance4. A periodic risk assessment is a risk assessment that is performed at regular intervals, such as monthly, quarterly, or annually, to capture the changes and updates in the risk environment and the risk profile5. The outcomes of periodic risk assessments would most likely drive the need to review and update KPIs for critical IT assets, as they would provide insights into the current and emerging risks that may affect the performance and value of the critical IT assets, as well as the effectiveness and efficiency of the existing and planned controls and responses. By reviewing and updating the KPIs for critical IT assets based on the outcomes of periodic risk assessments, the organization can ensure that the KPIs are relevant, realistic, and aligned with the organization’s risk appetite and tolerance, and that they provide accurate and timely information for decision making and reporting. The outsourcing of related IT processes, changes in service level objectives, and findings from continuous monitoring are not the most likely factors that would drive the need to review and update KPIs for critical IT assets, as they do not provide the same level of information and impact as the outcomes of periodic risk assessments. The outsourcing of related IT processes is a decision that involves transferring some or all of the IT processes that support or enable the critical IT assets to an external service provider. The outsourcing of related IT processes may affect the performance and value of the critical IT assets, but it does not necessarily require a review and update of the KPIs for critical IT assets, as the KPIs may still be valid and applicable for the outsourced IT processes. Changes in service level objectives are changes in the expected or agreed level of quality or performance of the IT services that support or enable the critical IT assets. Changes in service level objectives may affect the performance and value of the critical IT assets, but they do not necessarily require a review and update of the KPIs for critical IT assets, as the KPIs may still be consistent and compatible with the changed service level objectives. Findings from continuous monitoring are the results or outcomes of the ongoing observation and measurement of the performance and compliance of the IT processes and systems that support or enable the critical IT assets. Findings from continuous monitoring may affect the performance and value of the critical IT assets, but they do not necessarily require a review and update of the KPIs for critical IT assets, as the KPIs may still be relevant and reliable for the continuously monitored IT processes and systems. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.
An organization is increasingly concerned about loss of sensitive data and asks the risk practitioner to assess the current risk level. Which of the following should the risk practitioner do FIRST?
Identify staff members who have access to the organization's sensitive data.
Identify locations where the organization's sensitive data is stored.
Identify risk scenarios and owners associated with possible data loss vectors.
Identify existing data loss controls and their levels of effectiveness.
The first step in assessing the current risk level of data loss is to identify where the sensitive data is stored, such as servers, databases, laptops, mobile devices, etc. This will help to determine the scope and boundaries of the risk assessment, as well as the potential exposure and impact of data loss. Identifying staff members who have access to the data, risk scenarios and owners, and existing controls are important steps, but they should be done after identifying the data locations. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.1.1, page 51.
The MOST significant benefit of using a consistent risk ranking methodology across an organization is that it enables:
allocation of available resources
clear understanding of risk levels
assignment of risk to the appropriate owners
risk to be expressed in quantifiable terms
The most significant benefit of using a consistent risk ranking methodology across an organization is that it enables a clear understanding of risk levels, as this facilitates the comparison and prioritization of risks, the communication and reporting of risks, and the alignment of risk management with the enterprise’s objectives and strategy. A consistent risk ranking methodology is a set of criteria and scales that are used to measure and rate the likelihood and impact of risks, as well as other factors such as urgency, velocity, and persistence. A consistent risk ranking methodology ensures that the risk assessment results are objective, reliable, and comparable across different business units, processes, and projects. The other options are not the most significant benefits of using a consistent risk ranking methodology, although they may be secondary benefits or outcomes of doing so. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Assessment, page 97.
An organization has outsourced its lease payment process to a service provider who lacks evidence of compliance with a necessary regulatory standard. Which risk treatment was adopted by the organization?
Acceptance
Transfer
Mitigation
Avoidance
According to the ERM - Step 3 - Risk Treatment article, risk transfer is a risk treatment option that involves passing ownership and/or liability of a risk to a third party, such as an insurance company, a contractor, or a supplier. Risk transfer is usually adopted when the organization does not have the capability or the resources to manage the risk internally, or when the cost of transferring the risk is lower than the cost of retaining the risk. In this case, the organization has outsourced its lease payment process to a service provider who lacks evidence of compliance with a necessary regulatory standard. This means that the organization has transferred the risk of non-compliance to the service provider, who is now responsible for ensuring that the lease payment process meets the regulatory requirements. Therefore, the answer is B. Transfer. References = ERM - Step 3 - Risk Treatment
An organization is considering modifying its system to enable acceptance of credit card payments. To reduce the risk of data exposure, which of the following should the organization do FIRST?
Conduct a risk assessment.
Update the security strategy.
Implement additional controls.
Update the risk register.
 The FIRST thing that the organization should do to reduce the risk of data exposure when modifying its system to enable acceptance of credit card payments is to conduct a risk assessment, because it is a process that involves identifying and analyzing the potential risks, threats, and vulnerabilities that may affect the system and the data, and their likelihood and impact on the business objectives and processes. A risk assessment can help to determine the current risk level and exposure, and to provide the basis for selecting and implementing the appropriate risk responses and controls. The other options are not the first thing that the organization should do, because:
What should a risk practitioner do FIRST upon learning a risk treatment owner has implemented a different control than what was specified in the IT risk action plan?
Seek approval from the control owner.
Update the action plan in the risk register.
Reassess the risk level associated with the new control.
Validate that the control has an established testing method.
The first thing that a risk practitioner should do upon learning that a risk treatment owner has implemented a different control than what was specified in the IT risk action plan is to reassess the risk level associated with the new control. This is because the new control may have a different effect on the likelihood and impact of the risk, and may introduce new risks or modify existing ones. The risk practitioner should evaluate the adequacy and effectiveness of the new control, and compare the residual risk with the risk appetite and tolerance of the organization. The risk practitioner should also communicate the results of the risk reassessment to the relevant stakeholders, and update the risk register and action plan accordingly. The other options are not the first things that a risk practitioner should do, although they may be necessary or appropriate at a later stage. Seeking approval from the control owner is important, but it does not address the potential changes in the risk level or the alignment with the risk management objectives. Updating the action plan in the risk register is a good practice, but it should be done after the risk reassessment and with the consent of the risk owner. Validating that the control has an established testing method is a part of the control assurance process, but it does not provide information on the risk level or the risk response effectiveness. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk Response, page 151.
A bank wants to send a critical payment order via email to one of its offshore branches. Which of the following is the BEST way to ensure the message reaches the intended recipient without alteration?
Add a digital certificate
Apply multi-factor authentication
Add a hash to the message
Add a secret key
A digital certificate is a document that contains the public key and the identity of the owner of the public key, and is signed by a trusted third party called a certificate authority (CA)1. A digital certificate can be used to ensure the message reaches the intended recipient without alteration, by using the following steps2:
Therefore, adding a digital certificate is the best way to ensure the message reaches the intended recipient without alteration, as it provides encryption, digital signature, and certificate verification, which are the three main components of secure email communication3. Applying multi-factor authentication, adding a hash to the message, and adding a secret key are not the best ways to ensure the message reaches the intended recipient without alteration, as they do not provide all the components of secure email communication. Applying multi-factor authentication is a technique that requires the user to provide two or more pieces of evidence to prove their identity, such as a password, a code, or a biometric factor4. Multi-factor authentication can enhance the security of the email account, but it does not protect the message itself from being intercepted, modified, or impersonated. Adding a hash to the message is a technique that involves applying a mathematical function to the message to generate a fixed-length value, called a hash or a digest, that uniquely represents the message5. A hash can be used to verify the integrity of the message, as any change in the message will result in a different hash. However, a hash does not provide confidentiality or authenticity of the message, as it does not encrypt the message or identify the sender. Adding a secret key is a technique that involves using a single key, known only to the sender and the recipient, to encrypt and decrypt the message6. A secret key can provide confidentiality of the message, as only the sender and the recipient can read it. However, a secret key does not provide integrity or authenticity of the message, as it does not prevent the message from being altered or spoofed. Moreover, a secret key requires a secure way of exchanging the key between the sender and the recipient, which may not be feasible or reliable over email. References = 1: What is a digital certificate? | Norton2: How to Send Secure Emails in 2023 | A Guide to Secure Email - ProPrivacy3: Secure Email: A Complete Guide for 2023 - StartMail4: What is Multi-Factor Authentication (MFA)? | Duo Security5: What is a Hash Function? | Definition and FAQs6: [What is Symmetric Encryption? | Definition and FAQs]
Which of the following will BEST help an organization select a recovery strategy for critical systems?
Review the business impact analysis.
Create a business continuity plan.
Analyze previous disaster recovery reports.
Conduct a root cause analysis.
According to the CRISC Review Manual (Digital Version), reviewing the business impact analysis (BIA) will best help an organization select a recovery strategy for critical systems, as it provides an assessment of the potential impact and consequences of a disruption to the organization’s critical business functions and processes. Reviewing the BIA helps to:
References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 174-1751
An organization has engaged a third party to provide an Internet gateway encryption service that protects sensitive data uploaded to a cloud service. This is an example of risk:
mitigation.
avoidance.
transfer.
acceptance.
Risk transfer is a risk response strategy that involves shifting the responsibility or burden of a risk to another party, such as a third party, an insurance company, or a joint venture. Risk transfer does not eliminate the risk, but it reduces the exposure or impact of the risk to the enterprise. An example of risk transfer is engaging a third party to provide an Internet gateway encryption service that protects sensitive data uploaded to a cloud service. By doing so, the organization transfers the risk of data breach or loss to the third party, who is responsible for ensuring the security and availability of the data. The other options are not examples of risk transfer, as they involve different risk response strategies:
Which of the following is MOST important when discussing risk within an organization?
Adopting a common risk taxonomy
Using key performance indicators (KPIs)
Creating a risk communication policy
Using key risk indicators (KRIs)
 A common risk taxonomy is a framework that defines and categorizes the sources, types, and impacts of risks within an organization1. It helps to establish a consistent and shared understanding of risk across the organization, and to facilitate effective risk identification, assessment, reporting, and communication2. A common risk taxonomy also enables comparison and aggregation of risks at different levels and domains, and supports alignment of risk management with business objectives and strategies3. Using key performance indicators (KPIs) and key risk indicators (KRIs) are important for measuring and monitoring risk and performance, but they are not the most important factor when discussing risk within an organization. KPIs and KRIs should be derived from the common risk taxonomy and aligned with the organization’s risk appetite and tolerance4. Creating a risk communication policy is also important for ensuring that risk information is communicated to the right stakeholders at the right time and in the right format, but it is not the most important factor either. A risk communication policy should be based on the common risk taxonomy and the risk roles and responsibilities within the organization5. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.2: Risk Taxonomy, pp. 25-29.
Which of the following will BEST help ensure that risk factors identified during an information systems review are addressed?
Informing business process owners of the risk
Reviewing and updating the risk register
Assigning action items and deadlines to specific individuals
Implementing new control technologies
A risk factor is a condition or event that may increase the likelihood or impact of a risk, which is the effect of uncertainty on objectives1. An information systems review is a process that involves examining and evaluating the adequacy and effectiveness of the information systems and their related controls, policies, and procedures2. The purpose of an information systems review is to identify and report the risk factors that may affect the confidentiality, integrity, availability, and performance of the information systems and their outputs3. The best way to ensure that the risk factors identified during an information systems review are addressed is to assign action items and deadlines to specific individuals, who are responsible and accountable for implementing the appropriate risk responses. A risk response is an action taken or planned to mitigate or eliminate the risk, such as avoiding, transferring, reducing, or accepting the risk4. By assigning action items and deadlines to specific individuals, the organization can ensure that the risk factors are properly and promptly addressed, and that the progress and results of the risk responses are monitored and reported5. Informing business process owners of the risk, reviewing and updating the risk register, and implementing new control technologies are not the best ways to ensure that the risk factors identified during an information systems review are addressed, as they do not provide the same level of accountability and effectiveness as assigning action items and deadlines to specific individuals. Informing business process owners of the risk is a process that involves communicating and sharing the risk information with the persons who have the authority and accountability for a business process that is supported or enabled by the information systems6. Informing business process owners of the risk can help to raise their awareness and understanding of the risk, but it does not ensure that they will take the necessary actions to address the risk. Reviewing and updating the risk register is a process that involves checking and verifying that the risk register, which is a document that records and tracks the risks and their related information, is current, complete, and consistent7. Reviewing and updating the risk register can help to reflect the changes and updates in the risk factors and their status, but it does not ensure that the risk factors are resolved or reduced. Implementing new control technologies is a process that involves introducing or applying new software or hardware that can help to prevent, detect, or correct the risk factors affecting the information systems8. Implementing new control technologies can help to improve the security and performance of the information systems, but it does not ensure that the risk factors are eliminated or mitigated. References = 1: Risk Factors - an overview | ScienceDirect Topics2: Information Systems Audit and Control Association (ISACA) - ISACA3: Information Systems Audit: The Basics4: Risk Response Strategy and Contingency Plans - ProjectManagement.com5: Risk and Information Systems Control Study Manual, Chapter 3: Risk Response, Section 3.1: Risk Response Options, pp. 113-115.6: [Business Process Owner - Gartner IT Glossary] 7: Risk Register: A Project Manager’s Guide with Examples [2023] • Asana8: Technology Control Automation: Improving Efficiency, Reducing … - ISACA : [Business Process Owner - Roles and Responsibilities] : [Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.1: Risk Identification, pp. 57-59.] : [Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.]
Which of the following provides the MOST important information to facilitate a risk response decision?
Audit findings
Risk appetite
Key risk indicators
Industry best practices
Risk appetite is the amount and type of risk that an enterprise is willing to accept in pursuit of its objectives. Risk appetite provides the most important information to facilitate a risk response decision, as it defines the boundaries and expectations for the risk management process. Risk appetite helps to determine the acceptable level of variation around the objectives, and to prioritize and allocate resources for the risk responses. Risk appetite also helps to align the risk management program with the enterprise’s strategy, culture, and values. The other options are not as important as risk appetite, as they provide different types of information for the risk management process:
During the control evaluation phase of a risk assessment, it is noted that multiple controls are ineffective. Which of the following should be the risk practitioner's FIRST course of action?
Recommend risk remediation of the ineffective controls.
Compare the residual risk to the current risk appetite.
Determine the root cause of the control failures.
Escalate the control failures to senior management.
The control evaluation phase of a risk assessment is the phase where the risk practitioner evaluates the effectiveness and efficiency of the existing or planned controls that mitigate the identified risks. Controls are the actions or measures that reduce the likelihood or impact of the risks to an acceptable level. The control evaluation phase involves testing, reviewing, and auditing the controls, and identifying any gaps or weaknesses that need to be addressed. If the control evaluation phase reveals that multiple controls are ineffective, the risk practitioner’s first course of action should be to determine the root cause of the control failures. The root cause is the underlying or fundamental reason that leads to the problem or issue, such as the control failure. By determining the root cause of the control failures, the risk practitioner can understand why the controls are not working as intended, and what factors or variables are influencing the control performance. This will help the risk practitioner to identify and implement the most appropriate and effective risk response strategy and actions, such as recommending risk remediation, comparing the residual risk, or escalating the control failures. The other options are not the first course of action, as they involve different steps or outcomes of the risk management process:
Which of the following would qualify as a key performance indicator (KPI)?
Aggregate risk of the organization
Number of identified system vulnerabilities
Number of exception requests processed in the past 90 days
Number of attacks against the organization's website
A key performance indicator (KPI) is a measurable value that demonstrates how effectively an organization is achieving its key objectives. A KPI should be relevant, specific, measurable, achievable, and time-bound. The number of identified system vulnerabilities is a KPI that measures the security posture and performance of the organization’s information systems. It also helps to identify the areas that need improvement or remediation. The number of identified system vulnerabilities is relevant to the organization’s objective of protecting its information assets, specific to the system level, measurable by using tools or methods, achievable by implementing security controls or practices, and time-bound by setting a target or threshold. Aggregate risk of the organization, number of exception requests processed in the past 90 days, and number of attacks against the organization’s website are not KPIs, as they are either too broad, not relevant, or not measurable. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.1.1.1, page 1741
1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 647.
Which of the following activities should be performed FIRST when establishing IT risk management processes?
Collect data of past incidents and lessons learned.
Conduct a high-level risk assessment based on the nature of business.
Identify the risk appetite of the organization.
Assess the goals and culture of the organization.
According to the Guide to Implementing an IT Risk Management Framework, the first activity that should be performed when establishing IT risk management processes is to assess the goals and culture of the organization. This is because the goals and culture of the organization define the context and scope of the IT risk management process, and influence the risk appetite and tolerance of the organization. By assessing the goals and culture of the organization, the IT risk manager can align the IT risk management process with the organization’s strategy, vision, mission, values, and objectives. The IT risk manager can also identify the key stakeholders, roles, and responsibilities involved in the IT risk management process, and ensure that they have the necessary skills, knowledge, and resources to perform their tasks effectively. Additionally, the IT risk manager can establish the communication and reporting mechanisms for the IT risk management process, and ensure that they are consistent with the organization’s culture and expectations. References = Guide to Implementing an IT Risk Management Framework, An Overview of the Risk Management Process
What is the GREATEST concern with maintaining decentralized risk registers instead of a consolidated risk register?
Aggregated risk may exceed the enterprise's risk appetite and tolerance.
Duplicate resources may be used to manage risk registers.
Standardization of risk management practices may be difficult to enforce.
Risk analysis may be inconsistent due to non-uniform impact and likelihood scales.
A risk register is a tool that records and tracks the identified risks, their causes, impacts, likelihood, responses, and owners. A decentralized risk register is maintained by each business unit or function, while a consolidated risk register is maintained at the enterprise level. The greatest concern with maintaining decentralized risk registers instead of a consolidated risk register is that the aggregated risk may exceed the enterprise’s risk appetite and tolerance. Risk appetite is the amount and type of risk that an enterprise is willing to accept in pursuit of its objectives, while risk tolerance is the acceptable level of variation around the objectives. If the risk registers are not consolidated, the enterprise may not have a holistic view of its risk profile and may not be able to prioritize and allocate resources effectively. The other options are also concerns, but they are not as significant as the potential misalignment between the aggregated risk and the enterprise’s risk appetite and tolerance. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.2.2, pp. 21-22.
A company has located its computer center on a moderate earthquake fault. Which of the following is the MOST important consideration when establishing a contingency plan and an alternate processing site?
The alternative site is a hot site with equipment ready to resume processing immediately.
The contingency plan provides for backup media to be taken to the alternative site.
The contingency plan for high priority applications does not involve a shared cold site.
The alternative site does not reside on the same fault to matter how the distance apart.
A contingency plan is a set of actions and procedures that aim to ensure the continuity of critical business functions in the event of a disruption or disaster. An alternate processing site is a location where the organization can resume its information systems operations in case the primary site is unavailable or damaged. The most important consideration when establishing a contingency plan and an alternate processing site for a company located on a moderate earthquake fault is to ensure that the alternative site does not reside on the same fault, no matter how far apart they are. This is because an earthquake can affect a large area along the fault line, and potentially damage both the primary and the alternative site, rendering them unusable. By choosing an alternative site that is not on the same fault, the company can reduce the risk of losing both sites, and increase the likelihood of restoring its operations quickly and effectively. The other options are not as important as the alternative site location, because they do not address the main threat of an earthquake, but rather focus on specific or partial aspects of the contingency plan, as explained below:
The PRIMARY purpose of using control metrics is to evaluate the:
amount of risk reduced by compensating controls.
amount of risk present in the organization.
variance against objectives.
number of incidents.
 The PRIMARY purpose of using control metrics is to evaluate the variance against objectives, because control metrics are measures that indicate the performance and effectiveness of the controls in achieving the desired outcomes and goals. Control metrics can help to identify and quantify the gaps or deviations between the actual and expected results of the controls, and to provide feedback and improvement for the control design and implementation. The other options are not the primary purpose, because:
Prior to selecting key performance indicators (KPIs), itis MOST important to ensure:
trending data is available.
process flowcharts are current.
measurement objectives are defined.
data collection technology is available.
The references for this answer are:
Which of the following risk register elements is MOST likely to be updated if the attack surface or exposure of an asset is reduced?
Likelihood rating
Control effectiveness
Assessment approach
Impact rating
The risk register element that is most likely to be updated if the attack surface or exposure of an asset is reduced is the likelihood rating, as this reflects the probability or frequency of a risk event occurring. The attack surface or exposure of an asset is the measure of the extent and accessibility of the asset to potential threats or attackers. If the attack surface or exposure of an asset is reduced, the likelihood of the asset being compromised or damaged by a risk event is also reduced. Therefore, the likelihood rating of the risk should be updated accordingly. The other options are not the risk register elements that are most likely to be updated if the attack surface or exposure of an asset is reduced, although they may be affected or influenced by it. Control effectiveness is the measure of how well the risk controls reduce the risk level or achieve the control objectives. Assessment approach is the method or technique used to identify, analyze, and evaluate the risks. Impact rating is the measure of the magnitude or severity of the consequences of a risk event on the asset or the organization. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Identification, page 54.
A bank is experiencing an increasing incidence of customer identity theft. Which of the following is the BEST way to mitigate this risk?
Implement monitoring techniques.
Implement layered security.
Outsource to a local processor.
Conduct an awareness campaign.
The best way to mitigate the risk of customer identity theft is to implement layered security. Layered security is a defense-in-depth approach that applies multiple and diverse security controls at different levels and stages of the information system and the data lifecycle. Layered security can include physical, technical, and administrative controls, such as locks, firewalls, encryption, authentication, authorization, backup, audit, and policy. Layered security can help to protect the customer data and identity from unauthorized access, use, modification, disclosure, or destruction, by creating multiple barriers and deterrents for potential attackers, and by reducing the impact and likelihood of a successful breach. Layered security can also help to comply with the legal and regulatory requirements and standards for data privacy and protection, such as the Gramm-Leach-Bliley Act (GLBA), the Fair Credit Reporting Act (FCRA), and the Payment Card Industry Data Security Standard (PCI DSS)123. The other options are not the best way to mitigate the risk of customer identity theft, although they may be useful or complementary to layered security. Implementing monitoring techniques is a part of the layered security approach, but it is not sufficient, as it mainly focuses on detecting and responding to the incidents, rather than preventing or deterring them. Outsourcing to a local processor is a business decision that may or may not improve the security of the customer data and identity, depending on the quality and reliability of the service provider, and the terms and conditions of the outsourcing contract. Conducting an awareness campaign is a good practice that can help to educate and inform the customers and the employees about the common types, methods, and indicators of identity theft, and the best practices and precautions to prevent or report it, but it does not directly apply or enforce any security controls to the information system or the data.
A new policy has been published to forbid copying of data onto removable media. Which type of control has been implemented?
Preventive
Detective
Directive
Deterrent
A preventive control is a type of control that aims to avoid or reduce the occurrence of an undesirable event or risk. A preventive control can be implemented through technical, administrative, or physical means. A new policy that forbids copying of data onto removable media is an example of a preventive control, because it prevents unauthorized data exfiltration or leakage through removable devices, such as flash drives or external hard disk drives. A preventive control is different from the other types of controls, as explained below:
Which of the following is the PRIMARY reason to establish the root cause of an IT security incident?
Prepare a report for senior management.
Assign responsibility and accountability for the incident.
Update the risk register.
Avoid recurrence of the incident.
The primary reason to establish the root cause of an IT security incident is to avoid recurrence of the incident. By identifying and addressing the underlying cause of the incident, the organization can prevent or reduce the likelihood of similar incidents in the future. This can also help to improve the security posture and resilience of the organization. The other options are not the primary reason, but they may be secondary or tertiary reasons. Preparing a report for senior management is an important step in communicating the incident and its impact, but it does not address the root cause. Assigning responsibility and accountability for the incident is a way to ensure that the appropriate actions are taken to remediate the incident and prevent recurrence, but it is not the reason to establish the root cause. Updating the risk register is a part of the risk management process, but it does not necessarily prevent recurrence of the incident. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4: Risk Response and Reporting, Section 4.3: Incident Management, p. 223-224.
Who is MOST likely to be responsible for the coordination between the IT risk strategy and the business risk strategy?
Chief financial officer
Information security director
Internal audit director
Chief information officer
 The chief information officer (CIO) is the most likely person to be responsible for the coordination between the IT risk strategy and the business risk strategy, because the CIO is the senior executive who oversees the information technology (IT) function and aligns it with the organization’s strategy, objectives, and operations. The CIO is also responsible for ensuring that the IT function delivers value, supports innovation, and manages IT risks effectively and efficiently. The CIO can coordinate the IT risk strategy and the business risk strategy by communicating and collaborating with other business leaders, establishing and implementing IT governance frameworks and policies, and monitoring and reporting on IT performance and risk indicators. The other options are not as likely as the CIO to be responsible for the coordination between the IT risk strategy and the business risk strategy, because they have different or limited roles and responsibilities in relation to IT and business risk management, as explained below:
A risk practitioner observes that the fraud detection controls in an online payment system do not perform as expected. Which of the following will MOST likely change as a result?
Impact
Residual risk
Inherent risk
Risk appetite
Residual risk is the amount of risk that remains after the implementation of risk mitigation controls. If the fraud detection controls in an online payment system do not perform as expected, the residual risk will most likely change as a result, because the controls will not be able to reduce the impact or likelihood of the fraud risk as intended. The residual risk may increase or decrease depending on the performance of the controls, and the risk practitioner may need to adjust the risk response strategy accordingly. The other options are not as likely to change as the residual risk, because they are not directly affected by the performance of the controls, but rather depend on other factors, such as the source of the risk, the organization’s objectives, or the external environment, as explained below:
The PRIMARY benefit of classifying information assets is that it helps to:
communicate risk to senior management
assign risk ownership
facilitate internal audit
determine the appropriate level of control
The references for this answer are:
Which of the following is the BEST approach for determining whether a risk action plan is effective?
Comparing the remediation cost against budget
Assessing changes in residual risk
Assessing the inherent risk
Monitoring changes of key performance indicators (KPIs)
According to the CRISC Review Manual (Digital Version), assessing changes in residual risk is the best approach for determining whether a risk action plan is effective, as it measures the impact and value of the risk response actions and controls on the risk level. Residual risk is the risk that remains after the risk response actions and controls have been implemented. Assessing changes in residual risk helps to:
References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.2: Risk Response Process, pp. 161-1621
The MOST effective approach to prioritize risk scenarios is by:
assessing impact to the strategic plan.
aligning with industry best practices.
soliciting input from risk management experts.
evaluating the cost of risk response.
The most effective approach to prioritize risk scenarios is by assessing the impact to the strategic plan, because this will help to align the risk management process with the organization’s vision, mission, and goals. The strategic plan is the document that defines the organization’s direction, priorities, and objectives, and guides the allocation of resources and efforts. By assessing the impact to the strategic plan, the organization can determine which risk scenarios pose the greatest threat or opportunity to the achievement of the strategic objectives, and prioritize them accordingly. The other options are not as effective as assessing the impact to the strategic plan, because they do not directly relate to the organization’s specific context, needs, and expectations, as explained below:
A risk practitioner is reporting on an increasing trend of ransomware attacks in the industry. Which of the following information is MOST important to include to enable an informed response decision by key stakeholders?
Methods of attack progression
Losses incurred by industry peers
Most recent antivirus scan reports
Potential impact of events
The potential impact of events is the estimated magnitude and likelihood of the consequences that may result from a risk scenario. The potential impact of events can help key stakeholders understand the severity and urgency of the risk, and prioritize the appropriate response actions. The potential impact of events can be expressed in quantitative or qualitative terms, such as financial loss, operational disruption, reputational damage, legal liability, etc. The potential impact of events is the most important information to include when reporting on an increasing trend of ransomware attacks in the industry, as it can help stakeholders assess the level of risk exposure and the adequacy of the existing controls. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: Risk Analysis, p. 87-89.
Which of the following would present the GREATEST challenge when assigning accountability for control ownership?
Weak governance structures
Senior management scrutiny
Complex regulatory environment
Unclear reporting relationships
Control ownership is the assignment of roles and responsibilities for the design, implementation, monitoring, and improvement of controls that mitigate risks. Control ownership can help ensure that the controls are effective, efficient, and aligned with the business objectives and risk appetite. Control ownership can also help facilitate the communication, coordination, and accountability among the stakeholders involved in the risk management process. One of the factors that would present the greatest challenge when assigning accountability for control ownership is unclear reporting relationships. Reporting relationships are the formal or informal lines of authority and communication that define who reports to whom, and who is accountable for what. Unclear reporting relationships can create confusion, ambiguity, and conflict among the control owners and other stakeholders, such as the risk owners, the business owners, the auditors, the regulators, etc. Unclear reporting relationships can also hinder the performance evaluation, feedback, and recognition of the control owners, and affect their motivation and commitment. Unclear reporting relationships can also increase the risk of duplication, inconsistency, or gaps in the control activities, and compromise the quality and reliability of the control environment. References = Defining, Assigning and Measuring: Accountability Challenges in 21st Century Governance, CRISC 351-400 topic3, Foundations of Project Management : Week 2.
The MOST important reason to aggregate results from multiple risk assessments on interdependent information systems is to:
establish overall impact to the organization
efficiently manage the scope of the assignment
identify critical information systems
facilitate communication to senior management
 The interdependency of information systems means that the failure or disruption of one system can affect the performance or availability of other systems. Therefore, it is important to aggregate the results from multiple risk assessments on interdependent information systems to understand the overall impact to the organization. By aggregating the results, the risk manager can identify the potential cascading effects, the cumulative consequences, and the worst-case scenarios of interdependent risks. This can help the organization to prioritize the risks, allocate the resources, and implement the risk response strategies accordingly. The other options are not as important as the overall impact to the organization, because they do not capture the full extent of the interdependency of information systems. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.3, page 99.
Which of the following is MOST helpful in developing key risk indicator (KRl) thresholds?
Loss expectancy information
Control performance predictions
IT service level agreements (SLAs)
Remediation activity progress
The most helpful thing in developing KRI thresholds is loss expectancy information. Loss expectancy information provides an estimate of the potential or expected impact of a risk event on the organization’s operations, reputation, or objectives. Loss expectancy information can help an organization to:
Loss expectancy information can be derived from various sources, such as historical data, statistical analysis, expert judgment, or simulation models3.
The other options are not as helpful as loss expectancy information in developing KRI thresholds, because they do not directly address the potential or expected impact of a risk event. Control performance predictions, which are the forecasts or estimates of how well the risk management controls will perform in preventing, detecting, or mitigating risks, may help to evaluate the adequacy and efficiency of the risk management process and controls, but they do not provide a clear and quantifiable measure of the risk impact. IT service level agreements (SLAs), which are the contracts or agreements that define the quality and availability of IT services, may help to establish the standards and expectations for IT service delivery and performance, but they do not provide a comprehensive and current view of the risk exposure or likelihood. Remediation activity progress, which is the status or outcome of the actions taken to address and resolve a risk event, may help to monitor and report the effectiveness and compliance of the risk management process and controls, but it is usually done after the risk event has occurred and resolved, not before.
References = Key Risk Indicators: Definition, Examples, and Best Practices, KRI Framework for Operational Risk Management | Workiva, Loss Expectancy: Definition, Calculation, and Examples
From a risk management perspective, which of the following is the PRIMARY benefit of using automated system configuration validation tools?
Residual risk is reduced.
Staff costs are reduced.
Operational costs are reduced.
Inherent risk is reduced.
From a risk management perspective, the primary benefit of using automated system configuration validation tools is that they reduce the inherent risk, which is the risk that exists before any controls are applied. Automated system configuration validation tools can help to ensure that the system settings are consistent, compliant, and secure, and that they match the predefined standards and policies. This can reduce the likelihood and impact of errors, misconfigurations, vulnerabilities, or deviations that may compromise the system’s functionality, performance, or integrity. The other options are not the primary benefits of using automated system configuration validation tools, although they may be secondary benefits or outcomes of doing so. Residual risk is the risk that remains after the controls are applied, and it may not be directly affected by the automated system configuration validation tools. Staff costs and operational costs are related to the efficiency and economy of the system configuration process, but they are not the main risk management objectives. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk Response, page 150.
Which of the following is MOST likely to be impacted as a result of a new policy which allows staff members to remotely connect to the organization's IT systems via personal or public computers?
Risk appetite
Inherent risk
Key risk indicator (KRI)
Risk tolerance
According to the Risk and Information Systems Control Study Manual, inherent risk is the risk that exists before any controls or mitigating factors are considered. Inherent risk is influenced by the nature and complexity of the business activities, the environment, and the technology involved. A new policy that allows staff members to remotely connect to the organization’s IT systems via personal or public computers is likely to increase the inherent risk of the organization, as it introduces new threats and vulnerabilities that may compromise the confidentiality, integrity, and availability of the IT systems and data. For example, personal or public computers may not have adequate security measures, such as antivirus software, firewalls, encryption, or authentication, and may expose the organization to malware, hacking, data leakage, or unauthorized access. Therefore, the answer is B. Inherent risk. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.1.1, Page 97. Remote Work: How to Secure Your Data
When testing the security of an IT system, il is MOST important to ensure that;
tests are conducted after business hours.
operators are unaware of the test.
external experts execute the test.
agreement is obtained from stakeholders.
According to the CRISC Review Manual1, stakeholders are the individuals or groups that have an interest or stake in the outcome of the IT system and its risks. Stakeholders include the system owners, users, operators, developers, managers, auditors, regulators, and customers. It is most important to ensure that agreement is obtained from stakeholders when testing the security of an IT system, as this helps to define the scope, objectives, and expectations of the test, and to obtain the necessary authorization, support, and resources for the test. Agreement from stakeholders also helps to avoid any conflicts, disruptions, or misunderstandings that may arise during or after the test, and to ensure the validity and acceptance of the test results and recommendations. References = CRISC Review Manual1, page 198, 224.
Which of these documents is MOST important to request from a cloud service
provider during a vendor risk assessment?
Nondisclosure agreement (NDA)
Independent audit report
Business impact analysis (BIA)
Service level agreement (SLA)
The references for this answer are:
When establishing leading indicators for the information security incident response process it is MOST important to consider the percentage of reported incidents:
that results in a full root cause analysis.
used for verification within the SLA.
that are verified as actual incidents.
resolved within the SLA.
When establishing leading indicators for the information security incident response process, it is most important to consider the percentage of reported incidents that are resolved within the service level agreement (SLA). A leading indicator is a metric that can predict or influence the future performance or outcome of a process or activity. A leading indicator for the information security incident response process should measure how well the process is achieving its objectives, such as minimizing the impact of incidents, restoring normal operations as quickly as possible, and preventing recurrence of incidents. The percentage of reported incidents that are resolved within the SLA is a leading indicator that reflects the efficiency and effectiveness of the information security incident response process. It shows how well the process is meeting the expectations and requirements of the stakeholders, such as the business units, customers, and regulators. It also shows how well the process is managing the resources, such as time, budget, and personnel, that are allocated for incident response. A high percentage of reported incidents that are resolved within the SLA indicates that the information security incident response process is performing well and delivering value to the organization. A low percentage of reported incidents that are resolved within the SLA indicates that the information security incident response process is facing challenges and needs improvement. The percentage of reported incidents that are resolved within the SLA can also help identify the root causes of incidents, the gaps in the process, and the areas for improvement. For example, if the percentage of reported incidents that are resolved within the SLA is low, it may indicate that the process has issues with the following aspects: - Incident detection and reporting: The process may not have adequate tools, techniques, or procedures to detect and report incidents in a timely and accurate manner. - Incident prioritization and classification: The process may not have clear and consistent criteria to prioritize and classify incidents based on their severity, impact, and urgency. - Incident analysis and investigation: The process may not have sufficient skills, knowledge, or evidence to analyze and investigate the incidents and determine their root causes, scope, and consequences. - Incident containment and eradication: The process may not have effective methods or measures to contain and eradicate the incidents and prevent them from spreading or escalating. - Incident recovery and restoration: The process may not have reliable backup and recovery plans or systems to restore the normal operations and functionality of the affected systems or services. - Incident communication and escalation: The process may not have proper communication and escalation channels or protocols to inform and involve the relevant stakeholders, such as the management, the users, the vendors, or the authorities. - Incident documentation and closure: The process may not have adequate documentation and closure procedures to record and report the incidents and their resolution. - Incident review and improvement: The process may not have regular review and improvement activities to evaluate and enhance the process and its performance. Therefore, the percentage of reported incidents that are resolved within the SLA is the most important leading indicator for the information security incident response process, as it can provide valuable insights and feedback for the process and its improvement. References = Information Security Incident Response | Process Street1, Key Performance Indicators (KPIs) for Security Operations and Incident Response2, 7 Incident Response Metrics and How to Use Them3
Which of the following is the MOST effective way to integrate business risk management with IT operations?
Perform periodic IT control self-assessments.
Require a risk assessment with change requests.
Provide security awareness training.
Perform periodic risk assessments.
Requiring a risk assessment with change requests is the most effective way to integrate business risk management with IT operations because it ensures that any changes to the IT environment are aligned with the business objectives and risk appetite. A risk assessment with change requests involves identifying, analyzing, evaluating, and treating the potential risks that may arise from the proposed changes, as well as monitoring and reviewing the outcomes of the changes. This way, the IT operations can support the business goals and mitigate the IT risks in a proactive and consistent manner. References = Risk and Information Systems Control Study Manual, Chapter 3: Risk Response and Mitigation, Section 3.2: Change Management, pp. 121-1231
Which of the following provides the BEST evidence that risk responses have been executed according to their risk action plans?
Risk policy review
Business impact analysis (B1A)
Control catalog
Risk register
 A risk register is a document that is used as a risk management tool to identify and track risks that may affect a project or an organization1. A risk register also includes information about the risk responses, which are the actions taken or planned to mitigate or eliminate the risks2. Therefore, a risk register provides the best evidence that risk responses have been executed according to their risk action plans, as it shows the status and progress of the risk responses, the results and outcomes of the risk responses, and the feedback and lessons learned from the risk responses3. A risk policy review is not the best evidence that risk responses have been executed according to their risk action plans, as it does not provide specific information on the risk responses. A risk policy review is a process that involves checking and verifying that the organization’s risk management policies are up to date, relevant, and effective4. A risk policy review can help to identify and address any gaps or issues in the risk management policies, but it does not show the details and performance of the risk responses. A business impact analysis (BIA) is not the best evidence that risk responses have been executed according to their risk action plans, as it does not provide specific information on the risk responses. A BIA is a process that identifies and evaluates the potential effects of a disruption on the critical functions and processes of an organization5. A BIA can help to forecast the impacts of a risk event, but it does not show the actions and outcomes of the risk responses. A control catalog is not the best evidence that risk responses have been executed according to their risk action plans, as it does not provide specific information on the risk responses. A control catalog is a document that lists and describes the controls that are implemented or planned to manage the risks within an organization6. A control catalog can help to document and communicate the controls, but it does not show the status and results of the risk responses. References = 1: Risk Register: A Project Manager’s Guide with Examples [2023] • Asana2: Risk Response Strategy and Contingency Plans - ProjectManagement.com3: Risk Register: Examples, Benefits, and Best Practices4: A brief guide to assessing risks and controls | ACCA Global5: Using Business Impact Analysis to Inform Risk Prioritization and Response6: [Control Catalogue - ISACA]
Which of the following would BEST help identify the owner for each risk scenario in a risk register?
Determining which departments contribute most to risk
Allocating responsibility for risk factors equally to asset owners
Mapping identified risk factors to specific business processes
Determining resource dependency of assets
A risk register is a tool that records and tracks the identified risks, their causes, impacts, likelihood, responses, and owners. The owner for each risk scenario is the person or group who has the authority and accountability to manage the risk and its response. The best way to identify the owner for each risk scenario in a risk register is to map the identified risk factors to specific business processes. Risk factors are the internal and external variables that influence the occurrence and impact of risks. Business processes are the activities that produce value for the enterprise, such as sales, marketing, production, or delivery. By mapping the risk factors to the business processes, the risk practitioner can determine which business process is affected by or contributes to the risk, and who is responsible for the business process. The owner for each risk scenario should be the person or group who is responsible for the business process that is associated with the risk. The other options are not the best way to identify the owner for each risk scenario, as they involve different criteria or methods:
Which of the following BEST helps to balance the costs and benefits of managing IT risk?
Prioritizing risk responses
Evaluating risk based on frequency and probability
Considering risk factors that can be quantified
Managing the risk by using controls
Prioritizing risk responses helps to balance the costs and benefits of managing IT risk by ensuring that the most significant risks are addressed first and that the resources allocated to risk management are used efficiently and effectively. Evaluating risk based on frequency and probability is a part of risk analysis, not risk response. Considering risk factors that can be quantified is also a part of risk analysis, and it does not necessarily capture all the relevant aspects of risk. Managing the risk by using controls is a possible risk response, but it does not guarantee that the costs and benefits of risk management are balanced, as some controls may be too expensive or ineffective for the level of risk they mitigate. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk Response, page 145.
A newly enacted information privacy law significantly increases financial penalties for breaches of personally identifiable information (Pll). Which of the following will MOST likely outcome for an organization affected by the new law?
Increase in compliance breaches
Increase in loss event impact
Increase in residual risk
Increase in customer complaints
A loss event is an occurrence that results in a negative consequence or damage for an organization, such as a data breach, a cyberattack, or a natural disaster. The impact of a loss event is the extent or magnitude of the harm or loss caused by the event, such as financial losses, reputational damage, operational disruptions, or legal liabilities. A newly enacted information privacy law that significantly increases financial penalties for breaches of personally identifiable information (PII) will most likely increase the impact of a loss event for an organization affected by the new law, because it will increase the potential cost and severity of a data breach involving PII. The other options are not as likely as an increase in loss event impact, because they do not directly result from the new law, but rather depend on other factors, such as the organization’s risk management capabilities, as explained below:
During a control review, the control owner states that an existing control has deteriorated over time. What is the BEST recommendation to the control owner?
Implement compensating controls to reduce residual risk
Escalate the issue to senior management
Discuss risk mitigation options with the risk owner.
Certify the control after documenting the concern.
 The best recommendation to the control owner when an existing control has deteriorated over time is to discuss risk mitigation options with the risk owner. This is because the risk owner is the person or entity who has the authority and accountability to make decisions and take actions regarding the risk, including the selection and implementation of the risk response strategies. The control owner is the person or entity who is responsible for the design, operation, and maintenance of the control, but not for the overall risk management. By discussing risk mitigation options with the risk owner, the control owner can communicate the current status and performance of the control, and collaborate on finding the most appropriate and effective solution to address the risk and the control deterioration. The other options are not the best recommendation to the control owner, because they do not involve the risk owner, who is the key stakeholder in the risk management process, as explained below:
The MAIN goal of the risk analysis process is to determine the:
potential severity of impact
frequency and magnitude of loss
control deficiencies
threats and vulnerabilities
The main goal of the risk analysis process is to determine the frequency and magnitude of loss, because this will help to measure the level of risk exposure and the need for risk mitigation controls. Frequency refers to how often a risk event may occur, while magnitude refers to how much harm or damage a risk event may cause. By determining the frequency and magnitude of loss, the risk analysis process can quantify the impact and likelihood of the risks, and assign a risk rating and priority. The other options are not the main goal of the risk analysis process, because they are either inputs or outputs of the process, as explained below:
Which of the following should be initiated when a high number of noncompliant conditions are observed during review of a control procedure?
Disciplinary action
A control self-assessment
A review of the awareness program
Root cause analysis
A root cause analysis is a systematic process of identifying the underlying factors that caused the noncompliant conditions during the review of a control procedure. A root cause analysis can help to prevent the recurrence of the noncompliance, improve the effectiveness of the control procedure, and enhance the risk management process. A root cause analysis can be performed using various tools and techniques, such as the 5 whys, fishbone diagram, Pareto chart, or fault tree analysis. The other options are not as appropriate as a root cause analysis, because they do not address the source of the problem, but rather the symptoms or consequences of the noncompliance. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.3, page 130.
Which of the following BEST enables the risk profile to serve as an effective resource to support business objectives?
Engaging external risk professionals to periodically review the risk
Prioritizing global standards over local requirements in the risk profile
Updating the risk profile with risk assessment results
Assigning quantitative values to qualitative metrics in the risk register
 A risk profile is a summary of the key risks that affect an organization, a business unit, a process, or a project. A risk profile can help stakeholders understand the current and potential exposure to various sources of uncertainty, and prioritize the risk response accordingly. A risk profile should be aligned with the business objectives, which are the desired outcomes or results that the organization or the business unit wants to achieve. Updating the risk profile with risk assessment results best enables the risk profile to serve as an effective resource to support business objectives, because it ensures that the risk profile reflects the most accurate and up-to-date information about the risks and their impacts. Risk assessment is the process of analyzing and evaluating the likelihood and consequences of the identified risks, and comparing them with the risk criteria and appetite. Risk assessment results can provide valuable insights into the risk level, trend, and exposure, and help identify the most critical and relevant risks that need attention and action. Updating the risk profile with risk assessment results can help align the risk profile with the business objectives, by showing how the risks may affect the achievement of the objectives, and how the risk response can support or enhance the objectives. Updating the risk profile with risk assessment results can also help communicate and justify the risk profile to the business stakeholders, and obtain their feedback and approval. References = Risk Management Essentials: How to Develop a Risk Profile (TRN2-J07), Risk Assessment and Analysis Methods: Qualitative and Quantitative - ISACA, Using Risk Assessment to Support Decision Making - ISACA.
Which of the following is the BEST key performance indicator (KPI) to measure the effectiveness of a vulnerability management process?
Percentage of vulnerabilities remediated within the agreed service level
Number of vulnerabilities identified during the period
Number of vulnerabilities re-opened during the period
Percentage of vulnerabilities escalated to senior management
A vulnerability management process is a process that identifies, analyzes, prioritizes, and remediates the vulnerabilities in the IT systems and applications. The effectiveness of a vulnerability management process can be measured by the key performance indicators (KPIs) that reflect the achievement of the process objectives and the alignment with the enterprise’s risk appetite and tolerance. The best KPI to measure the effectiveness of a vulnerability management process is the percentage of vulnerabilities remediated within the agreed service level. This KPI indicates how well the process is able to address the vulnerabilities in a timely and efficient manner, and reduce the exposure and impact of the risks associated with the vulnerabilities. The other options are not as good as the percentage of vulnerabilities remediated within the agreed service level, as they may not reflect the quality or timeliness of the remediation actions, or the alignment with the enterprise’s risk appetite and tolerance. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.3.2.1, pp. 171-172.
A risk owner has accepted a high-impact risk because the control was adversely affecting process efficiency. Before updating the risk register, it is MOST important for the risk practitioner to:
ensure suitable insurance coverage is purchased.
negotiate with the risk owner on control efficiency.
reassess the risk to confirm the impact.
obtain approval from senior management.
A risk owner is the individual who is accountable for the management of a specific risk. A risk owner can decide to accept a high-impact risk if the control that mitigates the risk is adversely affecting the process efficiency. However, before updating the risk register, which is a document that records and tracks the identified risks and their responses, it is most important for the risk practitioner to obtain approval from senior management. Senior management is the group of executives who have the authority and responsibility for the strategic direction and performance of the organization. Obtaining approval from senior management can help ensure that the risk acceptance decision is aligned with the organization’s risk appetite and policies, and that the potential consequences of the high-impact risk are understood and accepted by the top-level decision makers. Obtaining approval from senior management can also help communicate and justify the risk acceptance decision to other stakeholders, such as regulators, auditors, customers, etc., and avoid any conflicts or misunderstandings that may arise from the risk acceptance decision. References = Why Assigning a Risk Owner is Important and How to Do It Right, Risk Ownership: A brief guide, Creating a Risk Register: All You Need to Know.
Who should be responsible for strategic decisions on risk management?
Chief information officer (CIO)
Executive management team
Audit committee
Business process owner
Strategic decisions on risk management are the decisions that involve setting the direction, objectives, and priorities for risk management within an organization, as well as aligning them with the organization’s overall strategy, vision, and mission1. Strategic decisions on risk management also involve defining the organization’s risk appetite and tolerance, which are the amount and level of risk that the organization is willing and able to accept to achieve its goals2. The responsibility for strategic decisions on risk management should belong to the executive management team, which is the group of senior leaders who have the authority and accountability for the organization’s performance and governance3. The executive management team has the best understanding of the organization’s strategic context, environment, and stakeholders, and can make informed and balanced decisions that consider the benefits and costs of risk-taking4. The executive management team also has the ability and responsibility to communicate and cascade the strategic decisions on risk management to the rest of the organization, and to monitor and evaluate their implementation and outcomes5. The chief information officer (CIO), the audit committee, and the business process owner are not the best choices for being responsible for strategic decisions on risk management, as they do not have the same level of authority and accountability as the executive management team. The CIO is the senior leader who oversees the organization’s information and technology strategy, resources, and systems6. The CIO may be involved in providing input and feedback to the executive management team on the strategic decisions on risk management, especially those related to IT risk, but they do not have the final say or the overall responsibility for them. The audit committee is a subcommittee of the board of directors that oversees the organization’s financial reporting, internal controls, and external audits7. The audit committee may be involved in reviewing and approving the strategic decisions on risk management, as well as ensuring their compliance with the relevant laws and standards, but they do not have the authority or the expertise to make or implement them. The business process owner is the person who has the authority and accountability for a business process that supports or enables the organization’s objectives and functions. The business process owner may be involved in executing and reporting on the strategic decisions on risk management, as well as identifying and mitigating the risks related to their business process, but they do not have the perspective or the influence to make or communicate them. References = 1: Strategic Risk Management: Complete Overview (With Examples)2: [Risk Appetite and Tolerance - ISACA] 3: [Senior Management - Definition, Roles and Responsibilities] 4: Stanford Strategic Decision and Risk Management | Stanford Online5: A 7-Step Process for Strategic Risk Management — RiskOptics - Reciprocity6: [Chief Information Officer (CIO) - Gartner IT Glossary] 7: [Audit Committee - Overview, Functions, and Responsibilities] : [Business Process Owner - Gartner IT Glossary] : [Business Process Owner - Roles and Responsibilities] : [Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Concepts, pp. 17-19.]
Which of the following BEST confirms the existence and operating effectiveness of information systems controls?
Self-assessment questionnaires completed by management
Review of internal audit and third-party reports
Management review and sign-off on system documentation
First-hand direct observation of the controls in operation
 First-hand direct observation of the controls in operation is the best way to confirm the existence and operating effectiveness of information systems controls because it provides the most reliable and persuasive evidence. Direct observation involves inspecting the physical and logical aspects of the controls, such as the hardware, software, network, data, procedures, and personnel involved in the information systems. Direct observation also allows the auditor to verify that the controls are functioning as intended, and to identify any deviations or weaknesses that may affect the reliability of the information systems. Direct observation can be performed by using various techniques, such as walkthroughs, inquiries, inspections, reperformance, and analytical procedures1. References = Auditing Standard No. 13, The Auditor’s Responses to the Risks of Material Misstatement, PCAOB, 2010
Which of the following would offer the MOST insight with regard to an organization's risk culture?
Risk management procedures
Senior management interviews
Benchmark analyses
Risk management framework
Senior management interviews would offer the MOST insight with regard to an organization’s risk culture, because they can reveal the attitudes, values, beliefs, and behaviors of the senior management towards risk management, and how they influence and support the risk management process and activities in the organization. Senior management interviews can also provide information on the risk appetite, tolerance, and objectives of the organization, and how they are communicated and implemented across the organization. The other options are not as insightful as senior management interviews, because:
Which of the following should be the MAIN consideration when validating an organization's risk appetite?
Comparison against regulations
Maturity of the risk culture
Capacity to withstand loss
Cost of risk mitigation options
According to the Gaining the competitive edge – measuring and assessing an organization’s risk culture article, risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite should be aligned with the organization’s strategy, goals, and values, and should reflect the organization’s risk culture and capabilities. One of the main considerations when validating an organization’s risk appetite is the capacity to withstand loss, which is the ability of the organization to absorb the impact of adverse events without jeopardizing its viability or reputation. The capacity to withstand loss depends on various factors, such as the financial strength, the operational resilience, the governance structure, and the stakeholder expectations of the organization. By assessing the capacity to withstand loss, the organization can determine if its risk appetite is realistic and appropriate, or if it needs to be adjusted to match its risk profile and environment. References = Gaining the competitive edge – measuring and assessing an organization’s risk culture
When assessing the maturity level of an organization's risk management framework, which of the following deficiencies should be of GREATEST concern to a risk practitioner?
Unclear organizational risk appetite
Lack of senior management participation
Use of highly customized control frameworks
Reliance on qualitative analysis methods
Senior management participation is essential for the success of an organization’s risk management framework, as it demonstrates the commitment, support, and leadership for the risk management activities. Senior management participation also ensures that the risk management framework is aligned with the organization’s strategy, objectives, and culture, and that the risk management roles and responsibilities are clearly defined and communicated. Senior management participation also facilitates the allocation of adequate resources, the establishment of risk appetite and tolerance, and the monitoring and reporting of risk performance. Therefore, the lack of senior management participation should be of greatest concern to a risk practitioner, as it indicates a low level of risk maturity and a high level of risk exposure. The other options are not as concerning as the lack of senior management participation, because they do not affect the risk management framework as significantly, and they can be addressed or improved with the involvement of senior management, as explained below:
Which of the following is MOST important for an organization that wants to reduce IT operational risk?
Increasing senior management's understanding of IT operations
Increasing the frequency of data backups
Minimizing complexity of IT infrastructure
Decentralizing IT infrastructure
According to the Operational Risk: Overview, Importance, and Examples article, operational risk is the risk of loss resulting from inadequate or failed internal processes, people, and systems. One of the factors that can increase operational risk is the complexity of IT infrastructure, which refers to the number, variety, and interdependence of IT components, such as hardware, software, networks, and data. A complex IT infrastructure can pose challenges for IT management, such as increased costs, reduced performance, lower reliability, higher vulnerability, and more difficulty in troubleshooting and maintenance. Therefore, minimizing the complexity of IT infrastructure can help reduce IT operational risk, as it can simplify IT operations, improve IT efficiency and effectiveness, enhance IT security and resilience, and facilitate IT innovation and adaptation. References = Operational Risk: Overview, Importance, and Examples
An organization with a large number of applications wants to establish a security risk assessment program. Which of the following would provide the MOST useful information when determining the frequency of risk assessments?
Feedback from end users
Results of a benchmark analysis
Recommendations from internal audit
Prioritization from business owners
 A benchmark analysis is a process of comparing the organization’s performance, practices, and processes with those of other organizations in the same industry or sector. A benchmark analysis can provide the most useful information when determining the frequency of risk assessments, because it can help the organization to identify the best practices, standards, and expectations for security risk management in its industry. A benchmark analysis can also help the organization to assess its current level of maturity, capability, and compliance in relation to security risk management, and to determine the gaps and areas for improvement. By conducting a benchmark analysis, the organization can establish a realistic and appropriate frequency of risk assessments that aligns with its industry norms and its own risk profile. The other options are not as useful as a benchmark analysis, because they do not provide a comprehensive and relevant view of the security risk management landscape, but rather focus on specific or partial aspects of the organization’s situation. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, page 18.
A control owner responsible for the access management process has developed a machine learning model to automatically identify excessive access privileges. What is the risk practitioner's BEST course of action?
Review the design of the machine learning model against control objectives.
Adopt the machine learning model as a replacement for current manual access reviews.
Ensure the model assists in meeting regulatory requirements for access controls.
Discourage the use of emerging technologies in key processes.
The risk practitioner’s best course of action is to review the design of the machine learning model against the control objectives, because this will help to evaluate the suitability, effectiveness, and reliability of the model as a control measure. A machine learning model is a type of artificial intelligence that can learn from data and make predictions or decisions based on the data. A machine learning model can be used to automate or enhance the access management process, such as by identifying excessive access privileges, detecting unauthorized access, or recommending access rights. However, a machine learning model also introduces new risks and challenges, such as data quality, model accuracy, model bias, model explainability, model security, and model governance. Therefore, the risk practitioner should review the design of the machine learning model against the control objectives, which are the specific goals or outcomes that the control is intended to achieve. The control objectives can be derived from the IT risk management strategy, the IT governance framework, the IT policies and standards, and the regulatory requirements. The review of the machine learning model should cover the following aspects: - The data sources and inputs: The risk practitioner should verify that the data used to train and test the machine learning model is relevant, complete, accurate, consistent, and representative of the access management process and the access rights. The risk practitioner should also check that the data is collected, stored, processed, and transmitted in a secure and compliant manner, and that the data privacy and confidentiality are protected. - The model algorithms and outputs: The risk practitioner should validate that the model algorithms are appropriate, robust, and transparent for the access management process and the control objectives. The risk practitioner should also evaluate that the model outputs are accurate, reliable, and interpretable, and that they provide meaningful and actionable insights or recommendations for the access management process and the control objectives. - The model performance and monitoring: The risk practitioner should measure and monitor the model performance and effectiveness against the control objectives and the predefined metrics and indicators. The risk practitioner should also ensure that the model is updated and maintained regularly to reflect the changes in the access management process and the access rights, and that the model is audited and reviewed periodically to ensure its compliance and quality. By reviewing the design of the machine learning model against the control objectives, the risk practitioner can ensure that the model is fit for purpose and adds value to the access management process and the control objectives. The risk practitioner can also identify and mitigate any potential risks or issues that may arise from the use of the machine learning model as a control measure. References = Risk and Information Systems Control Study Manual, Chapter 3: Risk Response and Mitigation, Section 3.3: Control Design and Implementation, pp. 124-1271, Manage roles in your workspace - Azure Machine Learning2, Dataset Inference: Ownership Resolution in Machine Learning3
Which of the following provides the MOST helpful information in identifying risk in an organization?
Risk registers
Risk analysis
Risk scenarios
Risk responses
 Risk scenarios provide the MOST helpful information in identifying risk in an organization, because they describe the possible events, causes, effects, and impacts of a risk on the organization’s objectives and processes. Risk scenarios help to identify the sources, drivers, and indicators of risk, as well as the potential consequences and likelihood of occurrence. The other options are not as helpful as risk scenarios, because:
Risk aggregation in a complex organization will be MOST successful when:
using the same scales in assessing risk
utilizing industry benchmarks
using reliable qualitative data for risk Hems
including primarily low-level risk factors
Risk aggregation in a complex organization will be MOST successful when using the same scales in assessing risk, because it can help to ensure the consistency and comparability of the risk assessment results across different units, levels, and domains of the organization. Using the same scales in assessing risk can also help to avoid the potential errors or biases that may arise from using different scales, such as overestimating or underestimating the risk exposure, or misaligning the risk appetite and tolerance. The other options are not as important as using the same scales in assessing risk, because:
An organization is planning to outsource its payroll function to an external service provider Which of the following should be the MOST important consideration when selecting the provider?
Disaster recovery plan (DRP) of the system
Right to audit the provider
Internal controls to ensure data privacy
Transparency of key performance indicators (KPIs)
 The most important consideration when selecting an external service provider for outsourcing the payroll function is the internal controls to ensure data privacy. The payroll function involves processing and storing sensitive personal and financial information of the employees, such as salaries, taxes, benefits, bank accounts, etc. This information needs to be protected from unauthorized access, disclosure, modification, or loss, as it may result in legal, regulatory, reputational, or financial consequences for the organization and the employees. Therefore, the external service provider should have adequate internal controls, such as encryption, access control, backup, logging, monitoring, etc., to ensure data privacy and compliance with the organization’s policies and standards. Disaster recovery plan, right to audit, and transparency of KPIs are also important considerations when selecting an external service provider, but they are not as important as internal controls to ensure data privacy. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.2.1.2, page 2461
1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 648.
Which of the following indicates an organization follows IT risk management best practice?
The risk register template uses an industry standard.
The risk register is regularly updated.
All fields in the risk register have been completed.
Controls are listed against risk entries in the register.
 According to the IT Risk Management - Basics and Best Practices article, one of the best practices for IT risk management is to keep the risk register up to date. A risk register is a document that records the identified risks, their causes, impacts, likelihood, responses, and status. A risk register is a vital tool for IT risk management, as it helps to track and monitor the risks throughout their lifecycle, and to communicate the risks to the relevant stakeholders. However, a risk register is only useful if it reflects the current situation and environment of the organization. Therefore, the risk register should be regularly updated to capture any changes in the risk profile, such as new risks, resolved risks, modified risks, or escalated risks. Updating the risk register will help to ensure that the risk management process is effective and efficient, and that the risk responses are appropriate and timely. References = IT Risk Management - Basics and Best Practices
Which of the following should a risk practitioner do FIRST when an organization decides to use a cloud service?
Review the vendor selection process and vetting criteria.
Assess whether use of service falls within risk tolerance thresholds.
Establish service level agreements (SLAs) with the vendor.
Check the contract for appropriate security risk and control provisions.
According to the CRISC EXAM TOPIC 2 LONG Flashcards, the first thing that a risk practitioner should do when an organization decides to use a cloud service is to review the vendor selection process and vetting criteria. This is because the vendor selection process and vetting criteria are essential steps to ensure that the cloud service provider meets the organization’s requirements and expectations, and that the risks associated with the cloud service are identified and managed. By reviewing the vendor selection process and vetting criteria, the risk practitioner can evaluate the quality, reliability, security, and compliance of the cloud service provider, and determine if the cloud service is suitable and beneficial for the organization. The risk practitioner can also identify any gaps or weaknesses in the vendor selection process and vetting criteria, and recommend improvements or alternatives accordingly. References = CRISC EXAM TOPIC 2 LONG Flashcards
An organization is unable to implement a multi-factor authentication requirement until the next fiscal year due to budget constraints. Consequently, a policy exception must be submitted. Which of the following is MOST important to include in the analysis of the exception?
Sections of the policy that may justify not implementing the requirement
Risk associated with the inability to implement the requirement
Budget justification to implement the new requirement during the current year
Industry best practices with respect to implementation of the proposed control
The most important factor to include in the analysis of the policy exception is the risk associated with the inability to implement the multi-factor authentication requirement. A policy exception is a temporary or permanent deviation from the established policies or standards of the organization, due to various reasons, such as budget constraints, technical limitations, or business needs. A policy exception must be submitted and approved by the appropriate authority, and it must include a clear and comprehensive analysis of the rationale, impact, and mitigation of the exception. The risk associated with the inability to implement the multi-factor authentication requirement is the most important factor to include in the analysis, because it evaluates the probability and severity of potential threats or incidents that could exploit the lack of multi-factor authentication, such as unauthorized access, data breach, or identity theft. The risk analysis also helps to justify the need and urgency of the policy exception, and to propose alternative or compensating controls to reduce or transfer the risk, such as password policies, access restrictions, or encryption. The other options are not the most important factor, although they may be relevant or supportive to the policy exception analysis. Sections of the policy that may justify not implementing the requirement are the clauses or provisions in the policy that allow or enable the policy exception, such as exemptions, waivers, or variances. These sections can help to validate the legitimacy and feasibility of the policy exception, but they do not assess the risk or the impact of the exception. Budget justification to implement the new requirement during the current year is the explanation and evidence of the financial resources and constraints that affect the implementation of the multi-factor authentication requirement. This justification can help to demonstrate the cost-benefit and return on investment of the requirement, but it does not measure the risk or the mitigation of the exception. Industry best practices with respect to implementation of the proposed control are the proven methods and standards that are adopted by the leading organizations in a specific field or sector for implementing the multi-factor authentication requirement. These best practices can help to benchmark and improve the quality and effectiveness of the requirement, but they do not quantify the risk or the impact of the exception. References = Policy Exception Management - ISACA, Multi-Factor Authentication Policy - University of Arkansas, Common Conditional Access policy: Require MFA for all users
Which of the following will MOST improve stakeholders' understanding of the effect of a potential threat?
Establishing a risk management committee
Updating the organization's risk register to reflect the new threat
Communicating the results of the threat impact analysis
Establishing metrics to assess the effectiveness of the responses
According to the CRISC Review Manual1, threat impact analysis is the process of estimating and evaluating the potential effects of a threat event on the organization’s objectives, processes, resources, and risks. Threat impact analysis helps to quantify and qualify the severity and likelihood of the threat, and to identify the possible consequences and implications for the organization. Communicating the results of the threat impact analysis is the most effective way to improve stakeholders’ understanding of the effect of a potential threat, as it helps to inform and educate the stakeholders about the nature and magnitude of the threat, and to solicit their feedback and input for the risk response. Communicating the results of the threat impact analysis also helps to align the stakeholder expectations and preferences, and to facilitate risk-based decision making and action planning. References = CRISC Review Manual1, page 208.
Which of the following should be the risk practitioner s FIRST course of action when an organization has decided to expand into new product areas?
Identify any new business objectives with stakeholders.
Present a business case for new controls to stakeholders.
Revise the organization's risk and control policy.
Review existing risk scenarios with stakeholders.
The first course of action for the risk practitioner when an organization has decided to expand into new product areas is to identify any new business objectives with stakeholders. Business objectives are the specific, measurable, achievable, relevant, and time-bound (SMART) goals that the organization aims to accomplish through its products and services. Stakeholders are the parties who have an interest or influence in the organization and its products and services, such as customers, employees, shareholders, suppliers, regulators, or competitors. Identifying any new business objectives with stakeholders is the first course of action, because it helps to understand and define the purpose, scope, and criteria of the new product areas, and to align them with the organization’s vision, mission, and strategy. Identifying any new business objectives with stakeholders also helps to establish the expectations, needs, and requirements of the stakeholders, and to ensure their engagement and support for the new product areas. Identifying any new business objectives with stakeholders is the basis for the subsequent risk management activities, such as identifying, analyzing, evaluating, and responding to the risks associated with the new product areas. The other options are not the first course of action, although they may be related or subsequent steps in the risk management process. Presenting a business case for new controls to stakeholders is a part of the risk response process, which involves selecting and executing the appropriate actions to reduce, avoid, share, or exploit the risks associated with the new product areas. Presenting a business case for new controls to stakeholders can help to justify and communicate the value and impact of the new controls, and to obtain the approval and resources for implementing them. However, this is not the first course of action, as it depends on the identification and prioritization of the business objectives and the risks. Revising the organization’s risk and control policy is a part of the risk governance process, which involves defining and updating the rules and guidelines for managing the risks and the controls associated with the new product areas. Revising the organization’s risk and control policy can help to ensure the consistency and effectiveness of the risk management process, and to comply with the relevant laws and regulations. However, this is not the first course of action, as it follows the identification and assessment of the business objectives and the risks. Reviewing existing risk scenarios with stakeholders is a part of the risk monitoring and review process, which involves evaluating and improving the performance and outcomes of the risk management process for the new product areas. Reviewing existing risk scenarios with stakeholders can help to identify and address any changes or issues in the risk levels or the risk responses, and to provide feedback and learning for the risk management process. However, this is not the first course of action, as it requires the identification and analysis of the business objectives and the risks. References = Risk Scenarios Toolkit - ISACA, How to Write Strong Risk Scenarios and Statements - ISACA, The Role of Executive Management in ERM - Corporate Compliance Insights
A risk practitioner recently discovered that sensitive data from the production environment is required for testing purposes in non-production environments. Which of the following i the BEST recommendation to address this situation?
Enable data encryption in the test environment
Implement equivalent security in the test environment.
Prevent the use of production data for test purposes
Mask data before being transferred to the test environment.
 Masking data before being transferred to the test environment is the best recommendation to address the situation where sensitive data from the production environment is required for testing purposes in non-production environments. Data masking is a technique that replaces sensitive data elements with realistic but fictitious data, preserving the format, structure, and meaning of the original data. Data masking ensures that the test data is sufficiently anonymized and de-identified, while still maintaining its functionality and validity for testing purposes. Data masking also reduces the risk of data leakage, exposure, or breach in the test environment, which may have lower security controls than the production environment. The other options are not the best recommendations, as they do not adequately protect the sensitive data or meet the testing requirements. Enabling data encryption in the test environment may protect the data from unauthorized access, but it does not prevent the data from being decrypted by authorized users who may misuse or mishandle it. Implementing equivalent security in the test environment may be costly, complex, or impractical, and it may not be feasible to replicate the same level of security controls as in the production environment. Preventing the use of production data for test purposes may not be possible or desirable, as production data may be required to ensure the accuracy, reliability, and quality of the testing results. References = P = NP: Cloud data protection in vulnerable non-production environments …; Data masking secures sensitive data in non-production environments …; CRISC EXAM TOPIC 2 LONG Flashcards | Quizlet
When prioritizing risk response, management should FIRST:
evaluate the organization s ability and expertise to implement the solution.
evaluate the risk response of similar organizations.
address high risk factors that have efficient and effective solutions.
determine which risk factors have high remediation costs
According to the Risk and Information Systems Control Study Manual, the first step in prioritizing risk response is to address the high risk factors that have efficient and effective solutions. This means that management should focus on the risks that have the most impact on the organization’s objectives and can be mitigated with the least amount of resources and effort. This approach helps to optimize the risk response process and achieve the best results in terms of risk reduction and value creation. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.3.2, Page 223.
Which of the following is the MOST important objective of embedding risk management practices into the initiation phase of the project management life cycle?
To deliver projects on time and on budget
To assess inherent risk
To include project risk in the enterprise-wide IT risk profit.
To assess risk throughout the project
The most important objective of embedding risk management practices into the initiation phase of the project management life cycle is to assess inherent risk. Inherent risk is the risk that exists before any controls or mitigations are applied. By assessing inherent risk in the initiation phase, the project team can identify the potential sources, causes, and impacts of risk that may affect the project objectives, scope, and deliverables. Assessing inherent risk in the initiation phase also helps to prioritize the risks, determine the risk appetite and tolerance, and plan the risk responses. Delivering projects on time and on budget, including project risk in the enterprise-wide IT risk profile, and assessing risk throughout the project are important objectives of risk management, but they are not the most important objective of embedding risk management practices into the initiation phase. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.1.1, page 511
1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 658.
Which of the following is a KEY responsibility of the second line of defense?
Implementing control activities
Monitoring control effectiveness
Conducting control self-assessments
Owning risk scenarios
The second line of defense is a group of functions that provide oversight, guidance, and monitoring of the risk management activities of the first line of defense. The second line of defense includes risk management, compliance, and internal control departments. Their key responsibility is to monitor the effectiveness of the control activities implemented by the first line of defense, and to report any issues or gaps to senior management and the board. The second line of defense also supports the first line of defense by providing frameworks, policies, tools, and techniques to identify, measure, and manage risks. The other options are not the key responsibility of the second line of defense, as explained below:
Which of the following is the BEST way to ensure ongoing control effectiveness?
Establishing policies and procedures
Periodically reviewing control design
Measuring trends in control performance
Obtaining management control attestations
The best way to ensure ongoing control effectiveness is to measure trends in control performance. This will help to monitor and evaluate how well the controls are achieving their objectives, and to identify any deviations or anomalies that may indicate control failures or weaknesses. Measuring trends in control performance also helps to provide feedback and assurance to the stakeholders and decision makers, and to support continuous improvement and optimization of the control environment. Establishing policies and procedures, periodically reviewing control design, and obtaining management control attestations are good practices, but they are not the best way to ensure control effectiveness. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.1.1.2, page 1071
1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 650.
Which of the following is MOST important for a risk practitioner to consider when evaluating plans for changes to IT services?
Change testing schedule
Impact assessment of the change
Change communication plan
User acceptance testing (UAT)
According to the CRISC Review Manual1, impact assessment is the process of identifying and evaluating the potential effects of changes to IT services on the organization’s business objectives, processes, resources, and risks. Impact assessment is essential for ensuring that the changes are aligned with the organization’s strategy, goals, and risk appetite, and that the benefits of the changes outweigh the costs and risks. Impact assessment also helps to prioritize, plan, and implement the changes effectively and efficiently, and to monitor and measure the outcomes of the changes. Therefore, the most important factor for a risk practitioner to consider when evaluating plans for changes to IT services is the impact assessment of the change. References = CRISC Review Manual1, page 224.
An organization has completed a project to implement encryption on all databases that host customer data. Which of the following elements of the risk register should be updated the reflect this change?
Risk likelihood
Inherent risk
Risk appetite
Risk tolerance
The risk likelihood is the element of the risk register that should be updated to reflect the change of implementing encryption on all databases that host customer data. The risk likelihood is the probability or frequency of a risk event occurring, and it is one of the factors that determine the risk level and priority. By implementing encryption, the organization reduces the risk likelihood of unauthorized access, disclosure, or breach of the customer data, as encryption protects the data from being read or modified by anyone who does not have the decryption key. Therefore, the risk likelihood should be updated to reflect the lower probability of the risk event after applying the encryption control. The other options are not the elements that should be updated, as they are either not affected by or not related to the change of implementing encryption. The inherent risk is the level of risk before applying any controls or mitigation measures, and it does not change after implementing encryption. The risk appetite is the amount of risk that the organization is willing to accept in pursuit of its objectives, and it is not influenced by the change of implementing encryption. The risk tolerance is the acceptable variation between the risk thresholds and the business objectives, and it is not determined by the change of implementing encryption. References = Risk Register: A Project Manager’s Guide with Examples [2023] • Asana; Risk Assessment in Project Management | PMI; Risk Assessment Process: Definition, Steps, and Examples; Risk Assessment - an overview | ScienceDirect Topics
Which of the following is MOST helpful to management when determining the resources needed to mitigate a risk?
An internal audit
A heat map
A business impact analysis (BIA)
A vulnerability report
 A business impact analysis (BIA) is the most helpful tool to management when determining the resources needed to mitigate a risk. A BIA is a process of identifying and evaluating the potential effects of disruptions or incidents on the critical functions and processes of an organization. A BIA helps to estimate the financial, operational, and reputational impacts of risks, as well as the recovery time objectives and recovery point objectives for each function and process. A BIA also helps to prioritize the functions and processes based on their importance and urgency, and to allocate the resources needed to protect, restore, and resume them. A BIA can provide valuable information to management for developing and implementing risk mitigation strategies and plans. The other options are not the most helpful tools to management when determining the resources needed to mitigate a risk, although they may be useful or complementary to the BIA. An internal audit is a process of evaluating and improving the effectiveness of the governance, risk management, and control systems of an organization, but it does not directly estimate the impacts of risks or the resources needed to mitigate them. A heat map is a graphical tool that displays the probability and impact of individual risks in a matrix format, but it does not provide the details of the functions and processes affected by the risks or the resources needed to protect them. A vulnerability report is a document that identifies and assesses the security weaknesses in an information system, but it does not measure the impacts of risks or the resources needed to mitigate them. References = Business Impact Analysis (BIA) | Ready.gov, Business Impact Analysis - ISACA, Business Impact Analysis - Risk Management from MindTools.com
Which of the following is MOST helpful in identifying gaps between the current and desired state of the IT risk environment?
Analyzing risk appetite and tolerance levels
Assessing identified risk and recording results in the risk register
Evaluating risk scenarios and assessing current controls
Reviewing guidance from industry best practices and standards
Evaluating risk scenarios and assessing current controls is the most helpful in identifying gaps between the current and desired state of the IT risk environment, because it allows the risk practitioner to compare the actual and expected outcomes of the IT processes and activities under different situations. A risk scenario is a hypothetical situation that describes a possible event or sequence of events that may affect the IT objectives and performance. A risk scenario can be based on various factors, such as the sources of risk, the risk drivers, the risk events, the risk impacts, and the risk responses. A risk scenario can also include the likelihood and severity of the risk, as well as the assumptions and uncertainties involved. Evaluating risk scenarios helps the risk practitioner to understand the nature and extent of the IT risks, as well as the potential consequences and opportunities that may arise from them. Assessing current controls is the process of examining and testing the existing controls that are implemented to manage the IT risks. A control is a measure or action that reduces the likelihood or impact of a risk, or enhances the benefits or opportunities of a risk. Assessing current controls helps the risk practitioner to determine the effectiveness and efficiency of the controls, as well as their alignment with the IT objectives and requirements. By evaluating risk scenarios and assessing current controls, the risk practitioner can identify the gaps between the current and desired state of the IT risk environment. The gaps can be related to the following aspects: - The IT objectives and performance: The gaps can indicate the difference between the actual and expected results of the IT processes and activities, as well as the deviation from the IT goals and targets. - The IT risk exposure and appetite: The gaps can indicate the difference between the actual and acceptable level of risk that the organization faces or is willing to take in pursuit of the IT objectives. - The IT risk management process and practices: The gaps can indicate the difference between the actual and expected performance of the IT risk management process, as well as the compliance with the IT risk management policies and standards. - The IT risk culture and awareness: The gaps can indicate the difference between the actual and desired level of risk awareness, understanding, and communication among the IT stakeholders, as well as the alignment with the organizational values and culture. Identifying the gaps between the current and desired state of the IT risk environment is important for the risk practitioner, as it can help to prioritize and address the IT risks, as well as to improve and optimize the IT risk management process and practices. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: Risk Scenarios, pp. 63-681
Which of the following is the BEST way to detect zero-day malware on an end user's workstation?
An antivirus program
Database activity monitoring
Firewall log monitoring
File integrity monitoring
Zero-day malware is malware that exploits unknown and unprotected vulnerabilities. This novel malware is difficult to detect and defend against, making zero-day attacks a significant threat to enterprise cybersecurity1. The best way to detect zero-day malware on an end user’s workstation is to use file integrity monitoring, which is a technique that monitors and alerts on changes to files and directories that may indicate a malware infection or compromise2. By using file integrity monitoring, the end user can detect zero-day malware that may alter or damage the files or directories on their workstation, and take appropriate actions to remove or isolate the malware. File integrity monitoring can also help to prevent the spread of zero-day malware to other systems or networks, and to restore the integrity and availability of the affected files or directories. Antivirus program, database activity monitoring, and firewall log monitoring are not the best ways to detect zero-day malware on an end user’s workstation, as they are not as effective or reliable as file integrity monitoring. Antivirus program is a software that scans and removes known malware from a system or network3. Antivirus program can help to protect the end user’s workstation from common or known malware, but it may not be able to detect zero-day malware that does not have a signature or a pattern that matches the antivirus program’s database. Database activity monitoring is a technique that monitors and audits the activities and transactions on a database, such as queries, updates, or deletions4. Database activity monitoring can help to protect the end user’s database from unauthorized or malicious access or modification, but it may not be able to detect zero-day malware that does not target or affect the database. Firewall log monitoring is a technique that monitors and analyzes the logs generated by a firewall, which is a device or software that filters and controls the incoming and outgoing network traffic based on predefined rules. Firewall log monitoring can help to protect the end user’s workstation from external or internal network attacks, but it may not be able to detect zero-day malware that bypasses or evades the firewall rules or that originates from the workstation itself. References = 1: What is Zero Day Malware? - Check Point Software2: File Integrity Monitoring - an overview | ScienceDirect Topics3: Antivirus Software - an overview | ScienceDirect Topics4: Database Activity Monitoring - an overview | ScienceDirect Topics : [Firewall Log Analysis - an overview | ScienceDirect Topics] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.1: Control Design, pp. 233-235.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.2: Control Implementation, pp. 243-245.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.3: Control Monitoring and Maintenance, pp. 251-253.] : [Zero-day attack detection: a systematic literature review | Artificial Intelligence Review] : [Zero-day Attacks Detection and Prevention Methods | Apriorit]Â
Which of the following is MOST important to sustainable development of secure IT services?
Security training for systems development staff
\Well-documented business cases
Security architecture principles
Secure coding practices
The most important factor for sustainable development of secure IT services is security training for systems development staff. Security training helps to ensure that the staff members are aware of the security risks, requirements, and best practices that affect the IT services they develop. Security training also helps to improve the security skills and knowledge of the staff members, and to foster a security culture and behavior within the development team. Security training can also help to prevent or reduce security defects, vulnerabilities, or incidents in the IT services, and to enhance the security performance and quality of the IT services. Well-documented business cases, security architecture principles, and secure coding practices are also important factors for sustainable development of secure IT services, but they are not as important as security training for systems development staff. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.1.1.2, page 2291
1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 653.
Which of the following is the BEST way to identify changes in the risk profile of an organization?
Monitor key risk indicators (KRIs).
Monitor key performance indicators (KPIs).
Interview the risk owner.
Conduct a gap analysis
The best way to identify changes in the risk profile of an organization is to monitor key risk indicators (KRIs), which are metrics that provide information on the level of exposure to a given operational risk1. KRIs can help to monitor the changes in risk levels over time, identify emerging risks, and trigger risk response actions when the risk exceeds the acceptable thresholds2. KRIs can also help to align the risk management strategy with the business objectives and context. The other options are not the best ways to identify changes in the risk profile of an organization, as they do not provide the same level of insight and guidance as KRIs. Monitoring key performance indicators (KPIs) may show the results or outcomes of the business processes, but not the risks or uncertainties that affect them. Interviewing the risk owner may provide some subjective or qualitative information on the risk perception or attitude, but not the objective or quantitative data on the risk exposure or impact. Conducting a gap analysis may show the difference between the current and desired state of the organization, but not the causes or sources of the risk. References = Key Risk Indicators; Key Risk Indicators: A Practical Guide
Which of the following is the GREATEST concern when an organization uses a managed security service provider as a firewall administrator?
Exposure of log data
Lack of governance
Increased number of firewall rules
Lack of agreed-upon standards
A managed security service provider (MSSP) is a third-party entity that offers network security services to an organization, such as firewall operation, administration, monitoring, and maintenance1. A firewall is a device or software that controls the incoming and outgoing network traffic based on predefined rules2. A firewall administrator is a person or entity that manages and maintains the firewall configuration, rules, and policies3. When an organization uses an MSSP as a firewall administrator, the greatest concern is the exposure of log data, because log data contains sensitive and valuable information about the organization’s network activity, such as source and destination IP addresses, ports, protocols, timestamps, and user identities4. If the log data is not protected properly by the MSSP, it could be accessed, modified, or stolen by unauthorized parties, such as hackers, competitors, or regulators, which could result in data breaches, compliance violations, reputational damage, or legal liabilities for the organization5. The other options are not as concerning as the exposure of log data, because they do not pose a direct and immediate threat to the organization’s data security and privacy, but rather affect the quality and efficiency of the firewall management, as explained below:
Which of the following provides The MOST useful information when determining a risk management program's maturity level?
Risk assessment results
A recently reviewed risk register
Key performance indicators (KPIs)
The organization's risk framework
Key performance indicators (KPIs) are measurable values that demonstrate how effectively an organization is achieving its key objectives. KPIs can be used to evaluate the progress and performance of a risk management program, as well as to identify the areas for improvement and alignment with the organization’s strategy. KPIs can provide the most useful information when determining a risk management program’s maturity level, because they can reflect the extent to which the program is integrated, consistent, proactive, and value-adding. KPIs can also be compared with industry benchmarks or best practices to assess the program’s maturity level relative to other organizations. The other options are not as useful as KPIs, because they do not provide a clear and comprehensive picture of the risk management program’s maturity level, but rather focus on specific aspects or outputs of the program. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, page 18.
The risk associated with data loss from a website which contains sensitive customer information is BEST owned by:
the third-party website manager
the business process owner
IT security
the compliance manager
The risk associated with data loss from a website which contains sensitive customer information is best owned by the business process owner, as they are ultimately responsible for the business objectives and outcomes that depend on the website. The business process owner should ensure that the website is adequately protected and that the customer data is handled in compliance with the relevant laws and regulations. The third-party website manager, IT security, and the compliance manager are all involved in managing the risk, but they are not the owners. The third-party website manager is responsible for the technical aspects of the website, such as hosting, maintenance, and performance. IT security is responsible for implementing and monitoring the security controls and policies for the website. The compliance manager is responsible for ensuring that the website meets the regulatory and contractual requirements. However, none of these roles have the authority or accountability to own the risk, as they are not directly affected by the business impact of the data loss. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Identification, page 47.
What is the BEST information to present to business control owners when justifying costs related to controls?
Loss event frequency and magnitude
The previous year's budget and actuals
Industry benchmarks and standards
Return on IT security-related investments
The best information to present to business control owners when justifying costs related to controls is the return on IT security-related investments, because this shows the value and benefits of the controls in relation to their costs. Return on IT security-related investments is a metric that measures the effectiveness and efficiency of IT security controls by comparing the amount of money saved or gained from preventing or mitigating IT-related risks with the amount of money spent on implementing and maintaining the controls. By presenting this information, business control owners can see how the controls contribute to the achievement of the business objectives, such as reducing losses, increasing revenues, enhancing customer satisfaction, or improving compliance. This information can also help business control owners to prioritize and allocate resources for the most critical and beneficial controls, and to optimize the balance between risk and return. References = Cost Control: How Businesses Use It to Increase Profits
Which of the following would BEST help to ensure that suspicious network activity is identified?
Analyzing intrusion detection system (IDS) logs
Analyzing server logs
Using a third-party monitoring provider
Coordinating events with appropriate agencies
An intrusion detection system (IDS) is a network security tool that monitors and analyzes network traffic for signs of malicious or suspicious activity, such as unauthorized access, data exfiltration, malware infection, or denial-of-service attack. An IDS can detect and alert the organization to potential threats based on predefined rules or signatures, or based on anomalies or deviations from normal network behavior. An IDS can also generate logs that record the details of the network events and incidents, such as the source, destination, content, and context of the network traffic. By analyzing the IDS logs, the organization can identify and validate the suspicious network activity, and determine its scope, impact, and root cause. The organization can also use the IDS logs to support the incident response and remediation process, and to improve the network security and resilience. The other options are less effective ways to ensure that suspicious network activity is identified. Analyzing server logs can provide some information about the network activity, but it may not be sufficient or timely to detect and validate the suspicious or malicious activity, as server logs only capture the events or activities that occur on the server, and not on the entire network. Using a third-party monitoring provider can help to outsource the network monitoring and analysis function, but it may not be the best option, as it may introduce additional risks, such as data privacy, vendor reliability, or service quality issues. Coordinating events with appropriate agencies can help to share information and resources with other organizations or authorities, such as law enforcement, regulators, or industry peers, but it may not be the best option, as it may depend on the availability and cooperation of the agencies, and it may not be feasible or desirable to disclose the network activity to external parties. References = Monitoring for Suspicious Network Activity: Key Tips to Secure Your Network 1
Malware has recently affected an organization. The MOST effective way to resolve this situation and define a comprehensive risk treatment plan would be to perform:
a gap analysis
a root cause analysis.
an impact assessment.
a vulnerability assessment.
 The most effective way to resolve the situation and define a comprehensive risk treatment plan would be to perform a root cause analysis. A root cause analysis is a method of identifying and addressing the underlying factors or causes that led to the occurrence of a problem or incident1. In this case, the problem or incident is the malware infection that affected the organization. By performing a root cause analysis, the organization can determine how and why the malware was able to infect the systems, what vulnerabilities or weaknesses were exploited, what controls or processes failed or were missing, and what actions or decisions contributed to the situation. A root cause analysis can help the organization to prevent or reduce the recurrence of similar incidents, as well as to improve the effectiveness and efficiency of the risk management process. A root cause analysis can also help the organization to define a comprehensive risk treatment plan, which is a set of actions or measures that are taken to modify the risk, such as reducing, avoiding, transferring, or accepting the risk2. Based on the findings and recommendations of the root cause analysis, the organization can select and implement the most appropriate risk treatment option for the malware risk, as well as for any other related or emerging risks. The risk treatment plan should also include the roles and responsibilities, resources, timelines, and performance indicators for the risk treatment actions3. The other options are not the most effective ways to resolve the situation and define a comprehensive risk treatment plan, as they are either less thorough or less relevant than a root cause analysis. A gap analysis is a method of comparing the current state and the desired state of a process, system, or organization, and identifying the gaps or differences between them4. A gap analysis can help the organization to identify the areas of improvement or enhancement, as well as the opportunities or challenges for achieving the desired state. However, a gap analysis is not the most effective way to resolve the situation and define a comprehensive risk treatment plan, as it does not address the causes or consequences of the malware infection, or the actions or measures to mitigate the risk. An impact assessment is a method of estimating the potential effects or consequences of a change, decision, or action on a process, system, or organization5. An impact assessment can help the organization to evaluate the benefits and costs, as well as the risks and opportunities, of a proposed or implemented change, decision, or action. However, an impact assessment is not the most effective way to resolve the situation and define a comprehensive risk treatment plan, as it does not investigate the origin or nature of the malware infection, or the solutions or alternatives to manage the risk. A vulnerability assessment is a method of identifying and analyzing the weaknesses or flaws in a process, system, or organization that can be exploited by threats to cause harm or loss6. A vulnerability assessment can help the organization to discover and prioritize the vulnerabilities, as well as to recommend and implement the controls or measures to reduce or eliminate them. However, a vulnerability assessment is not the most effective way to resolve the situation and define a comprehensive risk treatment plan, as it does not consider the root causes or impacts of the malware infection, or the risk treatment options or plans to address the risk. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.8, Page 61.
Which of the following should be the risk practitioner s PRIMARY focus when determining whether controls are adequate to mitigate risk?
Sensitivity analysis
Level of residual risk
Cost-benefit analysis
Risk appetite
The risk practitioner’s primary focus when determining whether controls are adequate to mitigate risk should be the level of residual risk, because this indicates the amount and type of risk that remains after applying the controls, and whether it is acceptable or not. Residual risk is the risk that is left over after the risk response actions have been taken, such as implementing or improving controls. Controls are the measures or actions that are designed and performed to reduce the likelihood and/or impact of a risk event, or to exploit the opportunities that a risk event may create. The adequacy of controls to mitigate risk depends on how well they address the root causes or sources of the risk, and how effectively and efficiently they reduce the risk exposure and value. The level of residual risk reflects the adequacy of controls to mitigate risk, as it shows the gap between the inherent risk and the actual risk, and whether it is within the organization’s risk appetite and tolerance. The risk practitioner should focus on the level of residual risk when determining whether controls are adequate to mitigate risk, as it helps to evaluate and compare the benefits and costs of the controls, and to decide on the best risk response strategy, such as accepting, avoiding, transferring, or further reducing the risk. The other options are less important or relevant to focus on when determining whether controls are adequate to mitigate risk. Sensitivity analysis is a technique that measures how the risk value changes when one or more input variables are changed, such as the probability, impact, or control effectiveness. Sensitivity analysis can help to identify and prioritize the most influential or critical variables that affect the risk value, and to test the robustness or reliability of the risk assessment. However, sensitivity analysis does not directly indicate the adequacy of controls to mitigate risk, as it does not measure the level of residual risk or the risk acceptance criteria. Cost-benefit analysis is a technique that compares the expected benefits and costs of a control or a risk response action, and determines whether it is worthwhile or not. Cost-benefit analysis can help to justify and optimize the investment or resource allocation for the control or the risk response action, and to ensure that it is aligned with the organization’s objectives and value. However, cost-benefit analysis does not directly indicate the adequacy of controls to mitigate risk, as it does not measure the level of residual risk or the risk acceptance criteria. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite can help to define and communicate the organization’s risk preferences and boundaries, and to guide the risk decision-making and behavior. However, risk appetite does not directly indicate the adequacy of controls to mitigate risk, as it does not measure the level of residual risk or the actual risk performance. References = Risk IT Framework, ISACA, 2022, p. 131
A global organization is considering the acquisition of a competitor. Senior management has requested a review of the overall risk profile from the targeted organization. Which of the following components of this review would provide the MOST useful information?
Risk appetite statement
Enterprise risk management framework
Risk management policies
Risk register
According to the CRISC Review Manual (Digital Version), the risk register is the most useful component of the review of the overall risk profile from the targeted organization, as it provides a comprehensive and up-to-date record of the identified risks, their likelihood and impact, their risk response actions, and their residual risk levels. The risk register helps to:
References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.5: IT Risk Identification Methods and Techniques, pp. 38-391
When determining which control deficiencies are most significant, which of the following would provide the MOST useful information?
Risk analysis results
Exception handling policy
Vulnerability assessment results
Benchmarking assessments
An organization has outsourced its IT security operations to a third party. Who is ULTIMATELY accountable for the risk associated with the outsourced operations?
The third party s management
The organization's management
The control operators at the third party
The organization's vendor management office
IT risk assessments can BEST be used by management:
for compliance with laws and regulations
as a basis for cost-benefit analysis.
as input for decision-making
to measure organizational success.
 IT risk assessments can best be used by management as input for decision-making, because they provide valuable information about the current and potential risks facing the organization’s IT systems, networks, and data, and their impact on the organization’s objectives and performance. IT risk assessments can help management to identify and prioritize the most critical and relevant risks, and to evaluate and select the most appropriate and effective risk responses. IT risk assessments can also help management to allocate and optimize the resources and budget for IT risk management, and to communicate and report the risk status and performance to the senior management, the board of directors, and other stakeholders. IT risk assessments can support management in making informed and balanced decisions that consider both the opportunities and the threats of IT-related activities and investments. References = Complete Guide to IT Risk Management 1
Which of the following would be MOST useful when measuring the progress of a risk response action plan?
Percentage of mitigated risk scenarios
Annual loss expectancy (ALE) changes
Resource expenditure against budget
An up-to-date risk register
Which of the following would be considered a vulnerability?
Delayed removal of employee access
Authorized administrative access to HR files
Corruption of files due to malware
Server downtime due to a denial of service (DoS) attack
According to the CRISC Review Manual (Digital Version), a vulnerability is a flaw or weakness in an asset’s design, implementation, or operation and management that could be exploited by a threat. A delayed removal of employee access is a vulnerability, as it allows former employees to retain access to the organization’s IT assets and processes, which could lead to unauthorized disclosure, modification, or destruction of data or resources. A delayed removal of employee access could be caused by poor personnel management, lack of security awareness, or inadequate access control policies and procedures.
References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.5: IT Risk Identification Methods and Techniques, pp. 32-331
Reviewing results from which of the following is the BEST way to identify information systems control deficiencies?
Vulnerability and threat analysis
Control remediation planning
User acceptance testing (UAT)
Control self-assessment (CSA)
Which of the following would provide the BEST guidance when selecting an appropriate risk treatment plan?
Risk mitigation budget
Business Impact analysis
Cost-benefit analysis
Return on investment
A cost-benefit analysis is the best guidance when selecting an appropriate risk treatment plan. A risk treatment plan is a document that describes the actions or measures that are taken or planned to modify the risk, such as reducing, avoiding, transferring, or accepting the risk1. Selecting an appropriate risk treatment plan means choosing the most suitable and effective option for addressing the risk, based on the organization’s objectives, strategies, and risk criteria2. A cost-benefit analysis is a method of comparing the benefits and costs of different alternatives or options, and selecting the one that maximizes the net benefit or value3. A cost-benefit analysis is the best guidance when selecting an appropriate risk treatment plan, because it helps to:
A key risk indicator (KRI) is reported to senior management on a periodic basis as exceeding thresholds, but each time senior management has decided to take no action to reduce the risk. Which of the following is the MOST likely reason for senior management's response?
The underlying data source for the KRI is using inaccurate data and needs to be corrected.
The KRI is not providing useful information and should be removed from the KRI inventory.
The KRI threshold needs to be revised to better align with the organization s risk appetite
Senior management does not understand the KRI and should undergo risk training.
A key risk indicator (KRI) is a metric that measures the level and trend of a risk that may affect the organization’s objectives, operations, or performance1. A KRI threshold is a predefined value or range that indicates the acceptable or tolerable level of risk for the organization2. The organization’s risk appetite is the amount and type of risk that it is willing to take in order to meet its strategic goals3. Therefore, the most likely reason for senior management’s response is that the KRI threshold needs to be revised to better align with the organization’s risk appetite. This means that the current threshold is either too low or too high, resulting in false alarms or missed signals. By adjusting the threshold to reflect the organization’s risk appetite, senior management can ensure that the KRI provides relevant and actionable information for risk management and decision making. The other options are not the most likely reasons for senior management’s response, as they imply that the KRI is faulty, irrelevant, or misunderstood. The underlying data source for the KRI is using inaccurate data and needs to be corrected. This option assumes that the KRI is based on erroneous or unreliable data, which would affect its validity and reliability. However, this is not the most likely reason, as senior management would be expected to verify the data quality and accuracy before using the KRI for risk monitoring and reporting. The KRI is not providing useful information and should be removed from the KRI inventory. This option assumes that the KRI is not aligned with the organization’s objectives, strategies, or risk profile, which would affect its usefulness and value. However, this is not the most likely reason, as senior management would be expected to review and update the KRI inventory periodically to ensure that the KRIs are relevant and meaningful for risk management. Senior management does not understand the KRI and should undergo risk training. This option assumes that senior management lacks the knowledge or skills to interpret and use the KRI for risk management, which would affect their competence and confidence. However, this is not the most likely reason, as senior management would be expected to have sufficient risk awareness and education to understand and apply the KRI for risk management. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.4, Page 53.
A review of an organization s controls has determined its data loss prevention {DLP) system is currently failing to detect outgoing emails containing credit card data. Which of the following would be MOST impacted?
Key risk indicators (KRls)
Inherent risk
Residual risk
Risk appetite
Residual risk is the risk that remains after applying controls to mitigate the inherent risk. Inherent risk is the risk that exists before considering the controls. Key risk indicators (KRIs) are metrics that measure the level and impact of risks. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. The failure of the data loss prevention (DLP) system to detect outgoing emails containing credit card data would most impact the residual risk, because it would increase the likelihood and impact of data leakage, data loss, and data exfiltration incidents. These incidents could cause financial, reputational, legal, and regulatory damages to the organization. The failure of the DLP system would also affect the KRIs, as they would show a higher level of risk exposure and a lower level of control effectiveness. However, the KRIs are not the risk itself, but rather the indicators of the risk. The failure of the DLP system would not directly impact the inherent risk or the risk appetite, as they are independent of the controls. The inherent risk would remain the same, as it is based on the nature and value of the data and the threats and vulnerabilities that exist. The risk appetite would also remain the same, as it is based on the organization’s culture, strategy, and stakeholder expectations. Therefore, the most impacted factor would be the residual risk, as it reflects the actual risk level that the organization faces after applying the controls. References = Risk IT Framework, ISACA, 2022, p. 131
Which of the following controls will BEST detect unauthorized modification of data by a database administrator?
Reviewing database access rights
Reviewing database activity logs
Comparing data to input records
Reviewing changes to edit checks
An organization has identified a risk exposure due to weak technical controls in a newly implemented HR system. The risk practitioner is documenting the risk in the risk register. The risk should be owned by the:
chief risk officer.
project manager.
chief information officer.
business process owner.
The business process owner should be the risk owner for the risk exposure due to weak technical controls in a newly implemented HR system, because they are responsible for the performance and outcomes of the HR business process, and they understand the business requirements, expectations, and impact of the HR system. The business process owner can also evaluate the trade-offs between the potential benefits and costs of the HR system, and the potential risks and consequences of a failure or breach of the system. The business process owner can also communicate and justify their risk acceptance or mitigation 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 be the risk owner for this risk exposure. The chief risk officer is responsible for overseeing the enterprise-wide risk management framework and process, which includes ensuring the identification, assessment, and reporting of risks. However, they are not the owner of the HR system or the HR business process, and they may not have the full knowledge or authority to accept or mitigate the risk on behalf of the business. The project manager is responsible for managing the implementation of the HR system, which includes ensuring the delivery of the system within the scope, time, and budget constraints. However, they are not the owner of the HR system or the HR business process, and they may not have the full knowledge or authority to accept or mitigate the risk on behalf of the business. The chief information officer is responsible for managing the IT function and resources, which includes providing the technical support and security for the HR system. However, they are not the owner of the HR system or the HR business process, and they may not have the full knowledge or authority to accept or mitigate the risk on behalf of the business. References = Getting risk ownership right 1
Which of the following is the MOST important requirement for monitoring key risk indicators (KRls) using log analysis?
Obtaining logs m an easily readable format
Providing accurate logs m a timely manner
Collecting logs from the entire set of IT systems
implementing an automated log analysis tool
The most important requirement for monitoring key risk indicators (KRIs) using log analysis is providing accurate logs in a timely manner, because this ensures that the risk data is reliable, relevant, and up-to-date. Logs are records of events or activities that occur in IT systems, such as network traffic, user actions, system errors, or security incidents. Log analysis is the process of reviewing and interpreting logs to identify and assess risks, such as performance issues, operational failures, compliance violations, or cyberattacks. By providing accurate logs in a timely manner, an organization can monitor the current status and trends of its KRIs, which are metrics that measure the level and impact of risks. Accurate logs mean that the logs are complete, consistent, and free of errors or anomalies that may distort the risk data. Timely logs mean that the logs are available as soon as possible after the events or activities occur, and that they are updated frequently to reflect the latest changes. Providing accurate logs in a timely manner can help an organization to detect and respond to risks promptly, and to support risk-based decision making and reporting. References = Risk IT Framework, ISACA, 2022, p. 22
When reviewing management's IT control self-assessments, a risk practitioner noted an ineffective control that links to several low residual risk scenarios. What should be the NEXT course of action?
Assess management's risk tolerance.
Recommend management accept the low-risk scenarios.
Propose mitigating controls
Re-evaluate the risk scenarios associated with the control
The acceptance of control costs that exceed risk exposure is MOST likely an example of:
low risk tolerance.
corporate culture misalignment.
corporate culture alignment.
high risk tolerance
Corporate culture is the set of values, beliefs, and norms that shape the behavior and attitude of an organization and its people. Corporate culture alignment is the degree of consistency and compatibility between the corporate culture and the organization’s vision, mission, strategy, and objectives. Corporate culture misalignment is the situation where the corporate culture is not aligned with the organization’s goals and expectations, and may hinder or undermine the achievement of those goals. The acceptance of control costs that exceed risk exposure is most likely an example of corporate culture misalignment, as it indicates that the organization is not following a rational and optimal approach to risk management. The organization is spending more resources on controlling risks than the potential benefits or losses that the risks entail, which may result in inefficiency, waste, or opportunity cost. The organization may also be overemphasizing the importance of risk avoidance or mitigation, and neglecting the potential value creation or innovation that may arise from taking or accepting some risks. The other options are not the best answers, as they do not explain the situation of accepting control costs that exceed risk exposure. Low risk tolerance is the degree of variation from the risk appetite that the organization is not willing to accept. Low risk tolerance may lead to excessive or unnecessary controls, but it does not necessarily mean that the control costs exceed the risk exposure. High risk tolerance is the degree of variation from the risk appetite that the organization is willing to accept. High risk tolerance may lead to insufficient or ineffective controls, but it does not imply that the control costs exceed the risk exposure. Corporate culture alignment is the situation where the corporate culture is aligned with the organization’s goals and expectations, and supports and facilitates the achievement of those goals. Corporate culture alignment would not result in accepting control costs that exceed risk exposure, as it would imply a balanced and rational approach to risk management. References = CRISC Review Manual, pages 22-231; CRISC Review Questions, Answers & Explanations Manual, page 812
The PRIMARY objective for selecting risk response options is to:
reduce risk 10 an acceptable level.
identify compensating controls.
minimize residual risk.
reduce risk factors.
The primary objective for selecting risk response options is to reduce risk to an acceptable level. Risk response options are the possible actions that can be taken to address the risks that have been identified and analyzed in the risk management process. Risk response options can be classified into four categories: avoid, transfer, mitigate, and accept for negative risks (or threats), and exploit, share, enhance, and accept for positive risks (or opportunities). The selection of the risk response options depends on various factors, such as the risk level, the risk appetite and tolerance, the cost and benefit, and the feasibility and availability of the options. The main goal of selecting the risk response options is to reduce the risk to a level that is acceptable to the organization, which means that the risk exposure is within the boundaries of the risk criteria and the risk appetite. The other options are not the primary objective for selecting risk response options, although they may be related or beneficial. Identifying compensating controls is a technique to implement additional or alternative controls when the existing controls are not effective or sufficient to reduce the risk to an acceptable level. Minimizing residual risk is a result of selecting and implementing the risk response options, but it is not the main purpose. Residual risk is the risk that remains after the risk response, and it may or may not be acceptable depending on the risk appetite and tolerance. Reducing risk factors is a method to decrease the likelihood or impact of the risk by addressing the root causes or sources of the risk. However, reducing risk factors does not necessarily mean that the risk is reduced to an acceptable level, as there may be other factors or uncertainties that affect the risk. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 862
Which of the following elements of a risk register is MOST likely to change as a result of change in management's risk appetite?
Key risk indicator (KRI) thresholds
Inherent risk
Risk likelihood and impact
Risk velocity
According to the CRISC Review Manual (Digital Version), key risk indicator (KRI) thresholds are the most likely elements of a risk register to change as a result of change in management’s risk appetite, as they reflect the acceptable levels of risk exposure for the organization. KRI thresholds are the values or ranges that trigger an alert or a response when the actual KRI values deviate from the expected or desired values. KRI thresholds help to:
If the management’s risk appetite changes, the KRI thresholds may need to be adjusted accordingly to ensure that the risk register reflects the current risk preferences and expectations of the organization.
References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.1: IT Risk Monitoring, pp. 217-2181
Which of the following would MOST effectively enable a business operations manager to identify events exceeding risk thresholds?
Continuous monitoring
A control self-assessment
Transaction logging
Benchmarking against peers
Which of the following is the MOST important foundational element of an effective three lines of defense model for an organization?
A robust risk aggregation tool set
Clearly defined roles and responsibilities
A well-established risk management committee
Well-documented and communicated escalation procedures
 The most important foundational element of an effective three lines of defense model for an organization is clearly defined roles and responsibilities. The three lines of defense model is a framework that outlines the roles and responsibilities of different functions or groups within the organization in relation to risk management and internal control1. The three lines of defense are:
Which of the following techniques would be used during a risk assessment to demonstrate to stakeholders that all known alternatives were evaluated?
Control chart
Sensitivity analysis
Trend analysis
Decision tree
A decision tree is a technique that can be used during a risk assessment to demonstrate to stakeholders that all known alternatives were evaluated. A decision tree is a graphical tool that shows the possible outcomes and consequences of different choices or actions in a sequential and hierarchical manner. A decision tree can help to compare and contrast the alternatives based on their expected values, costs, benefits, and risks, as well as to identify the optimal or preferred alternative that maximizes the value or minimizes the risk. A decision tree can also help to communicate and explain the rationale and assumptions behind the decision-making process to the stakeholders. The other options are not the best techniques to demonstrate to stakeholders that all known alternatives were evaluated, although they may be useful and complementary. A control chart is a technique that monitors the performance and quality of a process or activity over time by plotting the data points and the control limits. A control chart can help to detect and analyze the variations or deviations from the expected or desired results, as well as to identify and correct the causes or sources of the variations. A sensitivity analysis is a technique that measures the impact of changes in one or more variables or parameters on the outcome or result of a model or a system. A sensitivity analysis can help to assess the uncertainty or variability of the outcome or result, as well as to determine the most influential or critical variables or parameters that affect the outcome or result. A trend analysis is a technique that examines the patterns or movements of data or information over time by using statistical or graphical methods. A trend analysis can help to forecast or predict the future behavior or direction of the data or information, as well as to identify and explain the factors or drivers that influence the data or information. References = CRISC Review Manual, pages 38-391; CRISC Review Questions, Answers & Explanations Manual, page 922; Risk Assessment and Analysis Methods: Qualitative and Quantitative - ISACA3; Risk Assessment: Process, Examples, & Tools | SafetyCulture4
Which of the following is the GREATEST benefit of incorporating IT risk scenarios into the corporate risk register?
Corporate incident escalation protocols are established.
Exposure is integrated into the organization's risk profile.
Risk appetite cascades to business unit management
The organization-wide control budget is expanded.
Which of the following activities would BEST contribute to promoting an organization-wide risk-aware culture?
Performing a benchmark analysis and evaluating gaps
Conducting risk assessments and implementing controls
Communicating components of risk and their acceptable levels
Participating in peer reviews and implementing best practices
A risk-aware culture is a culture that recognizes, understands, and values the importance of risk management in achieving the organization’s objectives and goals. A risk-aware culture is also a culture that supports and encourages the identification, assessment, response, and monitoring of risks across the organization, as well as the sharing and learning of risk information and best practices. One of the activities that would best contribute to promoting an organization-wide risk-aware culture is communicating components of risk and their acceptable levels. This is a technique to inform and educate the stakeholders and decision makers about the nature and scope of the risks that the organization faces, as well as the criteria and standards that the organization uses to measure and manage the risks. Communicating components of risk and their acceptable levels can help to increase the awareness and understanding of the risks and their impact on the organization’s performance and value, as well as to align the expectations and behaviors of the stakeholders and decision makers with the organization’s risk appetite and tolerance. Communicating components of risk and their acceptable levels can also help to foster a transparent and collaborative environment for risk management, where the stakeholders and decision makers can openly discuss and address the risks and their implications, as well as to provide and receive feedback and support. The other options are not the best activities to promote an organization-wide risk-aware culture, although they may be relevant and useful. Performing a benchmark analysis and evaluating gaps is a technique to compare and improve the organization’s risk management process and performance with the industry standards or best practices, as well as to identify and close the gaps or weaknesses in the organization’s risk management capabilities or maturity. However, this technique does not necessarily promote a risk-aware culture, as it focuses on the process and performance of risk management, not the attitude and behavior of risk management. Conducting risk assessments and implementing controls is a technique to identify and analyze the risks that the organization faces, as well as to select and execute the appropriate actions to address the risks, such as avoiding, transferring, mitigating, or accepting the risks. However, this technique does not directly promote a risk-aware culture, as it focuses on the actions and outcomes of risk management, not the values and beliefs of risk management. Participating in peer reviews and implementing best practices is a technique to evaluate and enhance the quality and effectiveness of the organization’s risk management activities and deliverables, as well as to adopt and apply the proven and successful methods or solutions for risk management. However, this technique does not effectively promote a risk-aware culture, as it focuses on the improvement and optimization of risk management, not the communication and collaboration of risk management. References = CRISC Review Manual, pages 22-231; CRISC Review Questions, Answers & Explanations Manual, page 982; The 6 key elements to creating and maintaining a good risk culture3; How to increase risk awareness - Project Management Institute4
Which of the following is the BEST key performance indicator (KPI) to measure the effectiveness of a disaster recovery plan (DRP)?
Number of users that participated in the DRP testing
Number of issues identified during DRP testing
Percentage of applications that met the RTO during DRP testing
Percentage of issues resolved as a result of DRP testing
A key performance indicator (KPI) is a measurable value that demonstrates how effectively an organization is achieving its objectives. In the context of disaster recovery planning (DRP), a KPI should reflect the ability of the organization to recover its critical business processes and applications within the predefined time frames and service levels. One of the most important KPIs for DRP is the percentage of applications that met the recovery time objective (RTO) during DRP testing. The RTO is the maximum acceptable length of time that a business process or application can be down after a disaster. By measuring the percentage of applications that met the RTO during DRP testing, the organization can evaluate the performance and reliability of its DRP, identify any gaps or weaknesses, and implement corrective actions to improve its readiness and resilience. The other options are not the best KPIs for DRP, as they do not directly measure the effectiveness of the recovery process. The number of users that participated in the DRP testing is a measure of the involvement and awareness of the staff, but not of the outcome of the testing. The number of issues identified during DRP testing is a measure of the quality and completeness of the DRP, but not of the actual recovery time. The percentage of issues resolved as a result of DRP testing is a measure of the improvement and maturity of the DRP, but not of the current recovery capability. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.3.3, Page 138.
Which of the following should be the PRIMARY consideration when implementing controls for monitoring user activity logs?
Ensuring availability of resources for log analysis
Implementing log analysis tools to automate controls
Ensuring the control is proportional to the risk
Building correlations between logs collected from different sources
 The primary consideration when implementing controls for monitoring user activity logs is ensuring that the control is proportional to the risk, because this helps to optimize the balance between the benefits and costs of the control, and to avoid over- or under-controlling the risk. User activity logs are records of the actions or events performed by users on IT systems, networks, or resources, such as accessing, modifying, or transferring data or files. Monitoring user activity logs can help to detect and prevent potential threats, such as unauthorized access, data leakage, or malicious activity, and to support the investigation and remediation of incidents. However, monitoring user activity logs also involves certain costs and challenges, such as collecting, storing, analyzing, and reporting large amounts of log data, ensuring the accuracy, completeness, and timeliness of the log data, protecting the privacy and security of the log data, and complying with the relevant laws and regulations. Therefore, when implementing controls for monitoring user activity logs, the organization should consider the level and impact of the risk that the control is intended to address, and the value and effectiveness of the control in reducing the risk exposure and impact. The organization should also consider the costs and feasibility of implementing and maintaining the control, and the potential negative consequences or side effects of the control, such as performance degradation, user dissatisfaction, or legal liability. By ensuring that the control is proportional to the risk, the organization can achieve the optimal level of risk management, and avoid wasting resources or creating new risks. References = Risk IT Framework, ISACA, 2022, p. 151
Which of the following is the MAIN reason to continuously monitor IT-related risk?
To redefine the risk appetite and risk tolerance levels based on changes in risk factors
To update the risk register to reflect changes in levels of identified and new IT-related risk
To ensure risk levels are within acceptable limits of the organization's risk appetite and risk tolerance
To help identify root causes of incidents and recommend suitable long-term solutions
 According to the CRISC Review Manual (Digital Version), the main reason to continuously monitor IT-related risk is to ensure risk levels are within acceptable limits of the organization’s risk appetite and risk tolerance. The risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives, while the risk tolerance is the acceptable variation in outcomes related to specific performance measures linked to objectives. Continuous monitoring is a process that tracks the security state of an information system on an ongoing basis and maintains the security authorization for the system over time. Continuous monitoring helps to:
References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.1: IT Risk Monitoring, pp. 213-2141
Which of the following is of GREATEST concern when uncontrolled changes are made to the control environment?
A decrease in control layering effectiveness
An increase in inherent risk
An increase in control vulnerabilities
An increase in the level of residual risk
Which of the following will BEST help mitigate the risk associated with malicious functionality in outsourced application development?
Perform an m-depth code review with an expert
Validate functionality by running in a test environment
Implement a service level agreement.
Utilize the change management process.
A rule-based data loss prevention {DLP) tool has recently been implemented to reduce the risk of sensitive data leakage. Which of the following is MOST likely to change as a result of this implementation?
Risk likelihood
Risk velocity
Risk appetite
Risk impact
 A rule-based data loss prevention (DLP) tool is a software solution that identifies and helps prevent unsafe or inappropriate sharing, transfer, or use of sensitive data. It can help an organization monitor and protect sensitive information across on-premises systems, cloud-based locations, and endpoint devices. It can also help an organization comply with regulations such as the Health Insurance Portability and Accountability Act (HIPAA) and General Data Protection Regulation (GDPR). A rule-based DLP tool works by comparing content to the organization’s DLP policy, which defines how the organization labels, shares, and protects data without exposing it to unauthorized users. The tool can then apply protective actions such as encryption, access restrictions, and alerts. As a result of implementing a rule-based DLP tool, the most likely change is the reduction of risk likelihood, which is the probability of a risk event occurring. By detecting and preventing data breaches, exfiltration, or unwanted destruction of sensitive data, a rule-based DLP tool can lower the chance of such incidents happening and thus decrease the risk likelihood. The other options are less likely to change as a result of implementing a rule-based DLP tool. Risk velocity is the speed at which a risk event impacts an organization, which depends on factors such as the nature of the threat, the response time, and the recovery process. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives, which depends on factors such as the organization’s culture, strategy, and stakeholder expectations. Risk impact is the potential loss or damage that a risk event can cause to an organization, which depends on factors such as the severity of the incident, the extent of the exposure, and the resilience of the organization. While a rule-based DLP tool may have some influence on these factors, it is not the primary driver of change for them. References = Risk IT Framework, ISACA, 2022, p. 13
Which of the following would be MOST important for a risk practitioner to provide to the internal audit department during the audit planning process?
Closed management action plans from the previous audit
Annual risk assessment results
An updated vulnerability management report
A list of identified generic risk scenarios
Which of the following is the MOST important data source for monitoring key risk indicators (KRIs)?
Directives from legal and regulatory authorities
Audit reports from internal information systems audits
Automated logs collected from different systems
Trend analysis of external risk factors
The MOST effective way to increase the likelihood that risk responses will be implemented is to:
create an action plan
assign ownership
review progress reports
perform regular audits.
Which of the following attributes of a key risk indicator (KRI) is MOST important?
Repeatable
Automated
Quantitative
Qualitative
A key risk indicator (KRI) is a metric that helps organizations monitor and assess potential risks that may impact their operations, objectives, or performance. A good KRI should have certain characteristics that make it effective for risk management. One of these characteristics is repeatability, which means that the KRI can be measured consistently over time and across different situations. A repeatable KRI ensures that the risk data is reliable, comparable, and meaningful, and that the risk trends and patterns can be identified and analyzed. A repeatable KRI also supports the decision-making process by providing timely and accurate information on the risk level and status. Therefore, repeatability is the most important attribute of a KRI. References = Risk IT Framework, ISACA, 2022, p. 441
Which of the following is MOST effective against external threats to an organizations confidential information?
Single sign-on
Data integrity checking
Strong authentication
Intrusion detection system
 Strong authentication is the most effective measure against external threats to an organization’s confidential information. Confidential information is any data or information that is sensitive, proprietary, or valuable to the organization, and that should not be disclosed to unauthorized parties1. External threats are malicious actors outside the organization who attempt to gain unauthorized access to the organization’s networks, systems, and data, using various methods such as malware, hacking, or social engineering2. Strong authentication is a method of verifying the identity and legitimacy of a user or device before granting access to the organization’s resources or data3. Strong authentication typically involves the use of multiple factors or methods of authentication, such as passwords, tokens, biometrics, or certificates4. Strong authentication can prevent or reduce the risk of external threats to the organization’s confidential information, by making it more difficult and costly for the attackers to compromise the credentials or devices of the authorized users, and by limiting the access to the data or resources that are relevant and necessary for the users’ roles and responsibilities5. The other options are not the most effective measures against external threats to the organization’s confidential information, as they are either less secure or less relevant than strong authentication. Single sign-on is a method of allowing a user to access multiple systems or applications with a single set of credentials, without having to log in separately for each system or application6. Single sign-on can improve the user experience and convenience, as well as reduce the administrative burden and cost of managing multiple accounts and passwords. However, single sign-on is not the most effective measure against external threats to the organization’s confidential information, as it can also increase the risk of credential compromise or misuse, and create a single point of failure or attack for the attackers to access multiple systems or data. Data integrity checking is a method of ensuring that the data or information is accurate, complete, and consistent, and that it has not been altered or corrupted by unauthorized parties or processes. Data integrity checking can involve the use of techniques such as checksums, hashes, digital signatures, or encryption. Data integrity checking can enhance the quality and reliability of the data or information, as well as detect and prevent any unauthorized or malicious changes or tampering. However, data integrity checking is not the most effective measure against external threats to the organization’s confidential information, as it does not prevent or reduce the risk of data theft or leakage, and it does not verify the identity or legitimacy of the users or devices accessing the data. Intrusion detection system is a system that monitors the network or system activities and events, and detects and alerts any suspicious or malicious behaviors or anomalies that may indicate an attempted or successful breach or attack. Intrusion detection system can help to identify and respond to external threats to the organization’s networks, systems, and data, by providing visibility and awareness of the network or system status and activities, and by enabling timely and appropriate actions or countermeasures. However, intrusion detection system is not the most effective measure against external threats to the organization’s confidential information, as it is a reactive or passive system that does not prevent or block the attacks, and it may generate false positives or negatives that can affect its accuracy and efficiency. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1, Page 189.
Management has noticed storage costs have increased exponentially over the last 10 years because most users do not delete their emails. Which of the following can BEST alleviate this issue while not sacrificing security?
Implementing record retention tools and techniques
Establishing e-discovery and data loss prevention (DLP)
Sending notifications when near storage quota
Implementing a bring your own device 1BVOD) policy
According to the Risk and Information Systems Control documents, implementing record retention tools and techniques is the best solution in this scenario. Record retention involves managing the lifecycle of records, including their creation, usage, storage, and disposal. By implementing record retention policies, organizations can define how long emails and other data should be retained before being deleted. This helps in efficiently managing storage space and reducing unnecessary storage costs.
Establishing e-discovery and data loss prevention (DLP) (Option B) focuses more on legal and compliance aspects and may not directly address the issue of reducing storage costs. Sending notifications when near storage quota (Option C) is a reactive approach and may not prevent the exponential increase in storage costs. Implementing a bring your own device (BYOD) policy (Option D) is unrelated to the issue of email storage costs.
References = Risk and Information Systems Control Study Manual
A risk heat map is MOST commonly used as part of an IT risk analysis to facilitate risk:
communication
identification.
treatment.
assessment.
A risk heat map is a tool that shows the likelihood and impact of different risks on a matrix, using colors to indicate the level of risk. A risk heat map is most commonly used as part of an IT risk analysis to facilitate risk assessment, which is the process of estimating the probability and consequences of the risks, and comparing them against the risk criteria1. A risk heat map can help to visualize, communicate, and prioritize the risks, as well as to evaluate the effectiveness of the risk response actions2. The other options are not the best choices for describing the purpose of a risk heat map, as they are either less specific or less relevant than risk assessment. Risk communication is the process of sharing and exchanging information about the risks among the stakeholders3. A risk heat map can support risk communication by providing a clear and concise representation of the risks, but it is not the main objective of the tool. Risk identification is the process of finding, recognizing, and describing the risks that may affect the organization4. A risk heat map can help to identify the risks by categorizing them into different domains or sources, but it is not the primary function of the tool. Risk treatment is the process of selecting and implementing the appropriate measures to modify the risk5. A risk heat map can help to guide the risk treatment by showing the risk ratings and thresholds, but it is not the core purpose of the tool. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.1, Page 47.
Which of the following is the MOST important consideration when developing an organization's risk taxonomy?
Leading industry frameworks
Business context
Regulatory requirements
IT strategy
Which of the following is the MOST important consideration for a risk practitioner when making a system implementation go-live recommendation?
Completeness of system documentation
Results of end user acceptance testing
Variances between planned and actual cost
availability of in-house resources
End user acceptance testing is a process that verifies that a system or service meets the requirements and expectations of the end users, who are the actual or potential customers or beneficiaries of the system or service. End user acceptance testing is the final stage of testing before the system or service is deployed or released to the production environment. The results of end user acceptance testing are the most important consideration for a risk practitioner when making a system implementation go-live recommendation, as they indicate the quality, functionality, usability, and reliability of the system or service from the end user perspective. The results of end user acceptance testing can help to identify and resolve any defects, errors, or issues that may affect the performance, satisfaction, or acceptance of the system or service by the end users. The results of end user acceptance testing can also help to evaluate the benefits, value, and risks of the system or service for the end users and the organization. The other options are not the most important consideration for a risk practitioner when making a system implementation go-live recommendation, although they may be relevant and useful. The completeness of system documentation is a factor that affects the maintainability, supportability, and auditability of the system or service, but it does not measure the end user experience or satisfaction. The variances between planned and actual cost is a measure of the efficiency and budget management of the system or service development or implementation, but it does not reflect the end user needs or expectations. The availability of in-house resources is a resource that supports the system or service delivery and operation, but it does not ensure the end user acceptance or approval. References = CRISC Review Manual, pages 180-1811; CRISC Review Questions, Answers & Explanations Manual, page 87
During a routine check, a system administrator identifies unusual activity indicating an intruder within a firewall. Which of the following controls has MOST likely been compromised?
Data validation
Identification
Authentication
Data integrity
Authentication is a control that verifies the identity of a user or a system that tries to access a computer system or network. Authentication can be based on something the user or system knows (such as a password or a PIN), something the user or system has (such as a token or a smart card), or something the user or system is (such as a fingerprint or a retina scan). Authentication is a crucial control for preventing unauthorized or malicious access to a system or network, as well as for ensuring the accountability and traceability of the actions performed by the user or system. If the authentication control is compromised, it means that the user or system can bypass or break the verification process and gain access to the system or network without being identified or authorized. This can expose the system or network to various threats, such as data theft, data corruption, data leakage, or denial of service. Therefore, the authentication control has most likely been compromised if a system administrator identifies unusual activity indicating an intruder within a firewall. A firewall is a device or a software that monitors and filters the incoming and outgoing network traffic based on predefined rules and policies. A firewall can help to protect the system or network from external or internal attacks by blocking or allowing the traffic based on the source, destination, protocol, or content. However, a firewall cannot prevent an intruder from accessing the system or network if the intruder has already authenticated or impersonated a legitimate user or system. The other options are not the most likely controls to be compromised if a system administrator identifies unusual activity indicating an intruder within a firewall, although they may be affected or related. Data validation is a control that checks the accuracy, completeness, and quality of the data that is entered, processed, or stored by a system or a network. Data validation can help to prevent or detect data errors, anomalies, or inconsistencies that may affect the performance, functionality, or reliability of the system or network. However, data validation does not prevent or detect unauthorized or malicious access to the system or network, as it only focuses on the data, not the user or system. Identification is a control that assigns a unique identifier to a user or a system that tries to access a computer system or network. Identification can be based on a username, an email address, a phone number, or a certificate. Identification is a necessary but not sufficient control for preventing unauthorized or malicious access to a system or network, as it only declares who or what the user or system is, but does not prove it. Identification needs to be combined with authentication to verify the identity of the user or system. Data integrity is a control that ensures that the data is accurate, consistent, and complete throughout its lifecycle. Data integrity can be achieved by implementing various controls, such as encryption, hashing, checksum, digital signature, or backup. Data integrity can help to protect the data from unauthorized or accidental modification, deletion, or corruption that may affect the value, meaning, or usability of the data. However, data integrity does not prevent or detect unauthorized or malicious access to the system or network, as it only protects the data, not the user or system. References = CRISC Review Manual, pages 164-1651; CRISC Review Questions, Answers & Explanations Manual, page 952; What is Authentication? - Definition from Techopedia3; What is a Firewall? - Definition from Techopedia4
Which of the following should be the PRIMARY input when designing IT controls?
Benchmark of industry standards
Internal and external risk reports
Recommendations from IT risk experts
Outcome of control self-assessments
The primary input when designing IT controls should be internal and external risk reports. IT controls are specific activities performed by persons or systems to ensure that business objectives are met, and that the confidentiality, integrity, and availability of data and the overall management of the IT function are ensured1. Designing IT controls means creating and implementing the appropriate measures or actions to reduce the likelihood or impact of the IT risks that may affect the organization2. Internal and external risk reports are documents that provide information and analysis on the current and potential IT risks that the organization faces, as well as their sources, drivers, consequences, and responses3. Internal risk reports are generated by the organization itself, such as by the IT risk management function, the internal audit function, or the business units. External risk reports are obtained from external sources, such as regulators, industry associations, or third-party service providers. Internal and external risk reports are the primary input when designing IT controls, because they help to:
An effective control environment is BEST indicated by controls that:
minimize senior management's risk tolerance.
manage risk within the organization's risk appetite.
reduce the thresholds of key risk indicators (KRIs).
are cost-effective to implement
 According to the CRISC Review Manual (Digital Version), an effective control environment is best indicated by controls that manage risk within the organization’s risk appetite, as this reflects the alignment of the control objectives and activities with the organization’s strategic goals and risk preferences. The risk appetite is the amount and type of risk that the organization is willing to accept in pursuit of its objectives. Managing risk within the organization’s risk appetite helps to:
References = CRISC Review Manual (Digital Version), Chapter 2: IT Risk Assessment, Section 2.3: IT Risk Assessment Process, pp. 93-941
A risk practitioner has observed that there is an increasing trend of users sending sensitive information by email without using encryption. Which of the following would be the MOST effective approach to mitigate the risk associated with data loss?
Implement a tool to create and distribute violation reports
Raise awareness of encryption requirements for sensitive data.
Block unencrypted outgoing emails which contain sensitive data.
Implement a progressive disciplinary process for email violations.
 According to the CRISC Review Manual (Digital Version), the most effective approach to mitigate the risk associated with data loss due to users sending sensitive information by email without using encryption is to block unencrypted outgoing emails which contain sensitive data. This is an example of a risk avoidance strategy, which aims to eliminate the risk by removing the source of the risk or the activity that causes the risk. Blocking unencrypted outgoing emails which contain sensitive data can prevent unauthorized access, disclosure, modification or destruction of the sensitive information, and thus protect the confidentiality, integrity and availability of the data. This approach can also deter users from violating the encryption policy and enforce compliance with the security standards and regulations.
References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 167-1681
Calculation of the recovery time objective (RTO) is necessary to determine the:
time required to restore files.
point of synchronization
priority of restoration.
annual loss expectancy (ALE).
The recovery time objective (RTO) is a metric that defines the maximum acceptable time frame for restoring a system or service after a disruption. The RTO is determined by the business impact and requirements of the system or service, as well as the risk appetite and tolerance of the organization. The calculation of the RTO is necessary to determine the priority of restoration, which means the order and urgency of recovering the systems or services based on their criticality and dependency. The priority of restoration helps to optimize the use of resources and minimize the downtime and losses during a disaster recovery. The other options are not the correct answers, as they are not the main purpose of calculating the RTO. The time required to restore files is a factor that affects the RTO, but it is not the outcome of the RTO calculation. The point of synchronization is the point in time to which the data must be restored to ensure consistency and accuracy. The point of synchronization is related to the recovery point objective (RPO), not the RTO. The annual loss expectancy (ALE) is a measure of the expected loss per year due to a specific risk or threat. The ALE is calculated by multiplying the single loss expectancy (SLE) by the annualized rate of occurrence (ARO). The ALE is not directly related to the RTO, although it may influence the RTO determination. References = Recovery Time Objective (RTO) - What Is It, Examples, Calculation; CRISC Review Manual, pages 197-1981; CRISC Review Questions, Answers & Explanations Manual, page 842
An organization is planning to engage a cloud-based service provider for some of its data-intensive business processes. Which of the following is MOST important to help define the IT risk associated with this outsourcing activity?
Service level agreement
Customer service reviews
Scope of services provided
Right to audit the provider
According to the CRISC Review Manual (Digital Version), the right to audit the provider is the most important factor to help define the IT risk associated with outsourcing activity to a cloud-based service provider, as it enables the organization to verify the compliance and performance of the provider with the contractual obligations and service level agreements. The right to audit the provider helps to:
References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 176-1771
An audit reveals that several terminated employee accounts maintain access. Which of the following should be the FIRST step to address the risk?
Perform a risk assessment
Disable user access.
Develop an access control policy.
Perform root cause analysis.
Periodically reviewing and updating a risk register with details on identified risk factors PRIMARILY helps to:
minimize the number of risk scenarios for risk assessment.
aggregate risk scenarios identified across different business units.
build a threat profile of the organization for management review.
provide a current reference to stakeholders for risk-based decisions.
A risk practitioner discovers several key documents detailing the design of a product currently in development have been posted on the Internet. What should be the risk practitioner's FIRST course of action?
invoke the established incident response plan.
Inform internal audit.
Perform a root cause analysis
Conduct an immediate risk assessment
According to the CRISC Review Manual (Digital Version), the first course of action when a risk practitioner discovers several key documents detailing the design of a product currently in development have been posted on the Internet is to invoke the established incident response plan, which is a set of policies, procedures, and resources that enable the organization to respond to and recover from an incident that affects the confidentiality, integrity, or availability of its IT assets and processes. Invoking the incident response plan helps to:
References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.1: IT Risk Monitoring, pp. 219-2201
Which of the following is the MAIN reason for documenting the performance of controls?
Obtaining management sign-off
Demonstrating effective risk mitigation
Justifying return on investment
Providing accurate risk reporting
The main reason for documenting the performance of controls is to provide accurate risk reporting. Risk reporting is a process that communicates and discloses the relevant and reliable information about the risks and their management to the stakeholders and decision makers. Risk reporting is an essential component of the risk management process, as it helps to monitor and evaluate the effectiveness and efficiency of the risk identification, assessment, response, and monitoring activities, as well as to support and inform the risk governance and oversight functions. Documenting the performance of controls is a technique that records and tracks the results and outcomes of the controls that are implemented to address the risks, such as the control objectives,
Which of the following BEST provides an early warning that network access of terminated employees is not being revoked in accordance with the service level agreement (SLA)?
Updating multi-factor authentication
Monitoring key access control performance indicators
Analyzing access control logs for suspicious activity
Revising the service level agreement (SLA)
According to the CRISC Review Manual (Digital Version), monitoring key access control performance indicators is the best way to provide an early warning that network access of terminated employees is not being revoked in accordance with the service level agreement (SLA), as it measures the effectiveness and efficiency of the access control process and its alignment with the SLA objectives and requirements. The SLA is a contract that defines the expectations and responsibilities of the service provider and the service recipient in terms of the quality, availability, and scope of the service. Monitoring key access control performance indicators helps to:
References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.1: IT Risk Monitoring, pp. 217-2181
Which of the following is MOST helpful to ensure effective security controls for a cloud service provider?
A control self-assessment
A third-party security assessment report
Internal audit reports from the vendor
Service level agreement monitoring
A third-party security assessment report is the most helpful to ensure effective security controls for a cloud service provider, because it provides an independent and objective evaluation of the cloud provider’s security posture, policies, and practices. A third-party security assessment report can help to verify and validate the cloud provider’s compliance with the relevant standards, regulations, and best practices, such as ISO 27001, PCI DSS, NIST, or CSA. A third-party security assessment report can also help to identify and address any gaps, weaknesses, or vulnerabilities in the cloud provider’s security controls, and to provide recommendations and guidance for improvement. A third-party security assessment report can also help to increase the trust and confidence of the cloud customers, and to facilitate the due diligence and risk management processes. The other options are less helpful to ensure effective security controls for a cloud service provider. A control self-assessment is a process that enables the cloud provider to assess its own security controls, using a predefined framework or questionnaire. However, a control self-assessment may not be as reliable or comprehensive as a third-party security assessment report, as it may be biased, incomplete, or inaccurate, and it may not cover all the aspects or dimensions of security. Internal audit reports from the vendor are documents that provide the results and findings of the internal audits conducted by the cloud provider’s own auditors, to verify and validate the effectiveness and efficiency of the security controls. However, internal audit reports from the vendor may not be as credible or trustworthy as a third-party security assessment report, as they may be influenced by the cloud provider’s interests, objectives, or agenda, and they may not follow the same standards or criteria as the external auditors. Service level agreement monitoring is a process that measures and evaluates the performance and availability of the cloud services, based on the predefined metrics and targets agreed between the cloud provider and the cloud customer. However, service level agreement monitoring may not be sufficient or relevant to ensure effective security controls for a cloud service provider, as it may not address the security aspects or requirements of the cloud services, such as confidentiality, integrity, or accountability, and it may not reflect the actual security risks or incidents that may occur in the cloud environment. References = Cloud Security Controls: Key Elements and 4 Control Frameworks 1
A risk practitioner is organizing a training session lo communicate risk assessment methodologies to ensure a consistent risk view within the organization Which of the following i< the MOST important topic to cover in this training?
Applying risk appetite
Applying risk factors
Referencing risk event data
Understanding risk culture
Applying risk appetite is the most important topic to cover in a training session to communicate risk assessment methodologies. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. It is a key element of the risk management framework and influences the risk assessment process. Applying risk appetite helps to ensure a consistent risk view within the organization by providing a common basis for evaluating and prioritizing risks, aligning risk responses with business goals, and communicating risk information to stakeholders. The other options are not the most important topics to cover in a training session to communicate risk assessment methodologies, although they may be relevant and useful. Applying risk factors is a technique to quantify or qualify the likelihood and impact of risks based on predefined criteria or scales. Referencing risk event data is a source of information to identify and analyze risks based on historical or current incidents. Understanding risk culture is a factor that affects the risk behavior and attitude of the organization and its people. References = CRISC Review Manual, pages 40-411; CRISC Review Questions, Answers & Explanations Manual, page 612
TESTED 06 May 2024