CRISC Certified in Risk and Information Systems Control Question and Answers

A control assessment is the process of evaluating the design and effectiveness of controls that are implemented to mitigate risks. A control assessment can help identify the root causes of data loss, thegaps in the existing controls, and the potential solutions to improve the control environment. A control assessment should be conducted after identifying a high probability of data loss in a system, as it can provide valuable information for risk response and reporting. References = Risk and Information Systems Control Study Manual, Chapter 3: Risk Response and Mitigation, Section 3.2: Control Assessment, p. 147-149.

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 efficientmanner, 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 maturity model is a framework that describes the stages or levels of development and improvement of a certain domain, such as a process, a function, or an organization. A maturity model is most useful to an organization when it provides a reference for progress, meaning that it helps the organization to assess its current state, identify its strengths and weaknesses, set its goals and objectives, and measure itsperformance and improvement over time. A maturity model can also help the organization to compare itself with best practices and standards, but benchmarking against other organizations is not its primary purpose. A maturity model can also help the organization to manage its risks, but defining a qualitative measure of risk or providingrisk metrics is not its main function. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.2.1, p. 118-119

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

An increase in the number of security incidents is the most significant indicator of the need to perform a penetration test, because it suggests that the organization’s IT systems or networks are vulnerable to attacks and may not have adequate security controls in place. A penetration test is a simulated attack on an IT system or network to identify and exploit its weaknesses and evaluate its security posture. A penetration test can help to discover and remediate the vulnerabilities that may have caused or contributed to the security incidents, and to prevent or reduce the likelihood and impact of future incidents. An increase in the number of high-risk audit findings, an increase in the percentage of turnover in IT personnel, and an increase in the number of infrastructure changes are all possible indicators of the need to perform a penetration test, but they are not the most significant indicator, as they do not directly reflect the actual or potential occurrence of security incidents. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2, page 200

 Risk tolerance is the best term to describe the situation where an organization has agreed to a 99% availability for its online services and will not accept availability that falls below 98.5%. Risk tolerance is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk tolerance defines the acceptable variation in outcomes related to specific performance measures, such as availability, reliability, or security. Risk tolerance is usually expressed as a range, such as 99% +/- 0.5%. Risk mitigation, risk evaluation, and risk appetite are not the correct terms to describe this situation, because they refer to different aspects of risk management, such as reducing, assessing, or pursuing risk, respectively. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.1, page 1-8.

ï‚· Data Protection Controls:

Evaluating existing data protection controls involves reviewing and assessing the measures in place to protect sensitive data from breaches.

This includes technical, administrative, and physical controls designed to prevent unauthorized access, use, disclosure, disruption, modification, or destruction of data.

ï‚· Steps in Evaluation:

Review Current Controls:Assess the effectiveness of encryption, access controls, data masking, and other security measures.

Identify Gaps:Determine if there are any weaknesses or vulnerabilities in the current controls.

Recommend Improvements:Suggest enhancements or additional controls to address identified gaps.

ï‚· Importance of Evaluation:

Provides the board with a clear understanding of the organization’s current security posture and exposure to data breaches.

Helps in identifying areas where additional controls or improvements are needed to mitigate risks effectively.

ï‚· Comparing Other Actions:

Reassess Risk Appetite and Tolerance Levels:Important but secondary to understanding current controls.

Evaluate Data Sensitivity:Useful but should be part of a broader assessment of existing controls.

Review Data Retention Policy:Relevant for compliance but not directly addressing the immediate concern of data breaches.

ï‚· References:

The CRISC Review Manual discusses the importance of evaluating data protection controls to understand and mitigate risks (CRISC Review Manual, Chapter 4: Information Technology and Security, Section 4.4 Data Protection and Privacy)​​.

When an organization restructures its business processes, the first step in revising the BCP is to identify new potentially disruptive scenarios that may affect the continuity of the critical functions and processes. This can be done by conducting a risk assessment or a business impact analysis (BIA) to determine the likelihood and impact of various threats and vulnerabilities onthe organization’s objectives and operations. By identifying new potentially disruptive scenarios, the organization can then update its recovery strategies, objectives, and plans accordingly.

A project sponsor is the person or group who provides the financial, political, or organizational support for a project, and who has the authority to approve or reject the project’s objectives, scope, budget, schedule, and deliverables.

The primary recipient of reports showing the progress of a current IT risk mitigation project should be the project sponsor, because they are ultimately responsible for the success or failure of the project, and they need to be informed of the project’s status, issues, risks, and achievements on a regular basis.

The other options are not the primary recipients of reports showing the progress of a current IT risk mitigation project. They are either secondary or not essential for project reporting.

The references for this answer are:

Risk IT Framework, page 21

Information Technology & Security, page 15

Risk Scenarios Starter Pack, page 13

ï‚· Enterprise Risk Management (ERM):

ERM involves a comprehensive approach to identifying, assessing, managing, and monitoring risks across an organization. Effective governance of organizational assets is a key component.

ï‚· Importance of a Risk Profile:

Developing a detailed risk profile is the first step in supporting ERM implementation. It provides a clear understanding of the organization's risk landscape, including the types of risks, their potential impact, and likelihood.

A risk profile helps in prioritizing risks, allocating resources, and establishing appropriate risk management strategies.

ï‚· Steps to Develop a Risk Profile:

Identify all organizational assets and their importance to business operations.

Assess the vulnerabilities and threats associated with each asset.

Determine the potential impact and likelihood of risk events.

Document the findings to create a comprehensive risk profile.

ï‚· Supporting Implementation:

A detailed risk profile informs decision-makers and supports the development of policies, controls, and procedures to mitigate identified risks.

It serves as a foundation for continuous monitoring and improvement of the risk management program.

ï‚· Other Options:

Hiring experienced resources, scheduling internal audits, and conducting risk assessments are essential actions but come after establishing a detailed risk profile. The risk profile provides the necessary information to guide these activities effectively.

ï‚· References:

The CRISC Review Manual emphasizes the importance of developing a detailed risk profile as a foundational step in the ERM process (CRISC Review Manual, Chapter 1: Governance, Section 1.6.5 Asset Valuation)​​.

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.

ï‚· User Access Management:

Effective user access management ensures that accounts are properly created, managed, and disabled to prevent unauthorized access.

Monitoring the percentage of accounts disabled within the SLA helps ensure that the organization responds promptly to changes in user status, reducing the risk of unauthorized access.

ï‚· Importance of KPI:

This KPI measures the efficiency and effectiveness of the user access management process by tracking how quickly accounts are disabled when no longer needed.

A high percentage indicates timely action, reducing the risk of orphaned accounts being exploited.

ï‚· Comparing Other KPIs:

Proportion of End Users Having More Than One Account:Useful but not directly related to the timeliness of disabling accounts.

Proportion of Privileged to Non-Privileged Accounts:Important for monitoring privilege distribution but does not measure process efficiency.

Percentage of Accounts Not Activated:Indicates potential inefficiencies but does not address the risk of active accounts.

ï‚· References:

The CRISC Review Manual highlights the importance of timely account management to mitigate access risks (CRISC Review Manual, Chapter 3: Risk Response and Mitigation, Section 3.3 User Access Management)​​.

Risk policies provide the best indication of an organization’s risk tolerance, as they define the acceptable level of risk and the risk appetite of the organization. Risk policies also establish the roles and responsibilities, methodologies, and reporting mechanisms for risk management. Risk sharing strategy, risk transfer agreements, and risk assessments are not the best indicators of risk tolerance, as they are more related to risk response, risk mitigation, and risk identification, respectively. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.1.2, page 19.

The percentage of projects with developed controls on scope creep is the best key performance indicator (KPI) to measure how effectively risk management practices are embedded in the project management office (PMO), as it reflects the ability of the PMO to identify, assess, and respond to the risk of project scope changes that may affect the project objectives, budget, and schedule. The other options are not the best KPIs, as they do not directly measure the effectiveness of risk management practices in the PMO, but rather the outcomes or consequences of risk management decisions. References = CRISC Review Manual, 7th Edition, page 110.

The most important topic to cover in a risk awareness training program for all staff is the policy compliance requirements and exceptions process. This topic would help the staff to understandthe enterprise’s risk policies, standards, and procedures, and how they apply to their roles and responsibilities. It would also help the staff to know the process for requesting, approving, and documenting any exceptions to the policies, and the consequences of non-compliance. This topic would enhance the staff’s risk awareness and responsibility, and foster a culture of compliance and accountability within the enterprise. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.4.1, page 2491

According to the CRISC Review Manual1, cost of controls is the amount of money or resources that an organization is willing to spend to implement and maintain risk responses. Cost of controls is one of the factors that influences the risk appetite of an organization, as it reflects thetrade-off between the benefits and costs of risk responses. Cost of controls helps to determine the optimal level of risk that an organization can accept in pursuit of its objectives, and to align the risk responses with the organization’s strategy, goals, and culture. References = CRISC Review Manual1, page 193.

The percentage of IT systems routinely running at peak utilization serves as a leading indicator of potential future availability issues. Systems operating at or near full capacity are more susceptible to performance degradation or outages, which can impede their ability to meet service level agreements (SLAs). Monitoring this KRI allows organizations to proactively address capacity constraints before they impact system availability.

The best way to mitigate the high cost of retrieving electronic evidence associated with potential litigation is to implement policies and procedures for data retention and destruction. Data retention and destruction policies and procedures define the criteria, methods, and schedules for retaining and disposing of electronic data. They help to ensure that the electronic data is stored, managed, and deleted in a consistent, secure, and compliant manner. They also help to reduce the volume, complexity, and cost of retrieving electronic evidence, as they limit the scope, duration, and frequency of the data preservation and discovery process. The other options are not as effective as data retention and destruction policies and procedures, as they are related to the collection, analysis, or classification of electronic data, not the retention or destruction of electronic data. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

The organization’s information security manager is responsible for IT security controls that are outsourced to an external service provider. The information security manager is accountable for ensuring that the security policies and standards of the organization are followed by the service provider, and that the security objectives and requirements are met. The information security manager is also responsible for monitoring and evaluating the security performance and compliance of the service provider, and for managing the security risks and incidents that may arise from the outsourcing arrangement. The organization’s risk function, the service provider’s IT management, and the service provider’s information security manager are not responsible for IT security controls that are outsourced, as they have different roles and responsibilities in the outsourcing process. 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 651.

According to the CRISC Review Manual, ethics management is the process of ensuring that the enterprise’s values and principles are embedded in its culture and practices. Ethics management helps to promote trust, integrity, accountability, and transparency among the stakeholders. One of the key elements of ethics management is to encourage the reporting of IT risk issues and incidents, and to protect the whistleblowers from any retaliation or negative consequences. Therefore, if employees do not report IT risk issues for fear of consequences, it is the strongest indication that the organization has ethics management issues, as it implies that there is a lack of trust, openness, and support in the organization. The other options are not the strongest indications of ethics management issues, as they are related to other aspects of IT governance,such as audit independence, policy compliance, and risk management framework. References = CRISC Review Manual, 7th Edition, Chapter 1, Section 1.3.2, page 34.

The primary concern for an organization planning to transfer and store its customer data with an offshore cloud service provider is data privacy. Data privacy is the protection of personal information fromunauthorized or unlawful access, use, disclosure, or transfer. Data privacy is governed by various laws, regulations, and standards that vary across different jurisdictions and sectors. An organization that transfers and stores its customer data with an offshore cloud service provider should ensure that the data privacy rights and obligations of the customers, the organization, and the cloud service provider are clearly defined and agreed upon, and that the data is protected according to the applicable data privacy requirements. An organization should also conduct due diligence and risk assessment on the offshore cloud service provider, and monitor and audit its performance and compliance on a regular basis. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.1, page 127123

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

According to the CRISC Review Manual1, controls are the policies, procedures, practices, and organizational structures that are designed and implemented to manage risk. The most important factor when defining controls is to align them with the business objectives, as this helps to ensure that the controls support the achievement of the organization’s strategy, goals, and values. Aligning controls with business objectives also helps to optimize the benefits and costs of controls, and to prioritize and allocate resources for control implementation and maintenance. References = CRISC Review Manual1, page 202.

ï‚· Risk Appetite:

Risk appetite is the amount and type of risk that an organization is willing to take in order to meet its objectives. It reflects the organization’s risk tolerance and guides decision-making at all levels.

ï‚· Impact of Market Changes:

A change in the market situation can alter the risk landscape, potentially affecting the organization’s ability to achieve its objectives. This might necessitate a reassessment of what level of risk is acceptable.

Senior management needs to ensure that the risk appetite remains aligned with the new market conditions and organizational goals.

ï‚· Reevaluation Process:

Reevaluating the risk appetite involves assessing the organization's capacity to bear risk and determining if the current acceptable risk levels are still appropriate.

This might involve more conservative or aggressive risk-taking strategies based on the new market dynamics.

ï‚· Other Considerations:

Risk Classification:This categorizes risks but does not directly address changes in acceptable risk levels.

Risk Policy:While important, the policy outlines the approach to managing risk and is influenced by the risk appetite.

Risk Strategy:This defines how risks are managed but should be aligned with the risk appetite.

ï‚· References:

The CRISC Review Manual emphasizes the importance of aligning risk appetite with the organization’s strategic objectives and market conditions (CRISC Review Manual, Chapter 1: Governance, Section 1.10 Risk Appetite, Tolerance, and Capacity) .

Low-probability, high-impact events are those that have a low chance of occurring but would cause significant harm if they do. These events are often difficult to predict and quantify, but they can have a major impact on the organization’s objectives, reputation, or operations. By including these events in a risk assessment, the organization can develop understandable and realistic risk scenarios that reflect the potential consequences of different outcomes1. This can help the organization to prioritize its risk management activities and allocate its resources accordingly.

References = Risk and Information Systems Control Study Manual, Chapter 5: Risk Assessment Process

 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

The next step for the risk practitioner after identifying risk owners and responses for newly identified risk scenarios is to update the risk register with the results. The risk register is a document that records the details of the risks, such as their sources, causes, consequences, likelihood, impact, and responses. By updating the risk register with the results of the risk workshop, the risk practitioner can ensure that the risk information is current, accurate, and complete, and that the risk owners and responses are clearly defined and communicated. Developing a mechanism for monitoring residual risk, preparing a business case for the response options, and identifying resources for implementing responses are possible steps that may follow the updating of the risk register, but they are not the next step. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

 The production environment is the environment where the application is deployed and used by the end users. The production environment should be protected from unauthorized or unintended changes that could compromise the availability, integrity, or confidentiality of the application and its data. Developers have access to the production environment presents the greatest risk to an application, as it could allow them tobypass the change management process, introduce errors or vulnerabilities, or manipulate the application or its data for malicious purposes. The other options are not as risky as developers having access to the production environment, as they involve different aspects of the application lifecycle:

Application controls are manual means that the application relies on human intervention to perform some functions or validations, such as data entry, reconciliation, or authorization. This could increase the risk of human error, fraud, or inefficiency, but it does not directly affect the production environment.

Application development is outsourced means that the application is developed by a third party, such as a vendor or a contractor. This could increase the risk of quality issues, contractual disputes, or intellectual property rights, but it does not directly affect the production environment.

Source code is escrowed means that the source code of the application is deposited with a trusted third party, such as a lawyer or a bank. This could provide assurance and continuity in case the original developer is unable or unwilling to maintain or support the application, but it does not directly affect the production environment. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.1.1.1, pp. 144-145.

The most appropriate action for the risk manager to take after undertaking a risk assessment of a production system is to inform the process owner of the concerns and propose measures to reduce them, as the process owner has the authority and responsibility to manage the production system and its associated risks and controls, and to decide on the optimal risk response. Recommending a program that minimizes the concerns of that production system, informing the IT manager of the concerns and proposing measures to reduce them, and informing the development team of the concerns and together formulating risk reduction measures are not the most appropriate actions, as they may not involve the process owner, who is the key stakeholder and decision maker for the production system and its risks. References = CRISC Review Manual, 7th Edition, page 101.

A change management process is a set of procedures and activities that aim to ensure that changes in an organization’s IT systems and services are implemented in a controlled and coordinated manner. The effectiveness of a change management process can be measured by how well it reduces the risks and costs associated with changes, and how well it supports the business objectives and customer expectations. One of the best metrics to demonstrate the effectiveness of a change management process is the percent of unauthorized changes. Unauthorized changes are changes that are made without following the established change management process, such as obtaining approval, documenting the change, testing the change, and communicating the change. Unauthorized changes can introduce errors, defects, security breaches, and disruptions to the IT systems and services, and can negatively affect the business performance and customer satisfaction. Therefore, a low percent of unauthorized changes indicates that the change management process is effective in ensuring that changes are properly planned, approved, executed, and monitored. The other options are not the best metrics to demonstrate the effectiveness of a change management process, as they do not directly reflect the quality and control of the changes. An increase in the frequency of changes may indicate that the organization is agile and responsive to the changing business needs and customer demands, but it does not necessarily mean that the changes are well-managed and beneficial. An increase in the number of emergency changes may indicate that the organization is able to handle urgent and critical situations, but it may also suggest that the organization is reactive and lacks proper planning and analysis of the changes. The average time to complete changes may indicate the efficiency and speed of the change management process, but it does not measure the effectiveness and value of the changes. References = CRISC Review Manual, pages 156-1571; CRISC Review Questions, Answers & Explanations Manual, page 712

ï‚· Zero Trust Architecture:

Zero Trust is a security concept centered on the belief that organizations should not automatically trust anything inside or outside their perimeters and must verify everything attempting to connect to their systems.

ï‚· Basic Tenets of Zero Trust:

The primary principle is "never trust, always verify." This means every access request is authenticated, authorized, and encrypted regardless of where it originates.

Zero Trust requires securing all communication, whether it occurs within the internal network or comes from external sources. This approach prevents lateral movement by potential attackers who have breached the network perimeter.

ï‚· Key Components:

Authentication and Authorization:Continuous verification of user identities and access privileges.

Microsegmentation:Dividing the network into small, isolated segments to limit the spread of threats.

Encryption:Ensuring that all data, whether at rest or in transit, is encrypted to protect its confidentiality and integrity.

ï‚· Other Options:

Incoming Traffic Inspection:While important, this is just one aspect of Zero Trust.

Security Frameworks and Libraries:These are tools and guidelines to implement security but do not define the core tenets of Zero Trust.

Digital Identities:Implementing digital identities is part of the broader Zero Trust strategy but not a standalone tenet.

ï‚· References:

The CISSP Study Guide explains the Zero Trust architecture and its emphasis on securing all communications regardless of network location (Sybex CISSP Study Guide, Chapter 8: Principles of Security Models, Design, and Capabilities)​​.

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:

A. The alternative site is a hot site with equipment ready to resume processing immediately is a consideration that relates to the availability and readiness of the alternative site, but it does not ensure that the site is safe and secure from an earthquake. A hot site is a type of alternative site that has the necessary hardware, software, and network components to resume the information systems operations with minimal or no downtime. However, if the hot site is on the same fault asthe primary site, it may not be accessible or functional after an earthquake, and the company may lose both sites and the data stored on them.

B. The contingency plan provides for backup media to be taken to the alternative site is a consideration that relates to the integrity and recoverability of the data, but it does not ensure that the site is safe and secure from an earthquake. Backup media are devices or systems that store copies of the data and information that are essential for the organization’s operations. Taking backup media to the alternative site can help the company to restore its data and resume its operations in case the primary site is damaged or destroyed. However, if the alternative site is on the same fault as the primary site, it may not be accessible or functional after an earthquake, and the company may lose both sites and the backup media.

C. The contingency plan for high priority applications does not involve a shared cold site is a consideration that relates to the performance and reliability of the alternative site, but it does not ensure that the site is safe and secure from an earthquake. A shared cold site is a type of alternative site that has the necessary space and infrastructure to accommodate the information systems operations, but does not have the hardware, software, or network components installed. A shared cold site is shared by multiple organizations, and may not be available or suitable for the company’s high priority applications, which require more resources and customization. However, if the alternative site is on the same fault as the primary site, it may not be accessible or functional after an earthquake, and the company may lose both sites and the ability to resume its high priority applications. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 115. How to conduct a contingency planning process - IFRC, CP-4(2): Alternate Processing Site - CSF Tools - Identity Digital, Information System Contingency Planning Guidance - ISACA

The most concerning issue when reviewing the results of an independent control assessment to determine the effectiveness of a vendor’s control environment is that the controls had recurring noncompliance. This indicates that the vendor’s controls are not operating as intended or designed, and that the vendor is not taking corrective actions to address the control deficiencies. This can increase the risk exposure and liability for the organization that outsources the service or function to the vendor. The report being provideddirectly from the vendor, the risk associated with multiple control gaps being accepted, and the control owners disagreeing with the auditor’s recommendations are other possible issues, but they are not as critical as the recurring noncompliance. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

The best way to ensure that access remains appropriate for an organization that practices the principle of least privilege is to review user access rights on a regular basis by obtaining an access control matrix and approval from the user’s manager. An access control matrix is a table that shows the access rights and permissions of each user or role for each resource or function. An access control matrix helps to verify that the users have the minimum level of access required to perform their duties, and to identify any unauthorized or excessive access rights. Approval from the user’s manager helps to confirm that the user’s access rights are consistent with their current role and responsibilities, and to authorize any changes or exceptions as needed. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.2, page 1281

Service level agreements (SLA) are contracts that define the expected level of performance and quality of service that an IT service provider will deliver to its customers. SLA are the best indicators that an organization has implemented IT performance requirements, as they specifythe measurable and verifiable criteria that the IT service provider must meet or exceed, such as availability, reliability, security, and responsiveness. SLA also establish the roles and responsibilities of the parties involved, the methods of monitoring and reporting the service performance, and the consequences of non-compliance or breach of the agreement. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 232. CRISC by Isaca Actual Free Exam Q&As, Question 9. CRISC Sample Questions 2024, Question 232. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 232.

 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:

It verifies that the system and its controls meet the design specifications and standards, and comply with the relevant laws, regulations, and contractual obligations.

It identifies and measures the actual or potential benefits and value of the system and its controls, such as improved efficiency, reliability, or quality.

It detects and analyzes any issues, gaps, or weaknesses in the system and its controls, such as errors, inconsistencies, or vulnerabilities.

It provides recommendations and action plans to address the identified issues, gaps, or weaknesses, and to improve or enhance the system and its controls.

It communicates and reports the results and findings of the review to the relevant stakeholders, and solicits their feedback and suggestions.

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

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.

Project risk register: A document that records the identified risks, their likelihood, impact, and mitigation strategies for a project1.

Project steering committee: A group of senior stakeholders and experts who oversee and support a project from a higher level2.

Risk mitigation actions: The measures taken to prevent, reduce, or transfer the risks that may affect a project3.

The most important objective of regularly presenting the project risk register to the project steering committee is to track the status of risk mitigation actions. Tracking the status of risk mitigation actions can help the project steering committee to:

Monitor and measure the performance and effectiveness of the risk management process and controls

Evaluate the progress and outcomes of the risk mitigation actions against the project goals and objectives

Identify and resolve any issues, challenges, or gaps in the risk mitigation actions

Provide guidance, feedback, and support to the project manager and the project team

Adjust or revise the risk mitigation actions as needed to reflect the changes in the project scope, schedule, budget, or environment

The other options are not the most important objective of regularly presenting the project risk register to the project steering committee, although they may be relevant or beneficial. Allocating budget for resolution of risk issues, which means assigning financial resources to address and resolve the risks that may affect a project, may be a part of the risk management process, but it is not the primary purpose of presenting the project risk register, which is more focused on tracking and reporting the risk status and actions. Determining if new risk scenarios have been identified, which means finding out if there are any additional or emerging risks that may impact a project, may be a useful outcome of presenting the project risk register, but it is not the main objective, which is more concerned with tracking and reporting the existing risk status and actions. Ensuring the project timeline is on target, which means verifying that the project is progressing according to the planned schedule and milestones, may be a benefit of presenting the project risk register, but it is not the key objective, which is more related to tracking and reporting the risk status and actions.

References = Risk Register: A Project Manager’s Guide with Examples [2023] • Asana, Project Steering Committee: Roles, Best Practices, Challenges, Risk Mitigation: Definition, Strategies, and Examples

According to the CRISC Review Manual, the most important reason for implementing change control procedures is to ensure that only approved changes are implemented, because it helps to prevent or minimize the risk of unauthorized or unintended changes that may affect the stability, security, or performance of the IT systems and processes. Change control procedures are the steps and activities that are followed to manage the initiation, review, approval, implementation, and verification of changes. Change control procedures also help to ensure that the changes are aligned with the business requirements and objectives, and that the changes are documented and communicated to the stakeholders. The other options are not the most important reason for implementing change control procedures, as they are related to other benefits or outcomes of the change control process. Timely evaluation of change events is the reason for implementing change management, which is the process of identifying, analyzing, and responding to the changes that may affect the IT systems and processes. An audit trail is the outcome of implementing change control procedures, as it provides a record of the changes and their impacts. Logging emergency changes is the exception of implementing change control procedures, as it allows for bypassing the normal approval process in case of urgent or critical changes. References = CRISC Review Manual, 7th Edition, Chapter 4, Section 4.2.1, page 177.

The maturity of organizational risk management refers to the degree to which risk management is embedded and integrated into the organization’s culture, processes, and decision-making1. A higher level of maturity implies that the organization has a clear and consistent understanding ofits risk appetite and tolerance, and that it can effectively identify, assess, respond, monitor, and communicate risks2.

The best way to address the issue of participants focusing on the financial cost to mitigate risk rather than choosing the most appropriate response is to raise the maturity of organizational risk management. This can help to:

Ensure that risk management is aligned with the organization’s strategic objectives and values, and that risk responses are based on the potential impact and likelihood of risks, not just on the cost of mitigation

Foster a risk-aware culture that encourages proactive and collaborative risk management, and that recognizes and rewards good risk management practices

Provide adequate training and guidance for risk management roles and responsibilities, and ensure that risk management skills and competencies are developed and maintained

Implement a robust and consistent risk management framework, methodology, and tools that support the risk management process and enable continuous improvement and learning

Enhance the quality and reliability of risk information and reporting, and ensure that risk management performance and outcomes are measured and evaluated3

References = Risk Maturity Model - Wikipedia, Risk Maturity Model - ISACA, Risk Maturity Model - IRM

The most comprehensive information for developing a risk profile for a system is the risk assessment results. A risk assessment is a process that identifies, analyzes, and evaluates the risks that could affect the system’s objectives or operations. A risk assessment provides comprehensive information for developing a risk profile, because it helps to determine the likelihood and impact of the risks, and to prioritize them based on their severity and relevance. Arisk 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 profile is a document that summarizes the key risks that the system faces or accepts, and their likelihood, impact, and priority. A risk profile helps to identify and prioritize the most critical or relevant risks, and to align them with the system’s objectives, strategy, and risk appetite. The other options are not as comprehensive as the risk assessment results, although they may be part of or derived from the risk profile. Results of a business impact analysis (BIA), a mapping of resources to business processes, and key performance indicators (KPIs) are all factors that could affect the system’s performance and improvement, but they do not necessarily identify, analyze, or evaluate the risks that could affect the system. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

Conducting interviews with senior management is the best method for determining an enterprise’s current appetite for risk, because it helps to obtain the direct and qualitative input and feedback from the senior management on their expectations and preferences regarding thelevel and type of risk that the enterprise is willing to accept or pursue, in relation to its objectives and strategy. Risk appetite is the amount and nature of risk that an enterprise is willing to take in order to achieve its objectives and create value. Risk appetite is influenced by factors such as the enterprise’s culture, values, vision, mission, and strategy, as well as the externalenvironment and stakeholders. Risk appetite may vary depending on the context and situation, and may change over time. Conducting interviews with senior management is the best method, as it helps to understand and capture the current and explicit risk appetite of the enterprise, and to align the risk management process and activities with the senior management’s risk vision and direction. Conducting comparative analysis of peer companies, reviewing brokerage firm assessments, and performing trend analysis using prior annual reports are all possible methods for determining an enterprise’s current appetite for risk, but they are not the best method, as they may provide only indirect, quantitative, or historical information, and may not reflect the current and specific risk appetite of the enterprise. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 45

IT governance is the process of ensuring that IT supports the organization’s objectives and strategies, and that IT risks are managed appropriately. IT governance involves defining the roles, responsibilities, and accountabilities of the IT stakeholders, establishing the IT policies, standards, and procedures, and monitoring and evaluating the IT performance and outcomes1.

An organization that automatically approves exceptions to security policies on a recurring basis is most likely the result of ineffective IT governance, because it indicates that the organization:

Lacks a clear and consistent IT strategy and direction, and does not align IT with the business goals and needs

Fails to implement and enforce the IT policies, standards, and procedures, and does not ensure the compliance and accountability of the IT users and providers

Neglects to identify and assess the IT risks, and does not implement the appropriate risk responses and controls

Does not monitor and measure the IT performance and outcomes, and does not review and improve the IT processes and practices23

The other options are not the most likely results of ineffective IT governance, but rather some of the possible causes or consequences of it. A lack of mitigating actions for identified risk is a possible consequence of ineffective IT governance, as it implies that the organization does not have a systematic and proactiveapproach to IT risk management, and does not address the IT risks in a timely and effective manner. Decreased threat levels is a possible cause of ineffective IT governance, as it may create a false sense of security and complacency, and reduce the motivation and urgency to implement and follow the IT policies, standards, and procedures. Ineffective service delivery is a possible consequence of ineffective IT governance, as it means that the organization does not deliver the IT services that meet the expectations and requirements of the customers and stakeholders, and does not ensure the quality and reliability of the IT services. References =

IT Governance - ISACA

IT Governance: What It Is and Why You Need It

IT Governance: The Benefits of an Effective Enterprise IT Governance Framework

[CRISC Review Manual, 7th Edition]

The business process owner is the stakeholder who is responsible for the business process that is supported by the IT system, such as the CRM system. The business process owner has the authority and accountability to manage the risk and its response associated with the business process and the IT system. The business process owner should own the risk of customer data leakage caused by insufficient IT security controls for the new system, as it directly affects the performance, functionality, and compliance of the business process. The other options are not the correct answer, as they involve different roles or responsibilities in the risk management process:

The chief information security officer is the senior executive who oversees the enterprise-wide information security program, and provides guidance and direction to the information security managers and practitioners. The chief information security officer may advise or support the business process owner in managing the risk of customer data leakage, but does not own the risk.

The chief risk officer is the senior executive who oversees the enterprise-wide risk management program, and provides guidance and direction to the risk managers and practitioners. The chief risk officer may advise or support the business process owner in managing the risk of customer data leakage, but does not own the risk.

The IT controls manager is the person who designs, implements, and monitors the IT controls that mitigate the IT risks, such as the IT security controls for the new system. The IT controls manager may advise or support the business process owner in managing the risk of customer data leakage, but does not own the risk. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.1.1.1, pp. 95-96.

The best indicator that additional or improved controls are needed in the environment is when risk events and losses exceed risk tolerance. Risk tolerance is the acceptable level of variation in performance or outcomes relative to the achievement of objectives. Risk events and losses are the negative consequences of risk that have occurred or are expected to occur. When risk events and losses exceed risk tolerance, it means that the existing controls are not sufficient or effective to prevent or mitigate the risk, and that the organization is exposed to unacceptable levels of risk that could impair its ability to achieve its objectives. Therefore, additional or improved controls are needed to reduce the risk to an acceptable level. Management decreasing organizational risk appetite, the risk register and portfolio not including all risk scenarios, and emerging risk scenarios being identified are not as clear and direct indicators that additional or improved controls are needed in the environment, as they do not necessarily reflect the actual performance or outcomes of the risk management process. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 41.

The legal and regulatory risk associated with business conducted over the Internet is driven by the laws and regulations of each individual country. Legal and regulatory risk is the risk of non-compliance or violation of the applicable laws and regulations that govern the business activities, operations, or transactions. Business conducted over the Internet involves the use of the global network of interconnected computers and devices to exchange information, goods, or services across the geographic boundaries. Business conducted over the Internet may expose the enterprise to various legal and regulatory risks, such as data protection, privacy, security, intellectual property, consumer protection, taxation, or jurisdiction issues. The legal and regulatory risk associated with business conducted over the Internet is driven by the laws and regulations of each individual country, as each country may have different or conflicting laws and regulations that apply to the business conducted over the Internet, and that may change or vary over time. The laws and regulations of each individual country may also impose different or additional obligations, requirements, or restrictions on the enterprise, and may subject the enterprise to different or multiple enforcement actions, penalties, or disputes. The jurisdiction inwhich an organization has its principal headquarters, international law and a uniform set of regulations, and international standard-setting bodies are not the drivers of the legal and regulatory risk associated with business conducted over the Internet, as they do not reflect the diversity and complexity of the legal and regulatory landscape that the enterprise may face when conducting business over the Internet. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

 The most important thing for an organization to have in place when developing a risk management framework is a strategic approach to risk including an established risk appetite, as this provides the direction, scope, and objectives of the risk management process, and defines the level of risk that the organization is willing to accept or avoid in pursuit of its goals. A strategic approach to risk aligns the risk management framework with the organization’s vision, mission, values, and strategy, and ensures that the risk management activities support the achievement of the desired outcomes. An established risk appetite sets the boundaries and criteria for risk decision making, and guides the selection and implementation of risk responses. The other options are not the most important things for an organization to have in place when developing a risk management framework, although they may be useful or necessary components of it. A risk-based internal audit plan is a tool that helps to evaluate and improve the effectiveness of the risk management framework, but it does not define or drive the risk management process. A control function within the risk management team is a role that helps to implement and monitor the risk controls, but it does not determine or influence the risk strategy or appetite. An organization-wide risk awareness training program is a method that helps to enhance the risk culture and competence of the organization, but it does not establish or communicate the risk approach or appetite. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, page 23.

Implementing an emergency change authorization process is the best control for an organization that allows programmers to change production systems in emergency situations, because it helps to ensure that the changes are justified, approved, documented, and tested before they are implemented, and that they are monitored and reviewed after they are implemented. An emergency change is a change that is required to resolve or prevent a critical issue or incident that may affect the availability, performance, or security of the production systems. A production system is a system that is used to support or enable the operational or business functions or processes of the organization. An emergency change authorization process is a process that defines the roles and responsibilities, criteria and procedures, and tools and techniques for managing and controlling the emergency changes. Implementing an emergency change authorization process is the best control, as it helps to minimize the risks and impacts of theemergency changes, and to maintain the integrity and reliability of the production systems. Periodically reviewing operator logs, limiting the number of super users, and reviewing the programmers’ emergency change reports are all possible controls for an organization that allows programmers to change production systems in emergency situations, but they are not the best control, as they do not provide a comprehensive and consistent approach to the emergency change management. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.4.1, page 208

Identifying risk events is essential for developing realistic and relevant risk scenarios. This step enables the creation of scenarios that reflect actual vulnerabilities and potential disruptions, adhering to the CRISC's focus onRisk Identification.

 The most important thing to do when establishing an enterprise IT risk management program is to review the alignment with the organization’s strategy. The organization’s strategy is the plan or direction that the organization follows to achieve its vision, mission, and goals. The IT risk management program should be aligned with the organization’s strategy, so that it supports and enables the organization’s strategic objectives, and addresses the IT risks that could affect the organization’s performance and value. Reviewing the alignment with the organization’s strategy helps to ensure that the IT risk management program is relevant, effective, and consistent with the organization’s expectations and needs. The other options are not as important as reviewing the alignment with the organization’s strategy, although they may be useful or necessary steps or components of the IT risk management program. Understanding the organization’s information security policy, validating the organization’s data classification scheme, and reporting identified IT risk scenarios to senior management are all activities that can help to implement and improvethe IT risk management program, but they are not the initial or primary thing todo. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 2-12.

 According to the Key Performance Indicators for Vulnerability Management article, the number of vulnerabilities remediated is a key performance indicator that measures the effectiveness of a vulnerability remediation program. This KPI indicates how many vulnerabilities have been successfully mitigated or fixed within a given time frame. A higher number can imply that the organization is effectively managing its exposures and reducing its risk level. The number of vulnerabilities remediated can also be compared with the number of new vulnerabilities identified to evaluate the progress and performance of the vulnerability remediation program. References = Key Performance Indicators for Vulnerability Management

Whistleblower Program:

Definition: A whistleblower program allows employees to report unethical or illegal activities within the organization anonymously.

Detection of Ethical Violations: Employees are often in the best position to observe unethical behavior. A well-structured whistleblower program encourages them to report such behavior without fear of retaliation.

Anonymity and Protection: Providing anonymity and protection to whistleblowers increases the likelihood that employees will report violations, thus enabling the organization to detect and address ethical issues more effectively.

Comparison with Other Options:

Transaction Log Monitoring: While useful for detecting anomalies and potential fraud, it is not specifically focused on ethical violations and may not capture all types of unethical behavior.

Access Control Attestation: This ensures that users have the correct access permissions but does not directly detect unethical behavior.

Periodic Job Rotation: This can help prevent fraud by reducing the risk of collusion and providing fresh perspectives on processes, but it does not directly detect ethical violations.

Best Practices:

Clear Reporting Channels: Ensure that the whistleblower program has clear and accessible reporting channels.

Training and Awareness: Regularly train employees on the importance of reporting unethical behavior and the protections offered by the whistleblower program.

Follow-up and Action: Ensure that reports are investigated thoroughly and appropriate actions are taken to address verified violations.

Insecure data transmission protocols should be of greatest concern when an organization is implementing internet of Things (IoT) technology to control temperature and lighting in its headquarters, because they can expose the IoT devices and data to unauthorized access,interception, or manipulation. Insecure data transmission protocols can also compromise the confidentiality, integrity, and availability of the IoT system and the information it collects and transmits. The other options are not the greatest concerns, although they may also pose some challenges or risks to the IoT implementation. Insufficient network isolation, impact on networkperformance, and lack of interoperability between sensors are examples of technical or operational issues that can affect the functionality, efficiency, or compatibility of the IoT system, but they do not have the same severity or impact as insecure data transmission protocols. References = CRISC Sample Questions 2024

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 responseactions 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

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.

According to the Risk Appetite vs. Risk Tolerance: What is the Difference? article, risk tolerance is the acceptable level of variation that an organization is willing to accept around a specific objective. Risk tolerance is usually expressed as a range or a limit, and it helps to guide the decision making and risk taking of the organization. The best way to promote adherence to the risk tolerance level set by management is to define the expectations in the enterprise risk policy, which is a document that establishes the organization’s risk management framework, principles, and objectives. By defining the expectations in the enterprise risk policy, the organization can communicate the risk tolerance level to all the relevant stakeholders, and ensure that they understand and follow the risk management guidelines and standards. This can help to create aconsistent and coherent risk culture across the organization, and to avoid any deviations or violations of the risk tolerance level. References = Risk Appetite vs. Risk Tolerance: What is the Difference?

A business continuity plan (BCP) is a system of prevention and recovery from potential threats to a company. The plan ensures that personnel and assets are protected and are able to function quickly in the event of a disaster1. The first task when developing a BCP should be to identify critical business functions and resources, because this will help to determine the scope, objectives, and priorities of the plan. Critical business functions and resources are those that are essential for the continuity of the company’s operations, and that would cause significant disruption or damage if they were interrupted or lost. By identifying critical business functions and resources, the company can focus its efforts and resources on protecting and restoring them, and minimizing the impact of a disaster. The other options are not the first task when developing a BCP, because they depend on the identification of critical business functions and resources, as explained below:

A. Determine data backup and recovery availability at an alternate site is a task that relates to the recovery strategy of the BCP, which aims to restore the data and information systems that support the critical business functions and resources. However, this task cannot be performed without first identifying which data and information systems are critical, and what level of availability and recovery they require.

C. Define roles and responsibilities for implementation is a task that relates to the organization and governance of the BCP, which aims to assign and communicate the duties and expectations of the personnel involved in the plan. However, this task cannot be performed without first identifying which personnel are critical, and what functions and resources they are responsible for.

D. Identify recovery time objectives (RTOs) for critical business applications is a task that relates to the analysis and evaluation of the BCP, which aims to measure the acceptable downtime and recovery speed of the critical business functions and resources. However, this task cannot be performed without first identifying which business applications are critical, and what impact and likelihood they have. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 115. What Is a Business Continuity Plan (BCP), and How Does It Work?, Business continuity plan (BCP) in 8 steps, with templates | BDC.ca, How Develop a Business Continuity Plan - Invenio IT, Business Continuity Planning | Ready.gov, Develop a Robust Business Continuity Plan | Wrike

 A compensating control is a control that is implemented to reduce the risk exposure when the primary control is not feasible or cost-effective. A compensating control may not directly address the root cause of the risk, but it can provide an alternative or supplementary way of mitigating the risk. A residual risk is the risk that remains after the risk response has been implemented. A residual risk can be accepted, monitored, or further reduced depending on the risk tolerance and appetite of the organization. During a risk assessment, a risk practitioner is a person who is responsible for identifying and analyzing the potential sources and consequences of risk events. When a risk practitioner learns that an IT risk factor is adequately mitigated by compensating controls in an associated business process, the action that would enable the most effective management of the residual risk is to schedule periodic reviews of the compensating controls’ effectiveness, which means to measure and evaluate the performance and compliance of the compensating controls on a regular basis. By scheduling periodic reviews of the compensating controls’ effectiveness, the risk practitioner can ensure that the compensating controls are stilloperating as intended, and that they are delivering the expected results. The risk practitioner can also identify any gaps or weaknesses in the compensating controls, and recommend any improvements or adjustments as needed. References = CRISC Review Manual, 7th Edition, page 177.

Key performance indicators (KPIs) are quantifiable measures of progress toward an intended result, such as a strategic objective or a desired outcome12.

The most important factor when developing KPIs is the alignment to risk responses, which are the actions taken to address the risks that may affect the achievement of the intended result12.

Alignment to risk responses means that the KPIs should reflect the effectiveness and efficiency of the risk responses, and provide feedback and guidance for improving the risk responses12.

Alignment to risk responses also means that the KPIs should be consistent and compatible with the risk responses, and support the risk management process and objectives12.

The other options are not the most important factor, but rather possible aspects or features of KPIs that may vary depending on the context and purpose of the KPIs. For example:

Alignment to management reports is an aspect of KPIs that relates to the communication and presentation of the KPIs to the relevant stakeholders, such as senior management,board members, or external parties12. However, this aspect does not determine the quality or validity of the KPIs, or the alignment to the intended result12.

Alerts when risk thresholds are reached is a feature of KPIs that relates to the monitoring and control of the KPIs, and the triggering of actions or decisions when the KPIs exceed or fall below a certain level or range12. However, this feature does not define the content or scope of the KPIs, or the alignment to the intended result12.

Identification of trends is a feature of KPIs that relates to the analysis and interpretation of the KPIs, and the identification of patterns or changes in the KPIs over time or across different dimensions12. However, this feature does not specify the criteria or methodology of the KPIs, or the alignment to the intended result12. References =

1: What is a Key Performance Indicator (KPI)? Guide & Examples - Qlik3

2: What is a Key Performance Indicator (KPI)? - KPI.org4

The most important component of effective security incident response is a documented communications plan. A communications plan defines the roles and responsibilities, channels and methods, frequency and timing, and content and format of the communications that take place during and after a security incident. A communications plan helps to ensure that the relevant stakeholders are informed and updated about the incident status and outcome, and that the incident response activities are coordinated and consistent. A communications plan also helps to manage the expectations and perceptions of the stakeholders, and to maintain the trust and reputation of the enterprise. Network time protocol synchronization, identification of attack sources, and early detection of breaches are also important components of effective security incident response, but they are not as important as a documented communications plan. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1.2, page 1931

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 660.

Conducting a risk assessment allows the organization to evaluate the exposure created by adopting the technology. This step ensures informed decision-making and aligns with the principles ofRisk Identification and Assessmentfor managing emerging risks effectively.

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:

Integrate IT risk management with the overall business strategy and risk management, and ensure that IT risks are considered and addressed at the enterprise level

Align IT risk appetite and tolerance with the business risk appetite and tolerance, and ensure that IT risks are balanced with the expected benefits and opportunities

Enhance IT risk awareness and communication among the stakeholders, and ensure that IT risks are reported and escalated appropriately

Optimize IT risk response and control, and ensure that IT risks are managed efficiently and effectively

Demonstrate IT risk value and impact, and ensure that IT risks are measured and monitored against the business objectives and performance34

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 =

Enterprise Risk Management - ISACA

IT Risk Management - ISACA

Aligning IT risks with Enterprise Risk Management (ERM)

Five Benefits of Enterprise Risk Management : Articles : Resources …

[CRISC Review Manual, 7th Edition]

 The main purpose of selecting a risk response is to mitigate the residual risk to be within tolerance. Residual risk is the risk that remains after applying a risk response. Risk tolerance is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk response is the process of selecting and implementing actions to address risk. The goal of risk response is to reduce the residual risk to a level that is acceptable to the organization and its stakeholders. The other options are not the main purpose of selecting a risk response, although they may be secondary benefits or outcomes. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.

Using a common risk taxonomy is the most important factor to consider when creating a separate IT risk register for a large organization with regard to the existing corporate risk register, as it ensures consistency, clarity, and alignment of the IT risk identification, classification, and reporting with the corporate risk management framework and strategy. Leveraging business risk professionals, relying on generic IT risk scenarios, and describing IT risk in business terms are not the most important factors, as they are more related to the resources, inputs, or outputs of the IT risk register, respectively, rather than the structure or format of the IT risk register. References = CRISC Review Manual, 7th Edition, page 100.

Key risk indicators are designed to provide early warnings about increasing risk exposure, enabling timely risk mitigation efforts. This supports proactive risk management, as outlined in theRisk Monitoring and Reportingdomain of CRISC.

Before assigning sensitivity levels to information, it is most important to define the information classification policy. The information classification policy is a document that establishes the criteria, categories, roles, responsibilities, and procedures for classifying information according to its sensitivity, value, and criticality. The information classification policy provides the basis, guidance, and consistency for assigning sensitivity levels to information, and ensures that the information is protected and handled appropriately. The other options are not as important as defining the information classification policy, as they are related to the specific steps, activities, or outputs of the information classification process, not the overall structure and quality of the information classification process. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.

 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.

The risk manager’s best course of action when discovering significant vulnerabilities in a commercial off-the-shelf software product is to review the risk of implementing versus postponing with stakeholders. This means that the risk manager should assess the potential impact and likelihood of the vulnerabilities being exploited, as well as the benefits and costs of using the software product. The risk manager should also consult with the relevant stakeholders, such as the business owners, the IT department, the security team, and the vendor, to understand their perspectives, expectations, and requirements. Based on this analysis, the risk manager should decide whether to proceed with the implementation, delay it until the next release,or look for alternative solutions. The risk manager should also document and communicate the decision and the rationale behind it, and monitor the situation for any changes or new developments.

The other options are not the best course of action, because:

Running vulnerability testing tools to independently verify the vulnerabilities is a useful step to confirm the existence and severity of the vulnerabilities, but it is not sufficient to address the risk. The risk manager still needs to evaluate the trade-offs between implementing and postponing the software product, and involve the stakeholders in the decision-making process.

Reviewing the software license to determine the vendor’s responsibility regarding vulnerabilities is an important step to understand the contractual obligations and liabilities of the vendor, but it is not enough to mitigate the risk. The risk manager still needs to consider the impact and likelihood of the vulnerabilities, and the benefits and costs of the software product, and consult with the stakeholders to decide the best course of action.

Requiring the vendor to correct significant vulnerabilities prior to installation is an unrealistic and impractical option, as the vendor has already stated that the vulnerabilities will not be corrected until the next release. The risk manager cannot force the vendor to change their schedule or priorities, and may risk damaging the relationship with the vendor. The risk manager should instead work with the vendor to understand the nature and scope of the vulnerabilities, and the expected timeline and features of the next release, and use this information to inform the risk assessment and decision-making process.

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:

The risk owner can provide valuable input and feedback on the risk identification, analysis, and evaluation, based on their knowledge, experience, and perspective of the risk and its context.

The risk owner can help to develop and implement the risk action plan, based on their understanding of the risk objectives, expectations, and outcomes, and their ability to influence and control the risk factors and sources.

The risk owner can help to prioritize the risk action plan, based on their assessment of the risk severity, urgency, and importance, and their consideration of the costs, benefits, and feasibility of the risk actions.

The risk owner can help to coordinate the risk action plan across departments, by communicating and collaborating with other risk owners, stakeholders, and resources, and by aligning and integrating the risk actions with the organization’s strategy, processes, and culture. References = Risk Owners — What Do They Do1

 According to the How Important Is Source Code Escrow - ISACA article, the purpose of requiring source code escrow in a contractual agreement is to ensure that the source code isavailable if the vendor ceases to exist. Source code escrow is the deposit of the source code of software with a third-party escrow agent, who releases it to the licensee only if certain conditions are met, such as the bankruptcy, merger, or acquisition of the licensor. This arrangement protects the licensee from losing access to the software support and maintenance, and allows them to continue using and modifying the software as needed. Therefore, the answer is B. ensure that the source code is available if the vendor ceases to exist. References = How Important Is Source Code Escrow - ISACA

 Performing a gap analysis is the best recommendation for a risk practitioner upon learning of an updated cybersecurity regulation that could impact the organization. A gap analysis can help identify the current state of compliance, the desired state of compliance, and the actions needed to achieve compliance. Conducting system testing, implementing compensating controls, and updating security policies are possible actions that may result from the gap analysis, but they arenot the best initial recommendation. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 1; CRISC Review Manual, 6th Edition, page 143.

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

The best course of action when an audit reveals that there are changes in the environment that are not reflected in the risk profile is to review the risk identification process. This is because the risk identification process is the first step in the risk management process and it is responsible for identifying and assessing the potential risks that may affect the organization’s objectives. If the risk identification process is not effective, it may result in incomplete, inaccurate, or outdated risk profiles that do not reflect the current environment and the associated risks. Therefore, reviewing the risk identification process will help to ensure that the risk profile is updated and aligned with the changes in the environment and the organization’s strategy. References = Responding to Audit Findings

The person or entity who should be primarily responsible for performing user entitlement reviews is the data owner. A user entitlement review is a process that verifies and validates the access rights and privileges of the users to the data and resources in the IT environment. A user entitlement review helps to ensure that the users have the appropriate and necessary access to perform their roles and functions, and to prevent or detect any unauthorized or inappropriate access. A data owner is the person or entity that has the authority and responsibility to define, classify, and protect the data and resources in the IT environment. A data owner helps to perform user entitlement reviews, because they help to establish and enforce the access policies and standards for the data and resources, and to approve or revoke the access requests and changes for the users. A data owner also helps to monitor and report on the access performance and compliance for the data and resources, and to identify and address any issues or gaps in the access management activities. The other options are not the primary responsible party for performing user entitlement reviews, although they may be involved in the process. IT security manager, IT personnel, and data custodian are all examples of roles or functions that can help tosupport or implement the user entitlement reviews, but they do not necessarily have the authority or responsibility to define, classify, or protect the data and resources. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.2.1, page 5-14.

 The number of projects going live without a security review is the best key control indicator (KCI) to indicate whether security requirements are identified and managed throughout a project life cycle, because it measures the compliance and effectiveness of the security review process. A security review is a process that ensures that the security requirements are defined, implemented, tested, and verified for each project, and that any security risks or issues are identified and resolved before the project is deployed. The number of projects going live without a security review should be minimized or eliminated, as it indicates afailure or weakness of the security review process. The other options are not the best KCIs, because they do not directly measure the identification and management of security requirements. The number of employees completing project-specific security training, the number of security projects started in core departments, and the number of security-related status reports submitted by project managers areexamples of input or output indicators that measure the activities or results of the project, but not the security requirements. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

 A control is an action or measure that reduces the likelihood or impact of a risk to an acceptable level. Controls can be classified into different types based on their purpose or function, such asdetective, compensating, corrective, or preventive. Performing a background check on a new employee candidate before hiring is an example of a preventive control. A preventive control is a control that aims to prevent the occurrence or manifestation of a risk, such as by avoiding, removing, or reducing the risk sources, causes, or drivers. A background check is a process that verifies the identity, qualifications, and history of a potential employee, and helps to ensure that the employee is suitable and trustworthy for the job. A background check can prevent the risk of hiring an unqualified, fraudulent, or malicious employee, who could compromise the performance, security, or compliance of the enterprise. The other options are not examples of preventive controls, as they involve different types of controls:

A detective control is a control that aims to detect the occurrence or manifestation of a risk, such as by monitoring, measuring, or reporting the risk events, indicators, or outcomes. An example of a detective control is a log review, which is a process that analyzes the records of the activities or transactions on the IT systems or applications, and helps to identify any anomalies, errors, or violations that could indicate a risk.

A compensating control is a control that aims to compensate for the weakness or deficiency of another control, such as by providing an alternative or additional level of protection or assurance. An example of a compensating control is a firewall, which is a device or software that filters the network traffic and blocks the unauthorized or malicious access to the IT systems or applications, and helps to compensate for the lack or failure of other security controls, such as encryption, authentication, or authorization.

A corrective control is a control that aims to correct the occurrence or manifestation of a risk, such as by restoring, repairing, or improving the affected assets, processes, or functions. An example of a corrective control is a backup, which is a copy or replica of the data or informationon the IT systems or applications, and helps to correct the loss or damage of the data or information due to a risk, such as a hardware failure, a software error, or a cyberattack. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.3.3.1, pp. 62-63.

A good IT risk scenario must be aligned with a business objective. This alignment ensures that the risk scenario is relevant to the organization’s goals and can be effectively integrated into its risk management processes.

Alignment to Business Objective (Answer C):

Importance: Aligning risk scenarios with business objectives ensures that they are relevant and support the organization’s overall strategy.

Impact: This alignment helps in prioritizing risk management efforts and resources toward areas that directly affect the organization’s success.

Outcome: It leads to more effective risk management by focusing on risks that could impact key business outcomes.

Comparison with Other Options:

A. The scenario is aligned to business control processes:

Purpose: Control processes are important but secondary to business objectives.

B. The scenario is aligned to the organization’s risk appetite and tolerance:

Purpose: Important for overall risk management but not the primary characteristic of a good risk scenario.

D. The scenario is aligned to known vulnerabilities in information technology:

Purpose: While addressing vulnerabilities is important, the primary focus should be on how these vulnerabilities affect business objectives.

A high-risk vulnerability in an application is a system flaw or weakness in the application’s code that can be exploited by a malicious actor, potentially leading to a security breach. The risk associated with a high-risk vulnerability in an application is the possibility and impact of such a breach occurring. The risk owner of a high-risk vulnerability in an application is the person or entity who has the authority and responsibility for managing the risk. The risk owner should be able to define the risk appetite, assess the risk level, select and implement the risk response, monitor and report the risk status, and ensure the risk alignment with the business objectives and strategy. The risk owner of a high-risk vulnerability in an application is the business unit, which is the organizational unit that operates the application and derives value from it. The businessunit understands the business needs and expectations of the application, and the potential consequences of a security breach. The business unit also has the resources and incentives to address the risk effectively and efficiently. Therefore, the business unit is the most appropriate risk owner of a high-risk vulnerability in an application. References = Why Assigning a Risk Owner is Important and How to Do It Right, CRISC 351-400 topic3, Foundations of Project Management : Week 2.

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

According to the three lines of defense model, the responsibility for managing risk and controls resides with the operational management, which forms the first line of defense. The operational management is the function that owns and manages risk as part of their accountability for achieving objectives. They are responsible for identifying, assessing, mitigating, and reportingon risks and controls within their areas ofoperation. They are also responsible for implementing and maintaining effective internal controls and ensuring compliance with policies, standards, and regulations.

 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

KRIs are most effective when they signal that a risk is nearing or exceeding predefined thresholds. This early warning enables organizations to take proactive measures to mitigate risks before they materialize into significant issues.

A key risk indicator (KRI) is a metric used to measure and monitor the level of risk associated with a particular process, activity, or system within an organization1. KRIs are typically used in risk management to provide early warning signs of potential risks and to help organizations take proactive steps to mitigate those risks. KRIs are designed to be quantitative and measurable, allowing organizations to track changes in risk levels over time and to identify trends and patterns that may indicate an increased likelihood of risk. A negative security return on investment (ROI) would be most beneficial as a KRI, as it would indicate that the organization is spending more on security than the value it is generating or protecting. A negative security ROI would suggest that the organization is either over-investing in security, under-utilizing its security assets, or facing significant security threats or incidents that erode its security value. A negative security ROI would alert the organization to review its security strategy, budget, and performance, and to adjust them accordingly to optimize its security ROI and reduce its risk exposure2. Current capital allocation reserves are not the most beneficial as a KRI, as they do notdirectly measure the level of risk associated with a particular process, activity, or system. Capital allocation reserves are the amount of capital that an organization sets aside to cover potential losses or liabilities arising from its activities. Capital allocation reserves may reflect the organization’s overall risk appetite and tolerance, but they do not provide specific information on the sources, types, or impacts of risks that the organization faces3. Project cost variances are not the most beneficial as a KRI, as they do not directly measure the level of risk associated with a particular process, activity, or system. Project cost variances are the differences between the actual and planned costs of a project. Project cost variances may indicate the performance or efficiency of a project, but they do not provide specific information on the risks that may affect the project’s objectives, scope, quality, or schedule4. Annualized loss projections are not the most beneficial as a KRI, as they do not directly measure the level of risk associated with a particular process, activity, or system. Annualized loss projections are the estimates of the potential losses that an organization may incur in a year due to various risk events. Annualized loss projections may help the organization to plan and budget for its risk management activities, but they do not provide specific information on the likelihood, frequency, or severity of riskevents that may occur5. References = 1: Key risk indicator - Wikipedia2: What Is A Key Risk Indicator?3: Capital Allocation - Overview, Importance, and Methods4: Project Cost Variance: Definition, Formula, and Examples5: [Annualized Loss Expectancy (ALE) - Definition, Formula, and Example]

The application owner must formally approve changes after reviewing impact—per ISACA's change management and governance frameworks that assign control over operational fallouts to functional owners .

The percentage of system availability is the most important key performance indicator (KPI) to establish in the service level agreement (SLA) for an outsourced data center. This KPI measures the uptime or reliability of the systems hosted by the data center provider, and reflects the ability of the provider to meet the customer’s expectations and requirements for system performance and accessibility. A high percentage of system availability indicates that the provider is delivering consistent and quality service, while a low percentage of system availability indicates that the provider is experiencing frequent or prolonged system failures or disruptions, which can negatively affect the customer’s business operations and reputation. Therefore, the percentage ofsystem availability is a critical factor for evaluating the effectiveness and efficiency of the data center provider, and should be clearly defined and monitored in the SLA. The other options are not the most important KPIs to establish in the SLA for an outsourced data center, as they do not directly measure the quality or reliability of the service provided. The percentage of systems included in recovery processes is a measure of the scope or coverage of the disaster recovery plan (DRP) of the data center provider, but it does not indicate how well the provider can execute the DRP or restore the systems in the event of a disaster. The number of key systems hosted is a measure of the capacity or utilization of the data center provider, but it does not indicate how efficiently or securely the provider can manage the systems. The average response time to resolve system incidents is a measure of the responsiveness or agility of the data center provider, but it does not indicate how effectively or proactively the provider can prevent or mitigate system incidents. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.3.4, Page 140.

The stakeholders who are PRIMARILY responsible for determining enterprise IT risk appetite are the executive management and the board of directors, because they are the ones who set thestrategic direction and objectives of the enterprise, and who define the acceptable level of risk exposure and tolerance for achieving those objectives. The other options are not the primary stakeholders, because:

Option A: Audit and compliance management are responsible for providing assurance and oversight on the effectiveness of the risk management process and the compliance with internal and external requirements, but they do not determine the enterprise IT risk appetite.

Option B: The CIO and the CFO are responsible for managing the IT resources and the financial resources of the enterprise, respectively, but they do not determine the enterprise IT risk appetite.

Option C: Enterprise risk management and business process owners are responsible for identifying, assessing, and responding to the risks that affect their domains, but they do not determine the enterprise IT risk appetite. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 83.

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 securitypolicy, respectively, rather than the establishment of the cloud security policy. References = CRISC Review Manual, 7th Edition, page 155.

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.

The most common concern associated with outsourcing to a service provider is unauthorized data usage, which means the misuse, disclosure, or theft of the organization’s data by the service provider or its employees, contractors, or subcontractors1. Unauthorized data usage can pose significant risks to the organization, such as:

Data security and privacy breaches, which can compromise the confidentiality, integrity, and availability of the data, and expose the organization to legal liability, regulatory penalties, reputational damage, or loss of trust and credibility2.

Data quality and accuracy issues, which can affect the reliability and validity of the data, and impair the decision-making, reporting, or performance of the organization3.

Data ownership and control issues, which can limit the access and rights of the organization to its own data, and create dependency or lock-in with the service provider4.

The other options are not the most common concern associated with outsourcing to a service provider, because:

Lack of technical expertise is a potential but not prevalent concern associated with outsourcing to a service provider, as it may affect the quality and efficiency of the services provided by the service provider, and the compatibility and integration of the services with the organization’s systems and processes5. However, most service providers have sufficient technical expertise in their domain or field, and they can offer specialized skills or resources that the organization may not have internally6.

Combining incompatible duties is a possible but not frequent concern associated with outsourcing to a service provider, as it may create conflicts of interest or segregation of duties issues for the service provider or the organization, and increase the risk of errors, fraud, or abuse7. However, most service providers have adequate governance and control mechanisms to prevent or mitigate such issues, and they can adhere to the organization’s policies and standards regarding the separation of duties8.

Denial of service attacks is a rare but not common concern associated with outsourcing to a service provider, as it may disrupt the availability or functionality of the services provided by the service provider, and affect the operations or continuity of the organization. However, most service providers have robust security measures and contingency plans to protect and recover from such attacks, and they can ensure the resilience and reliability of the services.

References =

Unauthorized Data Usage - CIO Wiki

What is outsourcing? Definitions, benefits, challenges, processes, advice | CIO

The Pros and Cons of Outsourcing in 2023 - GrowthForce

13 Common Problems of Outsourcing and How to Avoid Them - ENOU Labs

The Top 10 Problems with Outsourcing Implementation - SSON

10 problems with outsourcing (+ Solutions for each) - Time Doctor Blog

Segregation of Duties - CIO Wiki

Outsourcing Governance - CIO Wiki

[Denial-of-Service Attack - CIO Wiki]

[Business Continuity Planning - CIO Wiki]

ï‚· Understanding Risk Analysis:

Risk analysis involves identifying potential risks associated with a new application and assessing their likelihood and impact on the organization.

It provides a detailed understanding of the potential threats, vulnerabilities, and consequences, enabling informed decision-making.

ï‚· Steps in Conducting a Risk Analysis:

Identify Risks:Determine what risks could arise from the new application, including security vulnerabilities, compliance issues, and operational disruptions.

Assess Risks:Evaluate the likelihood and impact of each identified risk. This includes both qualitative and quantitative assessments.

Prioritize Risks:Rank the risks based on their assessed impact and likelihood to focus on the most significant threats first.

ï‚· Importance of Risk Analysis:

Provides senior management with a comprehensive view of the risks involved, enabling them to make informed decisions about proceeding with the application.

Helps in developing mitigation strategies to address the identified risks.

ï‚· Comparing Other Options:

Perform an Audit:Audits are useful for evaluating existing controls but are not the first step in assessing risks for a new application.

Develop Risk Scenarios:This is part of the risk analysis process but comes after identifying and assessing risks.

Perform a Cost-Benefit Analysis:Important for decision-making but follows the initial risk analysis to understand potential impacts.

ï‚· References:

The CRISC Review Manual emphasizes the importance of conducting a risk analysis to understand and manage risks associated with new applications (CRISC Review Manual, Chapter 2: IT Risk Assessment, Section 2.2.1 Conducting Risk Analysis)​​.

The best time to conduct a risk analysis in a software development project is at each stage of the development life cycle. This is because risks can emerge or change at any point of the project, and they need to be identified, assessed, and managed as soon as possible. By conducting a risk analysis at each stage, the project team can ensure that the risks are aligned with the project objectives, scope, and deliverables, and that the appropriate risk responses are implemented and monitored. Conducting a risk analysis at each stage can also help to avoid or reduce the impact of potential issues, such as schedule delays, cost overruns, quality defects, and customer dissatisfaction. The other options are not the best time to conduct a risk analysis, although they may be useful or necessary depending on the project context and nature. Conducting a risk analysis during the business requirement definitions phase is important, but it is not sufficient, as the risks may change or evolve as the project progresses. Conducting a risk analysis before periodic steering committee meetings is a good practice, but it is not the only time to do so, as the risks may arise or escalate between the meetings. Conducting a risk analysis during the business case development is a part of the project initiation process, but it is not the most effective time, as the risks may not be fully known or understood at that stage. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2: Risk Identification, Section 2.1: Risk Identification Process, p. 79-80.

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 anddeliverables, 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 keyelements to creating and maintaining a good risk culture3; How to increase risk awareness - Project Management Institute4

Optimized risk management is achieved when risk is reduced to meet risk appetite, which is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite reflects the strategic goals and priorities of the organization, as well as its risk culture and tolerance. Reducing risk with strategic initiatives, within resource availability, or below risk appetite are all possible approaches, but they do not necessarily optimize risk management, as they may result in over- or under-investment in risk mitigation, or misalignment with business objectives. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.2, page 47

 Risk monitoring is the process of tracking and evaluating the performance and effectiveness of the risk management process and controls, and identifying any changes or emerging risks that may affect theenterprise’s objectives and strategy. The primary benefit of risk monitoring is that it facilitates risk-aware decision making, as it provides timely and relevant information and feedback to the decision-makers and stakeholders, and enables them to adjust the risk strategy and response actions accordingly. Risk monitoring also helps to ensure that the risk management process is aligned with the enterprise’s risk appetite and tolerance, and supports the achievement of the enterprise’s goals and value creation. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 239. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 239. CRISC Sample Questions 2024, Question 239.

According to the CRISC Review Manual (Digital Version), the next course of action when a risk practitioner finds the IT department’s recovery time objective (RTO) for a key system does not align with the enterprise’s business continuity plan (BCP) is to consult with the IT department to update the RTO. The RTO is the maximum acceptable time that an application, computer, network, or system can be down after an unexpected disaster, failure, or comparable event takes place. The RTO should be aligned with the BCP, which is a set of policies, procedures, and resources that enable the organization to continue or resume its critical business functions in the event of a disruption. Consulting with the IT department to update the RTO helps to:

Ensure that the RTO reflects the current business requirements and expectations for the availability and recovery of the key system

Evaluate the feasibility and cost-effectiveness of achieving the RTO with the existing IT resources and capabilities

Identify and implement the necessary changes or improvements in the IT infrastructure, processes, and controls to meet the RTO

Test and validate the RTO and the IT recovery procedures and verify their compatibility and consistency with the BCP

Communicate and coordinate the RTO and the IT recovery plan with the relevant stakeholders, such as the business owner, the risk owner, and the senior management

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 174-1751

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

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.

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.

When developing a response plan to address security incidents regarding sensitive data loss, it is most important to review the data classification policy. A data classification policy is a document that defines the categories and levels of data based on their sensitivity, value, and criticality, and specifies the appropriate security measures and handling procedures for each data type. A data classification policy helps to identify and protect the sensitive data that could be exposed or compromised in a security incident, and to comply with the relevant laws, regulations, standards, and contracts. Reviewing the data classification policy is important when developing a response plan, because it helps to determine the scope, impact, and priority of the security incident, and to select the most appropriate and effective response actions and strategies. Reviewing the data classification policy also helps to communicate and coordinate the response plan with the internal and external stakeholders, such as the data owners, users, custodians, and regulators, and to report and disclose the security incident as required. The other options are not as important as reviewing the data classification policy, although they may be part of or derived from the response plan. Revalidating current key risk indicators (KRIs), revising risk management procedures, and revalidating existing risk scenarios are all activities that can help to improve or update the risk management process, but they are not the most important when developing aresponse plan. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.1, page 5-25.

Assigning accountability to risk owners is the best way to ensure implementation of corrective action plans, because it clarifies the roles and responsibilities of those who are in charge of managing and mitigating the risks. Contracting to third parties, establishing employee awareness training, and setting target dates tocomplete actions are all helpful measures, but they do not guarantee the implementation of corrective action plans without accountability. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.3, page 105

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, atleast 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.

 According to the CRISC Review Manual, the average time to grant access privileges is the best indicator of the efficiency of a process for granting access privileges, because it measures how quickly and effectively the process can respond to the access requests and meet the business needs. The average time to grant access privileges can be calculated by dividing the total time spent on granting access privileges by the number of access requests processed. The other options are not the best indicators of the efficiency of the process, because they measure other aspects of the process, such as the quality, the security, or the maintenance. The number of changes in access granted to users measures the quality of the process, as it indicates how wellthe process can align the access rights with the user roles and functions. The average number of access privilege exceptions measures the security of the process, as it indicates how often theprocess deviates from the established policies and standards. The number and type of locked obsolete accounts measures the maintenance of the process, as it indicates how well the process can remove the unnecessary or outdated accounts. References = CRISC Review Manual, 7th Edition, Chapter 4, Section 4.1.2, page 163

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

 Asset management is the process of identifying, tracking, and maintaining the physical and information assets of an organization. Asset management helps to optimize the value, performance, and security of the assets, and support the business objectives and strategies. The factor that would be of greatest concern regarding an organization’s asset management is an incomplete asset inventory, which is a list of all the assets that the organization owns or uses. An incomplete asset inventory may indicate that the organization does not have a clear and accurate understanding of its assets, their location, ownership, value, dependencies, etc. This may lead to various risks, such as asset loss, theft, misuse, damage, underutilization, overutilization, etc. An incomplete asset inventory may also affect the asset classification, protection, recovery, and disposal processes. References = 6

The greatest concern associated with the transmission of healthcare data across the internet is unencrypted data, as this exposes the data to unauthorized access, interception, modification, or disclosure, which may compromise the confidentiality, integrity, and availability of the data. Healthcare data is sensitive and personal information that may include medical records, diagnoses, treatments, prescriptions, insurance claims, and biometric data. Healthcare data is subject to various legal and regulatory requirements, such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States, that mandate the protection and privacy of the data. Encryption is a method of transforming the data into an unreadable format that can only be accessed or restored by authorized parties who have the decryption key. Encryption helps to prevent or reduce the risk of data breaches, identity theft, fraud, or other malicious attacks. The other options are not the greatest concerns associated with the transmission of healthcare dataacross the internet, although they may pose some challenges or issues. Lack of redundant circuits is a concern for the reliability and continuity of the data transmission, but it does notaffect the security or privacy of the data. Low bandwidth connections is a concern for the speed andefficiency of the data transmission, but it does not affect the security or privacy of the data. Data integrity is a concern for the accuracy and completeness of the data, but it does not necessarily depend on the encryption of the data. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk Response, page 156.

The greatest benefit of using IT risk scenarios is that they facilitate communication of risk, as they provide a clear and realistic description of the risk sources, events, impacts, and responses, and enable the stakeholders to understand and appreciate the risk exposure and appetite of the organization. Supporting compliance with regulations, providing evidence of risk assessment, and enabling the use of key risk indicators (KRIs) are also benefits of using IT risk scenarios, but they are not the greatest benefit, as they are more related to the outcomes or consequences of risk communication, rather than the process or value of risk communication. References = CRISC Review Manual, 7th Edition, page 100.

Capacity management is crucial when transitioning employees to remote work during a crisis. It involves ensuring that the IT infrastructure can handle increased loads and that resources are available to support remote operations effectively.

An IT risk threat analysis is best used to establish risk scenarios. A risk scenario is a description of a possible event or situation that may affect the achievement of the IT objectives. A riskscenario consists of three elements: a threat, a vulnerability, and an impact. A threat is a potential cause of an unwanted incident. A vulnerability is a weakness or flaw that can be exploited by a threat. An impact is the consequence or effect of the incident on the IT objectives. An IT risk threat analysis is a technique that identifies and evaluates the threats that may pose a risk to the IT assets and processes. An IT risk threat analysis can help to establish risk scenarios by providing the information and context for the threat element of the risk scenario. The other options are not as directly related to an IT risk threat analysis, as they are related to the outcomes, measures, or responsibilities of the IT risk management process, not the inputs or sources of the IT risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.

Risk appetite determined by senior management reflects the enterprise's willingness to accept certain levels of risk, including noncompliance. This decision underscores the strategic trade-offs made in risk management, a key element inGovernance and Risk Policy Alignment.

Legal and regulatory requirements are paramount when determining data retention periods. Compliance with laws such as GDPR, HIPAA, or industry-specific regulations ensures that data is retained appropriately and disposed of when no longer necessary, thereby mitigating legal risks.

A risk practitioner should evaluate the relevance of the evolving threats to the organization’s industry, as this is the best course of action to understand the current and future risk landscape, and to align the risk management strategy accordingly. By evaluating the relevance of the evolving threats, the risk practitioner can determine the impact and likelihood of the threats affecting the organization’s objectives, assets, and processes, and prioritize the most critical and urgent risks. The risk practitioner can also identify the gaps and weaknesses in the existing controls, and recommend appropriate risk response measures to mitigate the threats. The other options are not as good as evaluating the relevance of the evolving threats, because they do not address the root cause of the rising security incidents, but rather focus on the symptoms or consequences of the incidents. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 85.

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.

A risk treatment plan typically includes the following elements2:

Risk description: A brief summary of the risk, its causes, and its consequences.

Risk owner: The person or entity who is responsible for managing the risk and implementing the risk treatment plan.

Risk response: The strategy or method chosen to deal with the risk, such as avoid, reduce, transfer, or accept.

Risk actions: The specific tasks or steps that need to be performed to execute the risk response.

Risk resources: The human, financial, technical, or other resources that are required or available to support the risk actions.

Risk timeline: The schedule or deadline for completing the risk actions and achieving the desired risk level.

By recommending a risk treatment plan, the risk practitioner can help the organization to:

Analyze and prioritize the vulnerabilities detected on the systems, and determine their impact and likelihood.

Evaluate and compare the possible risk responses, and select the most suitable and feasible one for each vulnerability.

Define and assign the roles and responsibilities for the risk treatment process, and ensure the accountability and collaboration of the stakeholders.

Monitor and measure the progress and effectiveness of the risk treatment process, and report the results and outcomes to the management.

The other options are not the best course of action, because:

Recommending the business change the application is not a realistic or practical option, as it may be costly, time-consuming, or technically challenging to modify the application to make it compatible with the updated servers. It may also create other issues or risks, such as compatibility problems with other systems, performance degradation, or user dissatisfaction.

Including the risk in the next quarterly update to management is not a proactive or timely option, as it may delay or defer the risk treatment process and increase the exposure or vulnerability of the systems. It may also indicate a lack of urgency or importance of the risk, and undermine the credibility or trust of the management.

Implementing compensating controls is not a sufficient or comprehensive option, as it may not address the root cause or the source of the risk. Compensating controls are alternative or additionalcontrols that are implemented when the primary or preferred controls are not feasible or effective3. They may reduce the impact or likelihood of the risk, but they may not eliminate or resolve the risk.

References =

Risk Treatment Plan - CIO Wiki

Risk Treatment Plan Template - ISACA

Compensating Control - CIO Wiki

The data owner is the person who has the authority and responsibility to classify, label, and protect the information assets of the organization. The data owner is accountable for the risk ofpotential loss of confidential information, as they are the ones who determine the level of protection and access required for the data. The risk manager is responsible for identifying, assessing, and mitigating the risks that may affect the organization, but they are not accountable for the data itself. The end user is the person who uses the information assets for their operational tasks, but they are not accountable for the data protection or classification. The IT department is responsible for providing the technical support and infrastructure for the information assets, but they are not accountable for the data ownership or risk management. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: Data Classification, p. 69-70.

Key risk indicators (KRIs) are metrics that provide information on the level of exposure to a given operational risk1. KRIs have upper and lower acceptable risk limits (warning thresholds) that trigger actions when exceeded2. These thresholds are based on the organization’s risk appetite or tolerance, which is the amount and type of risk that the organization is willing to accept in pursuit of its objectives3. Therefore, changes in risk appetite or tolerance would prompt changes in KRI thresholds, as the organization would need to adjust its risk monitoring and response accordingly. The other options are not the primary factors that would prompt changes in KRI thresholds, although they may have some influence on the risk management process. References = Risk IT Framework; IT Risk Resources; ISACA Risk Starter Kit; Key Risk Indicators; Key Risk Indicators: A Practical Guide

 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:

Option A: Amount of risk reduced by compensating controls is a result of using control metrics, but not the primary purpose. Compensating controls are controls that provide an alternative or additional level of protection or assurance when the primary or preferred controls are not feasible or effective. Control metrics can help to measure and monitor the amount of risk reduced by compensating controls, but they are not the only or the most important measure of the control performance and effectiveness.

Option B: Amount of risk present in the organization is an input to using control metrics, but not the primary purpose. The amount of risk present in the organization is the level of exposure and uncertainty that the organization faces in pursuing its objectives and goals. Control metrics can help to assess and report the amount of risk present in the organization, but they are not the only or the most important measure of the risk profile and exposure.

Option D: Number of incidents is a source of using control metrics, but not the primary purpose. Incidents are events or occurrences that disrupt or threaten the normal operations or security of the organization. Control metrics can help to analyze and respond to the number of incidents, but they are not the only or the most important measure of the incident management andresolution. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 120.

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 asmart 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 anetwork. 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

Multi-factor authentication is the most effective way to mitigate the risk of unauthorized access to the system, as it requires the users to provide more than one piece of evidence to prove their identity, such as a password, a token, a biometric feature, etc. This reduces the likelihood of compromising the credentials and ensures that only authorized users can perform maintenance on the system.

Single sign-on is a convenience feature that allows users to access multiple systems with one set of credentials, but it does not address the risk of sharing credentials among multiple users.

Audit trail review is a detective control that can help identify and investigate unauthorized access to the system, but it does not prevent or mitigate the risk of credential compromise.

Data encryption at rest is a security measure that protects the data stored on the system from unauthorized access, but it does not prevent or mitigate the risk of credential compromise. References = CRISC Review Manual, 7th Edition, ISACA, 2020, page 107-108.

Key control indicators (KCIs) are metrics that measure the performance of a control in reducing the causes, consequences, or likelihood of a risk. They help to evaluate the adequacy and efficiency of the internal control environment, which is the set of policies, procedures, and practices that support the achievement of organizational objectives and the management of risks. By monitoring KCIs, organizations can identify and address any gaps or weaknesses in their internal controls and ensure that they are operating as intended.

References

•ISACA CRISC Review Manual, 7th Edition, Domain 3: Risk Response, Section 3.2.2: Control Design and Implementation

•KRI Framework for Operational Risk Management | Workiva

•What is the difference between key risk indicators and key control indicators?

The most important factors to consider when evaluating a number of potential controls for treating risk are the residual risk and the cost of control. Residual risk is the risk that remains after the implementation of the controls. Cost of control is the amount of resources and efforts required to implement and maintain the controls. By considering the residual risk and the cost of control, the organization can optimize the balance between the risk exposure and the control investment, and choose the most effective and efficient controls. Risk appetite and control efficiency, inherent risk and control effectiveness, and risk tolerance and control complexity are other possible factors, but they are not as important as residual risk and cost of control. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.

 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:

Option B: Updating the security strategy is a result of conducting a risk assessment, but not the first thing that the organization should do. A security strategy is a plan that defines the security objectives, policies, standards, and procedures for the system and the data, and it should be aligned with the risk assessment results and the business requirements and expectations.

Option C: Implementing additional controls is a response to the risk assessment results, but not the first thing that the organization should do. Controls are the measures that are designed and implemented to prevent or reduce the occurrence or impact of the risks, threats, and vulnerabilities, and to ensure the confidentiality, integrity, and availability of the system and the data.

Option D: Updating the risk register is a part of the risk assessment process, but not the first thing that the organization should do. A risk register is a tool that documents and tracks the identified risks, their characteristics, their status, and their responses, and it should be updated regularly to reflect the current risk profile and exposure of the system and the data. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 108.

 Residual risk is the risk that remains after security controls have been implemented on a system. Residual risk can be accepted, transferred, avoided, or further mitigated. The most important consideration when deciding whether to accept residual risk is the cost versus benefit of additional mitigating controls. This means comparing the potential impact of the residual risk with the cost and effectiveness of implementing more controls to reduce it. If the cost of additional controls outweighs the benefit of reducing the residual risk, then it may be acceptableto accept the residual risk. However, if the benefit of additional controls exceeds the cost, then it may be advisable to implement more controls to lower the residual risk to an acceptable level. References = Risk and Information Systems Control Study Manual, Chapter 3: Risk Response and Mitigation, Section 3.4: Risk Response Selection, p. 156-157.

A consolidated view into the organization’s risk profile is a comprehensive and integrated representation of the risks that may affect the organization’s objectives, performance, and value creation12.

The most helpful material to provide a consolidated view into the organization’s risk profile is the IT risk register, which is a document that records and tracks the IT-related risks, their sources, impacts, likelihoods, responses, owners, and statuses within the organization34.

The IT risk register is the most helpful material because it provides a complete and consistent overview of the IT risk landscape, and enables the identification, analysis, evaluation, treatment, monitoring, and communication of IT risks across the organization34.

The IT risk register is also the most helpful material because it supports the project prioritization and resource allocation decisions, by highlighting the most significant and relevant IT risks, and by showing the alignment of the IT risk responses with the organization’s risk appetite, strategy, and objectives34.

The other options are not the most helpful materials, but rather possible inputs or outputs of the IT risk register. For example:

A list of key risk indicators (KRIs) is a set of metrics that measure the occurrence or status of IT risks, and provide timely and relevant information and feedback to the organization56. However, a list of KRIs is not the most helpful material because it does not provide a comprehensive and integrated view of the IT risk profile, but rather a snapshot or a trend of selected IT risks56.

Internal audit reports are documents that present the findings and recommendations of the internal audit function, which evaluates the adequacy and effectiveness of the IT risk management and control processes within the organization78. However, internal audit reports are not the most helpful material because they do not provide a comprehensive and integrated view of the IT risk profile, but rather a periodic and independent assessment of specific IT risk areas78.

A list of approved projects is a document that records and tracks the IT projects that have been authorized and funded by the organization, and their objectives, scope, schedule, budget, and status . However, a list of approved projects is not the most helpful material because it does not provide a comprehensive and integrated view of the IT risk profile, but rather a summary of the IT project portfolio . References =

1: Risk IT Framework, ISACA, 2009

2: IT Risk Management Framework, University of Toronto, 2017

3: IT Risk Register Template, ISACA, 2019

4: IT Risk Register Toolkit, ISACA, 2019

5: KPIs for Security Operations & Incident Response, SecurityScorecard Blog, June 7, 2021

6: Key Performance Indicators (KPIs) for Security Operations and Incident Response, DFLabs White Paper, 2018

7: IT Audit and Assurance Standards, ISACA, 2014

8: IT Audit and Assurance Guidelines, ISACA, 2014

IT Project Management Framework, University of Toronto, 2017

IT Project Management Best Practices, ISACA Journal, Volume 1, 2018

A risk management program is a set of processes, policies, and tools that enable an enterprise to identify, analyze, evaluate, treat, monitor, and communicate its risks. The maturity level of a risk management program indicates how well the program is integrated, standardized, and aligned with the enterprise’s objectives, culture, and values. The best indication that an organization’s risk management program has not reached the desired maturity level is large fluctuations in risk ratings between assessments. Risk ratings are the measures of the impact and likelihood of the risks, and they should be consistent and comparable across the enterprise and over time. Large fluctuations in risk ratings between assessments suggest that the risk management program is not stable, reliable, or effective, and that the risk identification and analysis methods are not robust, accurate, or transparent. The other options are not as indicative of the maturity level of the riskmanagement program, as they involve different aspects or outcomes of the risk management program:

Significant increases in risk mitigation budgets means that the enterprise is spending more resources on implementing risk responses, such as controls, policies, or procedures. This may indicate that the enterprise is facing more or higher risks, or that the risk responses are more costly or complex, but it does not necessarily reflect the maturity level of the risk management program, as it may also depend on the enterprise’s risk appetite, tolerance, and strategy.

A steady increase in the time to recover from incidents means that the enterprise is taking longer to restore its normal operations after a disruption or a loss. This may indicate that the enterprise is not prepared or resilient enough to deal with the incidents, or that the incidents are more frequent or severe, but it does not necessarily reflect the maturity level of the risk management program, as it may also depend on the nature and source of the incidents, or the availability and effectiveness of the recovery plans.

A large number of control exceptions means that the enterprise is deviating from the established controls, policies, or procedures, either intentionally or unintentionally. This may indicate that the enterprise is not complying with the risk management program, or that the controls are not adequate or appropriate for the enterprise’s needs, but it does not necessarily reflect the maturity level of the risk management program, as it may also depend on the reasons and justifications for the exceptions, or the approval and monitoring processes for the exceptions. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.1.3.1, pp. 14-15.

A change management process is a set of procedures and activities that ensure that any changes to the IT systems or applications are planned, approved, tested, implemented, and documented in a consistent and controlled manner.

A change management process has recently been updated with new testing procedures. This means that the process has been improved or modified to include new or additional steps or methods for verifying and validating the changes before they are deployed to the production environment.

The next course of action after updating the change management process with new testing procedures is to communicate to those who test and promote changes. This means that the change management team or function should inform and educate the people who are involved or affected by the changes, such as the developers, testers, users, customers, etc., about the new testing procedures, their purpose, benefits, requirements, and expectations.

Communicating to those who test and promote changes helps to ensure that the new testing procedures are understood and followed by all the parties, that the changes are tested and promoted in accordance with the process standards and criteria, and that the changes are delivered with the expected quality and performance.

The other options are not the next courses of action after updating the change management process with new testing procedures. They are either secondary or not essential for change management.

The references for this answer are:

Risk IT Framework, page 27

Information Technology & Security, page 21

Risk Scenarios Starter Pack, page 19

 The most essential content to include in an IT risk awareness program is how to comply with the organization’s IT risk and information security policies. This will help to ensure that the staff members are aware of their roles and responsibilities, and that they follow the best practices andstandards to protect the organization’s information assets and systems. Compliance with the IT risk and information security policies also helps to reduce the likelihood and impact of IT-related incidents and breaches, and to align the IT activities with the organization’s objectives and strategies. Populating risk register entries, prioritizing IT-related actions, and defining the IT risk framework are important aspects of IT risk management, but they are not the most essential content to include in an IT risk awareness program. 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 646.

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

A root cause analysis is a process of identifying and understanding the underlying or fundamental causes or factors that contribute to or result in a problem or incident that has occurred or may occur in the organization. A root cause analysis can provide useful insights and solutions on the origin and nature of the problem or incident, and prevent or reduce its recurrence or impact.

Performing a root cause analysis is the risk practitioner’s best recommendation when the number of tickets to rework application code has significantly exceeded the established threshold, because it can help the organization to address the following questions:

Why did the application code require rework?

What were the errors or defects in the application code?

How did the errors or defects affect the functionality or usability of the application?

Who was responsible or accountable for the application code development and testing?

When and how were the errors or defects detected and reported?

What were the costs or consequences of the rework for the organization and its stakeholders?

How can the errors or defects be prevented or minimized in the future?

Performing a root cause analysis can help the organization to improve and optimize the application code quality and performance, and to reduce or eliminate the need for rework. It can also help the organization to align the application code development and testing with the organization’s objectives and requirements, and to comply with the organization’s policies and standards.

The other options are not the risk practitioner’s best recommendations when the number of tickets to rework application code has significantly exceeded the established threshold, because they do not address the main purpose and benefit of performing a root cause analysis, which is to identify and understand the underlying or fundamental causes or factors that contribute to or result in the problem or incident.

Performing a code review is a process of examining and evaluating the application code for its quality, functionality, and security, using the input and feedback from the peers, experts, or tools. Performing a code review can help the organization to identify and resolve the errors or defects in the application code, but it is not the risk practitioner’s best recommendation, because it doesnot indicate why the application code required rework, and how the errors or defects affected the organization and its stakeholders.

Implementing version control software is a process of using a software tool to manage and track the changes and modifications to the application code, and to ensure the consistency and integrity of the application code. Implementing version control software can help theorganization to control and monitor the application code development and testing, but it is not the risk practitioner’s best recommendation, because it does not indicate why the application code required rework, and how the errors or defects affected the organization and its stakeholders.

Implementing training on coding best practices is a process of providing and facilitating the learning and development of the skills and knowledge on the principles, guidelines, and standards for the application code development and testing. Implementing training on coding best practices can help the organization to enhance the competence and performance of the application code developers and testers, but it is not the risk practitioner’s best recommendation, because it does not indicate why the application code required rework, and how the errors or defects affected the organization and its stakeholders. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 40-41, 47-48, 54-55, 58-59, 62-63

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 189

CRISC Practice Quiz and Exam Prep

Effective risk reporting to the board of directors requires communication that aligns with the organization's strategic goals and business value. By correlating risk information to corporate objectives, the board can better understand the implications of risks on the organization's performance and make informed decisions. This approach ensures that risk discussions are relevant and meaningful at the executive level.​

 According to the CRISC Review Manual (Digital Version), the business significance of the information is the most important criterion when developing a response to an attack that would compromise data, as it determines the impact and severity of the attack on the organization’s objectives and performance. The business significance of the information helps to:

Assess the value and sensitivity of the data that is compromised or at risk of compromise

Evaluate the potential losses or damages that the organization may incur due to the data compromise

Prioritize the data recovery and restoration activities based on the criticality and urgency of the data

Communicate and coordinate the data breach response and notification with the relevant stakeholders, such as the data owners, the customers, the regulators, and the media

Enhance the data protection and security measures to prevent or mitigate future data compromise incidents

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 174-1751

The data privacy manager is the best person to an application system used to process employee personal data, because they are responsible for ensuring that the organization complies with the applicable data protection laws and regulations, and that the personal data of employees are collected, stored, processed, and disposed of in a secure and ethical manner. The data privacy manager is also responsible for establishing and maintaining the data privacy policies, procedures, and controls, and for conducting data privacy impact assessments and audits. The compliance manager, the system administrator, and the human resources (HR) manager are all involved in the of the application system, but they are not the best person to it, as they do not have the primary accountability and expertise for data privacy. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158

Key Control Indicators (KCIs) are metrics used to monitor the performance of controls. Their primary benefit is the early detection of control degradation, allowing organizations to take corrective actions before issues escalate into significant problems.

A disaster recovery test is a simulation of a disaster scenario that evaluates the effectiveness and readiness of the disaster recovery plan. The main purpose of a disaster recovery test is to ensure that the organization can resume its normal operations as quickly as possible after a disaster, with minimal or no data loss. Therefore, the most important objective of a disaster recovery test from a business perspective is to verify that all critical data can be recovered within the RTOs, which are the maximum acceptable time frames for restoring the data and systems after a disaster. If the RTOs are not met, the organization may face significant financial, operational, and reputationallosses. The other options are not the most important objectives of a disaster recovery test, although they may be beneficial outcomes. Gaining assurance that the organization can recover from a disaster is a subjective and qualitative goal, while recovering data within RTOs is a measurable and quantitative goal. Discovering errors in the disaster recovery process is a valuable result of a disaster recovery test, but it is not the primary objective. The objective is to correct the errors and improve the process, not just to find them. Testing all business criticalsystems is a necessary step in a disaster recovery test, but it is not the ultimate goal. The goal is to ensure that the systems can be restored and function properly within the RTOs. References = CRISC Review Manual, pages 197-1981; CRISC Review Questions, Answers & Explanations Manual, page 572

 According to the CRISC Review Manual, a list of unencrypted databases which contain sensitive data would be the most important information for assessing the risk impact, because it would help to determine the extent and severity of the potential data breach or loss. The risk impact is the effect or consequence of the risk occurrence on the business objectives and operations. A list of unencrypted databases which contain sensitive data would indicate the scope and magnitude of the risk exposure and the potential damage to the confidentiality, integrity, and availability of the data. The other options are not the most important information for assessing the risk impact, as they are less relevant or less specific than a list of unencrypted databases which contain sensitive data. The number of users who can access sensitive data would indicate the level of access control and the likelihood of unauthorized access, but it would not indicate thetype and value of the data. The reason some databases have not been encrypted would indicate the cause and rationale of the risk, but it would not indicate the effect or consequence of the risk. The cost required to enforce encryption would indicate the feasibility and affordability of the risk response, but it would not indicate the potential loss or harm of the risk. References = CRISC Review Manual, 7th Edition, Chapter 2, Section 2.2.2, page 78.

Risk strategies are the plans and actions that an organization adopts to manage its risks and to achieve its objectives. Risk strategies should be aligned with the organization’s vision, mission, values, and culture, as well as its internal and external environment. The most important consideration when developing risk strategies is the long-term organizational goals, meaning that the risk strategies should support and enable the organization to pursue and attain its desired future state and outcomes. The long-term organizational goals should guide the risk identification, assessment, response, and monitoring processes, as well as the risk appetite and tolerance levels. The long-term organizational goals should also be communicated and cascaded throughout the organization to ensure the risk awareness and engagement of all stakeholders. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, p. 27-28

The most important consideration when selecting KPIs for control monitoring is that the source information is consistently available, meaning that it can be obtained regularly, reliably, and timely from the same or equivalent data sources. This ensures that the KPIs can measure the performance of the controls over time and across different units or functions, and provide meaningful and comparable results. Source information that is acquired at stable cost, tailored by removing outliers, or readily quantifiable are also desirable, but not as essential as consistency.

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.

Accurate asset inventories depend on havingformal, standardized processes for onboarding new assets. ISACA emphasizes that without proper onboarding and updating procedures, asset data quickly becomes inaccurate and unreliable for risk management.

===========

Reviewing configuration settings is the best way for an organization to ensure that servers are compliant to security policy, because it helps to check and verify that the servers are configured and maintained according to the established security standards and guidelines, and that any deviations or violations are identified and corrected. A configuration setting is a parameter or option that defines the behavior or functionality of a server, such as a system, an application, or aservice. A security policy is a document that outlines the security objectives, principles, and rules that the organization and its employees must follow, and the consequences of non-compliance. Reviewing configuration settings is the best way, as it helps to ensure that the servers are secure and compliant, and that any security risks or issues are detected and resolved. Reviewing change logs, server access logs, and anti-malware compliance are all possible ways to ensure that servers are compliant to security policy, but they are not the best way, as they do not provide a comprehensive and consistent view of the configuration settings and their compliance status. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2, page 200

An intrusion detection system (IDS) is a network security tool that monitors network traffic and devices for known malicious activity, suspicious activity or security policy violations1. An IDS can generate alerts when it detects any potential threats, but not all alerts are accurate or relevant. There are two types of errors that can affect the performance and reliability of an IDS: false positives and false negatives2.

A false positive is when an IDS incorrectly flags a benign or normal activity as malicious or suspicious. For example, an IDS may alert on a legitimate network scan or a harmless software update. False positives can reduce the credibility and efficiency of an IDS, as they can overwhelm the security team with unnecessary alerts, distract them from the real threats, and cause them to ignore or disable the IDS3.

A false negative is when an IDS fails to flag a malicious or suspicious activity as such. For example, an IDS may miss a stealthy or novel attack that does not match any known signatures or patterns. False negatives can compromise the security and integrity of the network, as they can allow attackers to bypass the IDS and cause damage or steal data without being detected4.

The risk practitioner should recommend to analyze the alerts to minimize the false positives, because this is the best way to improve the accuracy and usefulness of the IDS. By analyzing the alerts, the risk practitioner can:

Identify the sources and causes of the false positives, such as misconfigured or outdated IDS rules, network anomalies, or legitimate traffic that resembles malicious traffic5.

Adjust or fine-tune the IDS settings, such as the alert threshold, the sensitivity level, the detection method, or the rule base, to reduce the number of false positives without increasing the risk of false negatives.

Validate or verify the alerts with other sources of information, such as logs, network traffic analysis, or threat intelligence, to confirm or dismiss the alerts as true or false positives.

Prioritize or classify the alerts based on their severity, impact, or likelihood, to focus on the most critical or relevant alerts and avoid alert fatigue.

The other options are not the best course of action, because:

Resetting the alert threshold based on peak traffic is not a reliable or effective way to minimize the false positives, as it may also increase the risk of false negatives. The alert threshold is the level of activity or deviation that triggers an alert from the IDS. If the threshold is set too high, the IDS may miss some malicious or suspicious activity that occurs below the threshold. If the threshold is set too low, the IDS may generate too many alerts for normal or benign activity that exceeds the threshold. The optimal threshold depends on various factors, such as the network size, topology, traffic volume, and baseline. Peak traffic is not a good indicator of the optimal threshold, as it may vary depending on the time, day, or season, and it may not reflect the normal or expected network behavior.

Analyzing the traffic to minimize the false negatives is not the main issue or goal in this scenario, as the problem is the high number of alerts, not the low number of alerts. Analyzing thetraffic can help to identify the malicious or suspicious activity that the IDS may have missed, but it does not address the root cause of the false positives or improve the IDS performance. Moreover, analyzing the traffic can be time-consuming and resource-intensive, especially for large or complex networks, and it may require specialized tools or skills that the risk practitioner may not have.

Sniffing the traffic using a network analyzer is not a suitable or feasible option in this scenario, as it may violate the privacy or security policies of the network or the organization. Sniffing the traffic means capturing and inspecting the network packets that are transmitted or received by the devices on the network. A network analyzer is a tool that can perform this function and display the packet data in a readable format. However, sniffing the traffic can also expose sensitive or confidential information, such as passwords, usernames, or credit card numbers, that may be contained in the packets. Therefore, sniffing the traffic may require authorization or consent from the network owners or users, and it may be restricted or prohibited by law or regulation.

References =

What is an intrusion detection system (IDS)? - IBM

Intrusion detection system - Wikipedia

What Are Intrusion Detection Systems? - MUO

12 Best Intrusion Detection System (IDS) Software 2024 - Comparitech

What is an Intrusion Detection System (IDS)? - Fortinet

[False Positive and False Negative in Intrusion Detection System]

[False Positives and False Negatives in Intrusion Detection Systems]

[How to Reduce False Positives for Your IDS/IPS]

[How to Set the Right Alert Thresholds for Your IDS/IPS]

[Network Traffic Analysis: What It Is and How It Works]

[What is a Network Analyzer? - Definition from Techopedia]

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

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 notnecessarily 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.

It is most important that security controls for a new system be documented in the system requirements. The system requirements define the functional and non-functional specifications of the system, including the security controls that are needed to protect the system and its data. Documenting the security controls in the system requirements can help ensure that they are designed, developed, tested, and implemented as part of the system development life cycle. Testing requirements, the implementation plan, and the security policy are other documents that may include security controls, but they are not as important as the system requirements. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 5; CRISC Review Manual, 6th Edition, page 212.

 A change in the risk profile would be the most important information to communicate to stakeholders after an annual risk assessment is completed, as it indicates how the risk landscape of the organization has changed over time, and how it affects the achievement of the business goals and objectives. A decrease in threats, an increase in reported vulnerabilities, and an increase in identified risk scenarios are also important information, but they are not the most important, as they are specific aspects of the risk profile, and do not provide a holistic view of the risk exposure and appetite of the organization. References = CRISC Review Manual, 7th Edition, page 109.

The main benefit of using key risk indicators (KRIs) for an organization is that they provide an early warning that a risk threshold is about to be reached. KRIs are metrics that measure the likelihood and impact of risks, and help monitor and prioritize the most critical risks. KRIs also help to trigger timely and appropriate risk responses, before the risk becomes unmanageable orunacceptable. The other options are not the main benefit of using KRIs, although they may be secondary benefits or outcomes. KRIs signal that a change in the control environment has occurred, provide a basis to set the risk appetite for an organization, and assist in the preparation of the organization’s risk profile. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.1, page 4-36.

Social engineering is a technique that involves manipulating or deceiving people into performing actions or divulging information that may compromise the security of an organization or its data12.

Entry into an organization’s secured physical premises is a form of physical access that allows an unauthorized individual to access, steal, or damage the organization’s assets, such as equipment, documents, or systems34.

The best way to prevent future occurrences of social engineering entry into an organization’s secured physical premises is to conduct security awareness training, which is an educational program that aims to equip the organization’s employees with the knowledge and skills they need to protect the organization’s data and sensitive information from cyber threats, such as hacking, phishing, or other breaches56.

Security awareness training is the best way because it helps the employees to recognize and resist the common and emerging social engineering techniques, such as tailgating,impersonation, or pretexting, that may be used by the attackers to gain physical access to the organization’s premises56.

Security awareness training is also the best way because it fosters a culture of security and responsibility among the employees, and encourages them to follow the best practices andpolicies for physical security, such as locking the doors, verifying the identity of visitors, or reporting any suspicious activities or incidents56.

The other options are not the best way, but rather possible measures or controls that may supplement or enhance the security awareness training. For example:

Employing security guards is a measure that involves hiring or contracting professional personnel who are trained and authorized to monitor, patrol, and protect the organization’s premises from unauthorized access or intrusion78. However, this measure is not the best way because it may not be sufficient or effective to prevent or deter all types of social engineering attacks, especially if the attackers are able to bypass, deceive, or coerce the security guards78.

Installing security cameras is a control that involves using electronic devices that capture and record the visual images of the organization’s premises, and provide evidence or alerts of any unauthorized access or activity . However, this control is not the best way because it is reactive rather than proactive, and may not prevent or stop the social engineering attacks before they cause any harm or damage to the organization .

Requiring security access badges is a control that involves using physical or electronic cards that identify and authenticate the employees or authorized visitors who are allowed to enter the organization’s premises, and restrict or deny the access to anyone else . However, this control is not the best way because it may not be foolproof or reliable to prevent or detect the social engineering attacks, especially if the attackers are able to steal, forge, or clone the security access badges . References =

1: What is Social Engineering? | Types & Examples of Social Engineering Attacks1

2: Social Engineering: What It Is and How to Prevent It | Digital Guardian2

3: What is physical Social Engineering and why is it important? - Integrity3603

4: What Is Tailgating (Piggybacking) In Cyber Security? - Wlan Labs4

5: What Is Security Awareness Training and Why Is It Important? - Kaspersky5

6: Security Awareness Training - Cybersecurity Education Online | Proofpoint US6

7: Security Guard - Wikipedia7

8: Security Guard Services - Allied Universal8

Security Camera - Wikipedia

Security Camera Systems - The Home Depot

Access Badge - Wikipedia

Access Control Systems - HID Global

A security awareness training program is an educational program that aims to equip the organization’s employees with the knowledge and skills they need to protect the organization’s data and sensitive information from cyber threats, such as hacking, phishing, or other breaches12.

A risk-aware culture is a culture that values and promotes the understanding and management of risks, and encourages the behaviors and actions that support the organization’s risk objectives and strategy34.

The best indication of an improved risk-aware culture following the implementation of a security awareness training program for all employees is an increase in the number of incidents reported, which is the frequency or rate of security incidents that are detected and communicated by the employees to the appropriate authorities or channels56.

An increase in the number of incidents reported is the best indication because it shows that the employees have gained the awareness and confidence to recognize and report the security incidents that may affect the organization, and that they have the responsibility and accountability to contribute to the organization’s risk management and security posture56.

An increase in the number of incidents reported is also the best indication because it enables the organization to respond and recover from the security incidents more quickly and effectively, and to prevent or reduce the recurrence or escalation of similar incidents in the future56.

The other options are not the best indication, but rather possible outcomes or consequences of an improved risk-aware culture or a security awareness training program. For example:

A reduction in the number of help desk calls is an outcome of an improved risk-aware culture or a security awareness training program that indicates the employees have become more self-reliant and proficient in solving or preventing the common or minor IT issues or problems . However, this outcome does not measure the employees’ awareness or reporting of security incidents, which may be more serious or complex .

An increase in the number of identified system flaws is a consequence of an improved risk-aware culture or a security awareness training program that indicates the employees have become more vigilant and proactive in finding and reporting the vulnerabilities or weaknesses in the IT systems or processes . However, this consequence does not measure the employees’ awareness or reporting of security incidents, which may exploit or leverage the system flaws .

A reduction in the number of user access resets is an outcome of an improved risk-aware culture or a security awareness training program that indicates the employees have become more careful and responsible in managing and protecting their user credentials or accounts . However, this outcome does not measure the employees’ awareness or reporting of security incidents, which may compromise or misuse the user access . References =

1: Security Awareness Training - Cybersecurity Education Online | Proofpoint US5

2: What Is Security Awareness Training and Why Is It Important? - Kaspersky6

3: Risk IT Framework, ISACA, 2009

4: IT Risk Management Framework, University of Toronto, 2017

5: Security Incident Reporting and Response, University of Toronto, 2017

6: Security Incident Reporting and Response, ISACA, 2019

IT Help Desk Best Practices, ISACA Journal, Volume 2, 2018

IT Help Desk Best Practices, ISACA Now Blog, February 12, 2018

System Flaw Reporting and Remediation, University of Toronto, 2017

System Flaw Reporting and Remediation, ISACA, 2019

User Access Management and Control, University of Toronto, 2017

User Access Management and Control, ISACA, 2019

Software as a Service (SaaS) is a cloud computing model that provides software applications over the internet, without requiring the users to install or maintain them on their own devices. SaaS vendors are responsible for hosting, managing, and updating the software applications, and providing technical support and security to the users. The key performance indicator (KPI) that would best measure the risk of a service outage when using a SaaS vendor is the frequency and duration of unplanned downtime, which is the amount and length of time that the software applications are unavailable or inaccessible due to unexpected events, such as network failures, server crashes, power outages, cyberattacks, etc. The frequency and duration of unplanned downtime indicate the reliability and availability of the SaaS vendor, and the potential impact of the service outage on the users’ business operations and productivity. References = 3

Specifying cloud service provider liability for data privacy breaches in the contract is the most effective control to address the risk associated with compromising data privacy within the cloud, because it establishes the roles and responsibilities of the cloud service provider and the customer in case of a data breach, and defines the compensation or remediation measures that the cloud service provider should provide. This control also creates an incentive for the cloud service provider to implement adequate security measures to protect the customer’s data and comply with the relevant laws and regulations. The other options are not the most effective controls, although they may also be helpful in reducing the risk of data privacy breaches. Establishing baseline security configurations with the cloud service provider, requiring the cloud service provider to disclose past data privacy breaches, and ensuring the cloud service provider performs an annual risk assessment are examples of preventive or detective controls that aim to reduce the likelihood or impact of a data breach, but they do not address the accountability or liability of the cloud service provider in case of a data breach. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

The most important information to be communicated during security awareness training is management’s expectations. This will help to establish the security culture and behavior of the enterprise, and to align the staff’s actions with the enterprise’s objectives, policies, and standards. Management’s expectations also provide the basis for measuring and evaluating the effectiveness of the security awareness program. Corporate risk profile, recent security incidents, and the current risk management capability are also important information to be communicated during security awareness training, but they are not as important as management’s expectations. 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 642.

The primary objective of testing the effectiveness of a new control before implementation is to ensure that risk is mitigated by the control. A control is a measure or action that is taken to reduce the likelihood or impact of a risk, or to increase the likelihood or impact of an opportunity1. Testing the effectiveness of anew control before implementation means verifying whether the control can achieve its intended purpose and objective, and whether it can address the risk adequately and appropriately2. Testing the effectiveness of a new control before implementation helps to avoid wasting resources, time, and effort on implementing a control that is ineffective, inefficient, or unsuitable for the risk scenario. It also helps to ensure that the control does not introduce new or unintended risks, or adversely affect other controls or processes3. The other options are not the primary objective of testing the effectiveness of a new control before implementation, as they are either less relevant or less specific than ensuring that risk is mitigated by the control. Measuring efficiency of the control process is a secondary objective of testing the effectiveness of a new control before implementation. Efficiency refers to the optimal use of resources to achieve the desired outcome4. Measuring efficiency of the control process means evaluating whether the control can achieve its objective with the least amount of cost, time, and effort. Measuring efficiency of the control process helps to optimize the performance and value of the control, but it is not the main reason for testing the effectiveness of a new control before implementation. Confirming control alignment with business objectives is a tertiary objective of testing the effectiveness of a new control before implementation. Alignment refers to the consistency and coherence of the control with the goals and strategies of the organization5. Confirming control alignment with business objectives means ensuring that the control supports and enables the achievement of the organization’s mission, vision, and values. Confirming control alignment with business objectives helps to integrate the control with the organization’s culture and governance, but it is not the primary reason for testing the effectiveness of a new control before implementation. Complying with the organization’s policy is a quaternary objective of testing the effectiveness of a new controlbefore implementation. Policy refers to the set of principles and rules that guide the organization’s decisions and actions6. Complying with the organization’s policy means adhering to the standards and requirements that the organization has established for implementing and operating controls. Complying with the organization’s policy helps to ensure the quality and consistency of the control, but it is not the main objective of testing the effectiveness of a new control before implementation. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.8, Page 61.

The best input for conducting a review of emerging risk is the annual threat reports. Emerging risk is the risk that arises from new or evolving sources, or from existing sources that have not been previously considered or recognized. Emerging risk may have significant impact on the organization’s objectives, strategies, operations, or reputation, and may require new or different risk responses. Annual threat reports are the reports that provide information and analysis on the current and future trends, developments, and challenges in the threat landscape, such as cyberattacks, natural disasters, geopolitical conflicts, or pandemics. Annual threat reports can help to identify and assess the emerging risk, as they can provide insights into the sources, drivers, indicators, and scenarios of the emerging risk, as well as the potential impact and likelihood of the emerging risk. Annual threat reports can also help to benchmark and compare the organization’s risk exposure and preparedness with the industry and the peers, and to prioritize and respond to the emerging risk. Audit reports, industry benchmarks, and financial forecasts are not as useful as annual threat reports, as they do not focus on the emerging risk, and may not capture the latest or future changes in the threat landscape. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 50.

Inherent risk rating is a measure of the natural level of risk that is part of an application, before any controls are applied1. Inherent risk rating helps to identify and prioritize the applications that pose the highest risk to the organization and require the most attention and resources for risk management2. The responsibility for determining the inherent risk rating of an application should belong to the risk practitioner, as they have the expertise and knowledge to perform a comprehensive and consistent risk assessment of the application, using a standard methodologyand criteria3. The risk practitioner should also communicate and report the inherent risk rating of the application to the relevant stakeholders, such as the application owner, senior management, and business process owner, and provide recommendations for risk mitigation4. The application owner, senior management, and business process owner are not the best choices for determining the inherent risk rating of an application, as they may not have the same level of skill and objectivity as the risk practitioner. The application owner is the person who has the authority and accountability for the application and its performance5. The application owner may be involved in providing input and feedback to the risk practitioner during the risk assessment process, but they may not be able to assess the inherent risk rating of the application independently and impartially, as they may have a vested interest in the application’s success and reputation6. Senior management is the group of executives who set the strategic direction and objectives of the organization and oversee its performance7. Senior management may be involved in approving and endorsing the risk assessment process and its results, but they may not be able to assess the inherent risk rating of the application in detail and depth, as they may have a broader and higher-level perspective of the organization’s risk profile and priorities8. The business process owner is the person who has the authority and accountability for a business process that is supported or enabled by the application. The business process owner may be involved in providing input and feedback to the risk practitioner during the risk assessment process, but they may not be able to assess the inherent risk rating of the application accuratelyand comprehensively, as they may have a limited and specific view of the application’s functionality and value. References = 2: Introduction toapplication risk rating & assessment | Infosec3: Application Security Risk: Assessment and Modeling - ISACA4: Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.1: Inherent Risk Rating - Shared Assessments - Third Party Risk Management5: [Application Owner - Gartner IT Glossary] 6: Perform Inherent Risk Analysis - Oracle7: [Senior Management - Definition, Roles and Responsibilities] 8: Rating Inherent and Residual Risk - Barn Owl : [Business Process Owner - Gartner IT Glossary] : [Business Process Owner - Roles and Responsibilities]

The first activity that should be performed when the time required to complete daily processing for a legacy application is approaching a risk threshold is to conduct a root-cause analysis. This will help to identify the source of the problem and the factors that are contributing to the increased processing time. By conducting a root-cause analysis, the enterprise can determine the most appropriate and effective solution to address the problem and prevent it from recurring. Temporarily increasing the risk threshold, suspending processing to investigate the problem, and initiating a feasibility study for a new application are not the first activities that should be performed, as they may not resolve the underlying issue and may introduce additional risks or costs. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1.2, page 193.

 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 anddecisions 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.

Documenting user IDs and passwords in procedure manuals is a vulnerability that exposes the organization to unauthorized access, data breaches, and other security risks. A vulnerability is a weakness or flaw in a system, process, or control that can be exploited by a threat. A threat is a potential cause of an unwanted incident that may harm the system or organization. A risk is the combination of the likelihood and impact of a threat exploiting a vulnerability. A policy violation is an act of non-compliance with a rule or standard that is established by the organization. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 67.

When reviewing a report on the performance of control processes, it is most important to verify whether the residual risk objectives have been achieved, as this indicates the extent to which the control processes have reduced the risk to an acceptable level. Residual risk is the risk that remains after the implementation of controls, and it should be aligned with the risk appetite and tolerance of the enterprise. Business process objectives, regulatory standards, and control process design are not the most important factors to verify,as they do not directly measure the effectiveness and efficiency of the control processes in managing the risk. References = CRISCPractice Quiz and Exam Prep; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 209.

The best course of action when a recent regulatory requirement has the potential to affect an organization’s use of a third party to supply outsourced business services is to conduct a gap analysis, as it involves comparing the current and desired states of compliance, and identifying any gaps or discrepancies that need to be addressed. Terminating the outsourcing agreement, identifying compensating controls, and transferring risk to the third party are not the best courses of action, as they may not be feasible, effective, or appropriate, respectively, and may require the prior knowledge of the compliance gaps and risks. References = CRISC Review Manual, 7th Edition, page 111.

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.

The data owner is responsible for ensuring that information is appropriately classified and protected. They are accountable for defining access controls and ensuring compliance with data protection policies, making them primarily accountable for risks associated with business information protection.

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-evaluatingcurrent 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.

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

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

 The best way to enable a risk-based decision when considering the use of an emerging technology for data processing is to perform a gap analysis. A gap analysis is a technique that compares the current state and the desired state of a process, system, or capability, and identifies the gaps or differences between them. A gap analysis can help to evaluate the benefits, costs, risks, and opportunities of using an emerging technology for data processing, and to determine the feasibility, suitability, and readiness of adopting the emerging technology. The other options are not as helpful as a gap analysis, as they are related to the specific aspects or components ofthe data processing, not the overall assessment and comparison of the current and desired state of the data processing. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.2: IT Risk Identification Methods, page 19.

The RPO defines how much data loss is acceptable during system failure. If not clearly defined, restoration may skip key data, leading to incomplete recovery. ISACA guidelines highlight that alignment of RPO/RTO with business objectives is critical for viable DR planning

 A bring your own device (BYOD) initiative allows employees to use their personal devices, such as smartphones, tablets, or laptops, for work purposes. This can provide benefits such as increased productivity, flexibility, and employee satisfaction. However, it also introducessignificant risks, such as data loss, data leakage, malware infection, unauthorized access, and compliance violations. Among these risks, data loss is of greatest concern for an organization, as it can have severe consequences, such as reputational damage, legal liability, financial loss, and competitive disadvantage. Data loss can occur due to various reasons, such as device theft, loss, damage, or disposal, accidental deletion, unauthorized transfer, or malicious attack. Therefore, an organization considering the adoption of a BYOD initiative should implement appropriate controls, such as encryption, authentication, remote wipe, backup, and data classification, to protect the data stored or accessed on the personal devices. References = Bring Your Own Device (BYOD) Policy: What You Need to Know, BYOD Risks: What You Need to Know, BYOD Security: 8 Risks and How to Mitigate Them

 A risk practitioner is preparing a report to communicate changes in the risk and control environment, such as new or emerging risks, changes in risk levels, risk responses, or control effectiveness. The best way to engage stakeholder attention is to include a summary linking information to stakeholder needs, meaning that the report should highlight the key points and findings that are relevant and important for the stakeholder’s role, responsibility, and interest. The summary should also explain how the information affects the stakeholder’s objectives, expectations, and decisions. The summary should be concise, clear, and compelling, and should capture the stakeholder’s attention and interest. The report can also include detailed deviations from industry benchmarks, a roadmap to achieve operational excellence, or an option to publish the report on-demand for stakeholders, but these are not the best ways to engage stakeholder attention, as they may not be directly related to the stakeholder’s needs or may overwhelm the stakeholder with too much information. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.1, p. 124-125