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A loss event is an occurrence that results in a negative consequence or damage for an organization, such as a data breach, a cyberattack, or a natural disaster. The impact of a loss event is the extent or magnitude of the harm or loss caused by the event, such as financial losses, reputational damage, operational disruptions, or legal liabilities. A newly enacted information privacy law that significantly increases financial penalties for breaches of personally identifiable information (PII) will most likely increase the impact of a loss event for an organization affected by the new law, because it will increase the potential cost and severity of a data breach involving PII. The other options are not as likely as an increase in loss event impact, because they do not directly result from the new law, but rather depend on other factors, such as the organization’s risk management capabilities, as explained below:

A. Increase in compliance breaches is not a likely outcome, because it assumes that the organization will not comply with the new law, which would expose it to more risks and penalties. A rational organization would try to comply with the new law by implementing appropriate controls and measures to protect PII and prevent data breaches.

C. Increase in residual risk is not a likely outcome, because it assumes that the organization will not adjust its risk response strategies to account for the new law, which would leave it with more risk exposure than desired. A prudent organization would try to reduce its residual risk by enhancing its risk mitigation controls or transferring its risk to a third party, such as an insurance company.

D. Increase in customer complaints is not a likely outcome, because it assumes that the organization will experience more data breaches involving PII, which would affect its customersatisfaction and loyalty. A responsible organization would try to avoid data breaches by improving its security posture and practices, and by communicating transparently and effectively with its customers about the new law and its implications. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.1.1, page 32.

Failure to utilize threat modeling during the design phase results in overlooked vulnerabilities. This highlights the importance ofProactive Threat Identificationin secure software development practices.

A managed security service provider (MSSP) is a third-party entity that offers network security services to an organization, such as firewall operation, administration, monitoring, and maintenance1. A firewall is a device or software that controls the incoming and outgoing network traffic based on predefined rules2. A firewall administrator is a person or entity that manages and maintains the firewall configuration, rules, and policies3. When an organizationuses an MSSP as a firewall administrator, the greatest concern is the exposure of log data, because log data contains sensitive and valuable information about the organization’s network activity, such as source and destination IP addresses, ports, protocols, timestamps, and user identities4. If the log data is not protected properly by the MSSP, it could be accessed, modified, or stolen by unauthorized parties, such as hackers, competitors, or regulators, which could result in data breaches, compliance violations, reputational damage, or legal liabilities for the organization5. The other options are not as concerning as the exposure of log data, because they do not pose a direct and immediate threat to the organization’s data security and privacy, but rather affect the quality and efficiency of the firewall management, as explained below:

B. Lack of governance is a concern when an organization uses an MSSP as a firewall administrator, because it could lead to misalignment or inconsistency between the organization’s and the MSSP’s objectives, policies, and standards for firewall management. However, this concern can be mitigated by establishing a clear and comprehensive service level agreement (SLA) with the MSSP,which defines the roles, responsibilities, expectations, and performance indicators for the firewall management service6.

C. Increased number of firewall rules is a concern when an organization uses an MSSP as a firewall administrator, because it could create complexity, confusion, or duplication in the firewall configuration, which could affect the firewall performance and security. However, this concern can be mitigated by conducting regular firewall audits and reviews with the MSSP, which can help to rationalize, optimize, and update the firewall rules, and to ensure that they are relevant, effective, and efficient for the organization’s network environment.

D. Lack of agreed-upon standards is a concern when an organization uses an MSSP as a firewall administrator, because it could result in gaps or weaknesses in the firewall design and implementation, which could compromise the firewall functionality and security. However, this concern can be mitigated by adopting and following industry best practices, norms, and expectations for firewall management, such as the National Institute of Standards and Technology (NIST) guidelines, the Center for Internet Security (CIS) benchmarks, or the Payment Card Industry Data Security Standard (PCI DSS) requirements . References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 115. What Is A Managed Security Service Provider (MSSP)? - Fortinet, What is a Firewall? - Definition from Techopedia, Firewall Administrator Job Description - Betterteam, What is a Firewall Log? - Definition from Techopedia, Firewall Log Management: Why It’s Important and How to Do It Right, How to Write a Service Level Agreement (SLA) for an MSSP, [Firewall Auditing: BestPractices for Security and Compliance], [Guidelines on Firewalls and Firewall Policy | CSRC], [CIS Firewall Benchmark - CIS], [PCI DSS and Firewalls - PCI Security Standards Council]

Root cause analysis helps identify the fundamental reason for an incident, allowing the enterprise to implement controls that reduce the probability of recurrence.

According to the CRISC Review Manual, performing the assessment as it would normally be done is the best approach when a risk practitioner has been asked by a business unit manager for special consideration during a risk assessment of a system, because it ensures that the risk practitioner maintains their objectivity, integrity, and professionalism. The risk practitioner should not compromise the quality or accuracy of the risk assessment, regardless of any external pressure or influence. The risk practitioner should follow the established risk assessment methodology and standards, and report the risk results and recommendations based on the facts and evidence. The other options are not the best approaches, because they may affect the credibility or reliability of the risk assessment. Conducting an abbreviated version of the assessment may result in incomplete or insufficient risk information, which may lead to poor riskdecisions or actions. Reporting the business unit manager for a possible ethics violation may escalate the situation or create a conflict of interest, which may hinder the risk assessment process or outcome. Recommending an internal auditor perform the review may transfer the responsibility or accountability of the risk practitioner, which may undermine their role or authority. References = CRISC Review Manual, 7th Edition, Chapter 2, Section 2.2.1, page 74.

Scheduling periodic audits is the best way to facilitate the maintenance of data classification requirements, because it helps to verify and validate that the data are classified and handled according to the established policies, standards, and guidelines, and that the data classification requirements are updated and aligned with the changes in the data environment or regulations. Data classification is a process of categorizing data according to their sensitivity, confidentiality, and value to the organization, and specifying the appropriate handling and protection measures for each category. Data classification requirements are the rules or criteria that define how data should be classified and treated. Scheduling periodic audits is the best way to ensure that the data classification requirements are followed and maintained, and that any issues or gaps are identified and addressed. Assigning a data custodian, implementing technical controls over theassets, and establishing a data loss prevention (DLP) solution are all useful ways to facilitate the maintenance of data classification requirements, but they are not the best way, as they do not provide a comprehensive and independent review and assessment of the data classification process and outcomes. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158

Organizational risk culture is the term describing the values, beliefs, knowledge, attitudes and understanding about risk shared by a group of people with a common purpose. Organizationalrisk culture influences how the organization identifies, assesses, and manages risks, and how it aligns its risk appetite and tolerance with its objectives and strategies1.

The best indication of a mature organizational risk culture is that risk owners understand and accept accountability for risk, because it means that the organization:

Clearly defines and assigns the roles and responsibilities of the risk owners, who are the individuals or groups who have the authority and ability to manage the risks within their scope or domain

Empowers and supports the risk owners to perform their risk management duties, such as identifying, assessing, responding, monitoring, and reporting the risks

Holds the risk owners accountable for the outcomes and consequences of the risks, and evaluates their performance and compliance with the risk policies, standards, and procedures

Encourages and rewards the risk owners for demonstrating risk awareness and competence, and for contributing to the risk management improvement and learning23

The other options are not the best indications of a mature organizational risk culture, but rather some of the elements or aspects of it. Corporate risk appetite is the amount and type of risk that the organization is willing to accept in order to achieve its objectives. Corporate risk appetite is communicated to staff members to guide their risk decision making and behavior, and to ensure the consistency and alignment of the risk taking and tolerance across the organization. Risk policy is the document that establishes the principles, framework, and process for managing the risks within the organization. Risk policy is published and acknowledged by employees to ensure their awareness and compliance with the risk management expectations and requirements. Management is the group of individuals who have the authority and responsibility to direct and control the organization’s activities and resources. Management encourages the reporting of policy breaches to ensure the transparency and accountability of the risk management performance and outcomes, and to identify and address the risk management issues and gaps4. References =

Risk culture - Institute of Risk Management

Risk Owner - ISACA

Taking control of organizational risk culture | McKinsey

[CRISC Review Manual, 7th Edition]

Fraudulent transactions are those that involve deception, manipulation, or misrepresentation of information or data to obtain an unauthorized or improper benefit or advantage1. Fraudulenttransactions can pose significant risks and losses for an organization, such as financial damages, legal liabilities, reputational damages, or operational disruptions2.

Enterprise resource planning (ERP) systems are integrated software applications that support the core business processes and functions of an organization, such as accounting, finance, human resources, supply chain, inventory, or customer relationship management3. ERP systems can facilitate the efficiency, accuracy, and security of business transactions, but they can also be vulnerable to fraudulent transactions, such as:

Creating fake vendors or customers and processing false invoices or payments

Manipulating or falsifying financial or accounting data or reports

Changing or deleting critical or sensitive information or records

Abusing or misusing access privileges or credentials

Bypassing or compromising the system controls or security measures4

The design of procedures to prevent fraudulent transactions within an ERP system should be based on the control environment. The control environment is the set of standards, processes, and structures that provide the basis for carrying out internal control across the organization. The control environment comprises the following elements:

The tone at the top, which reflects the leadership’s commitment and attitude towards internal control and ethical conduct

The organizational structure, which defines the roles and responsibilities, reporting lines, and authority levels for internal control

The human resource policies and practices, which ensure that the staff have the appropriate skills, competencies, and incentives for internal control

The risk assessment process, which identifies and evaluates the potential risks and threats to the organization’s objectives and transactions

The control activities, which are the specific policies, procedures, and mechanisms that prevent, detect, or correct errors or fraud in transactions

The information and communication systems, which provide reliable and timely data and information for internal control and decision-making

The monitoring and evaluation activities, which measure and report the performance and effectiveness of internal control and ensure continuous improvement

By basing the design of procedures to prevent fraudulent transactions within an ERP system on the control environment, the organization can:

Ensure that the procedures are aligned with the organization’s objectives, values, and expectations regarding internal control and fraud prevention

Provide clear and consistent guidance and instructions for the staff and stakeholders involved in the transactions and the ERP system

Implement adequate and appropriate controls and safeguards to mitigate the risks and vulnerabilities of the transactions and the ERP system

Monitor and evaluate the compliance and effectiveness of the procedures and the ERP system, and identify and address any issues or gaps

References = What is Fraud?, Fraud Risk Management - AICPA, What is ERP?, ERP Fraud: How to Prevent It - ERP Focus, [COSO – Control Environment - Deloitte], [How to use COSO to assess IT controls - Journal of Accountancy]

Regulatory requirements should be the primary basis for deciding whether to disclose information related to risk events that impact external stakeholders, because they define the rules or standards that the organization must comply with to meet the expectations of the regulators, such as government agencies or industry bodies, and to avoid legal or reputational consequences. A risk event is an occurrence or incident that may cause harm or damage to the organization or its objectives, such as a natural disaster, a cyberattack, or a human error. An external stakeholder is a person or group that has an interest or influence in the organization or its activities, but is not part of the organization, such as customers, suppliers, partners, investors, or regulators. Disclosing information related to risk events that impact external stakeholders is a process of communicating or reporting the relevant facts or details of the risk events to the affected or interested parties. Disclosing information related to risk events may have benefits, such as maintaining trust, transparency, and accountability, but it may also have drawbacks, such as exposing vulnerabilities, losing competitive advantage, or inviting litigation. Therefore, regulatory requirements should be the primary basis for deciding whether to disclose information, as they provide the legal and ethical obligations and boundaries for the disclosure process. Stakeholder preferences, contractual requirements, and management assertions are all possible factors for deciding whether to disclose information related to risk events, but they are not the primary basis, as they may vary or conflict depending on the situation or context, and may not override the regulatory requirements. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158

 Masking data before being transferred to the test environment is the best recommendation to address the situation where sensitive data from the production environment is required for testing purposes in non-production environments. Data masking is a technique that replaces sensitive data elements with realistic but fictitious data, preserving the format, structure, and meaning of the original data. Data masking ensures that the test data is sufficiently anonymized and de-identified, while still maintaining its functionality and validity for testing purposes. Data masking also reduces the risk of data leakage, exposure, or breach in the test environment, which may have lower security controls than the production environment. The other options are not the best recommendations, as they do not adequately protect the sensitive data or meet the testingrequirements. Enabling data encryption in the test environment may protect the data from unauthorized access, but it does not prevent the data from being decrypted by authorized users who may misuse or mishandle it. Implementing equivalent security in the test environment may be costly, complex, or impractical, and it may not be feasible to replicate the same level of security controls as in the production environment. Preventing the use of production data for test purposes may not be possible or desirable, as production data may be required to ensure the accuracy, reliability, and quality of the testing results. References = P = NP: Cloud dataprotection in vulnerable non-production environments …; Data masking secures sensitive data in non-production environments …; CRISC EXAM TOPIC 2 LONG Flashcards | Quizlet

The control environment is the set of internal and external factors and conditions that influence and shape the organization’s governance, risk management, and control functions. It includes the organization’s culture, values, ethics, structure, roles, responsibilities, policies, standards, etc.

Uncontrolled changes are changes or modifications to the control environment that are not planned, authorized, documented, or monitored, and that may have unintended or adverse consequences for the organization. Uncontrolled changes may be caused by various drivers or events, such as technological innovations, market trends, regulatory changes, customer preferences, competitor actions, environmental issues, etc.

The greatest concern when uncontrolled changes are made to the control environment is an increase in the level of residual risk, which is the amount and type of risk that remains after the implementation and execution of the risk responses or controls. An increase in the level of residual risk means that the risk responses or controls are not effective or sufficient to mitigate or prevent the risks, and that the organization may face unacceptable or intolerable consequences if the risks materialize.

An increase in the level of residual risk is the greatest concern when uncontrolled changes are made to the control environment, because it indicates that the organization’s risk profile and performance have deteriorated, and that the organization may not be able to achieve its objectives or protect its value. It also indicates that the organization’s risk appetite and tolerance have been violated, and that the organization may need to take corrective or compensating actions to restore the balance between risk and return.

The other options are not the greatest concerns when uncontrolled changes are made to the control environment, because they do not indicate the actual or potential impact or outcome of the risks, and they may not be relevant or actionable for the organization.

A decrease in control layering effectiveness means a decrease in the extent or degree to which the organization uses multiple or overlapping controls to address the same or related risks, and to provide redundancy or backup in case of failure or compromise of one or more controls. A decrease in control layering effectiveness may indicate a weakness or gap in the organization’s control design or implementation, but it does not indicate the actual or potential impact oroutcome of the risks, and it may not be relevant or actionable for the organization, unless the control layering is required or recommended by the organization’s policies or standards.

An increase in inherent risk means an increase in the amount and type of risk that exists in the absence of any risk responses or controls, and that is inherent to the nature or characteristics of the risk source, event, cause, or impact. An increase in inherent risk may indicate a change or variation in the organization’s risk exposure or level, but it does not indicate the actual or potential impact or outcome of the risks, and it may not be relevant or actionable for the organization, unless the inherent risk exceeds the organization’s risk appetite or tolerance.

An increase in control vulnerabilities means an increase in the number or severity of the weaknesses or flaws in the organization’s risk responses or controls that can be exploited or compromised by the threats or sources of harm that may affect the organization’s objectives or operations. An increase in control vulnerabilities may indicate a weakness or gap in the organization’s control design or implementation, but it does not indicate the actual or potential impact or outcome of the risks, and it may not be relevant or actionable for the organization, unless the control vulnerabilities are exploited or compromised by the threats or sources of harm. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 174

CRISC Practice Quiz and Exam Prep

The risk associated with the loss of company data stored on personal devices is that the data may be accessed, disclosed, or modified by unauthorized parties, resulting in confidentiality, integrity, or availability breaches1. The most effective way to mitigate this risk is to enforce authentication and data encryption on the personal devices that store company data. Authentication is a process that verifies the identity of the user or device that is accessing the data, and prevents unauthorized access by requiring a password, a code, a biometric factor, or a combination of these2. Data encryption is a technique that transforms the data into an unreadable format, and requires a key to decrypt and restore the data to its original format3. By enforcing authentication and data encryption on the personal devices, the organization can ensure that only authorized users or devices can access the company data, and that the data is protected from unauthorized disclosure or modification even if the device is lost or stolen4. An acceptable use policy for personal devices, required user log-on before synchronizing data, and security awareness training and testing are not the most effective ways to mitigate the risk associated with the loss of company data stored on personal devices, as they do not provide the same level of protection asauthentication and data encryption. An acceptable use policy for personal devices is a document that defines the rules and guidelines for using personal devices for work purposes, such as the types of devices, data, and applications that are allowed, the security measures that are required,and the responsibilities and liabilities of the users and the organization5. An acceptable use policy for personal devices can help to establish acommon understanding and expectation for the use of personal devices, but it does not enforce or guarantee the compliance or effectiveness of the security measures. Required user log-on before synchronizing data is a technique that requires the user to enter their credentials before they can transfer or update the data between their personal device and the company network or system6. Required user log-on before synchronizing data can help to prevent unauthorized synchronization of data, but it does not protect the data that is already stored on the personal device. Security awareness training and testing is a process that educates and evaluates the users on the security risks and best practices for using personal devices for work purposes, such as the importance of using strong passwords, updating software, avoiding phishing emails, and reporting incidents7. Security awareness training and testing can help to increase the knowledge and behavior of the users, but it does not ensure or monitor the implementation or performance of the security measures. References = 1: BYOD security: What are the risks and how can they be mitigated?2: What is Multi-Factor Authentication (MFA)? | Duo Security3: [What is Data Encryption? | Definition and FAQs] 4: How to mitigate the risks of using personal devices in the workplace5: BYOD Policy Template - GetFree Sample6: How to Sync Your Phone With Windows 10 | PCMag7: Security Awareness Training: What Is It and Why Is It Important?

According to the CRISC Review Manual1, peer reviews are the process of evaluating the quality and validity of risk analysis by independent experts or colleagues. Peer reviews are conducted to ensure that the risk analysis is consistent, objective, and reliable, and that it follows the established standards and methods. The primary reason for conducting peer reviews of risk analysis is to minimize subjectivity of assessments, as peer reviews can help to reduce personal biases, preferences, and assumptions that may affect the risk analysis outcomes. Peer reviews can also help to identify and correct any errors, gaps, or inconsistencies in the risk analysis, and to improve the risk analysis skills and knowledge of the reviewers and the reviewees. References = CRISC Review Manual1, page 209.

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

The first thing that should be done when addressing security concerns associated with a new Internet of Things (IoT) solution is to develop new IoT risk scenarios. IoT is a network of physical devices, such as sensors, cameras, appliances, etc., that are connected to the internet and can collect, process, and exchange data. IoT introduces new security concerns, such as privacy, confidentiality, integrity, availability,and accountability of the data and devices, as well as new threats and vulnerabilities, such as unauthorized access, manipulation, or disruption of the data and devices. Developing new IoT risk scenarios is the first thing that should be done, because it helps to identify, analyze, and evaluate the potential risks that could affect the IoT solution’s objectives or operations. Developing new IoT risk scenarios also helps to select the most appropriate and effective controls to minimize the risks, such as avoiding, reducing, transferring, or accepting the risks. The other options are not the first thing that should be done, although theymay be part of or derived from the IoT risk scenarios. Implementing IoT device monitoring software, introducing controls to the new threat environment, and engaging external security reviews are all activities that can help to support or improve the security of the IoT solution, but they do not necessarily identify, analyze, or evaluate the risks that could affect the IoT solution. References = 1

A risk heat map is a kind of risk matrix where risks are ranked based on their potential impact and their likelihood of occurring, which allows you to prioritize the risks that pose the greatest threat. The severity of each risk is indicated by color, usually green for low risk, red for high risk, and yellow for medium risk. Therefore, from a single data point on a risk heat map, one can interpret the risk magnitude, which is the product of impact and likelihood. The other options are not directly related to a single data point on a risk heat map, but rather to the overall risk management strategy and context. References = Risk Assessment and Analysis Methods: Qualitative and Quantitative; What Is a Risk Heat Map, and How Can It Help Your Risk Management Strategy; CRISC Certified in Risk and Information Systems Control – Question599

A dashboard summarizing key risk indicators (KRIs) is the best way for a risk practitioner to present an annual risk management update to the board because it provides a concise and visual overview of the current risk status, trends, and performance of the organization. KRIs are metrics that measure the likelihood and impact of risks, and help the board monitor and prioritize the most critical risks. A summary of risk response plans, a report with control environment assessment results, and a summary of IT risk scenarios are all useful information, but they are too detailed and technical for the board, who needs a high-level and strategic view of the risk management program. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.1, page 4-36.

According to the CRISC Review Manual (Digital Version), the security management function is responsible for ensuring that effective cybersecurity controls are established and maintained. The security management function should:

Define the cybersecurity strategy and objectives aligned with the enterprise’s risk appetite and business goals

Establish and maintain the cybersecurity policies, standards, procedures and guidelines

Implement and monitor the cybersecurity controls and processes

Coordinate and communicate with other stakeholders, such as risk owners, IT management, enterprise risk function, internal and external auditors, regulators and third parties

Report on the cybersecurity performance and risk posture to senior management and the board

Continuously improve the cybersecurity capabilities and maturity

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.4: IT Risk Management Roles and Responsibilities, pp. 29-301

The most useful information to determine mitigating controls when a core data center went offline abruptly for several hours affecting many transactions across multiple locations is the root cause analysis. Root cause analysis is a technique that identifies the underlying factors or reasons that caused the problem or incident. Root cause analysis can help to understand the nature, scope,and impact of the problem or incident, and to prevent or reduce the recurrence or severity of the problem or incident in the future. Root cause analysis can also help to identify and prioritize the appropriate mitigating controls that address the root causes of the problem or incident. The other options are not as useful as root cause analysis, as they are related to the investigation, evaluation, or measurement of the problem or incident, not the resolution or prevention of the problem or incident. References = Risk and Information Systems ControlStudy Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.

 Understanding Reputational Risk:

Reputational risk arises from negative public perception, which can be fueled by disinformation campaigns. These campaigns spread false or misleading information about an organization, potentially damaging its reputation.

 Mitigating Reputational Risk:

The best way to mitigate this risk is to actively counteract false information and restore public trust. This involves debunking false stories and correcting misinformation promptly and effectively.

 Role of Public Relations:

Engaging public relations (PR) personnel is crucial in managing the organization's reputation. PR professionals are skilled in crafting messages, dealing with media, and using communication strategies to address and correct false narratives.

PR personnel can issue press releases, organize press conferences, and leverage social media to reach a wide audience, ensuring the correct information is disseminated.

 Monitoring and Awareness Training:

While monitoring digital platforms and providing awareness training are important, they are more preventive measures. Monitoring helps in early detection, and training aids in internalmanagement of such risks. However, they do not actively counteract the false information once it is in the public domain.

 Restricting Social Media:

Restricting social media usage on corporate networks does not address the core issue of disinformation campaigns. It may reduce internal risks but does not mitigate external reputational damage.

 References:

The CRISC Review Manual discusses strategies for managing reputational risk and highlights the importance of proactive communication and public relations efforts (CRISC Review Manual, Chapter 1: Governance, Section 1.3.4 The Value of Risk Communication)​​.

The MOST important aspect for the risk practitioner to confirm is:

A. Appropriate approvals for the control changes

Ensuring that the control design changes have the appropriate approvals is crucial. This confirms that the changes are recognized and sanctioned by the necessary authority within the organization, aligning with governance practices and maintaining the integrity of the risk management process.

Change management is the best way to prevent an unscheduled application of a patch, because it ensures that any changes to the IT environment are planned, approved, tested, and documented. Change management is a process that controls the implementation of changes to IT systems, applications, infrastructure, or processes. It aims to minimize the risk of disruption, errors, or failures caused by changes. Applying a patch is a type of change that may affect the security, functionality, or performance of an IT system or application. Therefore, applying a patch shouldfollow the change management process and schedule, and avoid any unscheduled or unauthorized patching. Network-based access controls, compensating controls, and segregation of duties are all useful controls to protect the IT environment from unauthorized or malicious access, but they do not prevent an unscheduled application of a patch, as they do not address the change management process. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.4.2, page 211

The most essential factor for an effective change control environment is the separation of development and production environments. This ensures that changes are tested and verified in a controlled environment before being implemented in the live environment, reducing the risk of errors, failures, and unauthorized modifications. Business management approval of change requests, requirement of an implementation rollback plan, and IT management review of implemented changes are important elements of change control, but they are not as essential as the separation of environments. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.1.2, page 123.

According to the ISACA CRISC Review Manual, the data classification process identifies data sensitivity, criticality, and required protection levels.

“The level of protection for data should be based on its classification — i.e., the value of the information to the enterprise, its confidentiality, integrity, and availability requirements.”

Once classification (e.g., confidential, internal, public) is determined, corresponding safeguards (encryption, access control, backup policies) can be appropriately applied.

A and B are broad organizational factors.

C (access requirements) relates to functionality, not classification-based protection.

Therefore, D. Data classification is correct.

CRISC Reference: Domain 3 – Risk Response and Mitigation, Topic: Information Asset Protection.

 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.

Unvalidated AI outputs pose considerable integrity and operational risks, potentially leading to erroneous decisions or compliance lapses. ISACA CRISC guidance underscores that ensuring results validity is a highest-priority control for new technologies such as AI.

 Involving business management in evaluating and managing risk is beneficial, as it enables management to have a comprehensive and holistic view of the risk environment and its impact on the organization’s objectives and strategy. By participating in the risk management process, management can make better-informed business decisions, as they can consider the risk factors and implications of their choices, and align their decisions with the organization’s risk appetite and tolerance. Involving business management in evaluating and managing risk can also enhance the risk culture and governance of the organization, and foster a proactive and collaborative approach to risk management. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 253. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 253. CRISC by Isaca Actual Free Exam Q&As, Question 9.

The best way to provide assurance of the effectiveness of vendor security controls is to require independent control assessments. Independent control assessments are evaluations of thevendor’s security controls by a third-party auditor or assessor, such as an external auditor, a certification body, or a testing laboratory. Independent control assessments provide an objective and unbiased opinion on the adequacy and performance of the vendor’s security controls, as well as the compliance with relevant standards and regulations. Independent control assessments can also provide evidence and assurance to the customers of the vendor’s security posture and capabilities. Reviewing vendor control self-assessments (CSA), vendor service level agreement(SLA) metrics, or vendor references from existing customers are not as reliable or credible as independent control assessments, because they may be biased, incomplete, or outdated.

Regular reviewshelp detect inappropriate, outdated, or excessive access rights. This is a fundamental part of access control governance and supports the principle of least privilege.

Pre-production compatibility testing ensures patches won’t break applications or services, protecting availability—a key control objective outlined in ISACA’s guidance on Change and Configuration Management.

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

This behavior represents intentional circumvention of control, requiring formal documentation and assessment as a noncompliance risk scenario.

CRISC principle:

“When control circumvention occurs, the risk practitioner should document the event as a noncompliance risk scenario to evaluate its impact and treatment.”

The other options—auditing, probability updates, or cost analysis—may follow, but the first step is formal recognition of the risk within the risk register via a new scenario.

CRISC Reference: Domain 2 – IT Risk Assessment, Topic: Scenario Development and Control Evaluation.

Risk exposure is the product of risk likelihood and risk impact ratings. It represents the potential loss or damage that may result from a risk event. After implementing countermeasures, the risk likelihood and/or impact ratings may change, depending on the effectiveness of the countermeasures. Therefore, the risk exposure must also change to reflect the updated risk ratings. The other components of the register, such as risk owner, risk impact rating, and risk likelihood rating, may or may not change depending on the nature and scope of the countermeasures. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.

Security awareness training is a process of educating and informing the users about the security policies, procedures, and best practices of the organization, and the potential threats and risks that may affect the confidentiality, integrity, and availability of the information and systems.

The best indicator of whether security awareness training is effective is user behavior after training. This means that the users demonstrate and apply the knowledge and skills that they have learned from the training, such as following the security rules and guidelines, reporting any security incidents or issues, avoiding any risky or malicious actions, etc.

User behavior after training helps to measure the actual impact and outcome of the training, compare them with the expected or desired objectives and standards, identify any gaps or issuesthat may affect the training effectiveness or efficiency, and take appropriate actions to address them.

The other options are not the best indicators of whether security awareness training is effective. They are either subjective or not essential for security awareness training.

The references for this answer are:

Risk IT Framework, page 30

Information Technology & Security, page 24

Risk Scenarios Starter Pack, page 22

 The best way to address the request for IT risk profile reports associated with specific departments would be to use key risk indicators (KRIs), which are metrics that provide information on the level of exposure to a given operational risk1. KRIs can help to monitor the changes in risk levels over time, identify emerging risks, and trigger risk response actions when the risk exceeds the acceptable thresholds2. KRIs can also help to allocate resources for risk mitigation by prioritizing the risks that pose the greatest threat to the business objectives and performance of each department. The other options are not the best ways to address the request, as they do not provide the same level of insight and guidance as KRIs. The cost associated with each control may indicate the efficiency of the risk mitigation, but not the effectiveness or the necessity. Historical risk assessments may provide some baseline data, but not the current or future risk trends. Information from the risk register may include too much detail or irrelevant information, and not the key risk factors that need to be monitored and reported. References = Key Risk Indicators; Key Risk Indicators: A Practical Guide

 Configuration updates are changes made to the settings, parameters, or components of an IT system or network. Configuration updates can affect the functionality, performance, security, and reliability of the system or network. Therefore, configuration updates should follow formal change control, which is a process that ensures that changes are authorized, documented, tested, and implemented in a controlled manner. Formal change control can help prevent errors, conflicts, disruptions, and vulnerabilities that may arise from configuration updates. Configuration updates that do not follow formal change control should be of greatest concern to a risk practitioner when determining the effectiveness of IT controls, as they can introduce newrisks or compromise existing controls. References = Risk and Information Systems Control Study Manual, Chapter 3: Risk Response and Mitigation, Section 3.5: Control Monitoring and Reporting, p. 161-162.

 The most likely cause for a risk practitioner to reassess risk scenarios is a change in the regulatory environment. A regulatory environment is the set of laws, rules, and standards that apply to an organization and its activities, such as data privacy, security, compliance, or governance. A change in the regulatory environment can occur due to various factors, such as new legislation, court rulings, enforcement actions, or industry trends. A change in the regulatory environment can affect the risk scenarios that the organization faces, as it may introduce new or modified risks, or alter the probability or impact of existing risks. For example, a new regulation may require the organization to implement additional or different controls, or to report or disclose more information, which may increase the cost, complexity, or vulnerability of the organization’s processes and systems. A change in the regulatory environment may also affect the risk appetite, tolerance, and capacity of the organization, as it may impose different requirements or expectations for the organization’s risk management performance and outcomes. Therefore, a risk practitioner should reassess the risk scenarios when there is a change in the regulatory environment, to ensure that the risk scenarios are accurate, complete, and relevant, and that the risk response strategies and plans are appropriate, effective, and compliant. The other options are not the most likely cause, although they may be related or influential to the riskscenarios. A change in the risk management policy is a change in the rules and guidelines that define how the organization manages its risks, such as the roles and responsibilities, the processes and procedures, the tools and techniques, or the reporting and communication. A change in the risk management policy can affect the risk scenarios, as it may change the way the organization identifies, analyzes, evaluates, and responds to the risks, but it does not directly create or modify the risks themselves. A major security incident is an event or situation that compromises the confidentiality, integrity, or availability of the organization’s information or systems, such as a data breach, a denial-of-service attack, or a ransomware infection. A major security incident can affect the risk scenarios, as it may indicate or reveal the existence or severity of the risks, or trigger or escalate the consequences of the risks, but it is not a cause, rather it is an effect of the risks. An increase in intrusion attempts is an increase in the frequency or intensity of the unauthorized or malicious attempts to access or exploit the organization’s information or systems, such as phishing, malware, or brute-force attacks. An increase in intrusion attempts can affect the risk scenarios, as it may increase the likelihood or impact of the risks, or expose or exacerbate the vulnerabilities of the organization’s processes and systems, but it is not a cause, rather it is a manifestation of the risks. References = Risk Scenarios Toolkit -ISACA, How to Write Strong Risk Scenarios and Statements - ISACA, The Impact of Regulatory Change on Business - Deloitte

The greatest challenge to assigning of the associated risk entries when an organization has used generic risk scenarios to populate its risk register is that the risk scenarios are not applicable. Generic risk scenarios are risk scenarios that are based on common or typical situations that may affect many organizations or industries. They are useful for providing a general overview or reference of the potential risks, but they may not be relevant, specific, or realistic for a particular organization or context. Therefore, using generic risk scenarios may result in inaccurate, incomplete, or misleading risk entries that do not reflect the actual risk profile or appetite of the organization. The other options are not as challenging as the risk scenarios being not applicable, as they are related to the quantity, quality, or aggregation of the risk scenarios, not the suitabilityor validity of the risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.

According to the CRISC Review Manual1, the risk register is a tool that records the results of risk identification, analysis, evaluation, and treatment. The risk register should be populated as soon as possible in the risk management process, to capture and document the risks and their attributes. The best time for the risk practitioner to start populating the risk register is when identifying risk scenarios, as this is the first step in the risk identification process. Risk scenarios are hypothetical situations that describe the potential causes, impacts, and responses of a risk event. Identifying risk scenarios helps to generate a comprehensive and relevant list of risks that can be recorded in the risk register. References = CRISC Review Manual1, page 191, 206.

According to the CRISC Review Manual (Digital Version), a vulnerability is a flaw or weakness in an asset’s design, implementation, or operation and management that could be exploited by a threat. A delayed removal of employee access is a vulnerability, as it allows former employees to retain access to the organization’s IT assets and processes, which could lead to unauthorized disclosure, modification, or destruction of data or resources. A delayed removal of employee access could be caused by poor personnel management, lack of security awareness, or inadequate access control policies and procedures.

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.5: IT Risk Identification Methods and Techniques, pp. 32-331

Determining if organizational risk is tolerable requires understanding the organization’s risk appetite, which is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives1. Understanding the organization’s risk appetite can help to:

Define and communicate the risk tolerance, which is the acceptable or unacceptable level of risk for each risk category or scenario2.

Guide and align the risk identification, analysis, evaluation, and treatment processes, and ensure that the risks are consistent and proportional to the risk appetite3.

Measure and monitor the risk performance and outcome, and ensure that the residual risk (the risk that remains after the risk responses) is within the risk appetite, or take corrective actions if needed4.

The other options are not the best ways to determine if organizational risk is tolerable, because:

Mapping residual risk with cost of controls is a useful but not sufficient way to determine if organizational risk is tolerable, as it provides a quantitative analysis of the trade-off between the risk level and the risk response cost5. However, mapping residual risk with cost of controls does not consider the qualitative aspects of the risk, such as the impact on the organization’s strategy, culture, or reputation.

Comparing against regulatory requirements is a necessary but not sufficient way to determine if organizational risk is tolerable, as it ensures that the organization complies with the applicable laws, rules, or standards that govern its activities and operations6. However, comparing against regulatory requirements does not guarantee that the organization meets its own objectives and expectations, which may be higher or lower than the regulatory requirements.

Comparing industry risk appetite with the organization’s risk appetite is a helpful but not sufficient way to determine if organizational risk is tolerable, as it provides a reference or a standard for benchmarking the organization’s risk level and performance with its peers or competitors7. However, comparing industry risk appetite with the organization’s risk appetitedoes not ensure that the organization addresses its specific or unique risks, which may differ from the industry risks.

References =

Risk Appetite - CIO Wiki

Risk Tolerance - CIO Wiki

Risk Management Process - CIO Wiki

Risk Monitoring - CIO Wiki

Residual Risk - CIO Wiki

Regulatory Compliance - CIO Wiki

Benchmarking - CIO Wiki

Risk and Information Systems Control documents and learning resources by ISACA

The most comprehensive resource for prioritizing the implementation of information systems controls is the risk register. The risk register is a document that records the identified risks, their analysis, and their responses. The risk register provides a holistic and systematic view of the risk profile and the risk treatment of the organization. The risk register can help to prioritize the implementation of information systems controls by providing the information on the likelihood, impact, and exposure of the risks, the effectiveness and efficiency of the controls, and the gaps or issues of the control environment. The other options are not as comprehensive as the risk register, as they are related to the specific aspects or components of the information systems controls, not the overall assessment and evaluation of the information systems controls. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.

Classifying information assets is a process of identifying and categorizing the data and information resources that are owned, controlled, or used by an organization, based on their value, sensitivity, and criticality.

Classifying information assets helps to determine the appropriate level of control that is needed to protect them from unauthorized access, use, disclosure, modification, or destruction. Control level refers to the degree of protection or assurance that a control provides against a risk.

Classifying information assets also helps to communicate risk to senior management, assign risk ownership, and facilitate internal audit. These are other benefits of risk management that are not directly related to determining the appropriate level of control.

The references for this answer are:

Risk IT Framework, page 11

Information Technology & Security, page 5

Risk Scenarios Starter Pack, page 3

The most important benefit of key risk indicators (KRIs) is providing an early warning to take proactive actions, because this helps organizations to prevent or mitigate potential risks that may impact their operations, objectives, or performance. KRIs are specific metrics that measure the level and impact of risks, and provide timely signals that something may be going wrong or needs urgent attention. By monitoring and analyzing KRIs, organizations can identify and assess emerging or existing risks, and initiate appropriate risk responses before the risks escalate intosignificant issues. This can enhance the organization’s resilience, competitiveness, and value creation. The other options are less important benefits of KRIs. Assisting in continually optimizing risk governance is a benefit of KRIs, but it is not the most important one. Risk governance is the framework and process that defines how an organization manages its risks, including the roles, responsibilities, policies, and standards. KRIs can help to evaluate and improve the effectiveness and efficiency of risk governance, but they are not the only factor that influences it. Enabling the documentation and analysis of trends is a benefit of KRIs, but it is not the most important one. Documenting and analyzingtrends can help organizations to understand the patterns, causes, and consequences of risks, and to learn from their experiences. However, this benefit is more relevant for historical or retrospective analysis, rather than for proactive action. Ensuring compliance with regulatory requirements is a benefit of KRIs, but it is not the most important one. Compliance is the adherence to the laws, regulations, and standards that apply to an organization’s activities and operations. KRIs can help to monitor and demonstrate compliance, but they are not the only tool or objective for doing so. References = Why Key Risk Indicators Are Important for Risk Management 1

Maturity models are tools that help organizations assess and improve their risk management processes and capabilities. They provide a set of criteria or standards that define different levels of maturity, from ad-hoc to innovative. The primary objective of using maturity models in risk management is to enable strategic alignment, which means ensuring that the risk management activities and objectives are consistent with and support the organization’s mission, vision, values, and goals. By using maturity models, organizations can identify their current level of risk management maturity, compare it with their desired level, and plan and implement actions to close the gap. This way, they can align their risk management practices with their strategic direction and priorities, and enhance their performance and value creation. References = How to Use a Maturity Model in Risk Management — RiskOptics - Reciprocity, Using a Maturity Model to Assess Your Risk Management Program, How to Use a Risk Maturity Model to Level Up · Riskonnect

The best way to identify changes in the risk profile of an organization is to monitor key risk indicators (KRIs), which are metrics that provide information on the level of exposure to a given operational risk1. KRIs can help to monitor the changes in risk levels over time, identify emerging risks, and trigger risk response actions when the risk exceeds the acceptable thresholds2. KRIs can also help to align the risk management strategy with the business objectives and context. The other options are not the best ways to identify changes in the risk profile of an organization, as they do not provide the same level of insight and guidance as KRIs. Monitoring key performance indicators (KPIs) may show the results or outcomes of the business processes, but not the risks or uncertainties that affect them. Interviewing the risk owner may provide some subjective or qualitative information on the risk perception or attitude, but not the objective or quantitative data on the risk exposure or impact. Conducting a gap analysis may show the difference between the current and desired state of the organization, but not the causes or sources of the risk. References = Key Risk Indicators; Key Risk Indicators: A Practical Guide

 An exception to the information security policy is a permission to continue operating a system, service, or product that cannot comply with the established information security standards and requirements1. A risk owner is a person or entity that has the authority and accountability for a risk and its management2. A risk practitioner is a person or entity that has the knowledge and skills to perform risk management activities3. A high number of exceptions to the information security policy indicates that there are many systems, services, or products that do not meet the expected level of security and pose potential risks to the organization. The risk practitioner’s greatest concern should be that the aggregate risk, which is the total amount of risk that the organization faces from all sources, is approaching the tolerance threshold, which is the limit beyond which the organization does not want to tolerate the risk4. If the aggregate risk isapproaching the tolerance threshold, it means that the organization is exposed to a high level of risk that may exceed its risk appetite, which is the amount of risk that the organization is willing to accept to achieve its objectives5. This may result in negative consequences for the organization, such as breaches, losses, damages, or reputational harm. Therefore, the risk practitioner should monitor and report the aggregate risk level and the tolerance threshold, and advise the risk owners and the management on the appropriate risk responses and actions to reduce the aggregate risk to an acceptable level. Security policies are being reviewed infrequently, controls are not operating efficiently, and vulnerabilities are not being mitigated are not the risk practitioner’s greatest concern, as they are not directly related to the aggregate risk level and the tolerance threshold. Security policies are being reviewed infrequently is a condition that indicates that the organization’s security policies are not updated or revised regularly to reflect the changes and updates in the security environment and the security requirements6. This may affect the relevance and effectiveness of the security policies, but it does not necessarilyincrease the aggregate risk level or the tolerance threshold. Controls are not operating efficiently is a condition thatindicates that the organization’s controls, which are the measures or actions taken to manage or mitigate the risks, are not performing well or optimally7. This may affect the quality and performance of the controls, but it does not necessarily increase the aggregate risk level or the tolerance threshold. Vulnerabilities are not being mitigated is a condition that indicates that the organization’s vulnerabilities, which are the weaknesses or gaps that may be exploited by the threats, are not being addressed or reduced8. This may increase the likelihood or impact of the risks, but it does not necessarily increase the aggregate risk level or the tolerance threshold. References = 1: IT/Information Security Exception Request Process2: [Risk Ownership - Risk Management] 3: [Risk Practitioner - ISACA] 4: Risk Threshold: Definition, Meaning & Example - PM Study Circle5: Risk Appetite vs Risk Tolerance vs Risk Threshold - projectcubicle6: [Security Policy Review and Update - SANS Institute] 7: [Control Effectiveness and Efficiency - ISACA] 8: [Vulnerability Management - ISACA] : [Risk andInformation Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Concepts, pp. 17-19.] : [Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.1: Risk Identification, pp. 57-59.] : [Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.1: Control Design, pp. 233-235.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.2: Control Implementation, pp. 243-245.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.3: Control Monitoring and Maintenance, pp. 251-253.]

Data leakage is the unauthorized or accidental disclosure of sensitive or confidential data to unauthorized parties. Data leakage can cause serious damages or losses to the organization, such as data breaches, fines, lawsuits, reputational harm, or loss of customer trust. Data leakage can occur due to various reasons, such as human errors, malicious attacks, or inadequate controls1.

An organization that uses a vendor to destroy hard drives faces a risk of data leakage, as the vendor may not properly or securely destroy the hard drives, or may access or misuse the data stored on them. The best way to reduce this risk is to use an accredited vendor to dispose of the hard drives, because it means that the vendor:

Has been certified or verified by a reputable or recognized authority or organization, such as ISACA, NAID, or R2, to provide hard drive destruction services

Follows the industry standards and best practices for hard drive destruction, such as NIST 800-88 or DoD 5220.22-M, and ensures the compliance with the legal and regulatory requirements, such as HIPAA, PCI DSS, or GDPR

Provides a secure and transparent process for hard drive destruction, such as using a specialized shredder, issuing a certificate of destruction, or allowing the customer to witness the destruction

Maintains a high level of professionalism and integrity, and does not compromise the confidentiality or security of the customer’s data234

The other options are not the best ways to reduce the risk of data leakage, but rather some of the steps or aspects of hard drive destruction. Require the vendor to degauss the hard drives is a step that can help to erase the data on the hard drives by using a strong magnetic field. However,degaussing may not be effective or reliable for some types of hard drives, such as solid state drives (SSDs), and it may not prevent the vendor from accessing or misusing the data before degaussing5. Implement an encryption policy for the hard drives is an aspect that can help to protect the data on the hard drives by using a cryptographic algorithm to make it unreadable without a key. However, encryption may not be sufficient or applicable for some types of data, such as metadata, and it may not prevent the vendor from accessing or misusing the key or the encrypted data6. Require confirmation of destruction from the IT manager is a step that can help to verify that the hard drives have been destroyed by the vendor, and to document the process and the outcome. However, confirmation of destruction may not be accurate or authentic, and it may not prevent the vendor from accessing or misusing the data before destruction7. References =

Data Leakage - ISACA

Hard Drive Shredding Services | Hard Drive Destruction & Disposal

Hard Drive Shredding and Destruction Service | CompuCycle

Electronic Destruction & Recycling | Shred Nations

Degaussing - ISACA

Encryption - ISACA

Certificate of Destruction - ISACA

[CRISC Review Manual, 7th Edition]

The risk management function acts as a consultant and facilitator in IT projects, helping the project team identify, assess, and respond to risks effectively. It does not directly control project status or costs but supports decision-making. Updating risk registers is an operational task often handled by the project team with guidance from risk management. Eliminating all risk is impractical; instead, risks are managed within appetite levels.

By aligning risk scenarios with business objectives, risk practitioners can accurately measure the potential loss (materiality) based on business value. This enhances prioritization and allows for risk treatment to be directed toward what impacts the organization’s mission and goals the most.

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.

Thelatest security assessmentprovides a detailed evaluation of the control’s performance and identifies gaps or weaknesses. This is critical for determining the effectiveness of a system security control in mitigating threats.

Automated IT asset management ensures real-time visibility and tracking of software usage, licensing, and compliance. It minimizes human error, improves audit readiness, and proactively addresses noncompliance risks.

The first thing that the risk practitioner should do upon learning that a new third-party system on the corporate network has introduced vulnerabilities that could compromise corporate IT systems is to notify information security management. This will help to escalate the issue to the appropriate authority and responsibility level, and to initiate the incident response process. Information security management can also coordinate with the third party, the IT department, and other stakeholders to assess the impact and severity of the vulnerabilities, and to implement the necessary actions to contain, eradicate, and recover from the incident. Confirming the vulnerabilities with the third party, identifying procedures to mitigate the vulnerabilities, and requesting IT to remove the system from the network are not the first things that the risk practitioner should do, as they may not address the urgency and priority of the issue, and may not involve the relevant decision makers and responders. 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 659.

A risk heat map is a graphical tool that displays the level of risk for each risk area based on the impact and likelihood of occurrence. It also provides a summary of the risk assessment results, such as the number and severity of risks, the risk appetite and tolerance, and the risk response strategies. A risk heat map can help senior management to understand the risk profile of the organization, prioritize the risks that need attention, and allocate resources accordingly. A risk heat map is more effective than the other options because it can communicate complex information in a simple and visual way, and it can highlight the key risk areas and trends. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.2, page 97.

 A risk register is a tool that records and tracks the risks that may affect a project, as well as the actions that are taken or planned to manage them1. A risk register should include information such as the risk description, category, source, impact, likelihood, severity, owner, status, and response2. Among these, the most important information to capture in the risk register is the action plans to address risk scenarios requiring treatment. This is because the action plans are the specific steps that are taken to reduce, avoid, transfer, or accept the risks, depending on thechosen risk treatment option3. The action plans should beclear, realistic, measurable, and aligned with the project objectives and constraints4. The action plans should also be monitored and updated regularly to ensure that they are effective and appropriate for the changing risk environment5. The action plans are essential for managing the risks and ensuring the successful delivery of the project. The other options are not the most important information to capture in the risk register, as they are either less relevant or less actionable than the action plans. The team that performed the risk assessment is the group of people who identified, analyzed, and evaluated the risks, using various tools and techniques6. While this information may be useful foraccountability and communication purposes, it is not as important as the action plans, as it does not indicate how the risks are treated or resolved. The assigned risk manager to provide oversight is the person who has the responsibility and authority to oversee the risk management process and ensure that the risks are properly identified, assessed, treated, and reported. While this information may be useful for governance and coordination purposes, it is not as important as the action plans, as it does not specify what actions are taken or planned to manage the risks. The methodology used to perform the risk assessment is the approach or framework that is used to identify, analyze, and evaluate the risks, based on the project context, scope, and objectives. While this information may be useful for consistency and transparency purposes, it is not as important as the action plans, as it does not describe how the risks are addressed or mitigated. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.5, Page 55.

Alignment to business objectives is the most important factor when developing a business case for a proposed security investment, because it demonstrates how the investment will support the enterprise’s mission, vision, and goals. A business case should show how the security investment will contribute to the value creation, risk reduction, and performance improvement of the enterprise. The other options are not the most important factors, although they may also be included in the business case. The identification of control requirements, the consideration of new business strategies, and the inclusion of strategy for regulatory compliance are secondary factors that depend on the alignment to business objectives. References = Most Asked CRISC Exam Questions and Answers

The annualized loss expectancy (ALE) method of risk analysis is a quantitative method that estimates the expected monetary loss that can result from a risk over a one year period. The ALE is calculated by multiplying the single loss expectancy (SLE), which is the monetary loss from a single occurrence of a risk, by the annualized rate of occurrence (ARO), which is the frequency of the risk occurring in a year. The ALE can be used in a cost-benefit analysis to compare the cost of implementing a control or a risk response with the expected benefit of reducing the loss. The ALE can help to justify the investment in risk management and to prioritize the risks based on their financial impact. The other options are not accurate descriptions of the ALE method of risk analysis, as they involve different aspects or methods of risk analysis. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.3.2.1, pp. 60-61.

Modifying logs before analysis compromises the integrity and reliability of monitoring processes. This action creates a risk of inaccurate data feeding into key risk indicators, which undermines the effectiveness of monitoring and decision-making. Maintaining log integrity is a foundational practice inRisk Monitoring and Reporting.

The most helpful activity for a risk practitioner when ensuring that mitigated risk remains within acceptable limits is to implement a process for ongoing monitoring of control effectiveness. This would enable the risk practitioner to track the performance of the controls, identify any deviations or gaps, and take corrective actions as needed. Ongoing monitoring of control effectiveness would also provide assurance that the risk responses are working as intended, and that the residual risk is aligned with the risk appetite and tolerance of the enterprise. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.3.1, page 188.

To ensure IT asset protection, having procedures for risk assessments on IT assets is the most important. These procedures enable an organization to systematically identify, evaluate, and mitigate risks associated with its IT assets. This process is crucial for understanding thevulnerabilities and threats that could potentially harm the assets and for implementing the necessary controls to protect them.

Procedures for Risk Assessments on IT Assets (Answer A):

Importance: Regular risk assessments help in identifying vulnerabilities and threats to IT assets, allowing the organization to prioritize and implement appropriate risk mitigation strategies.

Implementation: These procedures should be well-documented and regularly updated to reflect the changing threat landscape and the organization's evolving IT infrastructure.

Outcome: Effective risk assessments ensure that IT assets are protected from potential risks, thereby safeguarding the organization's data, systems, and overall IT environment.

Comparison with Other Options:

B. An IT asset management checklist:

Purpose: This helps in tracking and managing IT assets.

Limitation: It does not address risk assessment and mitigation directly.

C. An IT asset inventory populated by an automated scanning tool:

Purpose: Provides a detailed list of IT assets.

Limitation: While it helps in knowing what assets exist, it does not assess the risks associated with those assets.

D. A plan that includes processes for the recovery of IT assets:

Purpose: Focuses on recovery after an incident.

Limitation: It is reactive rather than proactive in protecting assets.

A comprehensive and documented IT risk management plan provides a structured approach to identifying, assessing, and mitigating IT risks. Integrating this plan into the organization's strategic planning ensures that IT risk considerations are aligned with business objectives and are factored into decision-making processes at the strategic level.

According to the What To Look For When Assessing Your Organization’s Security Risk Posture 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. When reviewing a risk response strategy, senior management’s primary focus should be placed on the alignment with risk appetite, as this indicates how well the risk response strategy supports the organization’s objectives and expectations, and how consistent it is with the organization’s risk tolerance and risk profile. By ensuring the alignment with risk appetite, senior managementcan evaluate the effectiveness and efficiency of the risk response strategy, and determine if any adjustments or improvements are needed. References = What To Look For When Assessing Your Organization’s Security Risk Posture

When using a third party to perform penetration testing, the most important control to minimize operational impact is to clearly define the project scope. This means specifying the objectives,boundaries, methods, and deliverables of the testing, as well as the roles and responsibilities of the parties involved. A clear project scope helps to avoid misunderstandings, conflicts, and disruptions that could compromise the security, availability, or integrity of the systems undertest. It also helps to ensure that the testing is aligned with the organization’s risk appetite and compliance requirements. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.3.2, Page 137.

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.

The risk practitioner’s best course of action after identifying risk scenarios related to noncompliance with new industry regulations is to escalate to senior management, as they have the authority and responsibility to decide on the appropriate risk response and allocate the necessary resources. Transferring the risk, implementing monitoring controls, and recalculating the risk are possible risk responses, but they require senior management approval and direction. References = Risk Scenarios Toolkit, page 19; CRISC Review Manual, 7th Edition, page 107.

The most important consideration when selecting either a qualitative or quantitative risk analysis is the time available for risk analysis, as this affects the level of detail and accuracy that can be achieved in the risk assessment process. Qualitative risk analysis is a method that uses subjective judgments and ratings to measure and prioritize the risks based on their likelihood and impact, as well as other factors such as urgency, velocity, and persistence. Qualitative risk analysis is usually faster and simpler than quantitative risk analysis, but it may also be less precise and consistent. Quantitative risk analysis is a method that uses numerical data and mathematicalmodels to measure and prioritize the risks based on theirprobability and magnitude, as well as other factors such as frequency, duration, and correlation. Quantitative risk analysis is usually more complex and time-consuming than qualitative risk analysis, but it may also provide more objective and reliable results. The other options are not the most important considerations when selecting either a qualitative or quantitative risk analysis, although they may have some influence or relevance. Expertise in both methodologies is desirable, but it does not determine the choice of the risk analysis method, as it depends on the availability and suitability of the experts for the specific risk context and objectives. Maturity of the risk management program is important, but it does not dictate the choice of the risk analysis method, as it depends on the level of integration and alignment of the risk management activities with the enterprise’s strategy and goals. Resources available for data analysis are relevant, but they do not decide the choice of the risk analysis method, as they depend on the quality and availability of the data sources and tools for the risk assessment process. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Assessment, page 81.ST

 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.

 Importance of a Risk Register:

A risk register is a critical tool for documenting, tracking, and managing risks within an organization. It serves as a central repository for all identified risks, detailing their status, impact, likelihood, and the actions taken to mitigate them.

A regularly updated risk register demonstrates an active and ongoing risk management process, reflecting the organization's commitment to identifying and addressing risks promptly.

 Evidence of Robust Risk Management:

The risk register shows the organization's proactive approach to risk management by continuously monitoring and updating risks.

It provides transparency and accountability, allowing stakeholders to see how risks are being managed and mitigated over time.

Regular updates ensure that new risks are identified and existing risks are reassessed, indicating a dynamic and responsive risk management practice.

 Comparing Other Options:

Management-Approved Risk Dashboard:While useful for summarizing risk information, a dashboard does not provide the detailed, ongoing updates and comprehensive tracking found in a risk register.

Current Control Framework:A control framework outlines the controls in place but does not detail specific risks or their management.

Regularly Updated Risk Management Procedures:Procedures are important but do not provide the same level of detailed risk tracking and management as a risk register.

 References:

The CRISC Review Manual emphasizes the importance of a risk register in consolidating and tracking risk data, making it an essential component of robust risk management practices (CRISC Review Manual, Chapter 2: IT Risk Assessment, Section 2.6 Risk Register)​​ .

According to the CRISC Review Manual (Digital Version), a contract associated with a cloud service provider must include ownership of responsibilities, as this defines the roles and obligations of both the cloudprovider and the customer in relation to the cloud services. The contract should specify who is responsible for:

Service delivery and performance

Data security and privacy

Compliance with regulations and standards

Incident management and reporting

Business continuity and disaster recovery

Change management and configuration control

Intellectual property rights and licensing

Termination and data egress

The contract should also include service level agreements (SLAs) that measure and monitor the quality and availability of the cloud services, as well as remedies and penalties for non-compliance. The contract should also address pricing and payment terms, dispute resolution mechanisms, and liability and indemnification clauses.

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 173-1741

A risk register is a tool that records and tracks the risks that may affect the organization, as well as the actions that are taken or planned to manage them1. A risk register provides the best evidence that the IT risk profile is up to date, because it reflects the current and potential IT risks that the organization faces, as well as their likelihood, impact, severity, owner, status, and response2. An IT risk profile is a document that describes the types, amounts, and priority of ITrisk that the organization finds acceptable and unacceptable3. An IT risk profile is developed collaboratively with various stakeholders within the organization, including business leaders, data and process owners, enterprise risk management, internal and external audit, legal, compliance, privacy, and IT risk management and security4. By maintaining and updating the risk register regularly, the organization can ensure that the IT risk profile is aligned with the changing IT risk environment, and that the IT risk management activities and performance are consistent and effective. The other options are not the best evidence that the IT risk profile is up to date, as they are either less comprehensive or less relevant than the risk register. A risk questionnaire is a tool that collects and analyzes the opinions and perceptions of the stakeholders about the risks that may affect the organization5. A risk questionnaire can help to identify and assess the risks, as well as to communicate and report on the risk status and issues. However, a risk questionnaire is not the best evidence that the IT risk profile is up to date, as it may not capture all the IT risks that the organization faces, or reflect the actual or objective level and nature of the IT risks. A management assertion is a statement or declaration made by the management about the accuracy and completeness of the information or data that they provide or report. A management assertion can help to increase the confidence and trust of the stakeholders and auditors in the information or data, as well as to demonstrate the accountability and responsibility of the management. However, a management assertion is not the best evidence that the IT risk profile is up to date, as it does not provide the details or outcomes of the IT risk management activities or performance, or verify the validity and reliability of the IT risk information or data. A compliance manual is a document that contains the policies, procedures, and standards that the organization must follow to meet the legal, regulatory, or contractual requirements that apply to its activities or operations. A compliance manual can help to ensure the quality and consistency of the organization’s compliance activities or performance, as well as to avoid or reduce the penalties or sanctions for non-compliance. However, a compliance manual is not the best evidence that the IT risk profile is up to date, as it does not address the IT risks that the organization faces, or the IT risk management activities or performance. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.5, Page 55.

 Purpose of a Risk Register:

A risk register consolidates all identified risks, their status, and mitigation actions in one place. It serves as a tool for tracking and managing risks systematically.

 Facilitating Risk Management Functions:

By documenting risk scenarios, a risk register provides a comprehensive view of potential threats and their impact on the organization.

It enables effective communication and review of these scenarios with stakeholders, ensuring that all relevant parties are aware of and understand the risks.

 Engaging Stakeholders:

Reviewing the risk register with stakeholders helps in validating the risks, assessing their impact, and determining appropriate responses.

It fosters collaboration and ensures that risk management activities are aligned with the stakeholders' expectations and the organization's objectives.

 Comparing Other Functions:

Analyzing Risk Appetite:While important, this is not the primary function of a risk register.

Influencing Risk Culture:The risk register contributes to risk culture but is primarily a tracking and communication tool.

Articulating Senior Management's Intent:This is more related to policy and strategy documents, whereas the risk register is a practical tool for managing specific risks.

 References:

The CRISC Review Manual highlights the role of the risk register in consolidating risk information and facilitating stakeholder engagement (CRISC Review Manual, Chapter 2: IT Risk Assessment, Section 2.6 Risk Register)​​ .

Before escalating to senior management, a risk practitioner must understand how serious the issue is for the enterprise. That means first assessing the business impact of the noncompliance (financial, regulatory, reputational, operational) so that management is given contextualized information rather than just “we are noncompliant.”

In ISACA’s CRISC framework, risk assessment always requires understanding likelihood and impact before risk response and escalation decisions. Evaluating the potential impact allows:

Identification of which processes, customers, or jurisdictions are affected.

Estimation of the magnitude of legal/regulatory exposure.

Understanding whether immediate containment actions are needed.

Preparation of meaningful options and recommendations for senior management.

Options A and B (evaluating controls and implementing compensating controls) are important later, as part of risk response / treatment. However, without first knowing the impact, you cannot determine how urgent or extensive the remedial actions must be.

Option C (evaluating industry response) may be useful for benchmarking, but it does not help the enterprise understand its own specific exposure and obligations and therefore is secondary to an internal impact assessment.

This aligns with CRISC guidance that the primary result of a risk assessment is input for risk-aware decisions and that risk professionals must assess likelihood and impact to determine risk significance before escalation and treatment (see the risk assessment and risk profile–related guidance in your CRISC notes).

The risk associated with malicious functionality in outsourced application development is that the vendor may introduce unauthorized or harmful code into the enterprise’s system, which could compromise its security, integrity, or performance.

To mitigate this risk, the enterprise should perform an in-depth code review with an expert who can verify that the code meets the specifications, standards, and quality requirements, and that it does not contain any malicious or unwanted functionality.

A code review is a systematic examination of the source code of a software program, which can identify errors, vulnerabilities, inefficiencies, or deviations from best practices. A code review can also ensure that the code is consistent, readable, maintainable, and well-documented.

An expert is someone who has the knowledge, skills, and experience to perform the code review effectively and efficiently. An expert may be an internal or external resource, depending on the availability, cost, and independence of the reviewer.

A code review should be performed before the code is deployed to the production environment, and preferably at multiple stages of the development life cycle, such as design, testing, and integration.

A code review can also be complemented by other techniques, such as automated code analysis, testing, and scanning tools, which can detect common or known issues in the code. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, p. 143

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 143

A risk is the possibility of an event that may have a negative impact on the achievement of an organization’s objectives. A risk can be measured by the probability and impact of the event, which indicate the likelihood and consequence of the event. A risk manager is a person who is responsible for performing risk management activities, such as identifying, analyzing, evaluating, treating, monitoring, and communicating risks. When an organization retains footage from its data center security camera for 30 days when the policy requires 90-day retention, the risk manager’s best response to the business owner who challenges whether the situation is worth remediating is to evaluate the risk as a measure of probable loss, which means to estimate thepotential harm or damage that may result from the non-compliance with the policy. By evaluating the risk as a measure of probable loss, the risk manager can provide the business owner with the rationale and justification for the risk remediation, and help the business owner to understand the cost-benefit analysis of the risk response. References = CRISC Review Manual, 7th Edition, page 63.

Identifying risk scenarios allows organizations to anticipate how threats can materialize, what assets may be affected, and the potential impact. According to CRISC, scenario development is a core component of proactive risk assessment because it enables organizations to evaluate likelihood, impact, and existing controls before incidents occur. It also supports risk quantification and prioritization. Post-incident investigations relate to after-the-fact analysis, whereas scenario analysis occurs beforehand. Identifying incidents is a monitoring activity, not a scenario-building function. Awareness is a secondary outcome, not the primary purpose.

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

KPIs provide metrics that show whether processes and controls are meeting performance targets. CRISC explains that KPIs help identify how efficiently controls or processes are operating. They provide a leading view of performance, enabling early identification of inefficiencies that may lead to increased risk. KPIs do not measure cost effectiveness, ROI, or changes in risk tolerance—those belong to financial or strategic measurement systems. Control efficiency aligns directly with KPI use because KPIs measure operational results against objectives.

Senior management’s primary consideration in selecting risk response strategies is alignment with the organization’s risk appetite, ensuring that responses are consistent with the levels of risk the organization is willing to accept. While BIA results, KRIs, and investment portfolios inform decisions, risk appetite provides the guiding framework for prioritization and decision-making

Ensuring senior management understands the organization’s risk universe in relation to the IT risk management program is primarily to define effective enterprise IT risk appetite andtolerance levels. This understanding is essential for setting the boundaries within which the organization is willing to operate regarding IT risks.

Defining Effective IT Risk Appetite and Tolerance Levels (Answer A):

Purpose: Senior management needs to understand the range and nature of IT risks to set appropriate risk appetite and tolerance levels.

Impact: This enables the organization to make informed decisions about which risks to accept, mitigate, transfer, or avoid.

Alignment: It ensures that the IT risk management strategy is aligned with the overall business objectives and risk posture of the organization.

Comparison with Other Options:

B. To execute the IT risk management strategy in support of business objectives:

Purpose: While important, it follows the definition of risk appetite and tolerance.

Limitation: Without understanding the risk universe, execution may be misaligned.

C. To establish business-aligned IT risk management organizational structures:

Purpose: Structural alignment is crucial but secondary to setting risk appetite and tolerance.

D. To assess the capabilities and maturity of the organization’s IT risk management efforts:

Purpose: This is part of the ongoing process but not the primary purpose of understanding the risk universe.

KRIs and KCIs are both metrics that measure and monitor the risk and control environment of an enterprise. KRIs are indicators that reflect the level and trend of risk exposure, and help to identify potential risk events or issues. KCIs are indicators that reflect the performance andeffectiveness of the risk controls, and help to ensure that the controls are operating as intended and mitigating the risk. Both KRIs and KCIs provide insight to potential changes in the level of risk, as they can signal the need for risk response actions, such as enhancing, modifying, or implementing new controls, or adjusting the risk strategy and objectives. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 240.

The product owner should own the associated risk when contracting with a cloud service provider to support the deployment of a new product. The product owner is the person who has the authority and responsibility for defining the product vision, requirements, and priorities. The product owner also has the accountability for the business value and outcomes of the product. Therefore, the product owner should be the one who identifies, assesses, and manages the risks related to the cloud service provider, such as security, compliance, performance, and quality. The product owner should also collaborate with the other stakeholders, such as the head of EA, the IT risk manager, and the information security manager, to ensure that the cloud service provider meets the organization’s standards and expectations. References = Risk and Information Systems Control Study Manual, Chapter 5: IT Risk Mitigation, Section 5.3: IT Risk Mitigation Strategies and Approaches, Page 254; Best Practices to Manage Risks in the Cloud - ISACA.

New threat intelligence primarily impacts the frequency component of risk calculations.

CRISC states:

“When new information about threats is available, it must be incorporated into risk assessment by adjusting threat event frequencies in related scenarios.”

A and D are statistical manipulations, not practical first steps.

C addresses impact, not likelihood.

Hence, B. Revise the threat frequency is correct.

CRISC Reference: Domain 2 – IT Risk Assessment, Topic: Incorporating Threat Intelligence.

 Enterprise IT risk management is the process of identifying, analyzing, evaluating, and treating the IT-related risks that may affect the organization’s objectives, operations, or assets1. Enterprise IT risk management should be aligned with the organization’s overall riskmanagement framework and strategy, and support the organization’s value creation and protection2.

When evaluating enterprise IT risk management, it is most important to confirm the organization’s risk appetite and tolerance. Risk appetite is the amount and type of risk that an organization is willing to take in order to meet its strategic objectives3. Risk tolerance is the acceptable level of variation that an organization is willing to accept around its risk appetite4. By confirming the organization’s risk appetite and tolerance, the evaluation can:

Ensure that the enterprise IT risk management is consistent and compatible with the organization’s risk culture and vision

Provide clear and measurable criteria and boundaries for assessing and prioritizing the IT risks and their impacts

Guide the selection and implementation of the appropriate risk responses and controls that balance the costs and benefits of risk mitigation

Enable the monitoring and reporting of the IT risk performance and outcomes, and the adjustment of the IT risk strategy and objectives as needed5

References = Enterprise IT Risk Management - ISACA, Enterprise Risk Management - Wikipedia, Risk Appetite - COSO, Risk Tolerance - COSO, Risk Appetite and Tolerance - IRM

The audit planning process is the process of defining and describing the scope, objectives, and approach of the internal audit that is performed to assess and evaluate the adequacy and effectiveness of the organization’s governance, risk management, and control functions. The audit planning process involves identifying and prioritizing the audit areas, topics, or issues, and allocating the audit resources, time, and budget.

The most important information for a risk practitioner to provide to the internal audit department during the audit planning process is the annual risk assessment results, which are the outcomes or outputs of the risk assessment process that measures and compares the likelihood and impact of various risk scenarios, and prioritizes them based on their significance and urgency. The annual risk assessment results can help the internal audit department to plan the audit by providing the following information:

The level and priority of the risks that may affect the organization’s objectives and operations, and the potential consequences or impacts that they may cause for the organization if they materialize.

The gap or difference between the current and desired level of risk, and the extent or degree to which the risk responses or controls contribute to or affect the gap or difference.

The cost-benefit or feasibility analysis of the possible actions or plans to address or correct the risks and their responses, and the expected or desired outcomes or benefits that they may provide for the organization.

The other options are not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because they do not provide the same level of detail and insight that the annual risk assessment results provide, and they may not be relevant or actionable for the internal audit department.

Closed management action plans from the previous audit are the actions or plans that have been implemented or completed by the management to address or correct the findings or recommendations from the previous internal audit that was performed. Closed management action plans from the previous audit can provide useful information on the progress and performance of the management in improving and optimizing the organization’s governance, risk management, and control functions, but they are not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because they do not indicate the current or accurate state and performance of the organization’s risk profile, and they may not cover all the relevant or emerging risks that may exist or arise.

An updated vulnerability management report is a report that provides the information and status of the vulnerabilities or weaknesses in the organization’s assets, processes, or systems that can be exploited or compromised by the threats or sources of harm that may affect the organization’s objectives or operations. An updated vulnerability management report can provide useful information on the existence and severity of the vulnerabilities, and the actions or plans to mitigate or prevent them, but it is not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because it does not indicate the likelihood and impact of the risk scenarios that are associated with the vulnerabilities, and the potential consequences or impacts that they may cause for the organization.

A list of identified generic risk scenarios is a list that contains the descriptions or representations of the possible or hypothetical situations or events that may cause or result in a risk for the organization, without specifying the details or characteristics of the risk source, event, cause, orimpact. A list of identified generic risk scenarios can provide useful information on the types or categories of the risks that may affect the organization, but it is not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because it does not indicate the level and priority of the risks, and the potential consequences or impacts that they may cause for the organization. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 188

CRISC Practice Quiz and Exam Prep

The three lines of defense model is a framework that describes the roles and responsibilities of different functions in an organization for managing risks and controls.

The first line of defense is the operational management, which is responsible for implementing and maintaining effective controls, identifying and assessing risks, and reporting on risk and control performance.

The second line of defense is the risk management and compliance functions, which are responsible for establishing and overseeing the risk management framework, providing guidance and support to the operational management, and monitoring and reporting on risk and compliance issues.

The third line of defense is the internal audit function, which is responsible for providing independent and objective assurance on the adequacy and effectiveness of the risk management and control system, and recommending improvements.

Within the three lines of defense model, the accountability for the system of internal control resides with the chief information officer (CIO). The CIO is the senior executive who oversees the IT function of the organization, and is responsible for ensuring that the IT risks and controls are aligned with the business objectives and strategies, and are integrated with the enterprise risk management and governance processes.

The references for this answer are:

Risk IT Framework, page 20

Information Technology & Security, page 14

Risk Scenarios Starter Pack, page 12

 Key risk indicators (KRIs) are metrics used by organizations to monitor and assess potential risks that may impact their objectives and performance. KRIs also provide early warning signalsthat help organizations identify, analyze, and address risks before they escalate into significant issues1. The most important factor to understand when developing KRIs is stakeholder requirements, which are the needs and expectations of the persons or entities that have an interest or influence in the organization’s risk management2. By understanding stakeholder requirements, the organization can ensure that the KRIs are aligned with the organization’s strategy, vision, and mission, and that they reflect the current and emerging risks and their potential consequences. Understanding stakeholder requirements can also help to establish and communicate the roles and responsibilities of the stakeholders, and to enforce the accountability and performance of the risk management. KRI thresholds, integrity of the source data, andcontrol environment are not the most important factors to understand when developing KRIs, as they do not provide the same level of insight and relevance as stakeholder requirements. KRI thresholds are the values or ranges that indicate the level of risk exposure and the need for action or escalation3. KRI thresholds can help to measure and monitor the performance and compliance of the risk management, but they do not ensure that the KRIs are appropriate and accurate for the organization’s risk profile. Integrity of the source data is the quality and reliability of the data that are used to support or enable the development of KRIs4. Integrity of the source data can enhance the validity and consistency of the KRIs, but it does not ensure that the KRIs are comprehensive and compatible with the organization’s risk environment. Control environment is the set of policies, processes, and systems that provide the foundation and structure for the risk management5. Control environment can improve the security and efficiency of the risk management, but it does not ensure that the KRIs are relevant and realistic for the organization’s risk objectives and strategies. References = 1: Key Risk Indicators: A Practical Guide | SafetyCulture2: Stakeholder Requirements - an overview | ScienceDirect Topics3: Risk Threshold: Definition, Meaning & Example - PM Study Circle4: Data Integrity - an overview | ScienceDirect Topics5: Control Environment - an overview | ScienceDirect Topics : [Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.1: Key Risk Indicators, pp. 181-185.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.1: Control Design, pp. 233-235.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.2: Control Implementation, pp. 243-245.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.3: Control Monitoring and Maintenance, pp. 251-253.]

The most important factor to identify when developing top-down risk scenarios is B. Business objectives12

Top-down risk scenarios are based on the organization’s strategic goals, objectives, and key performance indicators (KPIs), and they aim to identify the potential events or situations that could prevent or hinder the achievement of those goals and objectives12

By identifying the business objectives, the risk practitioner can align the risk scenarios with the organization’s mission, vision, and values, and ensure that the risk scenarios are relevant, realistic, and meaningful for the senior management and other stakeholders12

The other factors are not as important as the business objectives when developing top-down risk scenarios, because they are either more relevant for bottom-up risk scenarios (A and D), or they are derived from the business objectives and the risk scenarios ©12

A noncompliant control is a control that does not meet the requirements or standards of an audit, regulation, or policy. A noncompliant control can expose the organization to risks such as errors, fraud, or breaches. When a noncompliant control is identified, the service provider and the client should work together to resolve the issue as soon as possible. However, sometimes the resolution may not be feasible or cost-effective, and the client may decide to accept the risk associated with the noncompliant control.

In this case, the service provider’s most appropriate action would be to ask the client to document the formal risk acceptance for the provider. This means that the client should acknowledge the existence and consequences of the noncompliant control, and provide a written justification for accepting the risk. The risk acceptance document should also specify the roles and responsibilities of the service provider and the client, and the duration and conditions of the risk acceptance. The risk acceptance document should be signed by the client’s senior management and the service provider’s management, and kept as part of the audit evidence.

The other options are not appropriate actions for the service provider. Developing a risk remediation plan overriding the client’s decision would be disrespectful and unprofessional, as it would ignore the client’s authority and preference. Making a note for this item in the next audit explaining the situation would be insufficient and misleading, as it would imply that the issue is still unresolved and that the service provider is responsible for it. Insisting that the remediation occur for the benefit of other customers would be unreasonable and impractical, as it woulddisregard the client’s business needs and constraints, and potentially harm the relationship between the service provider and the client. References =

Risk Acceptance - Institute of Internal Auditors

New Guidance on the Evaluation of Non-compliance with the Risk Assessment Standard and its Peer Review Impact - REVISED

The Impact of Non-compliance: Understanding The Risks And Consequences

 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.

The operational risk associated with attacks on a web application should be owned by the individual in charge of the business function, because they are the primary stakeholder and beneficiary of the web application, and they are responsible for defining and achieving the business objectives and requirements that the web application supports or enables. Anoperational risk is a risk of loss or damage resulting from inadequate or failed internal processes, people, or systems, or from external events. An attack on a web application is a type of operational risk that involves a malicious or unauthorized attempt to compromise the confidentiality, integrity, or availability of the web application, such as a denial-of-service attack, a SQL injection attack, or a cross-site scripting attack. A web application is an application that runs on a web server and can be accessed or used through a web browser, such as an online shopping site, a social media platform, or a web-based email service. A business function is a set of activities or tasks that support or enable the organization’s vision, mission, and strategy, such as marketing, sales, or customer service. A risk owner is a person or role that has the authority and accountability to manage a specific risk, and to implement and monitor the risk response and controls. The individual in charge of the business function should be the risk owner, as they have the best understanding and interest of the web application and its business value and impact, and they have the ability and responsibility to manage the operational risk associated with the attacks on the web application. The individual in charge of network operations, the cybersecurity function, or application development are all possible candidates for the risk owner, but they are not the best choice, as they may not have the same level of stake and influence in the web application and its business objectives and requirements, and they may have different orconflicting priorities or perspectives on the operational risk and its management. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.1, page 101

According to the CRISC Review Manual1, stakeholders are the individuals or groups that have an interest or stake in the outcome of the IT system and its risks. Stakeholders include the system owners, users, operators, developers, managers, auditors, regulators, and customers. It is most important to ensure that agreement is obtained from stakeholders when testing the security of an IT system, as this helps to define the scope, objectives, and expectations of the test, and to obtain the necessary authorization, support, and resources for the test. Agreement from stakeholders also helps to avoid any conflicts, disruptions, or misunderstandings that may arise during or after the test, and to ensure the validity and acceptance of the test results and recommendations. References = CRISC Review Manual1, page 198, 224.

Before acting, the risk practitioner mustevaluate the threat in the organizational context. This includes checking system exposure, current mitigations, and potential business impact. Only then can an informed decision (such as patching or mitigation) be made.

As part of business continuity planning, the most important thing to include in a business impact analysis (BIA) is an industry standard framework. A BIA is a process of identifying and analyzing the potential effects of disruptions to the critical business functions and processes. An industry standard framework is a set of best practices, guidelines, and methodologies that provide a consistent and comprehensive approach to conducting a BIA. An industry standard framework can help to ensure that the BIA is complete, accurate, and reliable, and that it covers all the relevant aspects, such as the scope, objectives, criteria, methods, data sources, and reporting. An industry standard framework can also help to benchmark the BIA results against the industry norms and expectations, and to align the BIA with the business continuity strategy and plan. The other options are not as important as an industry standard framework, as they are related to the specific steps, activities, or outputs of the BIA, not the overall structure and quality of the BIA. 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 for a risk practitioner to help management prioritize risk response is to assess risk against business objectives. This means comparing the level and nature of the risks with the goals and strategies of the organization, and determining which risks pose the most significant threat or opportunity to the achievement of those objectives. By assessing risk against business objectives, the risk practitioner can help management identify the most critical and relevant risks, and prioritize the risk response actions accordingly. The risk response actions should be aligned with the organization’s risk appetite, which is the amount and type of risk that the organization is willing to take in order to meet its strategic goals1. The other options are not the best ways for a risk practitioner to help management prioritize risk response, as they are either less effective orless specific than assessing risk against business objectives. Aligning business objectives to the risk profile is a way of ensuring that the organization’s objectives are realistic and achievable, given the current and potential risks that the organization faces. However, this is not the same as prioritizing risk response, as it does not indicate which risks should be addressed first or howtheyshould be managed. Implementing an organization-specific risk taxonomy is a way of creating a common language and classification system for describing and categorizing risks. This can help improve the consistency and clarity of risk communication and reporting across the organization. However, this is not the same as prioritizing risk response, as it does not measure the likelihood and impact of the risks, or their relation to the organization’s objectives. Explaining risk details to management is a way of providing information and insight on the sources, drivers, consequences, and responses of the risks. This can help increase the awareness and understanding of the risks among the decision makers and stakeholders. However, this is not the same as prioritizing risk response, as it does not suggest or recommend the best course of action for managing the risks. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.6, Page 57.

A threat risk assessment will best quantify the risk associated with malicious users in an organization, because it focuses on identifying and evaluating the potential sources of harm or damage to the organization’s assets, such as data, systems, or networks. A malicious user is a person who intentionally and unauthorizedly accesses, modifies, destroys, or steals the organization’s information or resources, for personal gain, revenge, espionage, or sabotage. A threat risk assessment can help the organization to estimate the likelihood and impact of malicious user attacks, based on factors such as the user’s motivation, capability, opportunity, and access level. A threat risk assessment can also help the organization to determine the appropriate risk response strategies, such as prevention, detection, mitigation, or transfer, to reduce the risk exposure and impact of malicious user attacks. References = Risk IT Framework, ISACA, 2022, p. 141

The most important thing when implementing an organization’s security policy is to obtain management support. Management support means that the senior management and the board of directors endorse, approve, and fund the security policy and its implementation. Management support also means that the management communicates, promotes, and enforces the security policy across the organization. Management support can help to ensure that the security policy is aligned with the organizational strategy and objectives, and that it is effective, consistent, and sustainable. The other options are not as important as obtaining management support, as they are related to the specific aspects or components of the security policy implementation, not the overall success and acceptance of the security policy implementation. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

Key risk indicators (KRIs) are metrics used by organizations to monitor and assess potential risks that may impact their objectives and performance. KRIs also provide early warning signals that help organizations identify, analyze, and address risks before they escalate into significant issues1. Effective KRIs are thosethat are relevant, measurable, predictable, comparable, and informational2. The most important factor for developing effective KRIs is including input from risk and business unit management, as they are the persons who have the best understanding of the risk environment, the risk appetite and tolerance, and the risk factors and impacts of the organization. By including input from risk and business unit management, the organization can ensure that the KRIs are aligned with the organization’s strategy, vision, and mission, and that they reflect the current and emerging risks and their potential consequences. Engaging sponsorship by senior management, utilizing data and resources internal to the organization, and developing in collaboration with internal audit are not the most important factors for developing effective KRIs, as they do not provide the same level of insight and relevance as including input from risk and business unit management. Engaging sponsorship by senior management is a factor that involves obtaining the support and approval of the senior leaders who have the authority and accountability for the organization’s performance and governance. Engaging sponsorship by senior management can help to promote the importance and value of KRIs, and to ensure their communication and implementation across the organization, but it does not ensure that the KRIs are appropriate and accurate for the organization’s risk profile. Utilizing data and resources internal to the organization is a factor that involves using the information and assets that are available within the organization to support or enable the development of KRIs. Utilizing data and resources internal to the organization can help to enhance the quality and reliability of KRIs, and to reduce the cost and complexity of obtaining external data and resources, but it does not ensure that the KRIs are comprehensive and consistent with the organization’s risk environment. Developing in collaboration with internal audit is a factor that involves working with the internal audit function that provides independent and objective assurance and advice on the adequacy and effectiveness of the organization’s risk management. Developing in collaboration with internal audit can help to improve the validity and compliance of KRIs, and to provide feedback and recommendations for improvement, but it does not ensure that the KRIs are relevant and realistic for the organization’s risk objectives and strategies. References = 1: Key Risk Indicators: A Practical Guide | SafetyCulture2: KRI Framework for Operational Risk Management | Workiva3: [Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.1: Key Risk Indicators, pp. 181-185.]

IT risk scenarios are hypothetical situations that describe how IT-related risks can affect the organization’s objectives, operations, or assets1. IT risk scenarios help to make IT risk more concrete and tangible, and to enable proper risk analysis and assessment2. IT risk scenarios are developed after IT risks are identified, and are used as inputs for risk analysis, where the frequency and impact of the scenarios are estimated3.

The most important factor to the successful development of IT risk scenarios is threat and vulnerability analysis. Threat and vulnerability analysis is the process of identifying and evaluating the potential sources and causes of IT risks, such as malicious actors, natural disasters, human errors, or technical failures4. Threat and vulnerability analysis can help to:

Define the scope and boundaries of the IT risk scenarios, and ensure that they are relevant and realistic

Identify the critical assets, processes, or functions that are exposed or affected by the IT risks, and assess their value and importance to the organization

Determine the likelihood and methods of the threat events, and the existing or potential weaknesses or gaps in the IT control environment

Estimate the potential consequences and impacts of the IT risks, such as financial losses, operational disruptions, reputational damages, or compliance violations5

References = IT Scenario Analysis in Enterprise Risk Management - ISACA, IT Risk Scenarios - Morland-Austin, Threat and Vulnerability Analysis - Wikipedia, Threat and Vulnerability Analysis - ISACA

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.

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

Implementing a file corruption detection tool as a risk response strategy will help to reduce the impact of future events, as it will enable the organization to identify and correct the corrupted files before they cause further damage or loss. A file corruption detection tool is a software that scans and verifies the integrity and validity of the files, and alerts the users or administrators of any anomalies or errors. This helps to minimize the disruption and downtime caused by the data corruption incidents, and to preserve the quality and reliability of the data. Implementing a file corruption detection tool will not reduce the likelihood of future events, as it does not prevent or mitigate the causes or sources of the data corruption incidents. It will not restore availability, as it does not recover or restore the corrupted files, but only detects them. It will not address the root cause, as it does not analyze or eliminate the underlying factors that lead to the data corruption incidents. References = CRISC Certified in Risk and Information Systems Control – Question215; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 215.

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 greatest concern for a risk practitioner reviewing current key risk indicators (KRIs) is that the KRIs’ source data lacks integrity, as this means that the data is inaccurate, incomplete, inconsistent, or outdated, and therefore cannot provide reliable and valid information on the risk level and performance. The KRIs are metrics that measure and monitor the changes in the risk exposure and the effectiveness of the risk response over time. The KRIs’ source data should be collected and verified from credible and relevant sources, and should be updated and maintained regularly. The KRIs’ source data should also be aligned and integrated with the enterprise’s data governance and quality standards. The other options are not the greatest concerns for a risk practitioner reviewing current key risk indicators (KRIs), although they may pose some challenges or limitations. The KRIs are not automated is a concern for the efficiency and timeliness of the KRI reporting and analysis, but it does not affect the integrity of the KRI sourcedata. The KRIs are not quantitative is a concern for the objectivity and comparability of the KRI measurement and prioritization, but it does not affect the integrity of the KRI source data. The KRIs do not allow for trend analysis is a concern for the usefulness and relevance of the KRI communication and decision making, but it does not affect the integrity of the KRI source data. References = Risk and Information Systems Control Study Manual, Chapter 5: Risk and Control Monitoring and Reporting, page 183.

 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.

Risk mitigation involves implementing measures to reduce either the likelihood or impact of a risk.

By providing targeted training, the organization increases staff capability, thereby reducing the likelihood of misconfigurations or compliance errors in cloud usage.

ISACA defines mitigation as:

“Implementing controls or training to reduce exposure to risk within acceptable levels.”

A Transfer = insurance or outsourcing.

C Acceptance = no action.

D Deferral = postponing response.

Hence, B. Mitigation is correct.

CRISC Reference: Domain 3 – Risk Response and Mitigation, Topic: Risk Response Options.

The best indicator of the risk appetite and tolerance level for the risk associated with business interruption caused by IT system failures is the recovery time objective (RTO). The RTO is the maximum acceptable time or duration that a business process or an IT system can be disrupted or interrupted before it causes unacceptable impact or harm to the business. The RTO reflects the risk appetite and tolerance level for thebusiness interruption risk, as it indicates how much disruption or interruption the business can tolerate or accept, and how quickly the business needs to resume or recover the business process or the IT system. The RTO also helps to determine the priorities and requirements for the business continuity and recovery planning, and to select and implement the appropriate continuity and recovery strategies and solutions. Mean time to recover(MTTR), IT system criticality classification, and incident management service level agreement (SLA) are not the best indicators of the risk appetite and tolerance level for the business interruption risk, as they are either the measures or the outcomes of the business continuity and recovery performance, and they do not directly indicate how much disruption or interruption the business can tolerate or accept. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 50

Automated asset management software is the best method to track asset inventory, as it can provide accurate, timely, and comprehensive information about the organization’s IT assets, such as their location, status, configuration, ownership, and value. Automated asset management software can also help to optimize the utilization, performance, and lifecycle of the IT assets, and to reduce the risks of loss, theft, damage, or obsolescence. Automated asset management software can integrate with other systems, such as configuration management database (CMDB), service desk, and security tools, to enable better visibility, control, and governance of the IT assets.

Risk events are specific occurrences or changes that have a potential impact on the achievement of objectives. They can be positive or negative, and they can be internal or external to the organization. Risk events provide the basis for developing realistic risk scenarios, which are hypothetical situations that illustrate the possible consequences of a risk event. Risk scenarios help to understand and communicate the nature, sources, and causes of risk, as well as the potential impact and likelihood of risk occurrence. Risk scenarios can also be used to test the effectiveness of risk responses and controls.

The other options are not as useful as risk events for developing realistic risk scenarios. A balanced scorecard (A) is a strategic management tool that measures the performance of the organization against its objectives, vision, and strategy. It does not provide specific information about risk events or their consequences. A risk appetite (B) is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. It does not describe the risk events or their scenarios, but rather the level of risk tolerance and acceptance. A risk map © is a graphical representation of the risk profile of the organization, showing the relationship between the likelihood and impact of different risks. It does not provide the details or context of the risk events or their scenarios, but rather the relative ranking and prioritization of risks.

Social engineering attacks are attempts to manipulate or deceive people into revealing confidential or personal information, such as passwords, account numbers, or security codes. Customer service representatives are often targeted by social engineering attacks, as they have access to sensitive customer data and may be pressured to provide quick and satisfactory service. Therefore, it is most important to include in a risk awareness training session for the customer service department how to identify and prevent social engineering attacks, such as phishing, vishing, baiting, or impersonation.

References

•The role of customer service in cybersecurity - Security Intelligence

•How to Improve Risk Awareness in the Workplace [+ Template] - AlertMedia

•Top 4 Risks For Customer Service Teams | Resolver

Once a risk owner has decided to implement a control to mitigate risk, it is most important to develop a process for measuring and reporting control performance. This process helps to monitor and evaluate the actual results and outcomes of the control, compare them with the expected or desired objectives and standards, identify any gaps or issues that may affect the control’s effectiveness or efficiency, and report them to the relevant stakeholders for decision making or improvement actions.

An alternate control design in case of failure of the identified control is a contingency plan that can be used to reduce the impact of a control failure or breakdown. It is not the most important thing to develop after implementing a control, but rather a backup option that can be activated when needed.

A process for bypassing control procedures in case of exceptions is a mechanism that allows authorized users to override or circumvent a control in certain situations, such as emergencies,errors, or special requests. It is not the most important thing to develop after implementing a control, but rather a risk response that can be applied when necessary.

Procedures to ensure the effectiveness of the control are the steps or actions that are required to implement, operate, and maintain the control in accordance with the risk owner’s expectations and requirements. They are not the most important thing to develop after implementing a control, but rather a part of the control design and implementation process.

The references for this answer are:

Risk IT Framework, page 13

Information Technology & Security, page 7

Risk Scenarios Starter Pack, page 5

A post-implementation RCSA is a process of verifying whether the risk treatment plan has been executed as intended and whether the residual risk is within the acceptable level. It involves testing the effectiveness of the controls that have been implemented to mitigate the risk and identifying any gaps or issues that need to be addressed. A BIA, the original risk response plan, and the training program and user awareness documentationare not sufficient to validate theeffectiveness of the risk treatment plan, as they do not measure the actual performance of the controls or the residual risk.

Noncompliance cost reflects the impact or penalties from deviating from policies. Per ISACA governance best practices, exceptions should only be granted when this cost is understood and deemed acceptable relative to business needs.

According to the CRISC Review Manual, risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite is a key factor in communicating the risk associated with IT in business terms, because it helps to align the IT risk management with the business strategy and goals. Risk appetite also helps to define the risk tolerance and thresholds, which are the acceptable levels of variation around the objectives. The other options are not the correct answers, because they are not essential for communicating the risk associated with IT in business terms. Compliance objectives are the objectives that an organization must achieve to comply with the applicable laws, regulations, standards, andcontracts. Organizational objectives are the objectives that an organization sets to achieve its mission, vision, and values. Inherent and residual risk are the risk levels before and after applying the risk responses, respectively. References = CRISC Review Manual, 7th Edition, Chapter 2, Section 2.1.1, page 66.

Unapproved changes to firewall rules can lead tocritical security vulnerabilitiesordisruptions to business services, representing adirect impact on the business. This is more critical than documentation or governance concerns.

Disaster recovery plans are essential for ensuring the continuity and resilience of business operations in the event of a disruption or disaster. However, creating and maintaining separatedisaster recovery plans for each business unit may not be cost-effective or efficient, as it may result in duplication, inconsistency, or gaps in the plans. Therefore, the best course of action would be to evaluate opportunities to combine disaster recovery plans across the business units, where possible and appropriate. This would help to achieve economies of scale, standardization, and alignment of the plans, as well as reduce complexity and costs. However, this does not mean that all disaster recovery plans should be identical or centralized, as different business units may have different risk profiles, recovery objectives, and requirements. Therefore, the combined disaster recovery plans should still be tailored and customized to suit the specific needs and characteristics of each business unit. References = ISACA CRISC Review Manual, 7th Edition, Chapter 2, Section 2.3.2, page 71.

Thebest practiceis torecord the problem immediately as a new issuein the risk management system. ISACA emphasizes maintaining an up-to-date risk register to ensure emerging issues are tracked and addressed in a timely manner.

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A risk profile consolidates information about risks across the enterprise, enhancing internal reporting and facilitating informed decision-making. This aligns withRisk Governanceobjectives by providing a comprehensive view of risk for management and stakeholders.

According to the CRISC Review Manual1, impact analysis is the process of estimating and evaluating the potential effects of a risk event on the organization’s objectives, processes, resources, and risks. Impact analysis helps to quantify and qualify the severity and likelihood of the risk, and to identify the possible consequences and implications for the organization. Impact analysis is the first step that should be done when a risk practitioner learns about a new threat, as it helps to assess the current level of risk exposure and the urgency of the risk response. Impact analysis also helps to communicate and report the risk to the relevant stakeholders, and to facilitate risk-based decision making and action planning. References = CRISC Review Manual1, page 208.

According to the CRISC Review Manual (Digital Version), assessing changes in residual risk is the best approach for determining whether a risk action plan is effective, as it measures the impact and value of the risk response actions and controls on the risk level. Residual risk is the risk that remains after the risk response actions and controls have been implemented. Assessing changes in residual risk helps to:

Evaluate the extent to which the risk response actions and controls have reduced the likelihood and/or impact of the risk to an acceptable level

Identify and report any deviations, errors, or weaknesses in the risk response actions and controls and their performance

Recommend and implement corrective actions or improvement measures to address any issues or deficiencies in the risk response actions and controls

Monitor and measure the effectiveness and efficiency of the risk response actions and controls and their alignment with the organization’s risk appetite and risk tolerance

Update the risk register and the risk treatment plan to reflect the current risk status and the residual risk levels

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.2: Risk Response Process, pp. 161-1621

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.

 Understanding the Question:

The question is about mitigating the impact of social engineering attacks that use AI technology to impersonate senior management personnel.

 Analyzing the Options:

A. Training and awareness of employees for increased vigilance:This is the most proactive approach. Educating employees about the risks and signs of social engineering attacks enhances their ability to recognize and respond appropriately to such threats.

B. Increased monitoring of executive accounts:Useful but reactive; it doesn't prevent initial attempts.

C. Subscription to data breach monitoring sites:Helps detect breaches but doesn’t directly mitigate impersonation attacks.

D. Suspension and takedown of malicious domains or accounts:Reactive measure and might not be immediate or comprehensive.



Importance of Training:Employees are often the first line of defense against social engineering attacks. Regular training ensures they are aware of the tactics used in such attacks, including those leveraging AI, and how to respond effectively.

Proactive Measure:Training increases vigilance and the likelihood of early detection, reducing the potential impact of the attack.

 Understanding the Question:

The question focuses on the primary reason for communicating risk assessment results to data owners.

 Analyzing the Options:

A. Design of appropriate controls:This is important but not the primary reason for communication.

B. Industry benchmarking of controls:This is secondary to the main goal of communicating risk.

C. Prioritization of response efforts:This enables data owners to allocate resources and address the most critical risks first.

D. Classification of information assets:This is typically part of the initial risk assessment process, not the main communication goal.



Communication of Risk Assessment Results:Ensuring data owners understand the results of risk assessments allows them to make informed decisions on where to focus their efforts.

Prioritization:Data owners can prioritize their actions based on the assessed risk levels, ensuring that resources are allocated efficiently to mitigate the most significant risks.

The risk profile is the most important thing to reassess when an organization implements new technologies that enable the use of robotic process automation (RPA). The risk profile is a comprehensive and dynamic view of the organization’s risks, their ratings, responses, and status. RPA can introduce new risks or change the existing risks related to the organization’s objectives, operations, and performance. For example, RPA can create risks such as system failures, databreaches, compliance violations, human errors, or ethical dilemmas. Therefore, the organization should reassess its risk profile to identify, assess, treat, monitor, and review the risks associated with RPA, and to ensure that the risk management strategy is aligned with the business needs and expectations.

 Developing and communicating fraud prevention policies is the most effective way to reduce potential losses due to ongoing expense fraud because it creates a culture of integrity and accountability, sets clear expectations and consequences for employees, and deters fraudulent behavior. Implementing user access controls, performing regular internal audits, and conducting fraud prevention awareness training are also important controls, but they are more reactive and detective than preventive. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 4-26.

Residual risk is the risk that remains after the implementation of controls. It is important for a risk practitioner to verify that the residual risk is within the acceptable levels defined by the enterprise’s risk appetite and tolerance. This ensures that the controls are effective in reducing the risk exposure to an acceptable level and align with the enterprise’s objectives and strategy. References = CRISC Review Manual 27th Edition, page 131. Most Asked CRISC Exam Questions and Answers.

 A cloud access security broker (CASB) solution is the best way to enforce access control for an organization that uses multiple cloud technologies, as it provides a centralized and consistent platform to manage and monitor the access to various cloud services and applications. A CASB solution can help to implement and enforce the enterprise’s access policies and standards, as well as to detect and prevent unauthorized or malicious access attempts. Senior management support of cloud adoption strategies, creation of a cloud access risk management policy, and expansion of security information and event management (SIEM) to cloud services are not the best ways to enforce access control for an organization that uses multiple cloud technologies, as they do not provide the technical capabilities or tools to manage and monitor the access to various cloud services and applications. References = CRISC by Isaca Actual Free Exam Q&As, question 210; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 210.

The greatest concern for an IT risk practitioner when an employee transfers to another department is that unnecessary access permissions have not been removed. Unnecessary access permissions are the access rights or privileges that are no longer needed, relevant, or appropriate for the employee’s new role or responsibility. If these access permissions are not removed, they may pose a significant security risk, as the employee may be able to access, modify, or delete sensitive or critical data and systems that are not related to their current function. This may result in data leakage, fraud, sabotage, or compliance violations. The other options are not as concerning as unnecessary access permissions, as they are related to the organizational, operational, or knowledge aspects of the employee transfer, not the security or risk aspects of the employee transfer. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

The business application owner is responsible for the operation and risk decisions related to the application. Since the loss of failover may impact business continuity, their approval is essential.

Robotics process automation (RPA) is the use of software robots to perform repetitive, rules-based tasks that interact with multiple applications. RPA can help internal audit departments automate certain continuous auditing tasks, such as data extraction, validation, analysis, and reporting. RPA can improve the efficiency, quality, and coverage of internal audit activities, and provide greater insight and value to the business. However, RPA also involves certain risks, such as errors, failures, security breaches, or compliance issues, that need to be identified, assessed, and managed. The risk associated with ineffective design of the software bots is the possibility and impact of the bots not functioning as intended, or producing inaccurate or unreliable results. The risk owner of this risk 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 project objectives and strategy. The risk owner of the risk associated with ineffective design of the software bots is the project manager, who is the person in charge of planning, executing, monitoring, and closing the RPA project. The project manager understands the project scope, requirements, budget, timeline, and deliverables, and the potential consequences of ineffective design of the software bots. The project manager also has the resources and incentives to address the risk effectively and efficiently. Therefore, the project manager is the most appropriate risk owner of the risk associated with ineffective design of thesoftware bots. References = Robotic Process Automation for Internal Audit, p. 3-4, Adopting robotic process automation in Internal Audit, Robotic Process Automation (RPA) – Internal Audit Use and Risks.

A decision tree is a technique that can be used during a risk assessment to demonstrate to stakeholders that all known alternatives were evaluated. A decision tree is a graphical tool that shows the possible outcomes and consequences of different choices or actions in a sequential and hierarchical manner. A decision tree can help to compare and contrast the alternatives based on their expected values, costs, benefits, and risks, as well as to identify the optimal or preferred alternative that maximizes the value or minimizes the risk. A decision tree can also help to communicate and explain the rationale and assumptions behind the decision-making process to the stakeholders. The other options are not the best techniques to demonstrate to stakeholders that all known alternatives were evaluated, although they may be useful and complementary. A control chart is a technique that monitors the performance and quality of a process or activity over time by plotting the data points and the control limits. A control chart can help to detect and analyze the variations or deviations from the expected or desired results, as well as to identify and correct the causes or sources of the variations. A sensitivity analysis is a technique that measures the impact ofchanges in one or more variables or parameters on the outcome or result of a model or a system. A sensitivity analysis can help to assess the uncertainty or variability of the outcome or result, as well as to determine the most influential or critical variables or parameters that affect the outcome or result. A trend analysis is a technique that examines the patterns or movements of data or information over time by using statistical or graphical methods. A trend analysis can help to forecast or predict the future behavior or direction of the data or information, as well as to identify and explain the factors or drivers that influence the data or information. References = CRISC Review Manual, pages 38-391; CRISC ReviewQuestions, Answers &Explanations Manual, page 922; Risk Assessment and Analysis Methods: Qualitative and Quantitative - ISACA3; Risk Assessment: Process, Examples, & Tools | SafetyCulture4

Organizational objectives should be the primary input to determine risk tolerance, as they define the desired outcomes and performance of the organization, and guide the selection of the acceptable level of risk that the organization is willing to take to achieve those objectives. Regulatory requirements, annual loss expectancy (ALE), and risk management costs are not the primary inputs, as they are more related to the external or internal constraints or factors that affect the risk tolerance, rather than the drivers or determinants of the risk tolerance. References = CRISC Review Manual, 7th Edition, page 109.

 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

The best way to prevent future occurrences of active network accounts belonging to former employees is to conduct a comprehensive review of access management processes. This review should include verifying that the access rights of all employees are updated regularly, especially when they change roles or leave the organization. The review should also ensure that there are clear policies and procedures for granting, modifying, and revoking access rights, and that these are followed consistently and documented properly. The review should also identify and address any gaps or weaknesses in the access management processes that could lead to unauthorized orinappropriate access. By conducting a comprehensive review of access management processes, the organization can improve its security posture and reduce the risk of data breaches or misuse of resources. References = IT audit: The ultimate guide [with checklist] | Zapier, IT auditing and controls – planning the IT audit [updated 2021]

According to the CRISC Review Manual, a root cause analysis is a technique that identifies the underlying causes of an event or a problem. It helps to determine the most effective actions to prevent or mitigate the recurrence of the event or problem. A root cause analysis is the best approach for the risk practitioner to take in this scenario, because it will help to understand why the number of emergency changes has increased substantially and what can be done to address the issue. The other options are not the best approaches, because they do not address the underlying causes of the problem. Temporarily suspending emergency changes may disrupt the business operations and create more risks. Documenting the control deficiency in the risk register is a passive action that does not resolve the problem. Continuing monitoring change management metrics is an ongoing activity that does not provide any insight into the problem. References = CRISC Review Manual, 7th Edition, Chapter 3, Section 3.2.4, page 130.

The key to controlling escalating costs when an organization is having new software implemented under contract is change management, which is the process of identifying, evaluating, approving, and implementing changes to the project scope, schedule, budget, or quality1. Change management can help to control escalating costs by:

Establishing a clear and agreed-upon baseline for the project deliverables, requirements, and expectations, and ensuring that they are aligned with the contract terms and conditions2.

Defining and enforcing a formal and consistent change control process, which includes the roles and responsibilities, the criteria and methods, and the documentation and communication of the changes3.

Assessing and prioritizing the proposed changes, and determining their impact and feasibility, and their alignment with the project objectives and constraints4.

Obtaining the approval and authorization of the relevant stakeholders, such as the project sponsor, the project manager, the contractor, or the customer, before implementing the changes5.

Monitoring and measuring the performance and outcome of the changes, and ensuring that they are delivered within the agreed scope, schedule, budget, and quality6.

References =

Change Management - CIO Wiki

Project Scope Management - CIO Wiki

Change Control - CIO Wiki

Change Impact Analysis - CIO Wiki

Change Approval - CIO Wiki

Change Evaluation - CIO Wiki

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 significant benefit of using a consistent risk ranking methodology across an organization is that it enables a clear understanding of risk levels, as this facilitates the comparison and prioritization of risks, the communication and reporting of risks, and the alignment of risk management with the enterprise’s objectives and strategy. A consistent risk ranking methodology is a set of criteria and scales that are used to measure and rate the likelihood and impact of risks, as well as other factors such as urgency, velocity, and persistence. A consistent risk ranking methodology ensures that the risk assessment results are objective, reliable, and comparable across different business units, processes, and projects. The other options are not the most significant benefits of using a consistent risk ranking methodology,although they may be secondary benefits or outcomes of doing so. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Assessment, page 97.

The best control to reduce the likelihood of a successful network attack through social engineering is security awareness training. Security awareness training is a program that educates and trains employees on the common types, techniques, and indicators of social engineering attacks, such as phishing, baiting, pretexting, and quid pro quo12. Security awareness training also teaches employees how to protect themselves and the organization from social engineering attacks, such as by verifying the identity and legitimacy of the sender or caller, avoiding clicking on suspicious links or attachments, reporting any suspicious or unusual activity, and following the organization’s security policies and procedures. Security awareness training can help to reduce the likelihood of a successful network attack through social engineering, because it can increase the employees’ knowledge, skills, and confidence in recognizing and responding to social engineering attempts, and it can also foster a culture of security and responsibility among the employees. The other options are not the best control, although they may be useful or complementary to security awareness training. Automated controls are technical or procedural controls that are performed by a system or a device without human intervention, such as firewalls, antivirus software, encryption, and backups. Automated controls can help to protect the network from external or internal threats, but they may not be effective against social engineering attacks, which rely on humaninteraction and manipulation.Multifactor authentication is a security mechanism that requires users to provide two or more pieces of evidence to verify their identity and access a system or a service, such as a password, a token, a fingerprint, or a facial recognition. Multifactor authentication can help to prevent unauthorized access to the network, but it may not prevent social engineering attacks, which may persuade users to share or compromise their authentication factors. Employee sanctions are disciplinary actions that are taken against employees who violate the organization’s security policies and procedures, such as warnings, fines, suspensions, or terminations. Employee sanctions can help to deter and punish employees who fall victim to or facilitate social engineering attacks, but they may not prevent or reduce the likelihood of social engineering attacks, and they may also create a negative or fearful work environment. References = Avoiding Social Engineering and Phishing Attacks | CISA, What is Social Engineering | Attack Techniques & Prevention Methods …, 10 Types of Social Engineering Attacks - CrowdStrike

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.

 According to the IT Risk Management - Basics and Best Practices article, one of the best practices for IT risk management is to keep the risk register up to date. A risk register is a document that records the identified risks, their causes, impacts, likelihood, responses, andstatus. A risk register is a vital tool for IT risk management, as it helps to track and monitor the risks throughout their lifecycle, and to communicate the risks to the relevant stakeholders. However, a risk register is only useful if it reflects the current situation and environment of the organization. Therefore, the risk register should be regularly updated to capture any changes in the risk profile, such as new risks, resolved risks, modified risks, or escalated risks. Updating the risk register will help to ensure that the risk management process is effective and efficient, and that the risk responses are appropriate and timely. References = IT Risk Management - Basics and Best Practices

The most comprehensive input to the risk assessment process specific to the effects of system downtime is the business impact analysis (BIA). The BIA is a process of analyzing the potential impacts of disruptive events on the business processes, functions, and resources. The BIA identifies the criticality, dependencies, recovery priorities, and recovery objectives of the business processes, and quantifies the financial and non-financial impacts of system downtime. The BIA provides valuable information for the risk assessment process, as it helps to evaluate the likelihood and impact of the risks, and to determine the appropriate risk responses. Business continuity plan (BCP) testing results, recovery time objective (RTO), and recovery point objective (RPO) are not as comprehensive as the BIA, as they are derived from the BIA and focus on specific aspects of the business continuity and recovery strategies. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 130.

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?

The risk owner is primarily accountable for risk treatment decisions, as they are the person or entity with the authority and responsibility to manage a particular risk. The risk owner shouldevaluate the available risk response options, select the most appropriate one, implement the chosen response, and monitor its effectiveness. The risk owner should also communicate and report on the risk status and any issues or changes. The business manager, data owner, and risk manager are not primarily accountable for risk treatment decisions, although they may be involved in the risk management process. The business manager is responsible for the overall performance and objectives of a business unit or function. The data owner is responsible for the security and quality of a specific data asset. The risk manager is responsible for facilitating and coordinating the risk management activities across the organization. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Identification, page 47.

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.

Key risk indicators (KRIs) are metrics that provide information about the level of exposure to a specific risk or a group of risks.

The most important data attribute of KRIs is that the data is relevant. This means that the data reflects the current state of the risk, the potential impact of the risk, and the effectiveness of the risk response. Relevant data helps to monitor and measure the risk performance and to make informed decisions about risk management.

The other options are not the most important data attributes of KRIs. They are either secondary or not essential for KRIs.

The references for this answer are:

Risk IT Framework, page 15

Information Technology & Security, page 9

Risk Scenarios Starter Pack, page 7

Administrative controls complement technical controls to enhance the overall effectiveness of risk mitigation. While technical controls implement the specific security mechanisms, administrative controls such as policies, procedures, and training ensure consistent and correct use of these technical controls, increasing their effectiveness in mitigating risk. This layered approach ensures that control measures are reinforced and integrated within the enterprise’s risk management strategy.

The best way to ensure data is properly sanitized while in cloud storage is to cryptographically scramble the data. Cryptographic scrambling is the process of transforming data into an unreadable form using a secret key or algorithm. Cryptographic scrambling protects the data from unauthorized access, modification, or deletion, even if the cloud storage provider or a third party gains access to the data. Cryptographic scrambling also ensures that the data can be restored to its original form using the same key or algorithm, if needed. The other options are not as effective as cryptographic scrambling, because they either do not completely remove the data,or they make it impossible to recover the data. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, page 3-21.

Preparing a risk response that is aligned to the organization’s risk tolerance is the next step after completing a risk assessment and reporting the validated vulnerability findings that require mitigation to the application owner, because it helps to define and implement the appropriate actions to reduce or eliminate the risk, or to prepare for and recover from the potentialconsequences. A risk response is a strategy or tactic for managing the identified risks, such as avoiding, transferring, mitigating, or accepting the risk. A risk response should be aligned to the organization’s risk tolerance, which is the acceptable level of variation from the organization’s objectives or expectations. A vulnerability is a weakness or flaw in an IT system or application that can be exploited by a threat or attack to cause harm or damage. A vulnerability finding is a result of a vulnerability assessment, which is a process of identifying and evaluating the vulnerabilities in an IT system or application. A vulnerability finding requires mitigation, which is a type of risk response that involves applying controls or countermeasures to reduce the likelihood or impact of the risk. Therefore, preparing a risk response that is aligned to the organization’s risk tolerance is the next step, as it helps to address the vulnerability findings and to achieve the desired level of risk. Reporting the findings to executive management, reassessing each vulnerability, and conducting a penetration test are all possible steps to perform afterpreparing a risk response, but they are not the next step, as they depend on the results and approval of the risk response. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.2, page 103

Potential theft of personal information should be of greatest concern for an organization that has detected unauthorized logins to its client database servers, as it poses a serious threat to theconfidentiality, integrity, and availability of the client data and the reputation and trust of the organization. Potential theft of personal information is a scenario that involves the unauthorized access, disclosure, or use of the client data by malicious actors, such as hackers, competitors, or insiders. Potential theft of personal information can have significant impacts and consequences for the organization and its clients, such as:

It can compromise the privacy and security of the client data, and expose the clients to identity theft, fraud, or blackmail.

It can violate the legal and regulatory obligations and requirements of the organization, such as the General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), or the Payment Card Industry Data Security Standard (PCI DSS), and result in fines, penalties, or lawsuits.

It can damage the reputation and credibility of the organization, and erode the confidence and loyalty of the clients, and lead to loss of business or market share.

The other options are not the greatest concerns for an organization that has detected unauthorized logins to its client database servers. Potential increase in regulatory scrutiny is a possibleconsequence of the unauthorized logins, as it may trigger audits, investigations, or sanctions by the relevant authorities, but it is not the most critical or immediate concern. Potential system downtime is a possible consequence of the unauthorized logins, as it may disrupt or degrade the performance or availability of the database servers or the applications that depend on them, but it is not the most severe or lasting concern. Potential legal risk is a possible consequence of the unauthorized logins, as it may expose the organization to litigation or liability claims by the affected clients or parties, but it is not the most direct or urgent concern. References = Data Breach Response: A Guide for Business - Federal Trade Commission, IT Risk Resources | ISACA, How to Prevent Unauthorized Access to Your Database - ScaleGrid

Monitoring the percentage of patches deployed within the target time frame is a critical key control indicator for the patch management process. It reflects the organization's ability to apply necessary updates promptly, reducing exposure to known vulnerabilities. Timely patch deployment is essential for maintaining system security and compliance with organizational policies.​

Data transmission across public networks is the greatest risk because public networks are inherently insecure and vulnerable to interception. Encryption is critical to protecting data confidentiality during transmission over such networks. Lack of encryption internally is less risky due to controlled environments. Classification helps but does not protect data in transit. Email encryption is important but less critical compared to public network transmission risks.

According to the CRISC Review Manual, risk taxonomy is the system of classification and categorization of risks based on common characteristics and attributes. Risk taxonomy is necessary to enable an IT risk register to be consolidated with the rest of the organization’s risk register, because it helps to ensure consistency, comparability, and alignment of the risks across the organization. Risk taxonomy also helps to facilitate the communication, reporting, and aggregation of the risks. The other options are not the correct answers, because they are not essential for consolidating the risk registers. Risk response is the action taken to address the risk, which may vary depending on the risk level and strategy. Risk appetite is the amount and type of risk that an organization is willing to accept, which may differ across the organization’s units and functions. Risk ranking is the process of prioritizing the risks based on their impact and likelihood, which may change over time and context. References = CRISC Review Manual, 7th Edition, Chapter 2, Section 2.1.2, page 69.

Risk tolerance defines the boundaries for acceptable risk levels and directly impacts decision-making for mitigation strategies. A well-defined tolerance helps prioritize actions and allocate resources effectively, emphasizing its central role in theRisk Responsedomain.

 The most concerning issue found during the review of a newly created disaster recovery plan (DRP) is that some critical business applications are not included in the plan. This means that the DRP is incomplete and does not cover all the essential IT systems and services that support the business continuity. This could result in significant losses and damages in the event of a disaster. The other issues are not as critical, as they can be addressed by ensuring proper contracts, standards, and approvals are in place for the outsourced activities, the framework, and the CISO. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

The average time to provision user accounts is the most useful indicator to measure the efficiency of an identity and access management (IAM) process, because it reflects how quickly and smoothly the process can grant access to the appropriate users. The average time to provision user accounts can be calculated by dividing the total time spent on provisioning user accounts by the number of user accounts provisioned in a given period. A lower average time indicates a more efficient IAM process, as it means that users can access the resources they need without unnecessary delays or errors. A higher average time may indicate problems or bottlenecks in the IAM process, such as manual steps, complex workflows, lack of automation, or insufficient resources. The average time to provision user accounts can also be compared across different applications, systems, or business units to identify areas for improvement or best practices. The other options are less useful indicators to measure the efficiency of an IAM process. The number of tickets for provisioning new accounts shows the demand for the IAM process, but not how well the process meets the demand. The password reset volume per month shows the frequency of password-related issues, but not how effectively the IAM process handles them. The average account lockout time shows the impact of account lockouts on user productivity, but not howefficiently the IAM process prevents or resolves them. References = Top Identity and Access Management Metrics 

Monitoring control effectivenesscan be done by all lines to varying degrees. The first line monitors during execution, the second provides oversight, and the third provides independent assurance.

The first step in response to an identified risk is updating the risk profile to reflect the new exposure. This informs further actions such as treatment planning or tolerance reassessment.

Authentication logs are records of the attempts and results of logging into an IT system, network, or application, such as the user name, password, date, time, location, or device1. Authentication logs can help to verify and audit the identity and access of the users, and to detect and investigate any unauthorized or suspicious login activities, such as failed or repeated attempts, or unusual patterns or locations2.

Among the four options given, the discovery that authentication logs have been disabled should be of greatest concern to the organization. This is because disabling authentication logs can:

Prevent or hinder the organization from monitoring and controlling the access and activity of the users, especially the disgruntled, terminated IT administrator who may have malicious intentions or insider knowledge

Enable or facilitate the disgruntled, terminated IT administrator or other attackers to bypass or compromise the authentication mechanisms or policies, and gain unauthorized or elevated access to the IT systems, networks, or applications

Conceal or erase the evidence or traces of the login attempts or actions of the disgruntled, terminated IT administrator or other attackers, and make it difficult or impossible to identify, investigate, or prosecute them

Indicate or imply that the disgruntled, terminated IT administrator or other attackers have already breached or compromised the IT systems, networks, or applications, and have disabled the authentication logs to cover their tracks or avoid detection3

References = What is Authentication Logging?, Authentication Logging - Wikipedia, Fired admin cripples former employer’s network using old credentials

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

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

The most effective way to help ensure accountability for managing risk is to assign process owners to key risk areas. Process owners are the persons or entities that have the authority andresponsibility to manage a specific process or a group of related processes. Process owners help to identify, assess, and respond to the risks associated with the process, and to monitor and report on the process performance and improvement. Process owners also help to communicate and coordinate the process management activities with the relevant stakeholders, such as the board, management, business units, and IT functions. Assigning process owners to key risk areas helps to ensure accountability for managing risk, because it helps to define and clarify the roles and responsibilities of the process owners, and to establish and enforce the expectations and standards for the process owners. Assigning process owners to key risk areas also helps to measure and evaluate the effectiveness and efficiency of the process owners, and to identify and address any issues or gaps in the process management activities. The other options are not as effective as assigning process owners to key risk areas, although they may be related to the risk management process. Obtaining independent risk assessments, assigning incident response action plan responsibilities, and creating accurate process narratives are all activities that can help to support or improve the risk management process, but they do not necessarily ensure accountability for managing risk. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 2-11.

A risk register is a tool that records and tracks the identified risks, their causes, impacts, likelihood, responses, and owners. The greatest concern when maintaining a risk register is that significant changes in risk factors are excluded. Risk factors are the internal and external variables that influence the occurrence and impact of risks. Risk factors can change over time due to changes in the business environment, the IT landscape, the threat landscape, or the regulatory requirements. If the risk register does not reflect the significant changes in risk factors, it may not provide an accurate and current view of the enterprise’s risk profile and may not support effective risk management decisions and actions. The other options are not as concerning as the exclusion of significant changes in risk factors, as they involve different aspects of the risk register:

Impacts are recorded in qualitative terms means that the risk register uses descriptive scales, such as low, medium, and high, to measure the potential consequences of the risks. This may not be asprecise or consistent as quantitative measures, such as monetary values or percentages, but it does not necessarily affect the validity or usefulness of the risk register.

Executive management does not perform periodic reviews means that the risk register is not regularly evaluated and updated by the senior leaders of the enterprise. This may indicate a lack of management commitment or oversight for risk management, but it does not directly affect the quality or completeness of the risk register.

IT risk is not linked with IT assets means that the risk register does not associate the identified risks with the specific IT resources, such as hardware, software, data, or services, that are affected by or contribute to the risks. This may limit the visibility and traceability of the risks, but it does not necessarily affect the identification or assessment of the risks. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.2.2, pp. 21-22.

According to the CRISC Review Manual (Digital Version), risk management strategies are primarily adopted to achieve acceptable residual risk levels, which are the remaining risk levels after implementing risk response actions. Residual risk levels should be aligned with the organization’s risk appetite and risk tolerance, which are the amount and type of risk that the organization is willing to accept in pursuit of its objectives and the acceptable variation in outcomes related to specific performance measures linked to objectives. Risk management strategies are the approaches or methods used to address risks, such as avoidance, mitigation, transfer, sharing, or acceptance. Risk management strategies should be based on a cost-benefit analysis of the alternatives available and the value of the assets at risk.

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 166-1691

The management’s primary consideration when approving risk response action plans should be the changes in residual risk after implementing the plans. Residual risk is the level of risk that remains after the implementation of risk responses1. It indicates the degree of exposure or uncertainty that the organization still faces, and the potential impact or consequences of the risk events. The management should evaluate the effectiveness and adequacy of the risk responses, and decide whether the residual risk is acceptable or not2. The management should also compare the residual risk with the risk appetite, which is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives3. The management should ensure that the residual risk is aligned with the risk appetite, and that the risk responses are consistent and proportional to the risk level4.

The other options are not the primary consideration when approving risk response action plans, because:

Ability of the action plans to address multiple risk scenarios is a desirable but not essential criterion for approving risk response action plans. Risk scenarios are hypothetical situations that describe how a risk event could occur and what the consequences could be5. They can help to understand and communicate the nature and impact of the risks, and to design and evaluate the risk responses6. However, not all risk scenarios are equally likely or relevant, and some risk scenarios may be too complex or improbable to address. Therefore, the ability of the action plansto address multiple risk scenarios is not the primary consideration, but rather a secondary or supplementary one.

Ease of implementing the risk treatment solution is a practical but not critical criterion for approving risk response action plans. Risk treatment is the process of selecting and applying appropriate measures to modify the risk7. It can involve different strategies, such as avoid, reduce, transfer, or accept the risk8. The ease of implementing the risk treatment solution depends on various factors, such as the availability of resources, the feasibility of the solution, or the cooperation of the stakeholders. However, the ease of implementation is not the primary consideration, but rather a supporting or facilitating one.

Prioritization for implementing the action plans is a useful but not vital criterion for approving risk response action plans. Prioritization is the process of ranking the action plans according to their importance, urgency, or impact. It can help to allocate the resources, schedule the activities, and monitor the progress of the action plans. However, prioritization is not the primary consideration, but rather a subsequent or follow-up one.

References =

Residual Risk - CIO Wiki

What is Residual Risk? - Definition from Techopedia

Risk Appetite - CIO Wiki

Risk Appetite: What It Is and Why It Matters - Gartner

Risk Scenarios Toolkit - ISACA

Risk Scenarios Starter Pack - ISACA

Risk Treatment - CIO Wiki

Risk Treatment Plan - CIO Wiki

[Prioritization - CIO Wiki]

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.

 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.

 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.

 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.

 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.

 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)​​.

Conducting vulnerability scans is the best way for a risk practitioner to validate the effectiveness of a patching program. Vulnerability scans are automated tools that identify and report on the vulnerabilities in a system or network, such as missing patches, misconfigurations, or outdated software. Vulnerability scans can help the risk practitioner to verify that the patches have been applied correctly and consistently, and that there are no remaining or new vulnerabilities that need to be addressed. Conducting penetration testing, interviewing IT operations personnel, and reviewing change control board documentation are also useful methods to evaluate the patching program, but they are not as comprehensive, objective, or timely as vulnerabilityscans. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.3, page 2-28.

Comprehensive and Detailed Explanation (aligned to ISACA CRISC guidance)

When vulnerabilities are discovered, the CRISC approach requires first understanding the risk those vulnerabilities represent before deciding on actions. Evaluating the associated risk means analyzing the likelihood that the vulnerabilities will be exploited and the potential impact on financial reporting, confidentiality, integrity, and availability of core systems. Only after this analysis can the risk practitioner prioritize which vulnerabilities to address, decide on appropriate treatment options, and determine whether remediation is cost-effective and aligned to risk appetite. Immediately remediating without assessment may misallocate resources or disrupt critical services. Initiating incident response is appropriate when an actual incident or compromise is detected, not merely the existence of vulnerabilities. Estimating remediation cost is important but comes after understanding the significance of the risk.

Risk appetite and tolerance reflect strategic priorities. As business and external environments evolve, regular updates ensure that risk responses and decisions remain aligned with organizational goals and acceptable boundaries.

The first step in selecting a risk response after a penetration test reveals several vulnerabilities in a web-facing application is to assess the level of risk associated with the vulnerabilities, as it involves evaluating the likelihood and impact of the vulnerabilities being exploited, and comparing them with the risk tolerance and appetite of the organization. Correcting the vulnerabilities, developing a risk response action plan, and communicating the vulnerabilities are possible steps in selecting a risk response, but they are not the first step, as they require the prior knowledge of the risk level and the optimal risk response. References = CRISC Review Manual, 7th Edition, page 108.

Free-form fields in public forums increase the risk of accidental or intentional disclosure of sensitive or proprietary information. This creates legal and reputational exposure. Monitoring or disabling such features is essential to mitigating data leakage risks.

Participation in the risk assessment may constitute a conflict of interest, because it may create a situation where the risk practitioner’s personal or professional interests or relationships interfere with their objectivity, independence, or impartiality in conducting the risk assessment. A conflict of interest is a type of risk that may compromise the integrity, quality, or validity of the risk assessment process and outcomes, and may damage the reputation or trust of the risk practitioner or the organization. A conflict of interest may arise when the risk practitioner has a direct or indirect connection or involvement with the subject or stakeholder of the risk assessment, such as a previous or current role, responsibility, or relationship, that may influence or bias theirjudgment or decision. Participation in the risk assessment may constitute a conflict of interest, as the risk practitioner may have a prior or residual interest or loyalty to the financialprocess team or the new critical application, and may not be able to assess the risk in a fair and unbiased manner.

The risk assessment team being overly confident of its ability to identify issues, the risk practitioner being unfamiliar with recent application and process changes, and the risk practitioner still having access rights to the financial system are all possible concerns with the request, but they are not the greatest concern, as they do not necessarily imply a conflict of interest, and they may be mitigated or resolved by other means, such as training, documentation, or review.

 Risk appetite is the broad-based amount of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite reflects the level of risk that the organization is prepared to take to achieve its strategic goals, and provides guidance and boundaries for the risk management activities and decisions. To define the risk management strategy, which is the plan and approach for managing the risks that may affect the achievement of the organization’s objectives, the factor that must be set by the board of directors is the risk appetite. The board of directors is the highest governing body of the organization, and has the ultimate responsibility and authority for setting the direction and oversight of the organization. By setting the risk appetite, the board of directors can communicate its expectations and preferences for the risk exposure and performance of the organization, and ensure alignment with the business objectives and strategies. References = 3

When separation of duties (SoD) cannot be fully implemented—typically due to limited personnel—a compensating control must provide comparable assurance that no individual can exploit a conflict of interest or perform unauthorized actions without detection.

According to the CRISC study guide and ISACA’s Control Objectives for Information and Related Technologies (COBIT):

Compensating controls substitute for missing primary controls when business or technical constraints prevent their full implementation.

The most effective compensating control for SoD issues is independent review or monitoring of activities performed by those with multiple roles.

Obtaining an independent analysis of transaction logs ensures that another trusted party validates the actions taken by employees, detecting inappropriate or fraudulent activities.

Option explanations:

A. Control self-assessments are self-reviews, not independent, and therefore insufficient for SoD conflicts.

B. Reports from staff with multiple duties still depend on self-reporting, which lacks independence.

D. Assigning activities to fewer employees increases risk rather than mitigating it.

This aligns with CRISC’s emphasis that “an independent review of audit logs is the best compensating control when segregation of duties conflict exists in a small IT department.” (CRISC Notes, Slide 349).

The best way to test the operational effectiveness of a data backup procedure is to perform a complete restoration of every file to a clean system and verify that there has not been any data corruption or loss. This will ensure that the backup procedure can successfully recover the data in the event of a disaster or incident. The other options are not sufficient to test the operational effectiveness of a data backup procedure, as they do not involve actually restoring the data and verifying its integrity and usability. References = How to review and test backup procedures to ensure data restoration; HOW TO TEST DATA BACKUPS: A BRIEF GUIDE; How to Test a Database Backup

According to the 1.9 Ownership & Accountability - CRISC, risk ownership is best established by mapping risk to specific business process owners. Details of the risk owner should be documented in the risk register. Results of the risk monitoring should be discussed and communicated with the risk owner as they own the risk and are accountable for maintaining the risk within acceptable levels. To ensure effective risk ownership, it is most important that risk owners have decision-making authority, as this enables them totake timely and appropriate actions to manage the risk and ensure that it is aligned with the organization’s risk appetite and tolerance. Without decision-making authority, risk owners may not be able to implement the necessary risk responses or escalate the issues to the relevant stakeholders. Therefore, the answer is D. risk owners have decision-making authority. References = 1.9 Ownership & Accountability - CRISC, The Importance of Effective Risk Governance in the C-suite - Aon

Accepting risk is the only risk response strategy that could be applied to both positive and negative risk that has been identified. Accepting risk means taking no action to change the likelihood or impact of the risk, but being prepared to deal with the consequences if the risk occurs. Accepting risk is usually chosen when the risk is low, unavoidable, or outweighed by the benefits. For positive risks, accepting risk means taking advantage of the opportunities if they arise. For negative risks, accepting risk means setting aside contingency reserves or plans to copewith the threats. The other risk response strategies are specific to either positive or negative risks. Transfer, exploit, and mitigate are strategies for negative risks, while share, enhance, and avoid are strategies for positive risks. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.

Data flow documentation provides insight into how and where data moves, stored, or processed. It helps identify vulnerable points in the data lifecycle where data loss can occur.