CRISC Exam Dumps - Isaca Certification Questions and Answers

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

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

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

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

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

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

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

IT Governance - ISACA

IT Governance: What It Is and Why You Need It

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

[CRISC Review Manual, 7th Edition]

The greatest benefit to an organization when updates to the risk register are made promptly after the completion of a risk assessment is optimized risk treatment decisions. Risk treatment decisions are the choices made by the organization on how to respond to the identified risks, such as avoiding, transferring, mitigating, or accepting them. Optimized risk treatment decisions are those that align with the organizational risk appetite and objectives, and provide the best balance between the costs and benefits of the risk response actions.

Updating the risk register promptly after the completion of a risk assessment helps to optimize risk treatment decisions by providing the most current and accurate information on the risk exposure and control environment. By updating the risk register, the organization can ensure that the risk scenarios, risk levels, risk owners, risk responses, and risk indicators are consistent with the risk assessment results and reflect the changes in the internal and external environment. Updating the risk register also helps to prioritize the risks and allocate the resources more effectively and efficiently for risk treatment. Updating the risk register also facilitates the communication, collaboration, and accountability among the stakeholders involved in the risk management and control processes.

The other options are not the greatest benefits to an organization when updates to the risk register are made promptly after the completion of a risk assessment. Improved senior management communication is a benefit of updating the risk register, as it helps to inform and involve the senior management in the risk management and control processes, but it is not the greatest benefit. Enhanced awareness of risk management is a benefit of updating the risk register, as it helps to educate and engage the staff and other stakeholders in the risk management and control processes, but it is not the greatest benefit. Improved collaboration among risk professionals is a benefit of updating the risk register, as it helps to coordinate and integrate the efforts and expertise of the risk professionals, but it is not the greatest benefit. References = Risk Register: Examples, Benefits, and Best Practices, IT Risk Resources | ISACA, Discover 10 major benefits for keeping a risk register

The best way to determine the potential organizational impact of emerging privacy regulations is to conduct a privacy impact assessment (PIA). A PIA is a systematic process of identifying, analyzing, and evaluating the privacy risks and impacts of a new or existing system, process, program, or initiative that involves the collection, use, storage, or disclosure of personal information. A PIA can help to ensure that the enterprise complies with the emerging privacy regulations, and that the privacy rights and expectations of the individuals are respected and protected. A PIA can also help to identify the gaps, weaknesses, and opportunities for improvement in the enterprise’s privacy policies, procedures, and controls. Evaluating the security architecture maturity, mapping the new requirements to the existing control framework, and chartering a privacy steering committee are not as comprehensive and effective as conducting a PIA, as they do not address the specific privacy risks and impacts of the enterprise’s activities. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 192.

An external audit is the most reliable input to evaluate residual risk in the vendor’s control environment, as it provides an independent and objective assessment of the vendor’s financial systems and processes. An external audit is conducted by a third party, such as a certified public accountant (CPA) or a professional auditing firm, that follows the generally accepted auditing standards (GAAS) and the generally accepted accounting principles (GAAP). An external audit can help to verify the accuracy and completeness of the vendor’s financial statements, identify any material misstatements or errors, and evaluate the effectiveness and efficiency of the vendor’s internal controls. An external audit can also provide assurance and confidence to the organization and other stakeholders that the vendor is complying with the relevant laws, regulations, and contractual obligations.

The other options are not the most reliable inputs to evaluate residual risk in the vendor’s control environment. An internal audit is conducted by the vendor itself, which may introduce bias or conflict of interest. An internal audit may also have a different scope, methodology, or quality than an external audit. A vendor performance scorecard is completed by the organization, which may not have the sufficient access, expertise, or authority to assess the vendor’s control environment. A vendor performance scorecard may also focus more on the service level agreement (SLA) compliance, rather than the financial systems and processes. A regulatory examination is conducted by a regulator, such as a government agency or a standard-setting body, which may have a different purpose, criteria, or perspective than the organization. A regulatory examination may also have a limited scope, frequency, or transparency. References = Guide to Vendor Risk Assessment | Smartsheet, Understanding Inherent Vs. Residual Risk Assessments - Resolver, Assessing Internal Controls over Compliance - HCCA Official Site

Lack of organizational policy regarding open source software should be the greatest concern for an organization that uses open source software applications, as it may expose the organization to legal, security, and operational risks. Open source software is software that is freely available and can be modified and distributed by anyone, subject to certain conditions and licenses. An organizational policy regarding open source software should define the criteria and procedures for selecting, acquiring, using, and maintaining open source software, as well as the roles and responsibilities of the stakeholders involved. Lack of reliability, lack of monitoring, and lack of professional support are not the greatest concerns, as they can be addressed by implementing quality assurance, configuration management, and community engagement practices for open source software. References = CRISC by Isaca Actual Free Exam Q&As, question 214; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 214.

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

A key control indicator (KCI) is a metric that provides information on the extent to which a given control is meeting its intended objectives in terms of loss prevention, reduction, etc. A KCI should have an explicit relationship to both the specific control and the specific risk against which the control has been implemented. For risk related to IT infrastructure failure, a possible control is to have a recovery plan that can restore the critical IT services and minimize the impact of the failure. A KCI that can measure the effectiveness of this control is the number of successful recovery plan tests, which indicates how well the recovery plan can be executed in a real scenario. The higher the number of successful tests, the lower the risk of IT infrastructure failure. Therefore, this is the best KCI among the given options. References =

Integrating KRIs and KPIs for Effective Technology Risk Management

Key Control Indicator (KCI) - CIO Wiki

Infrastructure Issues: Understanding and Mitigating Risks

A penetration test is a simulated cyberattack on a web infrastructure to evaluate its security posture and identify any vulnerabilities or weaknesses that could be exploited by an attacker. A penetration test is the best indicator of how well a web infrastructure protects critical information from an attacker, as it mimics the real-world scenarios and techniques that an attacker would use, and measures the effectiveness of the existing security controls and countermeasures. A penetration test can also provide recommendations for improving the security of the web infrastructure and reducing the risk exposure. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 236. CRISC by Isaca Actual Free Exam Q&As, Question 9. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 236. Most Asked CRISC Exam Questions and Answers, Question 10.

The primary risk management responsibility of the second line of defense is to monitor the risk responses. The second line of defense is the function that oversees and supports the risk management activities of the first line of defense, which is the function that owns and manages the risks. The second line of defense includes the risk management, compliance, and quality assurance functions, among others. The second line of defense is responsible for monitoring the risk responses, which are the actions taken to address the risks, such as avoiding, transferring, mitigating, or accepting the risks. The second line of defense monitors the risk responses to ensure that they are implemented effectively and efficiently, that they achieve the desired outcomes, and that they are aligned with the risk appetite and tolerance of the organization. The second line of defense also provides guidance, advice, and feedback to the first line of defense on the risk responses, and reports the results and issues to the senior management and the board. Applying risk treatments, providing assurance of control effectiveness, and implementing internal controls are not the primary risk management responsibilities of the second line of defense, as they are either the responsibilities of the first line of defense or the third line of defense, which is the function that provides independent assurance of the risk management activities, such as the internal audit function. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 36.

The type of control that has been applied when an organization provides legal text explaining the rights and expected behavior of users accessing a system from geographic locations that have strong privacy regulations is directive. A directive control is a control that guides or instructs the users or the staff on the policies, procedures, or standards that they need to follow or comply with when performing their tasks or activities. A directive control can help to prevent or reduce the risk of non-compliance, errors, or violations, by ensuring that the users or the staff are aware and informed of the expectations and requirements of the organization or the system. A directive control can also help to enforce the accountability and responsibility of the users or the staff, and to support the audit and monitoring of their actions and behaviors. Providing legal text explaining the rights and expected behavior of users accessing a system from geographic locations that have strong privacy regulations is an example of a directive control, as it informs the users of the legal obligations and consequences of using the system, and instructs them on how to protect their privacy and the privacy of others. Detective, preventive, and compensating are not the correct types of control, as they do not match the definition or the purpose of the control that has been applied. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

 Continuity planning is the process of developing strategies and plans to ensure the continuity of critical business functions and processes in the event of a disruption or disaster. Continuity planning involves identifying the risks, impacts, and recovery options for various scenarios, as well as testing and updating the plans regularly. The primary advantage of involving end users in continuity planning is that they have a better understanding of specific business needs, such as the operational requirements, the customer expectations, and the dependencies and interdependencies of the business processes. End users can provide valuable input and feedback on the continuity plans, as well as participate in the testing and validation of the plans. End users can also help to ensure the alignment of the continuity plans with the business objectives and priorities, as well as the compliance with the relevant standards and regulations. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.1, p. 204-205

 Discussing and managing risk as a team is the greatest benefit for an organization with a strong risk awareness culture, as it enables the organization to share and communicate the risk information and knowledge among all the stakeholders, and to collaborate and coordinate the risk management activities and responsibilities. Discussing and managing risk as a team can also help to foster a positive and proactive attitude toward risk, and to align the risk management process with the organization’s strategy and objectives. Discussing and managing risk as a team can also enhance the risk governance and accountability, and support the risk learning and improvement. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 252. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 252. CRISC by Isaca Actual Free Exam Q&As, Question 9.

The best type of indicators to measure the effectiveness of an organization’s firewall rule set are key control indicators (KCIs). A firewall is a device or software that filters the network traffic based on a set of rules or policies. A firewall rule set is the configuration of the firewall that defines the criteria for allowing or blocking the traffic. A key control indicator is a metric that measures the performance and effectiveness of a control in achieving its objectives and mitigating the risks. A key control indicator can help to evaluate the adequacy and efficiency of the firewall rule set, and to identify any gaps, weaknesses, or issues that need to be addressed. Key risk indicators (KRIs), key management indicators (KMIs), and key performance indicators (KPIs) are not as suitable as key control indicators, as they measure different aspects of the risk management process, such as the level and nature of the risk exposure, the alignment and integration of the risk management activities, and the achievement of the risk management goals and targets. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 220.

Data usage exceeding individual consent presents the greatest risk to the organization’s reputation, as it violates the privacy and trust of the customers and exposes the organization to legal and regulatory liabilities. Customers have the right to know and control how their personal data is collected, processed, and shared by the organization, and they expect the organization to respect their preferences and comply with the applicable laws and standards. If the organization uses the data for purposes beyond the scope of the consent, or without obtaining the consent in the first place, it may damage its reputation and lose its customers’ loyalty and confidence. Third-party software used for data analytics, revenue generated from data analytics, and use of a data analytics system are not inherently risky to the organization’s reputation, as long as they are transparent, secure, and ethical. References = Most Asked CRISC Exam Questions and Answers - The Knowledge Academy; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 203.

Integrating the results of top-down risk scenario analyses is the most helpful in aligning IT risk with business objectives, as it helps to identify and prioritize the IT-related risks that could affect the achievement of the business goals and strategies. A top-down risk scenario analysis is a method of risk assessment that starts from the business perspective and considers the potential impact and likelihood of various risk events on the business outcomes and performance. A top-down risk scenario analysis can help to align IT risk with business objectives by providing the following benefits:

It ensures that the IT risk assessment is driven by the business needs and priorities, rather than by the IT technical details or assumptions.

It enables a holistic and comprehensive view of the IT risk landscape and its interdependencies with the business processes and functions.

It facilitates the communication and collaboration among the business and IT stakeholders and enhances their understanding and awareness of the IT risk exposure and control environment.

It supports the development and implementation of effective and efficient IT risk response and mitigation strategies that are aligned with the business risk appetite and objectives.

The other options are not the most helpful in aligning IT risk with business objectives. Introducing an approved IT governance framework is a good practice to establish the principles, policies, and processes for the governance of IT, but it does not directly address the IT risk alignment with the business objectives. Performing a business impact analysis (BIA) is an important step to assess the potential consequences of IT disruptions on the business operations and continuity, but it does not provide information on the likelihood or sources of the IT risk events. Implementing a risk classification system is a useful tool to categorize and organize the IT risks based on their characteristics and attributes, but it does not link the IT risks with the business objectives or outcomes. References = Risk Scenarios Toolkit - ISACA, IT Risk Resources | ISACA, How to reduce risk by aligning business strategy and IT strategy - QuoStar

A balanced scorecard is a strategic management tool that helps to measure and communicate the performance of an organization or a program against its goals and objectives. A balanced scorecard typically consists of four perspectives: financial, customer, internal process, and learning and growth. Each perspective has a set of key performance indicators (KPIs) that reflect the critical success factors and desired outcomes of the organization or the program1.

A balanced scorecard is most useful for reporting on the overall status and effectiveness of the IT risk management program, because it can provide a comprehensive and balanced view of the program’s performance across multiple dimensions. A balanced scorecard can help to align the IT risk management program with the business strategy and vision, and to demonstrate the value and impact of the program to the stakeholders. A balanced scorecard can also help to identify the strengths and weaknesses of the IT risk management program, and to monitor and improve the program’s processes and outcomes2.

The other options are not as useful as a balanced scorecard for reporting on the overall status and effectiveness of the IT risk management program. A capability maturity level is a measure of the maturity and quality of a process or a practice, based on a predefined set of criteria and standards. A capability maturity level can help to assess and benchmark the IT risk management program’s processes and practices, but it does not provide a holistic view of the program’s performance and results3. An internal audit plan is a document that outlines the scope, objectives, and methodology of an internal audit activity. An internal audit plan can help to evaluate and verify the IT risk management program’s controls and compliance, but it does not provide a strategic view of the program’s goals and outcomes4. A control self-assessment (CSA) is a technique that involves the participation of the process owners and the staff in assessing the effectiveness and efficiency of their own controls. A CSA can help to enhance the awareness and ownership of the IT risk management program’s controls, but it does not provide an objective and independent view of the program’s performance and impact. References =

Balanced Scorecard Basics - Balanced Scorecard Institute

Using the Balanced Scorecard to Measure and Manage IT Risk

Capability Maturity Model Integration (CMMI) Overview

Internal Audit Planning: The Basics - The IIA

[Control Self-Assessment - ISACA]

Key risk indicators (KRIs) are metrics that provide information on the level of exposure to a given risk. Key control indicators (KCIs) are metrics that measure the performance or effectiveness of a control in mitigating a risk. KCIs provide input for KRIs, because they help to assess the residual risk after applying the control. For example, if the KRI is the number of security incidents, and the KCI is the percentage of incidents detected by the intrusion prevention system (IPS), then the KCI provides input for the KRI by showing how well the IPS is reducing the risk of security breaches. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

Automated data indicating that risk has been reduced provides the most tenable evidence that a business process control is effective, because it shows the actual impact and outcome of the control on the risk level. A demonstration that the control is operating as designed, a successful walk-through of the associated risk assessment, and a management attestation that the control is operating effectively are not the most tenable evidence, because they are based on subjective judgments, assumptions, or expectations, not on objective facts or results. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

Shadow systems are IT systems, solutions, devices, or technologies used within an organization without the knowledge and approval of the corporate IT department1. They are often the result of employees trying to address specific functionality gaps in the organization’s official systems, such as the ERP system. However, shadow systems can pose significant risks to the organization, such as:

Data security and privacy breaches, as shadow systems may not comply with the organization’s security policies and standards, or may expose sensitive data to unauthorized parties2.

Data quality and integrity issues, as shadow systems may not synchronize or integrate with the organization’s official systems, or may create data inconsistencies or redundancies3.

Compliance and regulatory violations, as shadow systems may not adhere to the organization’s legal or contractual obligations, or may create audit or reporting challenges4.

Cost and resource inefficiencies, as shadow systems may duplicate or conflict with the organization’s official systems, or may consume more IT resources than necessary5.

The best way to reduce the risk associated with shadow systems is to implement an enterprise architecture (EA), which is a comprehensive framework that defines the structure, processes, principles, and standards of the organization’s IT environment6. By implementing an EA, the organization can:

Align the IT systems with the organization’s goals and strategy, and ensure that they support the business needs and requirements6.

Establish a governance structure and process for IT decision making, and ensure that all IT systems are approved, monitored, and controlled by the IT department7.

Enhance the communication and collaboration between the IT department and the business units, and ensure that the IT systems meet the expectations and preferences of the end users5.

Optimize the performance and efficiency of the IT systems, and ensure that they are scalable, flexible, and interoperable6.

References =

Shadow IT: What Are the Risks and How Can You Mitigate Them? - Ekran System

How to Reduce Risks of Shadow IT by Applying Governance to Public Clouds – BMC Software | Blogs

What is shadow IT? - Article | SailPoint

The Risks of Shadow IT and How to Avoid Them | SiteSpect

Start reducing your organization’s Shadow IT risk in 3 steps

What is enterprise architecture (EA)? - Definition from WhatIs.com

Enterprise Architecture Governance - CIO Wiki

 The percentage of relevant threats mitigated is the best key control indicator (KCI) to determine the effectiveness of an intrusion prevention system (IPS), because it measures how well the IPS is performing its intended function of preventing unauthorized access or attacks. The percentage of system uptime is not a good KCI, because it does not reflect the quality or accuracy of the IPS. The total number of threats identified is not a good KCI, because it does not indicate how many of those threats were actually prevented by the IPS. The reaction time of the system to threats is not a good KCI, because it does not measure the impact or severity of the threats that were prevented or not prevented by the IPS. References = CRISC: Certified in Risk & Information Systems Control Sample Questions2

 The best way to assess the effectiveness of an access management process is to reconcile a list of accounts belonging to terminated employees. This will ensure that the access rights of the employees who have left the organization are revoked in a timely and accurate manner, and that there are no orphaned or unauthorized accounts that could pose a security risk. Comparing the actual process with the documented process, reviewing access logs for user activity, and reviewing for compliance with acceptable use policy are also useful methods, but they are not as direct and conclusive as reconciling a list of accounts belonging to terminated employees. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

A report of deficiencies noted during controls testing is the best option to inform stakeholders risk decision-making, as it provides an accurate and timely assessment of the effectiveness and efficiency of the organization’s control environment. A report of deficiencies noted during controls testing is a document that summarizes the results of the testing activities performed on the organization’s internal controls, such as design, implementation, operation, and monitoring. A report of deficiencies noted during controls testing should include the following elements:

The scope, objectives, and methodology of the controls testing

The criteria and standards used to evaluate the controls

The findings and observations of the testing process

The root causes and impacts of the identified deficiencies

The recommendations and action plans to address the deficiencies

The roles and responsibilities of the stakeholders involved in the remediation process

A report of deficiencies noted during controls testing helps to inform stakeholders risk decision-making by providing them with relevant and reliable information on the current state of the organization’s control environment. It also helps to identify and prioritize the areas for improvement and enhancement of the control environment. A report of deficiencies noted during controls testing also facilitates the communication, collaboration, and accountability among the stakeholders involved in the risk management and control processes.

The other options are not the best options to inform stakeholders risk decision-making. The audit plan for the upcoming period is a document that outlines the scope, objectives, and methodology of the planned audit activities, but it does not provide any information on the actual performance of the organization’s control environment. Spend to date on mitigating control implementation is a measure of the resources and costs incurred to implement the risk response actions, but it does not indicate the effectiveness or efficiency of the control environment. A status report of control deployment is a document that tracks and monitors the progress and performance of the control implementation process, but it does not evaluate the quality or adequacy of the control environment. References = Internal Control Deficiencies: Identification, Reporting and Communication, IT Risk Resources | ISACA, Internal Control Testing: Techniques, Types, and Examples

Using an entry in the risk register to track the aggregate risk associated with server failure provides a comprehensive view of the impact should the servers simultaneously fail, as it considers the combined effect of the server failure on the enterprise’s objectives and operations. The risk register is a document that records and tracks the identified risks, their likelihood, impact, and mitigation strategies. By aggregating the risk associated with server failure, the risk register can help to estimate the worst-case scenario and to prioritize the risk response accordingly. It provides a cost-benefit analysis on control options available for implementation, it provides a view on where controls should be applied to maximize the uptime of servers, and it provides historical information about the impact of individual servers malfunctioning are not the primary benefits of using an entry in the risk register to track the aggregate risk associated with server failure, but rather the possible outcomes or actions of using the risk register. References = CRISC Certified in Risk and Information Systems Control – Question220; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 220.

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

A risk map is a visual tool that helps to communicate risk to management by showing the likelihood and impact of different risks on a matrix1. A risk map can help to:

Identify the most critical risks that need immediate attention or action

Compare and prioritize risks based on their severity and probability

Align risk management strategies with the organization’s risk appetite and tolerance

Communicate risk information in a clear and concise way that is easy to understand and interpret2

References = Risk and Information Systems Control Study Manual, Chapter 5: Risk Assessment Process3

A cost-benefit analysis is a tool that compares the costs and benefits of different alternatives, such as implementing or not implementing a specific control. A cost-benefit analysis provides the most useful information when determining if a specific control should be implemented, as it can show the potential savings, benefits, and risks of each option, and help the decision-makers choose the best course of action. A cost-benefit analysis can also include qualitative factors, such as security, compliance, performance, and customer satisfaction, that may be affected by the control implementation. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 256. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 256. Most Asked CRISC Exam Questions and Answers, Question 10. CRISC by Isaca Actual Free Exam Q&As, Question 9.

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

A risk register is a document that records and tracks the information about the risks that may affect the organization’s objectives, such as the risk description, category, source, cause, impact, probability, status, owner, response, etc.

When updating the risk register after a risk assessment, the most important information to include is the likelihood and impact of the risk scenario. This means that the risk register should reflect the current or updated estimates of the probability and consequence of the risk scenario, based on the risk analysis and evaluation methods and criteria.

The likelihood and impact of the risk scenario helps to determine the risk level and priority, select the most appropriate risk response, allocate the resources and budget for risk management, and monitor and report the risk performance and outcomes.

The other options are not the most important information to include when updating the risk register after a risk assessment. They are either secondary or not essential for risk management.

The references for this answer are:

Risk IT Framework, page 29

Information Technology & Security, page 23

Risk Scenarios Starter Pack, page 21

The most likely justification for risk acceptance of an exception to a security control is when the business benefits exceed the loss exposure. Risk acceptance is a risk response strategy that involves acknowledging and tolerating the risk, without taking any action to reduce or transfer the risk. An exception to a security control is a deviation or non-compliance from the established security policy or standard, due to a valid business reason or circumstance. Risk acceptance of an exception to a security control may be justified when the business benefits exceed the loss exposure, which means that the value or advantage of the exception outweighs the potential cost or harm of the risk. For example, an exception to a security control may enable faster or easier access to the system or data, which may improve the productivity, efficiency, or satisfaction of the users or customers, and generate more revenue or profit for the business. The business benefits of the exception may exceed the loss exposure of the risk, which may be low or negligible, or may be mitigated by other controls or factors. Therefore, risk acceptance of an exception to a security control may be a reasonable and rational decision, based on the cost-benefit analysis of the exception and the risk. Automation cannot be applied to the control, the end-user license agreement has expired, and the control is difficult to enforce in practice are not the most likely justifications for risk acceptance of an exception to a security control, as they are either irrelevant or insufficient reasons, and they do not consider the business benefits or the loss exposure of the exception and the risk. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 50.

 The greatest risk to change control in business application development over the complete life cycle is the introduction of requirements that have not been approved. Requirements are the specifications or expectations of the business users or stakeholders for the application, such as the features, functions, or performance1. Change control is the process of identifying, evaluating, approving, and implementing changes to the application, such as the design, code, or configuration2. By introducing requirements that have not been approved, the organization can face significant risks, such as:

Scope creep, which is the uncontrolled or unauthorized expansion of the project scope, and can result in increased costs, delays, or errors3.

Quality issues, which can affect the reliability, usability, or security of the application, and can lead to defects, failures, or breaches4.

Stakeholder dissatisfaction, which can arise from the mismatch or inconsistency between the delivered application and the expected application, and can cause complaints, disputes, or litigation5.

The other options are not the greatest risk to change control, because:

Emphasis on multiple application testing cycles is not a risk, but rather a benefit or a best practice for change control, as it can help to ensure that the application meets the requirements and standards, and that the changes are effective and efficient.

Lack of an integrated development environment (IDE) tool is a challenge, but not a risk, for change control, as it can affect the productivity, collaboration, or integration of the developers, and can cause difficulties or inefficiencies in the development process. However, it does not directly affect the requirements or the quality of the application, and it can be overcome by using other tools or methods.

Bypassing quality requirements before go-live is a risk, but not the greatest risk, for change control, as it can compromise the quality or performance of the application, and can expose the organization to errors, failures, or breaches. However, it is less likely or frequent than introducing requirements that have not been approved, and it can be detected or prevented by using quality assurance or quality control techniques.

References =

Requirements - CIO Wiki

Change Control - CIO Wiki

Scope Creep - CIO Wiki

Quality - CIO Wiki

Stakeholder Management - CIO Wiki

[Software Testing - CIO Wiki]

[Integrated Development Environment (IDE) - CIO Wiki]

[Quality Requirements - CIO Wiki]

[Software Development Life Cycle - CIO Wiki]

The best way to increase the chances of a successful delivery of a new application and to assure the business management that IT has a plan in place for early identification of potential issues is to include business management on a weekly risk and issues report. A risk and issues report is a document that summarizes the current status, progress, and challenges of the IT project, as well as the actions and resources needed to address them. A risk and issues report helps to communicate and align the expectations and objectives of the IT and business stakeholders, and to facilitate timely and effective decision-making and problem-solving. A risk and issues report also helps to monitor and control the project scope, schedule, budget, and quality, and to ensure that the project delivers the desired value and benefits to the organization. The other options are not as effective as including business management on a weekly risk and issues report, although they may be part of the IT project management process or outcomes. Implementing a release and deployment plan, conducting comprehensive regression testing, and developing enterprise-wide key risk indicators (KRIs) are all activities that can help to ensure the quality and reliability of the new application, but they do not necessarily involve the business management or provide assurance for the early identification of potential issues. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.4.1, page 5-32.

Being the first to market is a competitive advantage that can help an organization gain market share, customer loyalty, and brand recognition. However, this advantage can be lost if the project is delayed and the competitors catch up or surpass the organization. Therefore, the project delivery time is of greatest concern to senior management, as it directly affects the strategic objective of the project. The other options are less critical, as they can be managed or mitigated by the project team. More time for testing can improve the quality and reliability of the product, a new project manager can bring fresh ideas and perspectives, and the cost overrun can be justified by the expected benefits and revenues of the product. References = Project Initiation: The First Step to Project Management [2023] • Asana, 12 Steps to Initiate and Plan a Successful Project

 The greatest concern with the situation of combining the second and third lines of defense in a new department that reports to a recently appointed C-level executive is that the independence of the internal third line of defense may be compromised. The second line of defense is the function that oversees and supports the risk management activities of the first line of defense, which is the function that owns and manages the risks. The third line of defense is the function that provides independent assurance of the risk management activities, such as the internal audit function. Combining the second and third lines of defense in a new department may compromise the independence of the internal third line of defense, as it may create a conflict of interest, bias, or influence among the functions, and impair the objectivity, credibility, and quality of the assurance activities. The independence of the internal third line of defense is essential for ensuring that the risk management activities are performed in a consistent and effective manner, and that the issues and gaps are identified and reported without fear or favor. The risk governance approach of the second and third lines of defense may differ, cost reductions may negatively impact the productivity of other departments, and the new structure may not be aligned to the organization’s internal control framework are also concerns, but they are not as great as the compromise of the independence of the internal third line of defense, as they do not directly affect the assurance and accountability of the risk management activities. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 36.

Personal data is any information that relates to an identified or identifiable individual, such as name, address, email, phone number, etc. Processing personal data involves collecting, storing, using, disclosing, or deleting it. Processing personal data poses various risks to the privacy and security of the data subjects, such as unauthorized access, disclosure, modification, or loss. Therefore, processing personal data requires appropriate technical and organizational measures to safeguard the data and to comply with the relevant laws and regulations. One of the most effective practices to safeguard the processing of personal data is to use tokenization. Tokenization is a technique that replaces sensitive data elements with non-sensitive equivalents, called tokens, that have no meaning or value outside of a specific system or context. Tokenization reduces the risk of exposing personal data to unauthorized parties, as the tokens cannot be reversed or linked back to the original data without the proper key or algorithm. Tokenization also helps to minimize the amount of personal data that is stored or transmitted, and to limit the scope of compliance requirements. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2.2, p. 196-197

A retention policy is a set of rules and guidelines that define how long and under what conditions the information should be kept or disposed of by the organization, based on its value, sensitivity, and legal or regulatory requirements.

When information is no longer required to support business objectives, the first thing that should be done is to assess the information against the retention policy. This means that the information should be reviewed and evaluated to determine if it should be retained or deleted, and for how long and by whom.

Assessing the information against the retention policy helps to ensure that the information is managed and disposed of in a consistent and compliant manner, that the information is protected from unauthorized access, use, disclosure, modification, or destruction, and that the information is available for future reference or audit purposes if needed.

The other options are not the first things that should be done when information is no longer required to support business objectives. They are either secondary or not essential for information management.

The references for this answer are:

Risk IT Framework, page 28

Information Technology & Security, page 22

Risk Scenarios Starter Pack, page 20

The best tool for communicating strategic risk priorities is a heat map. A heat map is a graphical representation of the risk profile of an enterprise, showing the likelihood and impact of various risks on a matrix. A heat map can help to highlight the most significant risks that require attention, as well as the risk appetite and tolerance levels of the enterprise. A heat map can also facilitate the comparison of risks across different business units, processes, or objectives, and enable the communication of risk information to stakeholders in a clear and concise manner. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.3.1, page 240.

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

 A vulnerability is a weakness or flaw that can be exploited by a threat to cause harm or damage to an asset. Employees holding the door open for others, so that trailing employees do not have to stop and swipe their own ID badges, is a behavior that best represents a vulnerability, as it bypasses the security control of the ID badge system, and allows unauthorized or unauthenticated access to the premises. This behavior can increase the risk of physical or logical security breaches, such as theft, vandalism, sabotage, or espionage. References = CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 258. Most Asked CRISC Exam Questions and Answers, Question 10. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 258. CRISC by Isaca Actual Free Exam Q&As, Question 9.

Key risk indicators (KRIs) are metrics that provide early warning signals of potential risk events or changes in the risk profile of an organization. They help to monitor the risk exposure and performance of the organization against its risk appetite and tolerance. They also enable timely and proactive risk responses and mitigation actions. Establishing KRIs is the most helpful in preventing risk events from materializing, as they can alert the organization of emerging risks and trigger preventive measures before the risks become significant or materialize. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, p. 114-115

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

Showing projected residual risk is the most helpful way to respond to the request of explaining how existing risk treatment plans would affect risk posture at the end of the year. Residual risk is the level of risk that remains after the implementation of risk responses1. Projected residual risk is the estimated level of risk that will remain at a future point in time, based on the assumptions and expectations of the risk responses2. By showing projected residual risk, the risk practitioner can:

Demonstrate the effectiveness and efficiency of the risk treatment plans, and how they reduce the risk level from the inherent risk (the risk before the risk responses) to the residual risk3.

Compare the projected residual risk with the risk appetite and tolerance, which are the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives4. This can help to determine whether the projected residual risk is acceptable or not, and whether the risk treatment plans are consistent and proportional to the risk level5.

Identify and address any gaps, issues, or challenges that may affect the achievement of the projected residual risk, and recommend and implement appropriate improvement actions or contingency plans6.

The other options are not the most helpful ways to respond to the request, because:

Assessing risk with no controls in place is not the most helpful way, as it does not reflect the current or future risk posture of the organization. Controls are the measures or actions that are implemented to modify the risk, such as prevent, detect, correct, or mitigate the risk7. Assessing risk with no controls in place can help to measure the inherent risk, but it does not show the impact or outcome of the risk treatment plans.

Providing peer benchmarking results is not the most helpful way, as it does not reflect the specific or unique risk profile of the organization. Peer benchmarking is the process of comparing the organization’s risk level and performance with its peers or competitors, based on a common set of criteria or indicators8. Providing peer benchmarking results can help to provide a reference or a standard for the risk posture, but it does not show the effect or result of the risk treatment plans.

Assessing risk with current controls in place is not the most helpful way, as it does not reflect the future or projected risk posture of the organization. Assessing risk with current controls in place can help to measure the current residual risk, but it does not show the expected or estimated residual risk at the end of the year.

References =

Residual Risk - CIO Wiki

Projected Residual Risk - CIO Wiki

Risk Treatment Plan - CIO Wiki

Risk Appetite and Tolerance - CIO Wiki

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

Risk Monitoring and Review - The National Academies Press

Control - CIO Wiki

Benchmarking - CIO Wiki

[Risk Treatment - CIO Wiki]

A risk register is a tool that records and tracks the identified risks, their causes, impacts, probabilities, responses, and owners. It is a living document that should be updated regularly to reflect the changes in the risk environment and the status of the risk responses12. The best way to improve a risk register is to ensure that it is updated based upon significant events, such as:

New risks are identified or existing risks are eliminated

Risk probabilities or impacts change due to internal or external factors

Risk responses are implemented or modified

Risk owners or stakeholders change

Risk incidents or issues occur

Risk thresholds or appetite change

Risk reporting or communication requirements change

Updating the risk register based upon significant events can help to:

Maintain the accuracy and relevance of the risk information

Enhance the risk awareness and accountability of the risk owners and stakeholders

Support the risk monitoring and reporting activities

Facilitate the risk evaluation and decision-making processes

Improve the risk management performance and maturity

References =

Risk Register - Project Management Knowledge

How to Create a Risk Register: A Step-by-Step Guide - ProjectManager.com

 Accepting residual risk is the most important responsibility of a risk owner, as it implies that the risk owner is accountable for the risk and its impact on the enterprise’s objectives and operations. Residual risk is the risk that remains after the implementation of controls, and it should be aligned with the risk appetite and tolerance of the enterprise. The risk owner is responsible for implementing the risk response strategies and monitoring the risk status and outcomes, as well as for reporting and escalating the risk issues and incidents. Testing control design, establishing business information criteria, and establishing the risk register are not the most important responsibilities of a risk owner, but rather the tasks or activities that the risk owner may perform or delegate as part of the risk management process. References = CRISC Certified in Risk and Information Systems Control – Question218; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 218.

The most important concern to address when formulating a social media policy to address information leakage is sharing company information on social media. Information leakage is the unauthorized or unintentional disclosure of confidential or sensitive information to unauthorized parties. Social media is a platform that enables the users to create and share content, such as text, images, videos, or links, with other users or the public. Sharing company information on social media is the most important concern, as it could expose the company’s trade secrets, intellectual property, customer data, financial data, or strategic plans to competitors, hackers, or regulators. Sharing company information on social media could also damage the company’s reputation, trust, or credibility, and result in legal or regulatory penalties, fines, or lawsuits. Therefore, a social media policy should clearly define what constitutes company information, and what are the rules and guidelines for sharing or not sharing company information on social media. A social media policy should also specify the roles and responsibilities of the employees, managers, and the social media team, and the consequences and sanctions for violating the policy. Sharing personal information on social media, using social media to maintain contact with business associates, and using social media for personal purposes during working hours are not as important as sharing company information on social media, as they do not directly involve the leakage of company information, and they may not have significant impact or risk on the company. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217

The most important thing to include in a risk assessment of an emerging technology is the impact and likelihood ratings of the risks associated with the technology. Impact and likelihood ratings are the measures of the potential consequences and probabilities of the risk events that could affect the achievement of the enterprise’s objectives. Impact and likelihood ratings can help to evaluate the level and nature of the risk exposure, and to prioritize the risks for further analysis and response. Impact and likelihood ratings can also help to communicate the risk profile and appetite of the enterprise, and to support the risk-based decision making. Risk response plans, risk and control ownership, and key controls are not as important as impact and likelihood ratings, as they are the outputs or outcomes of the risk assessment process, and not the inputs or components of the risk assessment process. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 49.

 Information security policies are the foundation of an organization’s security program, as they define the objectives, roles, responsibilities, and standards for protecting the information assets and systems. However, information security policies are not static, and they need to be reviewed and updated regularly to reflect the changes in the organization’s environment, risk profile, and compliance requirements. Therefore, the best course of action when conducting an organization-wide risk assessment is to review the policies against current needs to determine adequacy. This means comparing the policies with the current threats, vulnerabilities, controls, and best practices, and identifying any gaps or weaknesses that need to be addressed. The other options are not the best course of action, as they do not consider the current needs of the organization. Reviewing and updating the policies to align with industry standards may not be sufficient, as the organization may have specific or unique needs that are not covered by the standards. Determining that the policies should be updated annually may not be realistic, as the frequency of updates may depend on the nature and complexity of the policies and the organization. Reporting that the policies are adequate and do not need to be updated frequently may not be accurate, as the policies may be outdated or ineffective, and may expose the organization to unnecessary risks. References = Risk Assessment and Analysis Methods: Qualitative and Quantitative - ISACA, Does Your Organization Need a Security Risk Assessment? - ISACA, SP 800-39, Managing Information Security Risk: Organization, Mission …

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

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

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

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

According to the CRISC Review Manual, centralized log management is the best way to assist in reconstructing the sequence of events following a security incident across multiple IT systems in the organization’s network, because it enables the collection, correlation, analysis, and retention of log data from various sources. Centralized log management can provide a comprehensive and consistent view of the activities and transactions that occurred before, during, and after the incident, and can facilitate the identification of the root cause, impact, and scope of the incident. The other options are not the best ways to assist in reconstructing the sequence of events, because they do not provide the same level of detail and accuracy as centralized log management. Network monitoring infrastructure is a tool that helps to monitor the performance and availability of the network, but it does not capture the log data from the IT systems. Centralized vulnerability management is a process that helps to identify and remediate the vulnerabilities in the IT systems, but it does not record the events and transactions that occurred on the systems. Incident management process is a process that helps to respond to and resolve the incidents, but it does not provide the log data from the IT systems. References = CRISC Review Manual, 7th Edition, Chapter 5, Section 5.3.2, page 263.

A treatment plan status is a report that shows the current status and progress of the risk mitigation actions and activities that are implemented to reduce the risk exposure of the organization. A treatment plan status would provide the most useful information to a risk owner when reviewing the progress of risk mitigation, as it can help to monitor and evaluate the performance and effectiveness of the risk controls, and to identify and address any issues or gaps that may arise during the implementation. A treatment plan status can also provide feedback and information to the risk owners and stakeholders, and enable them to adjust the risk strategy and response actions accordingly. References = CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 257. CRISC Sample Questions 2024, Question 257. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 257. CRISC by Isaca Actual Free Exam Q&As, Question 9.

 A role-based user access model is a type of technology control that assigns access rights and permissions to users based on their roles and responsibilities within the organization. A role-based user access model can reduce the likelihood of fraudulent payments committed internally, because it can help to:

Enforce the principle of least privilege, which means that users only have the minimum level of access required to perform their duties

Implement segregation of duties, which means that users cannot perform conflicting or incompatible functions, such as initiating and approving payments

Prevent unauthorized or inappropriate access to sensitive data or systems, such as payment information or applications

Detect and deter fraud attempts by creating audit trails and logs of user activities and transactions

Simplify and streamline the management and maintenance of user access rights and permissions, such as adding, modifying, or deleting users or roles12

The other options are not as important as a role-based user access model for reducing the likelihood of fraudulent payments committed internally. Automated access revocation is a technology control that automatically revokes or suspends user access rights and permissions when certain conditions are met, such as termination of employment, change of role, or expiration of password. Automated access revocation can help to prevent fraud by former or inactive users, but it does not address the risk of fraud by current or active users3. Daily transaction reconciliation is a technology control that compares and verifies the transactions recorded in different systems or sources, such as bank statements and accounting records. Daily transaction reconciliation can help to detect fraud by identifying discrepancies or anomalies in the transactions, but it does not prevent fraud from occurring in the first place4. Rule-based data analytics is a technology control that applies predefined rules or criteria to analyze data and identify patterns, trends, or outliers. Rule-based data analytics can help to monitor fraud by generating alerts or reports of suspicious or unusual transactions, but it does not prevent fraud from happening or being attempted5. References =

Role-Based Access Control (RBAC) - ISACA

Role-Based Access Control: What It Is and How It Works

Automated Access Revocation - ISACA

Reconciliation - ISACA

Rule-Based Data Analytics - ISACA

[CRISC Review Manual, 7th Edition]