CRISC Exam Dumps - Isaca Certification Questions and Answers

IT capacity is the ability of an IT system or network to handle the current and future workload and performance demands. IT capacity can be affected by various factors, such as the number and type of users, applications, devices, data, transactions, etc. IT capacity management is the process of planning, monitoring, and optimizing the IT resources to ensure that they meet the business needs and objectives. IT capacity management can help prevent issues such as system slowdowns, outages, errors, or failures, and improve the efficiency, reliability, and security of the IT system or network. One of the IT key risk indicators (KRIs) that provides management with the best feedback on IT capacity is the trends in IT resource usage. IT resource usage is the measure of how much of the IT resources, such as CPU, memory, disk, bandwidth, etc., are being consumed by the IT system or network. Trends in IT resource usage can help monitor and analyze the changes in the IT capacity over time, and identify the patterns, peaks, and bottlenecks in the IT resource consumption. Trends in IT resource usage can also help forecast the future IT capacity requirements, and plan for the appropriate IT resource allocation, optimization, or expansion. Trends in IT resource usage can provide management with valuable information on the current and potential IT capacity risks, and support the decision making and risk response for IT capacity management. References = Integrating KRIs and KPIs for Effective Technology Risk Management, p. 3-4.

 Understanding vulnerabilities associated with the use of the assets is the primary reason for a risk practitioner to review an organization’s IT asset inventory, as it helps to identify and assess the potential threats and risks to the assets. The other options are not the primary reasons for a risk practitioner to review an organization’s IT asset inventory, although they may be related to the process.

The primary consideration when establishing an organization’s risk management methodology is the business context, which includes the internal and external factors that influence the organization’s objectives, strategies, scope, and boundaries. The business context helps to define the risk criteria, the risk appetite, the risk identification, the risk analysis, and the risk treatment. The other options are not the primary consideration, but rather the outcomes or inputs of the risk management methodology. References = ISO 31000 Risk Management – Principles and Guidelines; ISO 31000 Principles of Risk Management; The risk management process: What is the best structure and administration?

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, or impact. 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

According to the CRISC Review Manual1, risk scenarios are hypothetical situations that describe the potential causes, impacts, and responses of a risk event. Risk scenarios are useful tools for identifying, analyzing, and communicating risks in a clear and understandable way. The most important factor when developing risk scenarios is to ensure that they are relevant to the organization, as this helps to capture the specific context, objectives, processes, and resources of the organization, and to reflect the actual risk exposure and appetite of the organization. Relevant risk scenarios also help to engage and involve the stakeholders, and to facilitate risk-based decision making and action planning. References = CRISC Review Manual1, page 206.

According to the CRISC Review Manual1, authorizing user access requests is the process of granting or denying access to IT resources based on the user’s role, responsibilities, and business needs. Authorizing user access requests is a key control accountability that should be retained within the organization, as it helps to ensure that the principle of least privilege is applied, and that the access rights are aligned with the organization’s policies, standards, and risk appetite. Authorizing user access requests also helps to prevent unauthorized access, data leakage, fraud, and other potential risks associated with user access provisioning and termination. Therefore, the best control accountability to retain within the organizationwhen a third-party vendor offers to perform user access provisioning and termination is authorizing user access requests. References = CRISC Review Manual1, page 240.

Requiring a risk assessment with change requests is the most effective way to integrate business risk management with IT operations because it ensures that any changes to the IT environment are aligned with the business objectives and risk appetite. A risk assessment with change requests involves identifying, analyzing, evaluating, and treating the potential risks that may arise from the proposed changes, as well as monitoring and reviewing the outcomes of the changes. This way, the IT operations can support the business goals and mitigate the IT risks in a proactive and consistent manner. References = Risk and Information Systems Control Study Manual, Chapter 3: Risk Response and Mitigation, Section 3.2: Change Management, pp. 121-1231

Regulatory restrictions for cross-border data transfer can significantly impact compliance, making this the most critical consideration. Addressing such restrictions ensures adherence toLegal and Regulatory Requirementsin risk management.

 According to the CRISC Review Manual1, lessons learned from materialized risk scenarios are the insights and knowledge gained from analyzing the causes, impacts, and responses of actual risk events that occurred in the past. Lessons learned from materialized risk scenarios are the most helpful resource when creating a manageable set of IT risk scenarios, as they help to identify and prioritize the most relevant and realistic risks that could affect the organization’s objectives, processes, and resources. Lessons learned from materialized risk scenarios also help to improve the risk management practices and capabilities, and to avoid repeating the same mistakes or gaps in the future. References = CRISC Review Manual1, page 206.

An IT policy is a document that defines the rules, standards, and procedures for the use, management, and security of IT resources within an organization. An IT policy should be aligned to the business requirements, which are the needs, expectations, and objectives of the business stakeholders, such as customers, employees, managers, partners, regulators, etc. An IT policy that is aligned to the business requirements can help support the business strategy, improve the business performance, and enhance the business value. A key performance indicator (KPI) is a metric that measures the achievement of a specific goal or objective. A KPI should be relevant, measurable, achievable, realistic, and time-bound. The best KPI for determining how well an IT policy is aligned to the business requirements is the number of exceptions to the policy. An exception to the policy is a deviation or violation of the policy rules, standards, or procedures, which may be intentional or unintentional, authorized or unauthorized, justified or unjustified. The number of exceptions to the policy can indicate how well the policy is understood, communicated, implemented, and enforced within the organization. The number of exceptions to the policy can also indicate how well the policy reflects the current and future business needs and expectations, and how flexible and adaptable the policy is to the changing business environment. A low number of exceptions to the policy can suggest that the policy is well aligned to the business requirements, while a high number of exceptions to the policy can suggest that the policy is misaligned or outdated, and may need to be reviewed or revised. References = Key Performance Indicator (KPI): Definition, Types, andExamples, Business KPIs: 5 important characteristics to be effective, What is a KPI? How To Choose the Best KPIs for Your Business - HubSpot Blog.

Risk transfer is a risk response strategy that involves shifting the responsibility or burden of a risk to another party, such as a third party, an insurance company, or a joint venture. Risk transfer does not eliminate the risk, but it reduces the exposure or impact of the risk to the enterprise. An example of risk transfer is engaging a third party to provide an Internet gateway encryption service that protects sensitive data uploaded to a cloud service. By doing so, the organization transfers the risk of data breach or loss to the third party, who is responsible for ensuring the security and availability of the data. The other options are not examples of risk transfer, as they involve different risk response strategies:

Risk mitigation is a risk response strategy that involves reducing the likelihood or impact of a risk to an acceptable level, such as by implementing controls, policies, or procedures.

Risk avoidance is a risk response strategy that involves eliminating the risk by not performing the activity that generates the risk, such as by discontinuing a product or service, or not entering a market.

Risk acceptance is a risk response strategy that involves acknowledging the risk and taking no action to address it, such as by tolerating the risk, exploiting the risk, or sharing the risk. References =Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.3.1.1, pp. 107-108.

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 second line of defense is a group of functions that provide oversight, guidance, and monitoring of the risk management activities of the first line of defense. The second line of defense includes risk management, compliance, and internal control departments. Their key responsibility is to monitor the effectiveness of the control activities implemented by the first line of defense, and to report any issues or gaps to senior management and the board. The second line of defense also supports the first line of defense by providing frameworks, policies, tools, and techniques to identify, measure, and manage risks. The other options are not the key responsibility of the second line of defense, as explained below:

A. Implementing control activities is the responsibility of the first line of defense, which consists of the business units and process owners that own and manage the risks associated with their daily operations.

C. Conducting control self-assessments is a technique used by the first line of defense to evaluate the design and operation of their own controls, and to identify and report any deficiencies or improvement opportunities.

D. Owning risk scenarios is the responsibility of the first line of defense, which is accountable for the risks inherent in their business activities, and for developing and executing risk response strategies. References = Modernizing The Three Lines of Defense Model | Deloitte US, The second line of defence: fit for purpose, not an uncomfortable fit | Knowledge | Linklaters, COSO’s Take on the Three Lines of Defense | ERM - Enterprise Risk Management, Three Lines of Defense | Risk Management - Schneider Downs CPAs, What is the Three Lines of Defense Approach to Risk Management?

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.

Communicating the new risk profile is the best recommendation for a risk practitioner for an organization that recently changed its organizational structure, because it helps to inform and align the stakeholders on the current state of risks and their implications for the organization’s objectives and strategy. A risk profile is a summary of the key risks that an organization faces, along with their likelihood, impact, and response strategies. An organizational structure is the way that an organization arranges its people, roles, and responsibilities to achieve its goals and deliver its value proposition. A change in the organizational structure may affect the risk profile, as it may introduce new sources or types of risk, or alter the existing risk levels orresponses. Therefore, communicating the new risk profile is the best recommendation, as it helps to ensure that the stakeholders are aware of and prepared for the changes and challenges that the new organizational structure may bring. Implementing a new risk assessment process, revalidating the corporate risk appetite, and reviewing and adjusting key risk indicators (KRIs) are all important tasks to perform after communicating the new risk profile, but they are not the best recommendation, as they depend on the communication and understanding of the new risk profile. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.3, page 91

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.

The primary reason for an organization to include an acceptable use banner when users log in is to reduce the likelihood of insider threat, as it informs the users of the policies, rules, and expectations for the use of the organization’s IT resources, and deters them from engaging in unauthorized or malicious activities. The other options are not the primary reasons, as they are more related to the detection, prevention, or mitigation of insider threat, respectively, rather than the reduction of the likelihood of insider threat. References = CRISC Review Manual, 7th Edition, page 155.

The best answer is C. real-time monitoring of risk events and control exceptions. Real-time monitoring is a process of continuously collecting and analyzing data and information on the occurrence and impact of risk events and control exceptions, using automated tools and techniques, such as dashboards, alerts, or analytics12. Real-time monitoring can help to identify and respond to the risks and the issues as soon as they happen, and to prevent or mitigate the potential consequences. Real-time monitoring can also help to improve the efficiency and effectiveness of the risk management process, and to provide timely and accurate reporting and communication to the stakeholders. Real-time monitoring is the best answer, because it represents a leading-edge practice in risk monitoring, as it leverages the latest technology and innovation, and it enables a proactive and agile approach to risk management. The other options are not the best answer, although they may be useful or necessary for risk monitoring. Procedures to monitor the operation of controls are a part of the risk monitoring process, but they are not the same as or a substitute for real-time monitoring, as they may not be able to capture and address the risks and the issues in a timely manner, and they may rely on manual or periodic methods, rather than automated or continuous ones. A tool for monitoring critical activities and controls is a resource or a device that supports the risk monitoring process, but it is not the same as or a substitute for real-time monitoring, as it may not be able to collect and analyze the data and information in real time, and it may depend on the quality and reliability of the tool. Monitoring activities for all critical assets is a scope or a coverage of the risk monitoring process, but it is not the same as or a substitute for real-time monitoring, as it may not be able to identify and respond to the risks and the issues as soon as they happen, and it may require a lot of resources and efforts. Performing a controls assessment is a process of evaluating and testing the design and operation of the controls, but it is not the same as or a substitute for real-time monitoring, as it may not be able to detect and report the risks and the issues in real time, and it may follow a predefined or scheduled plan, ratherthan a dynamic or adaptive one. References = Real-Time Risk Monitoring - ISACA, Real-Time Risk Monitoring: A Case Study - ISACA

The MOST important consideration when developing IT risk scenarios is the potential threats and vulnerabilities that may have an impact on the business, because they are the key elements of a risk scenario that describe the sources and causes of the risk, and the potential consequences and impacts of the risk on the business objectives and processes. The other options are not as important as the potential threats and vulnerabilities, because:

Option A: The impact of controls on the efficiency of the business in delivering services is a secondary consideration that may affect the cost-benefit analysis of the risk response, but it does not directly affect the identification and assessment of the risk scenario.

Option B: Linkage of identified risk scenarios with enterprise risk management is a good practice that ensures the alignment and integration of the IT risk management with the overall enterprise risk management, but it does not directly affect the identification and assessment of the risk scenario.

Option D: Results of network vulnerability scanning and penetration testing are useful sources of information that may reveal some of the threats and vulnerabilities in the IT environment, but they are not the only or the most important consideration when developing IT risk scenarios, as they may not cover all the aspects and dimensions of the risk. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 104.

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 the software 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.

The most important consideration when establishing a contingency plan and an alternate processing site for a company that has located its computer center on a moderate earthquake fault is that the alternative site does not reside on the same fault no matter how far the distance apart, as it ensures that the alternative site is not affected by the same earthquake event that may disrupt the primary site, and that the business continuity and recovery objectives can be met. The other options are not the most important considerations, as they are more related to the backup, priority, or readiness of the alternative site, respectively, rather than the location of the alternative site. References = CRISC Review Manual, 7th Edition, page 111.

Brainstorming sessions would best contribute to identifying obscure risk scenarios, as they allow participants to generate and share ideas without being constrained by conventional thinking or assumptions. Brainstorming sessions can help to identify risks that are not obvious, not well understood, or not covered by existing controls. Control self-assessments, vulnerability analysis, and Monte Carlo analysis are useful methods for evaluating and quantifying risks, but they are not designed to identify obscure risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Identification, page 59.

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

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

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

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

 The most effective way to resolve the situation and define a comprehensive risk treatment plan would be to perform a root cause analysis. A root cause analysis is a method of identifying and addressing the underlying factors or causes that led to the occurrence of a problem or incident1. In this case, the problem or incident is the malware infection that affected the organization. By performing a root cause analysis, the organization can determine how and why the malware was able to infect the systems, what vulnerabilities or weaknesses were exploited, what controls or processes failed or were missing, and what actions or decisions contributed to the situation. A root cause analysis can help the organization to prevent or reduce the recurrence of similar incidents, as well as to improve the effectiveness and efficiency of the risk management process. A root cause analysis can also help the organization to define a comprehensive risk treatment plan, which is a set of actions or measures that are taken to modify the risk, such as reducing, avoiding, transferring, or accepting the risk2. Based on the findings and recommendations of the root cause analysis, the organization can select and implement the most appropriate risk treatment option for the malware risk, as well as for any other related or emerging risks. The risk treatment plan should also include the roles and responsibilities, resources, timelines, and performance indicators for the risk treatmentactions3. The other options are not the most effective ways to resolve the situation and define a comprehensive risk treatment plan, as they are either less thorough or less relevant than a root cause analysis. A gap analysis is a method of comparing the current state and the desired state of a process, system, or organization, and identifying the gaps or differences between them4. A gap analysis can help the organization to identify the areas of improvement or enhancement, as well as the opportunities or challenges for achieving the desired state. However, a gap analysis is not the most effective way to resolve the situation and define a comprehensive risk treatment plan, as it does not address the causes or consequences of the malware infection, or the actions or measures to mitigate the risk. An impact assessment is a method of estimating the potential effects or consequences of a change, decision, or action on a process, system, or organization5. An impact assessment can help the organization to evaluate the benefits and costs, as well as the risks and opportunities, of a proposed or implemented change, decision, or action. However, an impact assessment is not the most effective way to resolve the situation and define a comprehensive risk treatment plan, as it does not investigate the origin or nature of the malware infection, or the solutions or alternatives to manage the risk. A vulnerability assessment is a method of identifying and analyzing the weaknesses or flaws in a process, system, or organization that can be exploited by threats to cause harm or loss6. A vulnerability assessment can help the organization to discover and prioritize the vulnerabilities, as well as to recommend and implement the controls or measures to reduce or eliminate them. However, a vulnerability assessment is not the most effective way to resolve the situation and define a comprehensive risk treatment plan, as it does not consider the root causes or impacts of the malware infection, or the risk treatment options or plans to address the risk. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.8, Page 61.

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 should evaluate 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 reason for establishing various threshold levels for a set of key risk indicators (KRIs) is to take appropriate actions in a timely manner. KRIs are metrics that provide information on the level of exposure to a given risk or the effectiveness of the controls in place. Threshold levels are predefined values that indicate when the risk level is acceptable, tolerable, or unacceptable. By establishing various threshold levels for a set of KRIs, the enterprise can monitor the risk situation and trigger the necessary responses before the risk becomes too severe or costly to mitigate. The other options are not the primary reasons for establishing various threshold levels, although they may be secondary benefits or outcomes of doing so. References = Risk and Information Systems Control Study Manual, Chapter 5: Risk and Control Monitoring and Reporting, page 189.

 The best way to measure the effectiveness of the subsidiary’s IT systems controls is to review metrics and key performance indicators (KPIs), as they provide quantitative and qualitative measures of the performance and outcomes of the IT systems and processes, and how well they meet the predefined standards and expectations. Metrics and KPIs can help to evaluate the efficiency, reliability, security, and quality of the IT systems and controls, and to identify any gaps, weaknesses, or issues that need to be addressed. Metrics and KPIs can also help to compare and benchmark the subsidiary’s IT systems and controls with those of the parent organization or other similar entities. The other options are not the best ways to measure the effectiveness of the subsidiary’s IT systems controls, although they may be useful or complementary methods. Implementing IT systems in alignment with business objectives is a good practice, but it does not measure the effectiveness of the IT systems controls, as it focuses on the alignment and integration of the IT systems with the business strategy and goals. Reviewing design documentation of IT systems can provide some information on the specifications and requirements of the IT systems, but it does not measure the effectiveness of the IT systems controls, as it does not reflect the actual implementation and operation of the IT systems. Evaluating compliance with legal and regulatory requirements can ensure that the subsidiary’s IT systems and controls meet the minimum standards and obligations of the foreign country, but it does not measure the effectiveness of the IT systems controls, as it does not consider the performance and outcomes of the IT systems and processes. References = Risk and Information Systems Control Study Manual, Chapter 5: Risk and Control Monitoring and Reporting, page 187.

The best recommendation to address recent IT risk trends that indicate social engineering attempts are increasing in the organization is to conduct a simulated phishing attack, as it tests the awareness and behavior of the employees in responding to a realistic and targeted email scam, and identifies the areas and individuals that need improvement or training. Updating spam filters, revising the acceptable use policy, and strengthening disciplinary procedures are not the best recommendations, as they may not address the human factor of the risk, or may be too reactive or punitive, respectively. References = CRISC Review Manual, 7th Edition, page 155.

A risk profile is a summary of the risks that an organization faces and their likelihood and impact. Consistently recording risk assessment results in the risk register can help improve the accuracy of risk profiles by providing a reliable and up-to-date source of information on the current risk situation, the risk response actions, and the residual risk levels. A risk register is a tool that captures and documents the risk identification, analysis, evaluation, and treatment processes2. A risk register can also facilitate risk communication, monitoring, and reporting2.

Assessment of organizational risk appetite, compliance with best practice, and accountability for loss events are not the primary benefits of consistently recording risk assessment results in the risk register. These are possible outcomes or objectives of risk management, but they do not directly depend on the risk register.

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 customer satisfaction 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.

A risk assessment of a production system is a process of identifying, analyzing, evaluating, and treating the risks that may affect the performance, quality, or safety of the production system, which is a system that transforms inputs into outputs using various resources, processes, and technologies12.

The most appropriate action for the risk manager to take after undertaking a risk assessment of a production system is to inform the process owner of the concerns and propose measures to reduce them, which is a process of communicating and consulting with the person who is responsible for the design, operation, and improvement of the production system, and suggesting possible risk responses that can prevent, mitigate, transfer, or accept the risks34.

This action is the most appropriate because it ensures the involvement and collaboration of the process owner, who has the authority and accountability to implement and monitor the risk responses, and who can provide feedback and input on the feasibility and effectiveness of the proposed measures34.

This action is also the most appropriate because it supports the risk management process and objectives, which are to identify and address the risks that may affect the achievement of the organization’s goals and the delivery of value to the stakeholders34.

The other options are not the most appropriate actions, but rather possible alternatives or supplements that may have some limitations or drawbacks. For example:

Recommending a program that minimizes the concerns of the production system is an action that involves designing and planning a set of coordinated and interrelated activities and tasks that aim to reduce the likelihood or impact of the risks34. However, this action is notthe most appropriate because it does not involve the process owner, who is the key stakeholder and decision maker for the production system, and who may have different views or preferences on the risk responses34.

Informing the development team of the concerns, and together formulating risk reduction measures is an action that involves communicating and consulting with the group of people who are responsible for creating, testing, and deploying the products or services that are produced by the production system, and jointly developing possible risk responses34. However, this action is not the most appropriate because it does not involvethe process owner, who is the primary owner and user of the production system, and who may have different needs or expectations on the risk responses34.

Informing the IT manager of the concerns and proposing measures to reduce them is an action that involves communicating and consulting with the person who is responsible for managing and overseeing the IT resources, processes, and systems that support the production system, and suggesting possible risk responses34. However, this action is not the most appropriate because it does not involve the process owner, who is the main stakeholder and beneficiary of the production system, and who may have different requirements or constraints on the risk responses34. References =

1: Risk Assessment for the Production Process1

2: Risk Assessment for Industrial Equipment2

3: Risk IT Framework, ISACA, 2009

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

Data classification is the process of organizing data in groups based on their attributes and characteristics, and then assigning class labels that describe a set of attributes that hold true for the corresponding data sets1. Data classification helps an organization understand the value of its data, determine whether the data is at risk, and implement controls to mitigate risks1. Data classification also helps an organization comply with relevant industry-specific regulatory mandates such as SOX, HIPAA, PCI DSS, and GDPR1.

The most important criteria to consider when developing a data classification scheme are the business criticality and sensitivity of the data2. Business criticality refers to the impact of data loss or compromise on the organization’s operations, reputation, and objectives2. Sensitivity refers to the level of confidentiality, integrity, and availability required for the data2. Data that is highly critical and sensitive should be classified and protected accordingly, as it poses the highest risk to the organization if mishandled or breached2.

Some of the best practices for data classification are3:

Inventory your data: Identify all data assets within your organization.

Define data categories: Create a classification scheme that suits your organization’s needs.

Assign responsibility: Designate individuals or teams responsible for data classification.

Implement classification tools: Invest in tools and technologies that facilitate data classification.

Educate and train: Raise awareness and provide guidance on data classification policies and procedures.

Review and audit: Monitor and evaluate the effectiveness and compliance of data classification.

References = What is Data Classification? | Best Practices & Data Types | Imperva, What Is Data Classification? The 5 Step Process & Best Practices for Classifying Data | Splunk, Top 10 Best Practices for Securing Your Database - 2023

Continuous risk management process improvement is the practice of evaluating and enhancing the risk management process on a regular basis, to ensure that it is effective, efficient, and aligned with the business objectives and strategy. Continuous risk management process improvement can help identify and address the gaps, weaknesses, or opportunities for improvement in the risk management process, and ensure that the process is responsive and adaptable to the changing risk environment. The most effective method for continuous risk management process improvement is periodic assessments, which are systematic and objective evaluations of the risk management process, performed at predefined intervals or after significant events. Periodic assessments can help measure and monitor the performance and maturity of the risk management process, using criteria such as the risk management framework, standards, policies, procedures, methods, tools, roles, responsibilities, and results. Periodic assessments can also help identify and analyze the strengths, weaknesses, threats, and opportunities of the risk management process, and provide feedback and recommendations for improvement. Periodic assessments can also help communicate and report the status and progress of the risk management process to the stakeholders, and obtain their input and support for improvement actions. References = Continuous Risk Management Guidebook, p. 7-8, ISO 31000: risk management and its continuous improvement, How Continuous Monitoring Drives Risk Management.

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

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

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

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

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

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

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

The risk practitioner is responsible for determining which stakeholders need to be involved in the development of a risk scenario, as they have the knowledge and skills to facilitate the process and ensure that the relevant perspectives and information are considered. The risk owner, the compliance manager, and the control owner are examples of stakeholders who may participate in the risk scenario development, but they are not responsible for determining who should be involved. References = Risk Scenarios Toolkit, page 9; CRISC Review Manual, 7th Edition, page 101.

Outsourcing IT security operations is a common practice that can provide benefits such as cost savings, access to specialized skills, and improved service quality12. However, outsourcing also introduces risks such as loss of control, dependency, contractual issues, and service failures12.

When an organization outsources its IT security operations to a third party, it does not transfer the accountability for the risk associated with the outsourced operations. Accountability is the obligation to answer for the execution of one’s assigned responsibilities34.

The organization’s management is ultimately accountable for the risk associated with the outsourced operations, as they are responsible for defining the organization’s risk appetite, strategy, and objectives, and for ensuring that the organization’s IT security operations are aligned with them34.

The organization’s management is also accountable for selecting, contracting, and overseeing the third party, and for ensuring that the third party meets the agreed service levels, standards, and compliance requirements34.

The organization’s management is also accountable for monitoring and reporting the risk associated with the outsourced operations, and for taking corrective actions when necessary34.

The other options are not ultimately accountable, but rather have different roles and responsibilities in relation to the outsourced operations. For example:

The third party’s management is responsible for delivering the IT security services according to the contract, and for managing the risk within their own organization34. They are accountable to the organization’s management, but not to the organization’s stakeholders.

The control operators at the third party are responsible for implementing and operating the IT security controls according to the service specifications, and for reporting any issues orincidents to the organization’s management34. They are accountable to the third party’s management, but not to the organization’s management or stakeholders.

The organization’s vendor management office is responsible for facilitating the relationship between the organization and the third party, and for supporting the organization’s management in the outsourcing process34. They are accountable to the organization’s management, but not for the risk associated with the outsourced operations. References =

1: Outsourcing IT Security: A Risk Management Perspective, ISACA Journal, Volume 2, 2019

2: The Cyber Security Risks Of Outsourcing, Cybersecurity Intelligence, January 4, 2022

3: Accountability for Information Security Roles and Responsibilities, Part 1, ISACA Journal, Volume 5, 2019

4: Risk IT Framework, ISACA, 2009

From a risk management perspective, the primary benefit of using automated system configuration validation tools is that they reduce the inherent risk, which is the risk that exists before any controls are applied. Automated system configuration validation tools can help to ensure that the system settings are consistent, compliant, and secure, and that they match the predefined standards and policies. This can reduce the likelihood and impact of errors, misconfigurations, vulnerabilities, or deviations that may compromise the system’s functionality, performance, or integrity. The other options are not the primary benefits of using automated system configuration validation tools, although they may be secondary benefits or outcomes of doing so. Residual risk is the risk that remains after the controls are applied, and it may not be directly affected by the automated system configuration validation tools. Staff costs and operational costs are related to the efficiency and economy of the system configuration process, but they are not the main risk management objectives. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk Response, page 150.

A risk owner is the individual who is accountable for the management of a specific risk. A risk owner can decide to accept a high-impact risk if the control that mitigates the risk is adversely affecting the process efficiency. However, before updating the risk register, which is a document that records and tracks the identified risks and their responses, it is most important for the risk practitioner to obtain approval from senior management. Senior management is the group of executives who have the authority and responsibility for the strategic direction and performance of the organization. Obtaining approval from senior management can help ensure that the risk acceptance decision is aligned with the organization’s risk appetite and policies, and that the potential consequences of the high-impact risk are understood and accepted by the top-level decision makers. Obtaining approval from senior management can also help communicate and justify the risk acceptance decision to other stakeholders, such as regulators, auditors, customers, etc., and avoid any conflicts or misunderstandings that may arise from the risk acceptance decision. References = Why Assigning a Risk Owner is Important and How to Do It Right, Risk Ownership: A brief guide, Creating a Risk Register: All You Need to Know.

= Change management is the process of planning, implementing, and monitoring changes to IT systems, services, or infrastructure in a controlled and coordinated manner1. Change management controls are the policies, procedures, and tools that ensure changes are authorized, documented, tested, and reviewed before they are deployed to the production environment2.

Change-related exceptions are the deviations or violations from the established change management controls, such as unauthorized, untested, or failed changes3. Change-related exceptions pose a high risk to theorganization, as they can cause system instability, performance degradation, security breaches, data loss, or compliance issues3.

An increase in change-related exceptions per month would be the greatest concern for an IT risk practitioner, as it indicates a lack of effectiveness, efficiency, or compliance of the change management process and controls. An increase in change-related exceptions per month could result from:

Poor change planning, prioritization, or scheduling

Insufficient change approval, review, or communication

Inadequate change testing, validation, or verification

Lack of change monitoring, reporting, or auditing

Low change awareness, training, or support

An IT risk practitioner should investigate the root causes of the increase in change-related exceptions per month, and recommend corrective and preventive actions to improve the change management process and controls, such as:

Aligning the change management process with the organization’s goals, strategies, and risk appetite

Implementing a standardized and consistent change management methodology, such as ITIL or COBIT

Defining clear roles and responsibilities for change management stakeholders, such as change owners, change managers, change advisory boards, change implementers, and change users

Establishing clear and measurable criteria and thresholds for change authorization, classification, and evaluation

Leveraging tools and technologies to automate and streamline the change management process and controls, such as change management software, configuration management databases, or change management dashboards

Enhancing the change management culture and capabilities, such as change management awareness, training, support, or feedback

The other options are not as concerning as an increase in change-related exceptions per month, because they do not directly imply a risk to the organization’s IT systems, services, or infrastructure. Rolled backchanges below management’s thresholds, which are the changes that are reversed or undone due to errors, defects, or issues, may indicate a need for improvement in the change testing, validation, or verification processes, but they do not necessarily cause harm or damage to the production environment, as long as they are within the acceptable limits set by the management. The average implementation time for changes, which is the duration of the change deployment process, may affect the organization’s agility, efficiency, or productivity, but it does not necessarily compromise the quality, security, or reliability of the changes, as long as they are implemented according to the change management controls. The number of user stories approved for implementation, which are the requirements or features that are expressed from the perspective of the end users, may reflect the organization’s demand, innovation, or customer satisfaction, but it does not necessarily increase the risk of the changes, as long as they are managed and controlled by the change management process.

References = What is Change Management? | ITIL | AXELOS, Change Management Controls: Definition, Types, and Best Practices, Change Management Exceptions: Definition, Causes, and Impacts, ITIL Change Management: Best Practices & Processes - BMC Software, COBIT 2019: Change Enablement

The most relevant information to include in a risk management strategy is the organizational goals, because they provide the direction and purpose for the risk management activities. A risk managementstrategy is a document that outlines the objectives, scope, approach, roles, and responsibilities for managing risks in an organization. A risk management strategy should align with the organizational goals, which are the desired outcomes or results that the organization wants to achieve. The organizational goals should be specific, measurable, achievable, relevant, and time-bound (SMART), and they should reflect the organization’s vision, mission, values, and strategy. By including the organizational goals in the risk management strategy, the risk practitioner can ensure that the risk management process supports and enables the achievement of the organizational goals. The risk practitioner can also use the organizational goals as a basis for identifying, assessing, prioritizing, and responding to the risks that may affect the organization’s performance and success. The risk practitioner can also monitor and measure the progress and effectiveness of the risk management process by comparing the actual results with the expected results based on the organizational goals. Therefore, the organizational goals are the most relevant information to include in a risk management strategy, as they provide the foundation and framework for the risk management process. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Management Strategy, pp. 3-61

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

A vendor risk assessment is a process of evaluating and managing the risks associated with outsourcing IT services or functions to a third-party provider, such as a cloud service provider.

One of the most important documents to request from a cloud service provider during a vendor risk assessment is an independent audit report. This is a report that provides an objective and reliable assurance on the quality, security, and performance of the cloud service provider’s operations, processes, and controls, based on the standards and criteria established by an independent auditor or a recognized authority, such as ISACA, ISO, NIST, etc.

An independent audit report helps to verify the compliance and effectiveness of the cloud service provider’s risk management practices, identify any gaps or issues that may affect the service delivery or security, and recommend improvements or corrective actions.

The other options are not the most important documents to request from a cloud service provider during a vendor risk assessment. They are either secondary or not essential for vendor risk management.

The references for this answer are:

Risk IT Framework, page 22

Information Technology & Security, page 16

Risk Scenarios Starter Pack, page 14

The most important factor for a risk practitioner to consider when determining the control requirements for data privacy arising from emerging technologies is the laws and regulations that apply to the organization and the technologies. Laws and regulations are the legal and ethical obligations that the organization must comply with when collecting, processing, storing, and sharing personal data. Laws and regulations can vary depending on the jurisdiction, sector, and type of data involved, and they can impose different requirements and restrictions on the use of emerging technologies that may affect data privacy. For example, the General Data Protection Regulation (GDPR) in the European Union, the California Consumer Privacy Act (CCPA) in the United States, and the Personal Data Protection Act (PDPA) in Singapore are some of the laws and regulations that govern data privacy and protection in different regions and contexts123. A riskpractitioner should consider the laws and regulations when determining the control requirements for data privacy arising from emerging technologies, because they can help to ensure that the organization respects the rights and interests of the data subjects, avoids legal and reputational risks, and maintains trust and accountability. The other options are not the most important factor, although they may be relevant or influential to the control requirements for data privacy arising from emerging technologies. Internal audit recommendations are the suggestions and feedback from the internal audit function, which evaluates and improves the effectiveness of the governance, risk management, and control systems of the organization, but they do not supersede or replace the laws and regulations. Policies and procedures are the rules and guidelines that define how the organization operates and conducts its activities, but they should be aligned and consistent with the laws and regulations. Standards and frameworks are the best practices and benchmarks that are adopted by the organization to guide and support its processes and performance, but they should be compatible and compliant with the laws and regulations. References = Emerging privacy-enhancing technologies: Current regulatory and policy approaches | en | OECD, Data and Cybersecurity: 2023 Regulatory Challenges - KPMG, Ethical Dilemmas and Privacy Issues in Emerging Technologies: A … - MDPI

Cyber risk insurance is a type of insurance policy that provides coverage against losses and damages caused by cyber incidents such as data breaches, hacking, and other cyber attacks. When an organization decides to purchase cyber risk insurance, it transfers the risk of financial loss due to a cyber incident to the insurance company. In the scenario described in the question, the organization allowed its cyber risk insurance to lapse while seeking a new insurance provider. This means that the organization is currently not covered by any cyber risk insurance policy and is therefore exposed to financial losses due to cyber incidents. The risk practitioner should report to management that the risk has been accepted. Accepting risk means that the organization is aware of the potential consequences of the risk and has decided not to take any action to mitigate, transfer, or avoid it. The other options are not correct because they do not reflect the current situation of the organization. The organization has not transferred the risk to another party, as it has no cyber risk insurance policy in place. The organization has not mitigated the risk, as it has not implemented anycontrols or measures to reduce the likelihood or impact of the risk. The organization has not avoided the risk, as it has not eliminated the source or cause of the risk or changed its activities to prevent the risk from occurring. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 752

 Maturity Models:

Maturity models provide a framework for assessing the development and optimization of processes within an organization.

They typically range from ad hoc and immature processes to well-defined and continuously improving processes.

 Assessing IT Process Improvement:

Changes in the organization’s position within a maturity model indicate that processes are becoming more mature, standardized, and optimized.

Improvements in maturity levels reflect enhancements in process efficiency, effectiveness, and consistency.

 Importance of Maturity Models:

Provides a clear and structured approach to evaluate and benchmark process improvements.

Helps senior management understand the progress and development of IT processes over time.

 Comparing Other Indicators:

Number of Security Exceptions:Useful for identifying issues but not a comprehensive measure of process improvement.

Risk Register Changes:Reflects risk management activities but not overall process maturity.

Number of Intrusions Detected:Indicates security effectiveness but not broader process improvements.

 References:

The CRISC Review Manual discusses the use of maturity models to assess and improve risk management capabilities and IT processes (CRISC Review Manual, Chapter 3: Risk Response and Mitigation, Section 3.6 Capability Maturity Models)​​.

The best action for the risk practitioner to take when business areas within an organization have engaged various cloud service providers directly without assistance from the IT department is to recommend a risk assessment be conducted. A risk assessment is a process of identifying, analyzing, and evaluating the risks associated with the use of cloud services, such as financial, privacy, compliance, security, performance, quality, and technical risks12. A risk assessment can help to determine the current and potential risk exposure and impact of the cloud services, as well as the effectiveness and efficiency of theexisting or proposed controls. A risk assessment can also help to prioritize the risks and to develop and implement appropriate risk response strategies and plans, such as risk avoidance, reduction, sharing, or acceptance. Recommending a risk assessment is the best action, because it can provide valuable information and guidance to the business areas and the IT department for managing the cloud services in a consistent, effective, and efficient manner, and for aligning the cloud services with the organizational objectives, strategy, and risk appetite. The other options are not the best action, although they may be related or subsequent steps in the risk management process. Recommending the IT department remove access to the cloud services is a drastic and impractical action, as it may disrupt the business operations and services, and it may not address the underlying causes or drivers of the cloud service adoption. Engaging with the business area managers to review controls applied is a useful and collaborative action, as it can help to understand and evaluate the current state and practices of the cloud service usage, and to identify and address any gaps or issues in the control environment. However, this action should be based on or supported by a risk assessment, rather than preceding or replacing it. Escalating to the risk committee is a reporting and communication action, as it can help to inform and involve the senior management and other stakeholders in the risk management process, and to obtain their support and approval for the risk response actions. However, this action should be done after or along with a risk assessment, rather than before or instead of it. References = Best Practices to Manage Risks in the Cloud - ISACA, Cloud Risk Management - PwC UK

Involve the development team in planning is the best recommendation to help reduce IT risk associated with scheduling overruns when starting a new application development project. This is because involving the development team in planning can help ensure that the project scope, requirements, resources, and timeline are realistic, feasible, and agreed upon by all stakeholders. It can also help improve the communication, collaboration, and commitment of the development team, as well as identify and mitigate potential risks and issues early in the project life cycle. According to the CRISC Review Manual 2022, one of the key risk identification techniques for IT projects is to involve the project team and other relevant parties in the risk assessment process1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, involving the development team in planning is the correct answer to this question2.

Implementing a tool to track the development team’s deliverables, reviewing the software development life cycle, and assigning more developers to the project team are not the best recommendations to help reduce IT risk associated with scheduling overruns. These are possible actions that can be taken during or after the planning phase, but they do not address the root cause of the risk, which is the lack of involvement of the development team in planning. Implementing a tool to track the development team’s deliverables can help monitor the project progress and performance, but it does not guarantee that the deliverables are aligned with the project objectives and expectations. Reviewing the software development life cycle can help ensure that the project follows a structured and standardized process, but it does not account for the specific needs and challenges of the project. Assigning more developers to the project team can help increase the project capacity and productivity, but it can also introduce new risks such as coordination, communication, and quality issues.

According to the Risk and Information Systems Control Study Manual, residual risk is the risk that remains after the implementation of risk responses. Residual risk is most commonly compared against the risk appetite, which is the amount of risk that an organization is willing to accept to achieve its objectives. By comparing the residual risk with the risk appetite, the organization can determine if the risk response is adequate and effective, or if additional actions are needed to reduce the risk to an acceptable level. Residual risk should be monitored and reported regularly to ensure that it stays within the risk appetite. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.3.1, Page 222. A Comprehensive Guide to Risk Appetite and Risk Tolerance

A payroll manager discovers that fields in certain payroll reports have been modified without authorization. This indicates that there is a risk of unauthorized access, use, disclosure, modification, or destruction of sensitive data, such as employee information, payroll records, tax returns, etc.

A control weakness that could have contributed most to this problem is that the programmer had access to the production programs. This means that the programmer could potentially alter the source code or configuration of the payroll software without proper authorization or approval.

The other options are not control weaknesses that could have contributed most to this problem. They are either irrelevant or less likely to cause unauthorized changes in the payroll software.

The references for this answer are:

Risk IT Framework, page 12

Information Technology & Security, page 6

Risk Scenarios Starter Pack, page 4