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Potential Candidates
The candidates for this certification are the professionals with ample experience in the management of IT risks. It is also aimed at the individuals with the relevant skills and competence in designing, implementing, monitoring, and maintaining information security controls.
NEW QUESTION # 620
An organization moved its payroll system to a Software as a Service (SaaS) application. A new data privacy regulation stipulates that data can only be processed within the country where it is collected. Which of the following should be done FIRST when addressing this situation?
- A. Include a right-to-audit clause.
- B. Analyze data protection methods.
- C. Understand data flows.
- D. Implement strong access controls.
Answer: C
Explanation:
The first step when addressing the situation of moving the payroll system to a SaaS application and complying with the new data privacy regulation is to understand the data flows. This means identifying where the data is collected, stored, processed, and transferred, and who has access to it. Understanding the data flows can help to determine the scope and impact of the regulation, as well as the potential risks and gaps in the current state. It can also help to identify the roles and responsibilities of the organization and the SaaS provider regarding data protection and compliance. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.1.2, p. 237-238
NEW QUESTION # 621
The BEST control to mitigate the risk associated with project scope creep is to:
- A. consult with senior management on a regular basis
- B. deploy CASE tools in software development
- C. apply change management procedures
- D. ensure extensive user involvement
Answer: A
Explanation:
Section: Volume D
Explanation
NEW QUESTION # 622
Which of the following is MOST important for a risk practitioner to confirm once a risk action plan has been
completed?
- A. The risk register has been updated.
- B. The risk has been mitigated to the intended level.
- C. The risk owner has reviewed the outcomes.
- D. The risk tolerance has been recalibrated.
Answer: B
Explanation:
Confirming that the risk has been mitigated to the intended level is paramount to ensure that the risk response
was effective. This ties toRisk Mitigation and Treatment, ensuring that controls implemented have reduced
the risk to within the organization's appetite. Updating registers or recalibrating tolerances comes secondary to
verifying the effectiveness of mitigation.
NEW QUESTION # 623
When communicating changes in the IT risk profile, which of the following should be included to BEST enable stakeholder decision making?
- A. List of recent incidents affecting industry peers
- B. Review of leading IT risk management practices within the industry
- C. Gaps between current and desired states of the control environment
- D. Results of external attacks and related compensating controls
Answer: C
Explanation:
The best thing to include when communicating changes in the IT risk profile is the gaps between the current and desired states of the control environment, as this shows the stakeholders the extent and impact of the changes, and the actions and resources needed to address them. The control environment is the set of policies, processes, and systems that provide reasonable assurance that the IT risks are identified, assessed, and treated effectively and efficiently. The current state of the control environment reflects the existing level and performance of the controls, and the residual risk that remains after the controls are applied. The desired state of the control environment reflects the target level and performance of the controls, and the risk appetite and tolerance of the organization. The gaps between the current and desired states of the control environment indicate the areas of improvement or enhancement for the IT risk management process, and the priorities and strategies for risk response. The other options are not the best things to include when communicating changes in the IT risk profile, although they may be useful or relevant information. A list of recent incidents affecting industry peers can provide some context and comparison for the IT risk profile, but it does not measure or explain the changes in the IT risk level or the control environment. Results of external attacks and related compensating controls can demonstrate the security and resilience of the IT systems and networks, but they do not cover the entire scope or spectrum of the IT risk profile or the control environment. A review of leading IT risk management practices within the industry can provide some insights and benchmarks for the IT risk management process, but it does not reflect the specific situation or needs of the organization or the stakeholders. References = Risk and Information Systems Control Study Manual, Chapter 5: Risk and Control Monitoring and Reporting, page 181.
NEW QUESTION # 624
Which of the following should be the PRIMARY focus of a disaster recovery management (DRM) framework and related processes?
- A. Assessing the impact and probability of disaster scenarios
- B. Determining capacity for alternate sites
- C. Ensuring timely recovery of critical business operations
- D. Restoring IT and cybersecurity operations
Answer: C
NEW QUESTION # 625
Which of the following considerations should be taken into account while selecting risk indicators that ensures greater buy-in and ownership?
- A. Lead indicator
- B. Root cause
- C. Stakeholder
- D. Lag indicator
Answer: C
Explanation:
Section: Volume B
Explanation:
To ensure greater buy-in and ownership, risk indicators should be selected with the involvement of relevant stakeholders. Risk indicators should be identified for all stakeholders and should not focus solely on the more operational or strategic side of risk.
Incorrect Answers:
A: Role of lag indicators is to ensure that risk after events have occurred is being indicated.
B: Lead indicators indicate which capabilities are in place to prevent events from occurring. They do not play any role in ensuring greater buy-in and ownership.
C: Root cause is considered while selecting risk indicator but it does not ensure greater buy-in or ownership.
NEW QUESTION # 626
Which of the following would MOST likely result in updates to an IT risk appetite statement?
- A. External audit findings
- B. Self-assessment reports
- C. Feedback from focus groups
- D. Changes in senior management
Answer: A
Explanation:
Section: Volume D
NEW QUESTION # 627
Which of the following is the MOST important objective of establishing an enterprise risk management (ERM) function within an organization?
- A. To ensure risk profiles are presented in a consistent format within the organization
- B. To optimize risk management resources across the organization
- C. To have a standard risk management process for complying with regulations
- D. To have a unified approach to risk management across the organization
Answer: D
NEW QUESTION # 628
Mapping open risk issues to an enterprise risk heat map BEST facilitates:
- A. control monitoring.
- B. risk response.
- C. risk ownership.
- D. risk identification.
Answer: D
NEW QUESTION # 629
An IT risk practitioner has determined that mitigation activities differ from an approved risk action plan. Which of the following is the risk practitioner's BEST course of action?
- A. Update the risk register with the implemented risk mitigation actions.
- B. Report the observation to the chief risk officer (CRO).
- C. Revert the implemented mitigation measures until approval is obtained
- D. Validate the adequacy of the implemented risk mitigation measures.
Answer: B
NEW QUESTION # 630
Which of the following is the PRIMARY purpose of a risk register?
- A. To assign control ownership of risk
- B. To mitigate organizational risk
- C. To identify opportunities to transfer risk
- D. To provide a centralized view of risk
Answer: D
Explanation:
According to ISACA, a risk register is a tool to record and track the identified risks, their ratings, responses, and status. The primary purpose of a risk register is to provide a centralized view of risk for the organization, as it enables the consolidation, communication, and reporting of risk information across different levels, units, and functions. A risk register can also support the risk management process, such as risk identification, assessment, treatment, monitoring, and review.
References:
*ISACA, Risk IT Framework, 2nd Edition, 2019, p. 761
*ISACA, Capability Maturity Model and Risk Register Integration: The Right Approach to Enterprise Governance2
NEW QUESTION # 631
Which of the following is the MOST important consideration when multiple risk practitioners capture risk scenarios in a single risk register?
- A. Using a consistent method for risk assessment
- B. Maintaining up-to-date risk treatment plans
- C. Aligning risk ownership and control ownership
- D. Developing risk escalation and reporting procedures
Answer: A
Explanation:
* A risk register is a document that records and tracks the information and status of the identified risks and their responses. It includes the risk description, category, source, cause, impact, probability, priority, response, owner, action plan, status, etc.
* A risk scenario is a description or representation of a possible or hypothetical situation or event that may cause or result in a risk for the organization. A risk scenario usually consists of three elements: a threat or source of harm, a vulnerability or weakness, and an impact or consequence.
* Multiple risk practitioners are the individuals or groups that are involved or responsible for the identification, analysis, evaluation, and communication of the risks and their responses. They may include the risk owners, risk managers, risk analysts, risk consultants, risk auditors, etc.
* A single risk register is a risk register that is shared or used by multiple risk practitioners across the organization, and that contains the information and status of all the risks and their responses that are relevant or applicable to the organization.
* The most important consideration when multiple risk practitioners capture risk scenarios in a single risk register is using a consistent method for risk assessment, which is the process of determining the significance and urgency of the risks that may affect the organization's objectives and operations. Risk assessment involves measuring and comparing the likelihood and impact of various risk scenarios, and prioritizing them based on their magnitude and importance.
* Using a consistent method for risk assessment when multiple risk practitioners capture risk scenarios in a single risk register ensures that the risk scenarios are captured and recorded in a uniform and standardized way, and that they are comparable and compatible with each other. It also helps to avoid or reduce the inconsistencies, discrepancies, or conflicts that may arise from the different perspectives, assumptions, or judgments of the multiple risk practitioners, and to ensure the accuracy, reliability, and validity of the risk register.
* The other options are not the most important considerations when multiple risk practitioners capture risk scenarios in a single risk register, because they do not address the main challenge or issue that may arise from the multiple risk practitioners capturing risk scenarios in a single risk register, which is the lack of consistency or standardization in the risk assessment method.
* Aligning risk ownership and control ownership means ensuring that the individuals or groups that are accountable and responsible for the risks and their responses are clearly defined and assigned,
* and that they have the authority and resources to perform their roles and duties. Aligning risk ownership and control ownership is important when multiple risk practitioners capture risk scenarios in a single risk register, but it is not the most important consideration, because it does not ensure that the risk scenarios are captured and recorded in a uniform and standardized way, and that they are comparable and compatible with each other.
* Developing risk escalation and reporting procedures means establishing and implementing the processes and guidelines for communicating and sharing the information and status of the risks and their responses among the relevant stakeholders, and for escalating or transferring the risks and their responses to the appropriate levels or parties when necessary or required. Developing risk escalation and reporting procedures is important when multiple risk practitioners capture risk scenarios in a single risk register, but it is not the most important consideration, because it does not ensure that the risk scenarios are captured and recorded in a uniform and standardized way, and that they are comparable and compatible with each other.
* Maintaining up-to-date risk treatment plans means updating and revising the actions or plans that are selected and implemented to address or correct the risks and their responses, based on the changes or developments that may occur in the risk environment or performance. Maintaining up-to-date risk treatment plans is important when multiple risk practitioners capture risk scenarios in a single risk register, but it is not the most important consideration, because it does not ensure that the risk scenarios are captured and recorded in a uniform and standardized way, and that they are comparable and compatible with each other. 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 178
* CRISC Practice Quiz and Exam Prep
NEW QUESTION # 632
When developing a business continuity plan (BCP), it is MOST important to:
- A. identify an alternative location to host operations.
- B. develop a multi-channel communication plan.
- C. prioritize critical services to be restored.
- D. identify a geographically dispersed disaster recovery site.
Answer: C
Explanation:
CRISC and business continuity guidance stress that BCP development starts from understanding andprioritizing critical business services and processesderived from the business impact analysis (BIA).
Prioritization allows the organization to define recovery time objectives (RTOs), recovery point objectives (RPOs), and sequence of restoration, ensuring limited resources are first focused on the processes that protect life, safety, regulatory obligations, revenue, and reputational value. Identifying alternate locations and DR sites, and designing communication plans, are essential elements of continuity and disaster recovery planning, but they are built around the set of prioritized services. Without a clear hierarchy of what must be restored first and to what level, the BCP will be unfocused and may fail to meet business expectations during a disruption.
Reference:CRISC Review Manual - Risk Response and Mitigation / Business Continuity and Disaster Recovery; BIA and prioritization concepts.
NEW QUESTION # 633
Which of the following risk scenarios would be the GREATEST concern as a result of a single sign-on implementation?
- A. User privilege changes may not be recorded.
- B. Unauthorized access may be gained to multiple systems.
- C. Security administration may become more complex.
- D. User access may be restricted by additional security.
Answer: B
NEW QUESTION # 634
Which of the following should be considered to ensure that risk responses that are adopted are cost-effective and are aligned with business objectives?
Each correct answer represents a part of the solution. Choose three.
- A. Explanation:
Risk responses require a formal approach to issues, opportunities and events to ensure that
solutions are cost-effective and are aligned with business objectives. The following should be
considered:
While preparing the risk response, identify the risk in business terms like loss of productivity,
disclosure of confidential information, lost opportunity costs, etc.
Recognize the business risk appetite.
Follow an integrated approach in business.
Risk responses requiring an investment should be supported by a carefully planned business case
that justifies the expenditure outlines alternatives and describes the justification for the alternative
selected. - B. Follow an integrated approach in business
- C. Identify the risk in business terms
- D. Recognize the business risk appetite
- E. Adopt only pre-defined risk responses of business
Answer: A,B,C,D
Explanation:
is incorrect. There is no such requirement to follow the pre-defined risk responses. If
some new risk responses are discovered during the risk management of a particular project, they
should be noted down in lesson leaned document so that project manager working on some other
project could also utilize them.
NEW QUESTION # 635
A risk owner has accepted a high-impact risk because the control was adversely affecting process efficiency.
Before updating the risk register, it is MOST important for the risk practitioner to:
- A. ensure suitable insurance coverage is purchased.
- B. reassess the risk to confirm the impact.
- C. negotiate with the risk owner on control efficiency.
- D. obtain approval from senior management.
Answer: D
Explanation:
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.
NEW QUESTION # 636
After recent updates to the risk register, management has requested that the overall level of residual risk be reduced. Which of the following is the risk practitioner's BEST course of action?
- A. Prioritize remediation plans.
- B. Implement additional controls.
- C. Recommend the acceptance of low-level risk.
- D. Develop new risk action plans with risk owners.
Answer: B
Explanation:
Section: Volume D
NEW QUESTION # 637
Which of the following BEST protects an organization against breaches when using a software as a service
(SaaS) application?
- A. Security information and event management (SIEM) solutions
- B. Control self-assessment (CSA)
- C. Data privacy impact assessment (DPIA)
- D. Data loss prevention (DLP) tools
Answer: D
Explanation:
Software as a service (SaaS) is a cloud computing model that provides software applications over the internet,
without requiring the customer to install or maintain them on their own devices1. SaaS applicationscan offer
many benefits, such as scalability, accessibility, and cost-efficiency, but they also pose security risks, such as
data breaches, unauthorized access, and compliance violations2.
One of the best ways to protect an organization against breaches when using a SaaS application is to use data
loss prevention (DLP) tools. DLP tools are software solutions that monitor, detect,and prevent the
unauthorized transmission or leakage of sensitive data from an organization's network or devices3. DLP tools
can help an organization to:
Identify and classify sensitive data, such as personal information, intellectual property, or financial records,
and apply appropriate policies and controls to protect them
Encrypt data in transit and at rest, and use secure protocols and encryption keys to ensure data confidentiality
and integrity
Block or alert on suspicious or malicious data transfers, such as unauthorized uploads, downloads, or sharing
of data to external sources or devices
Audit and report on data activities and incidents, and provide evidence for compliance with data protection
regulations and standards, such as GDPR, HIPAA, or PCI-DSS4
References = What is SaaS?, Top 7 SaaS Security Risks (and How to Fix Them), What is Data Loss
Prevention (DLP)?, Data Loss Prevention (DLP) for SaaS Applications
NEW QUESTION # 638
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