Free Practice Questions for Isaca CRISC Exam

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

To ensure that new IT policies address the enterprise’s requirements, it is important to involve the business owners who are the primary stakeholders of the IT services and processes. Business owners can provide valuable input on the business objectives, risks, and expectations that the IT policies should align with and support. By involving business owners in the policy development process, the IT policies will be more relevant, realistic, and acceptable to the business units. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.

 The most important element of a successful risk awareness training program is customizing content for the audience, because this ensures that the training is relevant, engaging, and effective for the learners. Customizing content for the audience means tailoring the training materials and methods to suit the specific needs, preferences, and characteristics of the target group, such as their roles, responsibilities, knowledge, skills, attitudes, and learning styles. Customizing content for the audience can help to achieve the following benefits:

Increase the motivation and interest of the learners, as they can see the value and applicability of the training to their work and goals.

Enhance the comprehension and retention of the learners, as they can relate the training content to their prior knowledge and experience, and use examples and scenarios that are familiar and realistic to them.

Improve the transfer and application of the learners, as they can practice and apply the training content to their actual work situations and challenges, and receive feedback and support that are relevant and useful to them. References = Implementing risk management training and awareness (part 1) 1

Notifying the incident response team ensures immediate action to contain and remediate the malware spread, limiting further impact. This aligns withIncident Response and Containmentprotocols under risk management.

Qualitative measures are methods of expressing risk levels using descriptive terms, such as high, medium, or low, based on subjective criteria, such as likelihood, impact, or severity. Qualitative measures are often used to identify and prioritize risks, and to communicate risk information to stakeholders1.

Residual risk is the level of risk that remains after the risk response has been implemented. Residual risk reflects the effectiveness and efficiency of the risk response, and the need for further action or monitoring2.

Emerging threats are new or evolving sources or causes of risk that have the potential to adversely affect the organization’s objectives, assets, or operations. Emerging threats are oftencharacterized by uncertainty, complexity, and ambiguity, and may require innovative or adaptive risk responses3.

The best reason to use qualitative measures to express residual risk levels related to emerging threats is that qualitative measures are better able to incorporate expert judgment. Expert judgment is the opinion or advice of a person or a group of people who have specialized knowledge, skills, or experience in a particular domain or field. Expert judgment can help to:

Provide insights and perspectives on the nature and characteristics of the emerging threats, and their possible causes and consequences

Assess the likelihood and impact of the emerging threats, and their interactions and dependencies with other risks

Evaluate the suitability and effectiveness of the risk responses, and their alignment with the organization’s risk appetite and tolerance

Identify and recommend the best practices and lessons learned for managing the emerging threats, and for improving the risk management process45

Qualitative measures are better able to incorporate expert judgment than quantitative measures, which are methods of expressing risk levels using numerical or measurable values, such as percentages, probabilities, or monetary amounts. Quantitative measures are often used to estimate and analyze risks, and to support risk decision making1. However, quantitative measures may not be suitable or feasible for expressing residual risk levels related to emerging threats, because:

Quantitative measures require reliable and sufficient data and information, which may not be available or accessible for the emerging threats

Quantitative measures rely on mathematical models and techniques, which may not be able to capture or reflect the complexity and uncertainty of the emerging threats

Quantitative measures may create a false sense of precision or accuracy, which may not be justified or warranted for the emerging threats

Quantitative measures may be influenced or manipulated by biases or assumptions, which may not be valid or appropriate for the emerging threats67

Therefore, qualitative measures are better able to incorporate expert judgment, which can enhance the understanding and management of the residual risk levels related to emerging threats.

The other options are not the best reasons to use qualitative measures to express residual risk levels related to emerging threats, but rather some of the advantages or disadvantages of qualitative measures. Qualitative measures require less ongoing monitoring than quantitative measures, because they are simpler and easier to apply and update. However, this does not mean that qualitative measures can eliminate or reduce the need for monitoring, which is an essential part of the risk management process. Qualitative measures are better aligned to regulatory requirements than quantitative measures, because they are more consistent and comparable across different domains and contexts. However, this does not mean that qualitative measures can satisfy or comply with all the regulatory requirements, which may vary depending on theindustry or sector. Qualitative measures are easier to update than quantitative measures, because they do not depend on complex calculations or formulas. However, this does not mean that qualitative measures can always reflect the current or accurate risk levels, which may change over time or due to external factors. References =

Qualitative Risk Analysis vs. Quantitative Risk Analysis - ISACA

Residual Risk - ISACA

Emerging Threats - ISACA

Expert Judgment - ISACA

Expert Judgment in Project Management: Narrowing the Theory-Practice Gap

Quantitative Risk Analysis - ISACA

Quantitative Risk Analysis: A Critical Review

[CRISC Review Manual, 7th Edition]

The most helpful factor to align when defining thresholds for control key performance indicators (KPIs) is the control performance with the risk tolerance of business owners. Control KPIs are metrics that measurethe effectiveness and efficiency of the controls that are implemented to mitigate the risks. By aligning the control performance with the risk tolerance of business owners, the thresholds for control KPIs can reflect the acceptable level of risk and the desired level of control for the business processes and objectives. Information risk assessments with enterprise risk assessments, key risk indicators (KRIs) with risk appetite of the business, andcontrol KPIs with audit findings are other possible factors to align, but they are not as helpful as control performance with risk tolerance of business owners. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

 The risk owner should be assigned accountability for monitoring risk levels, as they have the authority and responsibility to manage the risk and its associated controls, and to report on the risk status and performance. The risk practitioner, the business manager, and the control owner are not the best choices, as they have different roles and responsibilities related to risk identification, assessment, response, and reporting, but they are not accountable for the risk and its monitoring. References = CRISC Review Manual, 7th Edition, page 101.

Scanning the Internet for unauthorized usage of the enterprise's brand proactively identifies fraudulent activities and enables timely response. This aligns withBrand Protection and Risk Mitigationstrategies.

 Business process owners are the most important to include in the assessment of existing IT risk scenarios, as they have the authority and responsibility to manage the business processes and their associated risks and controls, and to provide the business perspective and requirements for the IT risk scenarios. Technology subject matter experts, business users of IT systems, and risk management consultants are not the most important to include, as they may have different roles and responsibilities related to the technical, operational, or advisory aspects of IT risk scenarios, respectively, but they do not own the business processes or the IT risk scenarios. References = CRISC Review Manual, 7th Edition, page 101.

A business impact analysis (BIA) is a process that identifies and assesses the effects that accidents, emergencies, disasters, and other unplanned, negative events could have on a business. The BIA (sometimes also called business impact assessment) predicts how a business will be affected by everything from a hurricane to a labor strike1.

One of the data that would be used when performing a BIA is the expected costs for recovering the business. This data can help to estimate the amount of resources and funds that would be needed to restore the normal operations and functions of the business after a disruption. The expected costs for recovering the business can include:

The costs of repairing or replacing damaged or lost assets, such as equipment, inventory, or facilities

The costs of hiring or training additional staff, or outsourcing some tasks or services

The costs of implementing alternative or backup systems or processes, such as cloud computing or manual procedures

The costs of communicating and coordinating with customers, suppliers, partners, regulators, and other stakeholders

The costs of complying with legal or contractual obligations, or paying fines or penalties

The costs of mitigating or preventing further losses or damages, such as insurance premiums or security measures23

The expected costs for recovering the business can help to determine the priority and urgency of the recovery activities, and to allocate the available resources and funds accordingly. The expected costs for recovering the business can also help to evaluate the cost-effectiveness and feasibility of the recovery strategies and options, and to justify the investment in the business continuity planning and management4.

The other options are not the data that would be used when performing a BIA, but rather the data that would be used for other purposes or processes. A cost-benefit analysis of running the current business is a data that would be used to compare the advantages and disadvantages of different business decisions or alternatives, such as launching a new product or service, or expanding to a new market. A cost-benefit analysis can help to assess the profitability and viability of the current business, but it does not measure the impact of a disruption on the business5. A cost of regulatory compliance is a data that would be used toestimate the amount of resources and funds that would be required to meet the rules and standards set by the authorities or agencies that govern the business, such as laws, regulations, or policies. A cost of regulatory compliance can help to ensure the legality and accountability of the business, but it does not measure the impactof a disruption on the business. A projected impact of current business on future business is a data that would be used to forecast the potential outcomes and consequences of the current business activities or strategies on the future business performance and growth, such as sales, revenue, market share, or customer satisfaction. A projected impact of current business on future business can help to plan and optimize the future business, but it does not measure the impact of a disruption on the current business. References =

Business Impact Analysis | Ready.gov

Business Impact Analysis Toolkit | Smartsheet

Business Impact Analysis (BIA): Prepare for Anything [2023] • Asana

How To Conduct Business Impact Analysis in 8 Easy Steps - G2

Cost Benefit Analysis - ISACA

[Regulatory Compliance - ISACA]

[Impact Analysis - ISACA]

[CRISC Review Manual, 7th Edition]

The acceptance of control costs that exceed risk exposure most likely demonstrates corporate culture misalignment, as it indicates that the organization is not following the principles and values of effective risk management, and that there is a lack of communication and coordination among the risk owners and stakeholders. Corporate culture misalignment can also result in inefficient and wasteful use of resources, and reduced risk-return trade-off. The organization should align its corporate culture with its risk appetite and tolerance, and ensure that the control costs are proportional and justified by the risk exposure and the expected benefits. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 255. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 255. CRISC by Isaca Actual Free Exam Q&As, Question 9.

The business application owner is accountable for business impact and must approve any change that affects application availability. ISACA’s CRISC emphasis on ownership roles indicates business owners should approve changes with risk implications.

Regulatory and legal compliance dictate data retention requirements, making them the primary basis for retention decisions.

Implementing an asset tiering model to establish the appropriate level of impact is best served by a quantitative risk assessment methodology. This approach provides a numeric value to the risk levels, which is crucial for accurately tiering assets.

Quantitative Risk Assessment:

Numeric Values:Quantitative methods assign numerical values to the probability and impact of risks, which allows for precise calculations of risk levels. This precision is essential when establishing tiers for assets based on their impact levels.

Data-Driven Decisions:These methods use statistical data and models to predict potential losses and the probability of various risk events, leading to more informed decision-making.

Asset Tiering Model:

Impact Assessment:Quantitative methods allow for detailed impact assessments. By using numeric values, it is easier to compare the potential impacts of different assets and categorize them into appropriate tiers.

Resource Allocation:Precise risk calculations help in the effective allocation of resources. Higher-tier assets (those with higher impact) can be allocated more resources for protection.

Compensating controls are additional or alternative controls that are implemented when the existing controls are found to be ineffective or do not meet the required standards. Compensating controls are designed to reduce the risk exposure to an acceptable level and ensure that the organization can still comply with the relevant regulations and industry best practices. For an organization that processes credit cards, compensating controls may include enhanced encryption, monitoring, auditing, or authentication mechanisms. By having compensating controls in place, the organization can maintain an effective overall control environment despitethe deficiencies in the existing controls. The other options are not correct because they do not ensure that the overall control environment is effective. A control mitigation plan is a document that outlines the actions and resources needed to address the control deficiencies, but it does not guarantee that the compensating controls will be implemented or effective. Risk management is a process that involves identifying, analyzing, evaluating, and treating risks, but it does not directly affect the control environment. Residual risk is the risk that remains after the risk treatment, and it may or may not be acceptable depending on the risk appetite of the organization. References = CRISC Review Manual, pages 153-1541; CRISC Review Questions, Answers & Explanations Manual, page 632

Integrating risk and security requirements in an organization’s enterprise architecture (EA) helps to ensure that information assets are consistently managed throughout their life cycle, and that the risks associated with them are identified and mitigated. (Risk and Information Systems Control Review Questions, Answers & Explanations Manual, 5th Edition, page 112)

The business unit owner is accountable for authorizing application access in a SaaS environment because they are responsible for aligning access controls with business needs. They determine the roles and permissions needed to ensure operational effectiveness while adhering to the principle ofAccess Managementin the CRISC framework.

The BEST way to demonstrate alignment of the risk profile with business objectives is through risk scenarios, because they are the descriptions and illustrations of the potential events or situations that may affect the achievement of the business objectives and processes. Risk scenarios can help to demonstrate how the risk profile, which is the summary and representation of the identified and assessed risks, is relatedand relevant to the business objectives and processes, and how the risk responses and controls are designed and implemented to support and enable the business objectives and processes. The other options are not the best way, because:

Option B: Risk tolerance is the level of variation or deviation from the expected or desired outcome that the organization is willing to accept or endure, but it does not demonstrate alignment of the risk profile with business objectives, which is the process of ensuring that the risk profile and the business objectives are consistent and compatible with each other.

Option C: Risk policy is the document that defines the principles, guidelines, and requirements for the risk management process and activities in the organization, but it does not demonstrate alignment of the risk profile with business objectives, which is the process of showing and proving that the risk profile and the business objectives are coherent and integrated with each other.

Option D: Risk appetite is the amount and type of risk that the organization is willing to take or pursue in order to achieve its objectives and goals, but it does not demonstrate alignment of the risk profile with business objectives, which is the process of establishing and maintaining that the risk profile and the business objectives are aligned and balanced with each other. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 104.

The best way to protect company sensitive information from being exposed when an organization allows employee use of social media accounts for work purposes is to require employees to sign nondisclosure agreements. Nondisclosure agreements are legal contracts that prohibit the employees from disclosing or sharing the company sensitive information with unauthorized parties, such as competitors, media, or regulators. Nondisclosure agreements also specify the scope, duration, and conditions of the nondisclosure obligation, and the penalties or remedies for breaching the agreement. Requiring employees to sign nondisclosure agreements is the best way to protect company sensitive information, as it helps to prevent or deter the employees from exposing or leaking the company sensitive information on social media, and to hold the employees accountable and liable for their actions. Requiring employees to signnondisclosure agreements also helps to comply with the legal and regulatory requirements for data protection and privacy. Educating employees on what needs to be kept confidential, implementing a data loss prevention (DLP) solution, and taking punitive action against employees who expose confidential data are also useful ways, but they are not as effective as requiring employees to sign nondisclosure agreements, as they are either dependent on the employees’ awareness or behavior, or reactive or corrective measures, rather than proactive or preventive measures. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

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

KRI thresholds are the levels or points that trigger an action or a response when a KRI reaches or exceeds them. They reflect the risk appetite of the organization, which is the amount and type of risk that it is willing to accept in pursuit of its objectives. A new privacy regulation may reduce the risk appetite of the organization, as it may impose stricter requirements and penalties for non-compliance. Therefore, the organization may need to adjust its KRI thresholds to lower levels, to ensure that it can identify and manage privacy risks more effectively and proactively

When performing a risk assessment of a new service to support a core business process, the first step is to identify the conditions that may cause disruptions to the service or the process. This involves identifying the sources and causes of potential risk events, such as natural disasters, cyberattacks, human errors, equipment failures, power outages, etc. that may affect the availability, integrity, or confidentiality of the service or the process. By identifying the conditions that may cause disruptions, the risk practitioner can then analyze the probability and impact of the risk events, evaluate the risk exposure, and determine theappropriate risk responses to ensure the continuity of operations. References = CRISC Review Manual, 7th Edition, page 66.

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

Performing scenario-based assessments is a proactive approach that allows organizations to anticipate potential future events and assess their impact. This method helps in identifying emerging risks by exploring hypothetical situations and their possible outcomes. It enables organizations to prepare for unforeseen events by understanding how different scenarios could affect their operations and objectives.​

 The main benefit of involving stakeholders in the selection of key risk indicators (KRIs) is improving risk awareness, as it helps to communicate the risk exposure, appetite, and tolerance of the organization to the relevant parties. KRIs are metrics that provide information on the level of exposure to a given operational risk1. By involving stakeholders in the selection of KRIs, the risk practitioner can ensure that the KRIs are aligned with the stakeholder expectations, needs, and objectives, and that they reflect the most significant risks that affect the organization. This also helps to foster a risk culture and a shared understanding of risk among the stakeholders, which can enhance the risk management process and performance. The other options are not the main benefit of involving stakeholders in the selection of KRIs, although they may be some of the outcomes or advantages of doing so. Obtaining buy-in from risk owners, leveraging existing metrics, and optimizing risk treatment decisions are all important aspects of risk management, but they are not the primary reason for involving stakeholders in the selection of KRIs. References = Key Risk Indicators; Key Risk Indicators: A Practical Guide; The 10 Types of Stakeholders That You Meet in Business; What are Stakeholders? Stakeholder Definition | ASQ

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

The business process owner should own the risk of customer data leakage caused by the service provider, as they have the responsibility and authority over the design, execution, and performance of the business process. The business process owner is also accountable for the risks and controls associated with their process, and they can provide valuable input and feedback on the likelihood and impact of customer data leakage on the process outcomes and objectives.

The other options are not the best choices for owning the risk of customer data leakage caused by the service provider. The service provider is responsible for delivering and supporting the billing function and ensuring the security and privacy of the customer data, but they may not have the full visibility or understanding of the business process and objectives. The vendor risk manager is responsible for managing and monitoring the vendor relationship and performance, but they may not have the direct involvement or influence on the business process and its risks and controls. The legal counsel is responsible for providing legal advice and guidance on the contractual and regulatory obligations and implications of the outsourcing arrangement, but they may not have the detailed knowledge or experience of the business process and its risks andcontrols. References = Guide to Vendor Risk Assessment | Smartsheet, IT Risk Resources | ISACA, Data Ownership: Considerations for Risk Management - ISACA

The best way for a risk practitioner to help management prioritize risk response is to assess risk against business objectives. This means comparing the level and nature of the risks with the goals and strategies of the organization, and determining which risks pose the most significant threat or opportunity to the achievement of those objectives. By assessing risk against business objectives, the risk practitioner can help management identify the most critical and relevant risks, and prioritize the risk response actions accordingly. The risk response actions should be aligned with the organization’s risk appetite, which is the amount and type of risk that the organization is willing to take in order to meet its strategic goals1. The other options are not the best ways for a risk practitioner to help management prioritize risk response, as they are either less effective orless specific than assessing risk against business objectives. Aligning business objectives to the risk profile is a way of ensuring that the organization’s objectives are realistic and achievable, given the current and potential risks that the organization faces. However, this is not the same as prioritizing risk response, as it does not indicate which risks should be addressed first or howtheyshould be managed. Implementing an organization-specific risk taxonomy is a way of creating a common language and classification system for describing and categorizing risks. This can help improve the consistency and clarity of risk communication and reporting across the organization. However, this is not the same as prioritizing risk response, as it does not measure the likelihood and impact of the risks, or their relation to the organization’s objectives. Explaining risk details to management is a way of providing information and insight on the sources, drivers, consequences, and responses of the risks. This can help increase the awareness and understanding of the risks among the decision makers and stakeholders. However, this is not the same as prioritizing risk response, as it does not suggest or recommend the best course of action for managing the risks. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.6, Page 57.

The observation from a third-party service provider review that would be of greatest concern to a risk practitioner is that the service level agreements (SLAs) have not been met over the last quarter, as it indicates a significant performance issue or breach that may affect the quality, functionality, or security of the outsourced services, and may require a remediation or escalation action. The other options are not the greatest concerns, as they may not indicate a performance issue or breach, but rather a contractual, personnel, or financial issue, respectively, that may not affect the outsourced services directly or significantly. References = CRISC Review Manual, 7th Edition, page 111.

 The best course of action for a newly hired risk practitioner who finds that the risk register has not been updated in the past year is to identify changes in risk factors and initiate risk reviews. This would help the risk practitioner to update the risk register with the current and relevant information on the risks facing the enterprise, such as their sources, drivers, indicators, likelihood, impact, and responses. It would also help the risk practitioner to evaluate the effectiveness of the existing controls, and to identify any new or emerging risks that need to be addressed. Identifying changes in risk factors and initiating risk reviews would enable the risk practitioner to maintain the accuracy and completeness of the risk register, and to provide valuable input for the risk management process. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.1.1, page 2271

The primary input when designing IT controls should be internal and external risk reports. IT controls are specific activities performed by persons or systems to ensure that business objectives are met, and thatthe confidentiality, integrity, and availability of data and the overall management of the IT function are ensured1. Designing IT controls means creating and implementing the appropriate measures or actions to reduce the likelihood or impact of the IT risks that may affect the organization2. Internal and external risk reports are documents that provide information and analysis on the current and potential IT risks that the organization faces, as well as their sources, drivers, consequences, and responses3. Internal risk reports are generated by the organization itself, such as by the IT risk management function, the internal audit function, or the business units. External risk reports are obtained from external sources, such as regulators, industry associations, or third-party service providers. Internal and external risk reports are the primary input when designing IT controls, because they help to:

Identify and prioritize the IT risks that need to be addressed by the IT controls;

Evaluate the likelihood and impact of the IT risks, and compare them against the organization’s risk appetite and tolerance;

Determine the most suitable and effective IT control objectives and activities to mitigate the IT risks;

Align the IT control design and implementation with the organization’s objectives, strategies, and values;

Monitor and measure the performance and effectiveness of the IT controls in reducing the IT risks. The other options are not the primary input when designing IT controls, as they are either less relevant or less specific than internal and external risk reports. Benchmark of industry standards is a comparison of the organization’s IT control practices and performance with those of other organizations in the same industry or sector4. Benchmark of industry standards can help to improve the quality and consistency of the IT control design and implementation, as well as to identify the best practices and gaps. However, benchmark of industry standards is not the primary input when designing IT controls, as it does not address the specific IT risks that the organization faces, or the IT control objectives and activities that are appropriate and effective for the organization. Recommendations from IT risk experts are the suggestions or advice from the professionals or specialists who have the knowledge and experience in IT risk management and IT control design and implementation5. Recommendations from IT risk experts can help to enhance the IT control design and implementation, as well as to provide guidance and support to the organization. However, recommendations from IT risk experts are not the primary inputwhen designing IT controls, as they are based on the opinions and perceptions of the experts, and may not reflect the actual or objective level and nature of the IT risks, or the IT control objectives and activities that are suitable and efficient for the organization. Outcome of control self-assessments is the result or conclusion of the evaluation and testing of the design and operation of the existingIT controls by the organization itself, such as by the IT control owners, the IT risk management function, or the business units6. Outcome of control self-assessments can help to improve the IT control design and implementation, as well as to detect and correct any issues or deficiencies. However, outcome of control self-assessments is not the primary input when designing IT controls, as it does not cover the new or emerging IT risks that the organization may face, or the IT control objectives and activities that are relevant and necessary for the organization. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1, Page 189.

Obtaining input from business management is the best way to enable the development of a successful IT strategy focused on business risk mitigation, because it helps to align and integrate the IT objectives and activities with the business goals and priorities. An IT strategy is a plan that defines how IT supports and enables the organization’s vision, mission, and strategy. A business risk mitigation is a process that aims to reduce or eliminate the risks that may affect the achievement of the business objectives or expectations. Obtaining input from business management is the best way to ensure that the IT strategy is relevant, realistic, and responsive to the business needs and challenges, and that the IT risks are identified, assessed, and managed in accordance with the business risk appetite and tolerance. Providing risk awareness training for business units, understanding the business controls currently in place, and conducting a businessimpact analysis (BIA) are all useful ways to support the development of an IT strategy focused on business risk mitigation, but they are not the best way, as they do not directly involve the input and feedback from business management. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.1.1, page 37

Risk mitigation procedures are the actions and plans that an organization implements to reduce the likelihood and impact of identified risks. Risk mitigation procedures should include the deployment of counter measures, which are the specific controls or solutions that address the root causes or sources of the risks, and prevent or minimize the potential losses or damages. For example, a counter measure for therisk of data breach could be encrypting the data or implementing a firewall. The deployment of counter measures should be based on a cost-benefit analysis, a risk assessment, and a risk response strategy. The other options are not necessarily part of risk mitigation procedures. Buying an insurance policy is an example of risk transfer,which is a risk response strategy that shifts the responsibility or burden of the risk to another party, such as an insurer or a vendor. However, risk transfer does not eliminate or reduce the risk itself, and it may involve additional costs or conditions. Acceptance of exposures is an example of risk acceptance, which is a risk response strategy that acknowledges the existence and consequences of the risk, and decides not to take any action to change the risk situation. However, risk acceptance does not mitigate the risk, and it may require contingency plans or reserves to deal with the potential outcomes. Enterprise architecture implementation is an example of a business process or project that may involve or create risks, but it is not a risk mitigation procedure itself. Enterprise architecture is the design and structure of an organization’s IT systems, networks, and resources, and how they align with the organization’s goals and strategies. Enterprise architecture implementation may require risk management activities, such as risk identification, assessment, and response, but it is not a risk mitigation procedure itself. References = Risk IT Framework, ISACA, 2022, p. 151

The primary concern for a risk practitioner in adopting innovative big data analytics is the potential re-identification of individuals from previously anonymized data. Advanced analytics techniques can inadvertently combine datasets in ways that reveal personal identities, leading to privacy breaches and regulatory non-compliance. This risk is heightened when data from multiple sources are aggregated, increasing the chance of re-identification.

According to the CRISC Review Manual (Digital Version), threat analysis would be the most helpful when estimating the likelihood of negative events, as it involves identifying and evaluating the sources and causes of potential harm or loss to the IT assets and processes. Threat analysis helps to:

Determine the frequency and probability of occurrence of different types of threats, such as natural disasters, human errors, malicious attacks, system failures, etc.

Assess the impact and severity of the threats on the confidentiality, integrity and availability of the IT assets and processes

Prioritize the threats based on their likelihood and impact

Develop appropriate risk response strategies to prevent, mitigate, transfer or accept the threats

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.5: IT Risk Identification Methods and Techniques, pp. 35-361

A risk heat map is the best tool to enable senior management to compare the ratings of risk scenarios, as it provides a visual representation of the risk level and priority of each risk scenario, based on the combination of the likelihood and impact ratings, and the risk tolerance and appetite of the organization. Key risk indicators (KRIs), key performance indicators (KPIs), and control self-assessment (CSA) are not the best tools, as they are more related to the measurement, monitoring, or testing of the risk scenarios, respectively, rather than the comparison of the risk scenarios. References = CRISC Review Manual, 7th Edition, page 110.

The risk profile is the most important document to update following a change in organizational risk appetite and tolerance, because it summarizes the current and target state of the organization’s risk exposure, as well as the risk response strategies and actions. The risk profile should reflect the alignment of the organization’s risk appetite and tolerance with its strategic objectives and operational capabilities. Updating the risk profile will help the organization to monitor and manage its risks effectively and efficiently.

References

•ISACA CRISC Review Manual, 7th Edition, Domain 1: IT Risk Identification, Section 1.2.1: Risk Profile

•Risk Profile - ISACA

•What is a Risk Profile? Definition, Examples, and More

The information classification policy is the most important document regarding the treatment of sensitive data, because it defines the categories and criteria for classifying data according to their sensitivity, confidentiality, and value to the organization, and specifies the appropriate handling and protection measures for each category. Sensitive data are data that contain personal,proprietary, or confidential information that may cause harm or damage to the organization or its stakeholders if disclosed, modified, or destroyed without authorization. An information classification policy helps to ensure that sensitive data are identified and treated in a consistent and secure manner, and that the organization complies with the applicable laws andregulations regarding data protection and privacy. An encryption policy, an organization risk profile, and a digital rights management policy are all useful documents for the treatment of sensitive data, but they are not the most important document, as they do not directly address the classification and handling of sensitive data. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158

The primary purpose of creating and documenting control procedures is to help manage risk to acceptable tolerance levels. Control procedures are the specific actions or steps that are performed to achieve the control objectives and mitigate the risks. Control procedures should be documented to provide clear guidance, consistency, and accountability for the control activities. Documenting control procedures also helps to monitor and evaluate the effectiveness andefficiency of the controls, and to identify and address any gaps or weaknesses. The other options are not the primary purpose of creating and documenting control procedures, although they may be secondary benefits or outcomes. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, page 1-15.

The HR manager is the person or entity that has the authority and responsibility to collect, process, and protect the personal data of the employees in the organization. The HR managerhelps to manage the employee personal data, because they help to establish and enforce the data policies and standards for the employees, and to comply with the legal and regulatory requirements, such as the GDPR. The HR manager also helps to monitor and report on the data performance and compliance for the employees, and to identify and address any issues or gaps in the data management activities. The other options are not the best person to manage the employee personal data, although they may be involved in the process. System administrator, data privacy manager, and compliance manager are all examples of roles or functions that can help to support or implement the data management activities, but they do not necessarily have the authority or responsibility to collect, process, or protect the employee personal data

 According to the CRISC Review Manual (Digital Version), an effective control environment is best indicated by controls that manage risk within the organization’s risk appetite, as this reflects the alignment of thecontrol objectives and activities with the organization’s strategic goals and risk preferences. The risk appetite is the amount and type of risk that the organization is willing to accept in pursuit of its objectives. Managing risk within the organization’s risk appetite helps to:

Balance the potential benefits and costs of risk-taking and risk response

Optimize the use of the organization’s resources and capabilities

Enhance the value and performance of the organization

Foster a risk-aware culture that supports the organization’s vision and mission

References = CRISC Review Manual (Digital Version), Chapter 2: IT Risk Assessment, Section 2.3: IT Risk Assessment Process, pp. 93-941

A key control indicator (KCI) is a metric that measures the effectiveness of a control in mitigating a risk. A good KCI for a vulnerability management program should reflect how well the program is reducing the exposure to high-risk vulnerabilities. The percentage of high-risk vulnerabilities addressed is a KCI that shows the proportion of identified high-risk vulnerabilities that have been remediated or mitigated within a defined time frame. This KCI can help monitor the progress and performance of the vulnerability management program and identify areas for improvement.

The other options are not the best KCI for a vulnerability management program because they do not measure the effectiveness of the control. The percentage of high-risk vulnerabilities missed is a measure of the completeness of the vulnerability scanning process, not the control. The number of high-risk vulnerabilities outstanding is a measure of the current risk exposure, not the control. The defined thresholds for high-risk vulnerabilities are a measure of the risk appetite, not the control. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3: IT Risk Assessment, Section 3.4: Risk Indicators, p. 133-134.

 A risk heat map is a graphical tool that displays the risk events in a matrix based on their likelihood and impact. Risk events that are coded with the same color will have a similar risk likelihood, which is the probability or frequency of occurrence of a risk event. Risk score, riskimpact, and risk response are other possible attributes of risk events, but they are not represented by the color coding in a risk heatmap. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 7; CRISC Review Manual, 6th Edition, page 202.

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

The best answer is D. Escalation triggers. Escalation triggers are predefined thresholds or conditions that indicate when a key risk indicator (KRI) has reached a critical level that requires immediate attention or action. Escalation triggers can be based on quantitative or qualitative measures, such as percentages, scores, ratings, or colors. Escalation triggers can help to ensure appropriate action is taken to mitigate risk, because they provide clear and timely signals that alert the risk owners, managers, and other stakeholders of the need to review and revise the risk response plan, or to implement additional or alternative controls. Escalation triggers can also help to communicate and report the risk status and the risk response actions to the senior management and the board, and to obtain their support and approval, if needed. The otheroptions are not the best answer, although they may be related or influential to the KRI and the risk mitigation. Management intervention is a part of the risk response process, which involves the actions and decisions taken by the management to address the risk, such as approving, implementing, or monitoring the controls. Management intervention can help to mitigate risk, but it is not a component of the KRI, rather it is a consequence or a result of the escalation triggers. Risk appetite is the amount and type of risk that an organization is willing to accept or pursue in order to achieve its objectives. Risk appetite can help to define and align the KRI and the escalation triggers with the organizational strategy and culture, but it is not a component of the KRI, rather it is a factor or a driver of the KRI. Board commentary is a part of the risk reporting process, which involves the feedback and guidance provided by the board on the risk management process and performance. Board commentary can help to improve and enhance the KRI and the risk mitigation, but it is not a component of the KRI, rather it is a source or a resource of the KRI. References = Key Risk Indicators: A Practical Guide | SafetyCulture, KRI Framework for Operational Risk Management | Workiva

The first step in conducting a BIA is to identify critical information assets. This involves determining which assets are essential to the organization's operations and would have the most significant impact if disrupted. Understanding these assets sets the foundation for assessing potential impacts and developing appropriate recovery strategies.

The risk practitioner’s best course of action is to review the design of the machine learning model against the control objectives, because this will help to evaluate the suitability, effectiveness, and reliability of the model as a control measure. A machine learning model is a type of artificial intelligence that can learn from data and make predictions or decisions based on the data. A machine learning model can be used to automate or enhance the access management process, such as by identifying excessive access privileges, detecting unauthorized access, or recommending access rights. However, a machine learning model also introduces new risks and challenges, such as data quality, model accuracy, model bias, model explainability, model security, and model governance. Therefore, the risk practitioner should review the design of the machine learning model against the control objectives, which are the specific goals or outcomes that the control is intended to achieve. The control objectives can be derived from the IT riskmanagement strategy, the IT governance framework, the IT policies and standards, and the regulatory requirements. The review of the machine learning model should cover the following aspects: - The data sources and inputs: The risk practitioner should verify that the data used to train and test the machine learning model is relevant, complete, accurate, consistent, and representative of the access management process and the access rights. The risk practitioner should also check that the data is collected, stored, processed, and transmitted in a secure and compliant manner, and that the data privacy and confidentiality are protected. - The model algorithms and outputs: The risk practitioner should validate that the model algorithms are appropriate, robust, and transparent for the access management process and the control objectives. The risk practitioner should also evaluate that the model outputs are accurate, reliable, and interpretable, and that they provide meaningful and actionable insights orrecommendations for the access management process and the control objectives. - The model performance and monitoring: The riskpractitioner should measure and monitor the model performance and effectiveness against the control objectives and the predefined metrics and indicators. The risk practitioner should also ensure that the model is updated and maintained regularly to reflect the changes in the access management process and the access rights, and that the model is audited and reviewed periodically to ensure its compliance and quality. By reviewing the design of the machine learning model against the control objectives, the risk practitioner can ensure that the model is fit for purpose and adds value to the access management process and the control objectives. The risk practitioner can also identify and mitigate any potential risks or issues that may arise from the use of the machine learning model as a control measure. References = Risk and Information Systems Control Study Manual, Chapter 3: Risk Response and Mitigation, Section 3.3: Control Design and Implementation, pp. 124-1271, Manage roles in your workspace - Azure Machine Learning2, Dataset Inference: Ownership Resolution in Machine Learning3