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The CRISC certification is a highly respected certification that demonstrates an individual's expertise in managing risks in information systems. Certified in Risk and Information Systems Control certification is ideal for professionals who work in IT risk management, information security, and control. The CRISC exam covers four domains and is computer-based, and candidates must meet eligibility requirements to take the exam.

 

NEW QUESTION # 654
Which of the following should be of GREATEST concern when reviewing the results of an independent control assessment to determine the effectiveness of a vendor's control environment?

• A. The report was provided directly from the vendor.
• B. The controls had recurring noncompliance.
• C. The control owners disagreed with the auditor's recommendations.
• D. The risk associated with multiple control gaps was accepted.

Answer: B

Explanation:
The most concerning issue when reviewing the results of an independent control assessment to determine the effectiveness of a vendor's control environment is that the controls had recurring noncompliance. This indicates that the vendor's controls are not operating as intended or designed, and that the vendor is not taking corrective actions to address the control deficiencies. This can increase the risk exposure and liability for the organization that outsources the service or function to the vendor. The report being provided directly from the vendor, the risk associated with multiple control gaps being accepted, and the control owners disagreeing with the auditor's recommendations are other possible issues, but they are not as critical as the recurring noncompliance. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

NEW QUESTION # 655
Which of the following is the MOST important data source for monitoring key risk indicators (KRIs)?

• A. Audit reports from internal information systems audits
• B. Directives from legal and regulatory authorities
• C. Trend analysis of external risk factors
• D. Automated logs collected from different systems

Answer: D

Explanation:
Key risk indicators (KRIs) are metrics that help organizations monitor and evaluate the level of risk they are
exposed to. They provide early warning signals of potential issues that could affect the achievement of
organizational goals12.
The most important data source for monitoring KRIs is automated logs collected from different systems,
which are records that capture and store the details and history of the transactions or activities that are
performed by the organization's processes, systems, or controls34.
Automated logs collected from different systems are the most important data source because they provide
timely and accurate data and information on the performance and status of the organization's operations, and
enable the detection and reporting of any deviations, anomalies, or issues that may indicate a risk event34.
Automated logs collected from different systems are also the most important data source because they support
the accountability and auditability of the organization's operations, and facilitate the investigation and
resolution of any risk event34.
The other options are not the most important data sources, but rather possible inputs or factors that may
influence or affect the KRIs. For example:
Directives from legal and regulatory authorities are documents that provide the expectations and obligations
of the external authorities or bodies that govern or oversee the organization's activities and operations, such as
laws, regulations, standards, or contracts5 . However, these documents are not the most important data source
becausethey do not directly measure or monitor the level of risk exposure, but rather provide the criteria or
framework for risk compliance5 .
Audit reports from internal information systems audits are documents that provide the findings and
recommendations of the independent and objective assessment of the adequacy and effectiveness of the
organization's information systems, processes, and controls . However, these documents are not the most
important data source because they do not directly measure or monitor the level of risk exposure, but rather
provide the assurance or improvement for risk management .
Trend analysis of external risk factors is a technique that involves analyzing and forecasting the changes and
impacts of the external factors that influence the organization's operations, such as technology, competition,
regulation, or customer behavior . However, this technique is not themost important data source because it
does not directly measure or monitor the level of risk exposure, but rather provide the insight or prediction for
risk identification . References =
1: Key Risk Indicators: A Practical Guide | SafetyCulture1
2: Key risk indicator - Wikipedia2
3: Database Activity Monitoring - Wikipedia3
4: Database Activity Monitoring (DAM) | Imperva4
5: Regulatory Compliance - Wikipedia5
Regulatory Compliance Management Software | MetricStream
IT Audit and Assurance Standards, ISACA, 2014
IT Audit and Assurance Guidelines, ISACA, 2014
Trend Analysis - Investopedia
Trend Analysis: A Definition and Examples

NEW QUESTION # 656
Which of the following should be the PRIMARY basis for prioritizing risk responses?

• A. The classification of the business asset
• B. The cost of risk mitigation controls
• C. The replacement cost of the business asset
• D. The impact of the risk

Answer: D

Explanation:
The primary basis for prioritizing risk responses is the impact of the risk. The impact of the risk is the consequence or effect of the risk on the organization's objectives or operations, such as financial loss, reputational damage, operational disruption, or legal liability. The impact of the risk is one of the key dimensions of risk analysis, along with the likelihood of the risk. The impact of the risk helps to determine the severity and priority of the risk, and to select the most appropriate and effective risk response. The impact of the risk also helps to evaluate the cost-benefit and trade-off of the risk response, and to measure the residual risk and the risk performance. The other options are not the primary basis for prioritizing risk responses, although they may be considered or influenced by the impact of the risk. The replacement cost of the business asset, the cost of risk mitigation controls, and the classification of the business asset are all factors that could affect the value or importance of the business asset, but they do not necessarily reflect the impact of the risk on the business asset or the organization. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-25.

NEW QUESTION # 657
While developing obscure risk scenarios, what are the requirements of the enterprise?
Each correct answer represents a part of the solution. Choose two.

• A. Explanation:
  The enterprise must consider risk that has not yet occurred and should develop scenarios around unlikely, obscure or non-historical events. Such scenarios can be developed by considering two things: Visibility Recognition For the fulfillment of this task enterprise must: Be in a position that it can observe anything going wrong Have the capability to recognize an observed event as something wrong
• B. Have sufficient number of analyst
• C. Have capability to cure the risk events
• D. Have capability to recognize an observed event as something wrong
• E. Be in a position that it can observe anything going wrong

Answer: A,D,E

Explanation:
and A are incorrect. These are not the direct requirements for developing obscure risk scenarios, like curing risk events comes under process of risk management. Hence capability of curing risk event does not lay any impact on the process of development of risk scenarios.

NEW QUESTION # 658
Who should be PRIMARILY responsible for establishing an organization's IT risk culture?

• A. IT management
• B. Risk management
• C. Business process owner
• D. Executive management

Answer: D

NEW QUESTION # 659
Which of the following scenarios presents the GREATEST risk of noncompliance with data privacy best practices?

• A. Data not being disposed according to the retention policy
• B. Personal data not being de-identified properly
• C. Making data available to a larger audience of customers
• D. Data being used for purposes the data subjects have not opted into

Answer: D

Explanation:
* Data Privacy Principles:
* Consent and Purpose Limitation: According to data privacy regulations like GDPR, data subjects must provide explicit consent for specific purposes. Using data for purposes beyond what was consented to violates these principles, posing significant compliance risks.
* Transparency and Accountability: Organizations must be transparent about how they use personal data and ensure accountability in data processing. Using data without consent undermines this transparency and accountability.
* Greatest Risk of Noncompliance:
* Legal and Regulatory Risks: Using personal data without consent can lead to severe penalties under laws like GDPR and CPRA. These laws impose heavy fines for noncompliance, making this scenario the highest risk.
* Reputational Damage: Unauthorized use of personal data can severely damage an organization's reputation, leading to loss of customer trust and potential financial losses.
* Operational Impact: Ensuring compliance with consent requirements is fundamental to an organization's data processing activities. Failure to do so can disrupt business operations and necessitate significant remediation efforts.
* Comparison with Other Options:
* Making Data Available to a Larger Audience of Customers: While potentially risky, this does not inherently violate data privacy principles if done within consented uses.
* Data Not Being Disposed According to the Retention Policy: This poses risks related to data minimization and retention principles but is less severe than unauthorized data use.
* Personal Data Not Being De-identified Properly: This is a significant risk but typically involves fewer direct legal and regulatory implications compared to using data without consent.
References:
* CRISC Review Manual: Discusses the importance of informed consent and the principles of data privacy, emphasizing the severe implications of using personal data without consent .
* ISACA Guidelines: Highlight the need for transparency and accountability in data processing, aligning with global privacy regulations .

NEW QUESTION # 660
Which of the following situations would BEST justify escalation to senior management?

• A. Residual risk remains after controls have been applied.
• B. Residual risk equals current risk.
• C. Residual risk exceeds acceptable limits.
• D. Residual risk is inadequately recorded.

Answer: C

Explanation:
Residual risk exceeds acceptable limits, because it indicates that the risk level is higher than the organization's risk appetite or tolerance, and that the risk responses and controls are insufficient or ineffective. Residual risk is the level of risk remaining in a process or procedure following the implementation of risk controls to limit or remove it. Escalation is a process that increases the awareness and involvement of higher-level stakeholders or authorities in a risk issue or situation. Escalation is appropriate when the risk issue or situation is outside the scope or authority of the current risk owner or manager, and requires the attention or action of the senior management or the board of directors. Residual risk exceeding acceptable limits is the best situation to justify escalation, as it implies that the current risk owner or manager cannot manage the risk within the predefined boundaries or expectations, and that the senior management or the board of directors need to intervene or approve the risk acceptance or transfer.
Residual risk being inadequately recorded, residual risk remaining after controls have been applied, and residual risk equaling current risk are all possible situations that may require escalation, but they are not the best situations, as they do not necessarily indicate that the risk level is higher than the acceptable limits, and that the senior management or the board of directors need to be involved.

NEW QUESTION # 661
Which of the following is the BEST way to quantify the likelihood of risk materialization?

• A. Threat and vulnerability assessment
• B. Balanced scorecard
• C. Compliance assessments
• D. Business impact analysis (BIA)

Answer: A

Explanation:
A threat and vulnerability assessment is a process that identifies and evaluates the potential sources and impacts of risk events on an organization's assets, processes, and objectives. It also estimates the probability of occurrence and the severity of consequences for each risk event. A threat and vulnerability assessment is the best way to quantify the likelihood of risk materialization, as it provides a numerical or qualitative measure of the risk exposure and the level of uncertainty associated with the risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.2, p. 68-69

NEW QUESTION # 662
An organization has completed a project to implement encryption on all databases that host customer data.
Which of the following elements of the risk register should be updated to reflect this change?

• A. Risk appetite
• B. Inherent risk
• C. Risk likelihood
• D. Risk tolerance

Answer: B

Explanation:
Section: Volume D

NEW QUESTION # 663
Which of the following facilitates a completely independent review of test results for evaluating control effectiveness?

• A. Segregation of duties
• B. Three lines of defense
• C. Compliance review
• D. Quality assurance review

Answer: B

NEW QUESTION # 664
Which of the following should be considered FIRST when creating a comprehensive IT risk register?

• A. Risk mitigation policies
• B. Risk appetite
• C. Risk analysis techniques
• D. Risk management budget

Answer: B

NEW QUESTION # 665
During an IT risk scenario review session, business executives question why they have been assigned ownership of IT-related risk scenarios. They feel IT risk is technical in nature and therefore should be owned by IT. Which of the following is the BEST way for the risk practitioner to address these concerns?

• A. Describe IT risk scenarios in terms of business risk.
• B. Provide an estimate of IT system downtime if IT risk materializes.
• C. Recommend the formation of an executive risk council to oversee IT risk.
• D. Educate business executives on IT risk concepts.

Answer: A

Explanation:
* IT risk scenarios are hypothetical situations or occurrences that illustrate the potential impact of IT-related threats or opportunities on the organization's objectives, performance, or value creation12.
* Business risk scenarios are hypothetical situations or occurrences that illustrate the potential impact of business-related threats or opportunities on the organization's objectives, performance, or value creation34.
* The best way for the risk practitioner to address the concerns of the business executives who question why they have been assigned ownership of IT-related risk scenarios is to describe IT risk scenarios in terms of business risk, which is a technique that involves translating and communicating the IT risk scenarios into the language and context of the business risk scenarios, and highlighting the linkages and dependencies between them56.
* Describing IT risk scenarios in terms of business risk is the best way because it helps the business executives to understand and appreciate the relevance and importance of IT risk scenarios, and how they affect the achievement of the organization's goals and the delivery of value to the stakeholders56.
* Describing IT risk scenarios in terms of business risk is also the best way because it helps the business executives to accept and fulfill their roles and responsibilities as the owners of IT risk scenarios, and to collaborate and coordinate with the IT team and other stakeholders in the risk management process56.
* The other options are not the best ways, but rather possible alternatives or supplements that may support or enhance the description of IT risk scenarios in terms of business risk. For example:
* Recommending the formation of an executive risk council to oversee IT risk is a way that involves establishing and empowering a group of senior leaders from different business units and functions to provide the strategic direction, guidance, and oversight for the IT risk management process78. However, this way is not the best way because it does not directly address the concerns
* of the business executives who question why they have been assigned ownership of IT risk scenarios, and it may not be feasible or effective without a clear and common understanding of IT risk scenarios among the council members78.
* Providing an estimate of IT system downtime if IT risk materializes is a way that involves quantifying and communicating the potential loss or disruption of the IT systems or services that support the organization's operations, if the IT risk scenarios occur9 . However, this way is not the best way because it does not fully capture or convey the impact of IT risk scenarios on the organization's objectives, performance, or value creation, and it may not be relevant or meaningful for some IT risk scenarios that are not related to IT system downtime9 .
* Educating business executives on IT risk concepts is a way that involves providing and delivering the knowledge and skills on the principles, frameworks, and techniques of IT risk management, and the roles and responsibilities of the IT risk owners and stakeholders . However, this way is not the best way because it does not specifically address the concerns of the business executives who question why they have been assigned ownership of IT risk scenarios, and it may not be sufficient or effective without a practical and contextual application of IT risk concepts to the organization's situation and goals . References =
* 1: IT Scenario Analysis in Enterprise Risk Management - ISACA2
* 2: New Toolkit and Course From ISACA Help Practitioners Develop Risk Scenarios - ISACA1
* 3: Business Risk - Investopedia3
* 4: Business Risk: Definition, Types, Examples & How to Manage4
* 5: Risk IT Framework, ISACA, 2009
* 6: IT Risk Management Framework, University of Toronto, 2017
* 7: Executive Risk Council - ISACA5
* 8: Executive Risk Council: A Guide to Success6
* 9: IT System Downtime - ISACA7
* : IT System Downtime: Causes, Costs, and How to Prevent It8
* : IT Risk Education - ISACA9
* : IT Risk Education: A Guide to Success

NEW QUESTION # 666
Which of the following are the principles of access controls?
Each correct answer represents a complete solution. Choose three.

• A. Confidentiality
• B. Integrity
• C. Reliability
• D. Availability

Answer: A,B,D

Explanation:
Explanation/Reference:
Explanation:
The principles of access controls focus on availability, integrity, and confidentiality, as loss or danger is directly related to these three:
Loss of confidentiality- Someone sees a password or a company's secret formula, this is referred to as

loss of confidentiality.
Loss of integrity- An e-mail message is modified in transit, a virus infects a file, or someone makes

unauthorized changes to a Web site is referred to as loss of integrity.
Loss of availability- An e-mail server is down and no one has e-mail access, or a file server is down so

data files aren't available comes under loss of availability.

NEW QUESTION # 667
Which stakeholders are PRIMARILY responsible for determining enterprise IT risk appetite?

• A. Executive management and the board of directors
• B. The chief information officer (CIO) and the chief financial officer (CFO)
• C. Enterprise risk management and business process owners
• D. Audit and compliance management

Answer: A

Explanation:
The stakeholders who are PRIMARILY responsible for determining enterprise IT risk appetite are the executive management and the board of directors, because they are the ones who set the strategic direction and objectives of the enterprise, and who define the acceptable level of risk exposure and tolerance for achieving those objectives. The other options are not the primary stakeholders, because:
* Option A: Audit and compliance management are responsible for providing assurance and oversight on
* the effectiveness of the risk management process and the compliance with internal and external requirements, but they do not determine the enterprise IT risk appetite.
* Option B: The CIO and the CFO are responsible for managing the IT resources and the financial resources of the enterprise, respectively, but they do not determine the enterprise IT risk appetite.
* Option C: Enterprise risk management and business process owners are responsible for identifying, assessing, and responding to the risks that affect their domains, but they do not determine the enterprise IT risk appetite. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 83.

NEW QUESTION # 668
A vulnerability assessment of a vendor-supplied solution has revealed that the software is susceptible to cross-site scripting and SQL injection attacks. Which of the following will BEST mitigate this issue?

• A. Approve exception to allow the software to continue operating
• B. Require the software vendor to remediate the vulnerabilities
• C. Monitor the databases for abnormal activity
• D. Accept the risk and let the vendor run the software as is

Answer: B

NEW QUESTION # 669
An organization is concerned that its employees may be unintentionally disclosing data through the use of
social media sites. Which of the following will MOST effectively mitigate tins risk?

• A. Conducting user awareness training
• B. Establishing a data classification policy
• C. Requiring employee agreement of the acceptable use policy
• D. Requiring the use of virtual private networks (VPNs)

Answer: A

Explanation:
The most effective way to mitigate the risk of unintentional data disclosure through the use of social media
sites is to conduct user awareness training. User awareness training is a process of educating and informing
the users about the security policies, procedures, and practices that are relevant and applicable to their roles
and responsibilities. User awareness training can help to increase the knowledge, understanding, and
compliance of the users regarding the data protection and privacy requirements, and the potential risks and
consequences of data disclosure through social media sites. User awareness training can also help to influence
the behavior, attitude, and culture of the users toward data security and privacy. The other options are not as
effective as conducting user awareness training, as they are related to the technical, procedural, or contractual
measures to mitigate the risk, not the human or behavioral measures to mitigate the risk. References = Risk
and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response
Implementation, page 145.

NEW QUESTION # 670
Risks to an organization's image are referred to as what kind of risk?

• A. Information
• B. Operational
• C. Strategic
• D. Financial

Answer: C

Explanation:
Explanation/Reference:
Explanation:
Strategic risks are those risks which have potential outcome of not fulfilling on strategic objectives of the organization as planned. Since the strategic objective will shape and impact the entire organization, the risk of not meeting that objective can impose a great threat on the organization.
Strategic risks can be broken down into external and internal risks:
External risks are those circumstances from outside the enterprise which will have a potentially

damaging or helpful impact on the enterprise. These risks include sudden change of economy, industry, or regulatory conditions. Some of the external risks are predictable while others are not. For instance, a recession may be predictable and the enterprise may be able to hedge against the dangers economically; but the total market failure may not as predictable and can be much more devastating.
Internal risks usually focus on the image or reputation of the enterprise. some of the risks that are

involved in this are public communication, trust, and strategic agreement from stakeholders and customers.

NEW QUESTION # 671
Once a risk owner has decided to implement a control to mitigate risk, it is MOST important to develop:

• A. a process for measuring and reporting control performance.
• B. procedures to ensure the effectiveness of the control.
• C. an alternate control design in case of failure of the identified control.
• D. a process for bypassing control procedures in case of exceptions.

Answer: A

Explanation:
* Once a risk owner has decided to implement a control to mitigate risk, it is most important to develop a process for measuring and reporting control performance. This process helps to monitor and evaluate the actual results and outcomes of the control, compare them with the expected or desired objectives and standards, identify any gaps or issues that may affect the control's effectiveness or efficiency, and report them to the relevant stakeholders for decision making or improvement actions.
* An alternate control design in case of failure of the identified control is a contingency plan that can be used to reduce the impact of a control failure or breakdown. It is not the most important thing to develop after implementing a control, but rather a backup option that can be activated when needed.
* A process for bypassing control procedures in case of exceptions is a mechanism that allows authorized users to override or circumvent a control in certain situations, such as emergencies, errors, or special requests. It is not the most important thing to develop after implementing a control, but rather a risk response that can be applied when necessary.
* Procedures to ensure the effectiveness of the control are the steps or actions that are required to implement, operate, and maintain the control in accordance with the risk owner's expectations and requirements. They are not the most important thing to develop after implementing a control, but rather a part of the control design and implementation process.
The references for this answer are:
* Risk IT Framework, page 13
* Information Technology & Security, page 7
* Risk Scenarios Starter Pack, page 5

NEW QUESTION # 672
An organization has just started accepting credit card payments from customers via the corporate website.
Which of the following is MOST likely to increase as a result of this new initiative?

• A. Risk appetite
• B. Inherent risk
• C. Risk tolerance
• D. Residual risk

Answer: B

Explanation:
Inherent risk is the most likely to increase as a result of the new initiative, because it is the risk that exists before any controls or mitigating factors are applied. Inherent risk reflects the natural or raw level of exposure that the organization faces from a given risk source or scenario. Accepting credit card payments from customers via the corporate website introduces new sources and types of risk, such as fraud, theft, data breach, or non-compliance, that increase the inherent risk level of the organization. Risk tolerance, risk appetite, and residual risk are all related to the risk management process, but they are not the most likely to increase as a result of the new initiative, as they depend on the organization's risk strategy, objectives, and controls. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.1, page 51

NEW QUESTION # 673
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