CRISC Exam Dumps - Certified in Risk and Information Systems Control

A risk management program is a set of processes, policies, and tools that enable an enterprise to identify, analyze, evaluate, treat, monitor, and communicate its risks. The maturity level of a risk management program indicates how well the program is integrated, standardized, and aligned with the enterprise’s objectives, culture, and values. The best indication that an organization’s risk management program has not reached the desired maturity level is large fluctuations in risk ratings between assessments. Risk ratings are the measures of the impact and likelihood of the risks, and they should be consistent and comparable across the enterprise and over time. Large fluctuations in risk ratings between assessments suggest that the risk management program is not stable, reliable, or effective, and that the risk identification and analysis methods are not robust, accurate, or transparent. The other options are not as indicative of the maturity level of the riskmanagement program, as they involve different aspects or outcomes of the risk management program:

Significant increases in risk mitigation budgets means that the enterprise is spending more resources on implementing risk responses, such as controls, policies, or procedures. This may indicate that the enterprise is facing more or higher risks, or that the risk responses are more costly or complex, but it does not necessarily reflect the maturity level of the risk management program, as it may also depend on the enterprise’s risk appetite, tolerance, and strategy.

A steady increase in the time to recover from incidents means that the enterprise is taking longer to restore its normal operations after a disruption or a loss. This may indicate that the enterprise is not prepared or resilient enough to deal with the incidents, or that the incidents are more frequent or severe, but it does not necessarily reflect the maturity level of the risk management program, as it may also depend on the nature and source of the incidents, or the availability and effectiveness of the recovery plans.

A large number of control exceptions means that the enterprise is deviating from the established controls, policies, or procedures, either intentionally or unintentionally. This may indicate that the enterprise is not complying with the risk management program, or that the controls are not adequate or appropriate for the enterprise’s needs, but it does not necessarily reflect the maturity level of the risk management program, as it may also depend on the reasons and justifications for the exceptions, or the approval and monitoring processes for the exceptions. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.1.3.1, pp. 14-15.

The second line of defense provides oversight functions, ensuring that risks and controls are effectively managed. This includes policy enforcement, compliance monitoring, and risk program evaluation, aligning with the organizational risk governance structure as described in the CRISC framework.

According to the Risk and Information Systems Control Study Manual, the first step in prioritizing risk response is to address the high risk factors that have efficient and effective solutions. This means that management should focus on the risks that have the most impact on the organization’s objectives and can be mitigated with the least amount of resources and effort. This approach helps to optimize the risk response process and achieve the best results in terms of risk reduction and value creation. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.3.2, Page 223.

The application risk profile should be updated when reviewing functional requirements. This will help to identify and assess the potential risks that may arise from the changes to the application, and to plan and implement appropriate risk responses. Updating the application risk profile at this stage will also help to ensure that the changes are aligned with the organization’s objectives, policies, and standards, and that they meet the stakeholders’ expectations and needs. Updating the application risk profile after user acceptance testing, upon release to production, or during backlog scheduling are not the best points to update the risk profile, as they may be too late or too early to capture the relevant risks and their impacts. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.1.1, page 511

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 655.

Risk mitigation is a proactive business strategy to identify, assess, and mitigate potential threats or uncertainties that could harm an organization’s objectives, assets, or operations1. It entails specific action plans to reduce the likelihood or impact of these identified risks2.

There are several recognized ways to mitigate risk, such as accepting, avoiding, hedging, transferring, or reducing the risk3. Among the options given, only C is an example of risk reduction, which involvesimplementing controls or safeguards to minimize the negative effects of the risk3. Change and configuration management processes are methods to ensure that changes to the IT systems or infrastructure are properly authorized, documented, tested, and implemented, and that the configuration of the IT assets is consistent and accurate. These processes can help prevent or detect errors, defects, or vulnerabilities that could compromise the IT performance, security, or availability.

The other options are not examples of risk mitigation, but rather risk avoidance (A), risk transfer (B), or risk acceptance (D). Risk avoidance means eliminating the risk entirely by not engaging in the activity that causes the risk3. Not providing capability for employees to work remotely could avoid the risk of data breaches or network issues, but it could also limit the productivity and flexibility of the workforce. Risk transfer means shifting the responsibility or burden of the risk to another party, such as a vendor or an insurer3. Outsourcing the IT activities and infrastructure could transfer the risk of IT failures or incidents to the service provider, but it could also introduce new risks such as vendor dependency or loss of control. Risk acceptance means acknowledging the risk and its consequences without taking any action to address it3. Taking out insurance coverage for IT-related incidents could provide some financial compensation in case of a loss, but it does not reduce the likelihood or impact of the risk itself. References =

5 Key Risk Mitigation Strategies (With Examples) | Indeed.com

10 Risk Mitigation techniques you need to know - Stakeholdermap.com

Risk Mitigation Strategies: Types & Examples (+ Free Template)

[Change and Configuration Management - ISACA]

A spear phishing attack is a type of cyberattack that targets a specific individual or organization with a fraudulent email that appears to be from a trusted source, and attempts to trick the recipient into clicking amalicious link, opening a malicious attachment, or providing sensitive information. A spear phishing attack can compromise the security, confidentiality, integrity, or availability of the information systems and data of the individual or organization. The most effective way to mitigate the risk associated with spear phishing attacks is to implement a security awareness program, which is a program that educates and trains the employees and stakeholders of the organization about the security policies, procedures, and best practices, and the potential threats and risks that may affect the organization. A security awareness program can help to prevent or reduce the success of spear phishing attacks, as it can increase the knowledge and skills of the employees and stakeholders to recognize and avoid the fraudulent emails, and to report and respond to any suspicious or malicious activities. References = CRISC Review Manual, 7th Edition, page 181.

A risk scenario is a hypothetical situation that describes how a risk event could adversely affect an organization’s objectives, assets, or operations. A risk scenario can be used for riskanalysis,which is the process of estimating the likelihood and impact of the risk event, and evaluating the effectiveness and efficiency of the risk response1.

One of the essential components of a risk scenario is the threat type, which is the source or cause of the risk event. The threat type can be classified into various categories, such as natural, human, technical, environmental, or legal. The threat type can help to define the characteristics, motivations, capabilities, and methods of the risk event, and to identify the potential vulnerabilities and exposures of the organization. The threat type can also help to determine the frequency and severity of the risk event, and to select the appropriate risk response strategies and controls23.

The other options are not the components of a risk scenario, but rather the outcomes or inputs of risk analysis. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite can help to guide the risk analysis by providing a high-level statement of the desired level of risk taking and tolerance4. Risk tolerance is the acceptable variation in the outcomes related to specific objectives or risks. Risk tolerance can help to measure the risk analysis by providing quantitative or qualitative indicators of the acceptable range of risk exposure and performance4. Residual risk is the remaining risk after the risk response has been implemented. Residual risk can help to monitor the risk analysis by providing feedback on the effectiveness and efficiency of the risk response and the need for further action. References =

Risk Analysis - ISACA

Threat - ISACA

Threat Modeling - ISACA

Risk Appetite and Risk Tolerance - ISACA

[Residual Risk - ISACA]

[CRISC Review Manual, 7th Edition]

A business case will BEST communicate the importance of risk mitigation initiatives to senior management, because it provides a clear and concise justification of the objectives, benefits, costs, and risks of the proposed initiatives. A business case helps to align the risk mitigation initiatives with the enterprise’s strategy and goals, and to obtain the necessary approval and support from senior management. The other options are not as effective as a business case, because:

Option B: A balanced scorecard is a tool to measure and monitor the performance of the enterprise across four perspectives: financial, customer, internal process, and learning and growth. It does not communicate the importance of risk mitigation initiatives, but rather the outcomes and impacts of them.

Option C: Industry standards are benchmarks or best practices that define the minimum requirements or expectations for a certain domain or activity. They do not communicate the importance of risk mitigation initiatives, but rather the compliance or alignment of them with the external environment.

Option D: A heat map is a tool to visualize and prioritize the risks based on their likelihood and impact. It does not communicate the importance of risk mitigation initiatives, but rather the severity and distribution of the risks. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 118.