CRISC Exam Dumps - Certified in Risk and Information Systems Control

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)

 According to the CRISC Review Manual (Digital Version), the main reason to continuously monitor IT-related risk is to ensure risk levels are within acceptable limits of the organization’srisk appetite and risk tolerance. The risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives, while the risk tolerance is the acceptable variation in outcomes related to specific performance measures linked to objectives. Continuous monitoring is a process that tracks the security state of an information system on an ongoing basis and maintains the security authorization for the system over time. Continuous monitoring helps to:

Provide ongoing assurance that the implemented security controls are operating effectively and efficiently

Detect changes in the risk profile of the information system and the environment of operation

Identify new or emerging threats and vulnerabilities that may affect the information system

Support risk-based decisions by providing timely and relevant risk information to stakeholders

Facilitate the implementation of corrective actions and risk mitigation strategies

Promote accountability and transparency in the risk management process

Enhance the security awareness and culture within the organization

References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.1: IT Risk Monitoring, pp. 213-2141

Residual risk is the risk that remains after applying controls to mitigate the inherent risk. Inherent risk is the risk that exists before considering the controls. Key risk indicators (KRIs) are metricsthat measure the level and impact of risks. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. The failure of the data loss prevention (DLP) system to detect outgoing emails containing credit card data would most impact the residual risk, because it would increase the likelihood and impact of data leakage, data loss, and data exfiltration incidents. These incidents could cause financial, reputational, legal, and regulatory damages to the organization. The failure of the DLP system would also affect the KRIs, as they would show a higher level of risk exposure and a lower level of control effectiveness. However, the KRIs are not the risk itself, but rather the indicators of the risk. The failure of the DLP system would not directly impact the inherent risk or the risk appetite, as they are independent of the controls. The inherent risk would remain the same, as it is based on the nature and value of the data and the threats and vulnerabilities that exist. The risk appetite would also remain the same, as it is based on the organization’s culture, strategy, and stakeholder expectations. Therefore, the most impacted factor would be the residual risk, as it reflects the actual risk level that the organization faces after applying the controls. References = Risk IT Framework, ISACA, 2022, p. 131

Production data is the data that is used in the actual operation of a system or application, such as customer information, financial records, transactions, etc.

Test data is the data that is used in the testing or development of a system or application, such as dummy data, sample data, simulated data, etc.

A risk practitioner has become aware of production data being used in a test environment. This indicates that there is a risk of unauthorized access, use, disclosure, modification, or destruction of the production data, which may affect the confidentiality, integrity, and availability of the data.

The primary concern of the risk practitioner in this situation is the sensitivity of the data. This means that the risk practitioner should assess how valuable, critical, or confidential the data is, and what would be the impact or consequence if the data is compromised or lost.

The sensitivity of the data helps to determine the level of protection and control that is needed to safeguard the data, and the priority and urgency of the risk response actions.

The other options are not the primary concerns of the risk practitioner in this situation. They are either secondary or not essential for data protection.

The references for this answer are:

Risk IT Framework, page 32

Information Technology & Security, page 26

Risk Scenarios Starter Pack, page 24

The MOST important aspect for the risk practitioner to confirm is:

A. Appropriate approvals for the control changes

Ensuring that the control design changes have the appropriate approvals is crucial. This confirms that the changes are recognized and sanctioned by the necessary authority within the organization, aligning with governance practices and maintaining the integrity of the risk management process.

Monitoring the number of incidents with downtime exceeding the contract threshold is a critical KRI for assessing the effectiveness of infrastructure upgrades aimed at enhancing service availability. This metric directly reflects the provider's ability to meet agreed-upon service levels and helps identify areas requiring further improvement.

After migrating a key financial system to a new provider, it was discovered that a developer could gain access to the production environment. This indicates that there is a risk of unauthorized access, use, disclosure, modification, or destruction of sensitive data, such as financial records, transactions, reports, etc.

A control that could mitigate this risk is to remove the developer’s access to the production environment. This means that the developer would not be able to alter the source code or configuration of the financial system without proper authorization or approval.

The other options are not the best ways to mitigate the risk in this situation. They are either irrelevant or less effective than removing the developer’s access.

The references for this answer are:

Risk IT Framework, page 14

Information Technology & Security, page 8

Risk Scenarios Starter Pack, page 6

New risk exposures due to changes in the business environment are the possibilities and impacts of new or emerging threats or opportunities that may affect the organization’s objectives, performance, or value creation, as a result of changes in the internal or external factors that influence the organization’s operations, such as technology, competition, regulation, or customer behavior12.

The most helpful tool in identifying new risk exposures due to changes in the business environment is a SWOT analysis, which is a technique that involves identifying and analyzing the strengths, weaknesses, opportunities, and threats (SWOT) that are relevant to the organization’s situation, goals, and capabilities34.

A SWOT analysis is the most helpful tool because it helps the organization to scan and assess the business environment, and to identify and prioritize the new or emerging risk exposures that may arise from the changes in the environment34.

A SWOT analysis is also the most helpful tool because it helps the organization to align and adapt its strategy and actions to the changes in the environment, and to leverage its strengths and opportunities, and mitigate its weaknesses and threats34.

The other options are not the most helpful tools, but rather possible sources or inputs that may be used in a SWOT analysis. For example:

Standard operating procedures are documents that describe the routine tasks and processes that are performed by the organization, and the policies and standards that govern them56. However, these documents are not the most helpful tools because they may not reflect or capture the changes in the business environment, and they may need to be revised or updated to address the new or emerging risk exposures56.

Industry benchmarking is a technique that involves comparing and contrasting the performance and practices of the organization with those of the similar or leadingorganizations in the same or related industry, and identifying the gaps or opportunities for improvement78. However, this technique is not the most helpful tool because it may not provide a comprehensive or holistic view of the business environment, and it may not align with the organization’s specific situation, goals, or capabilities78.

Control gap analysis is a technique that involves assessing and evaluating the adequacy and effectiveness of the controls that are designed and implemented to mitigate the risks, and identifying and addressing the areas or aspects that need to be improved or added . However, this technique is not the most helpful tool because it is reactive rather than proactive, and it may not identify or anticipate the new or emerging risk exposures that may result from the changes in the business environment . References =

1: Risk IT Framework, ISACA, 2009

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

3: SWOT Analysis - ISACA1

4: SWOT Analysis: What It Is and When to Use It2

5: Standard Operating Procedure - Wikipedia3

6: How to Write Effective Standard Operating Procedures (SOP)4

7: Benchmarking - Wikipedia5

8: Benchmarking: Definition, Types, Process, Advantages & Examples6

Control Gap Analysis - ISACA7

Control Gap Analysis: A Step-by-Step Guide8