CRISC Exam Dumps - Certified in Risk and Information Systems Control

Effective risk communication best benefits an organization by helping personnel make better-informed decisions. Risk communication is the process of exchanging information and opinions among stakeholders about the nature, magnitude, significance, or control of a risk. By communicating risk information clearly and consistently, the organization can enhance the understanding and awareness of the risk, and enable the personnel to make decisions that are aligned with the risk appetite and objectives of the organization. Assisting the development of a risk register, improving the effectiveness of IT controls, and increasing participation in the risk assessment process are other possible benefits, but they are not as important as helping personnel make better-informed decisions. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

Risk management maturity level is the degree to which an organization has developed and implemented a systematic and proactive approach to managing the risks that it faces across its various functions, processes, and activities. Risk management maturity level reflects the organization’s risk culture and capability, and its alignment with its objectives and strategies1.

The best measurement of an organization’s risk management maturity level is the key risk indicators (KRIs), which are metrics or measures that provide information on the current or potential exposure and performance of the organization in relation to specific risks. KRIs can help to:

Monitor and track the changes or trends in the risk level and the risk response over time

Identify and alert the risk issues or events that require attention or action

Evaluate and report the effectiveness and efficiency of the risk management processes and practices

Support and inform the risk decision making and improvement23

KRIs can be classified into different types, such as:

Leading KRIs, which are forward-looking and predictive, and indicate the likelihood or probability of a risk event occurring in the future

Lagging KRIs, which are backward-looking and descriptive, and indicate the impact or consequence of a risk event that has already occurred

Quantitative KRIs, which are numerical or measurable, and indicate the magnitude or severity of a risk event or outcome

Qualitative KRIs, which are descriptive or subjective, and indicate the nature or characteristics of a risk event or outcome4

The other options are not the best measurements of an organization’s risk management maturity level, but rather some of the factors or outcomes of it. Level of residual risk is the level of risk that remains after the risk response has been implemented. Level of residual risk reflects the effectiveness and efficiency of the risk response, and the need for further action or monitoring. The results of a gap analysis are the differences between the current and the desired state of the risk management processes and practices. The results of a gap analysis reflect the completeness and coverage of the risk management activities, and the areas for improvement or enhancement. IT alignment to business objectives is the extent to which IT supports and enables the achievement of the organization’s goals and strategies. IT alignment to business objectives reflects the integration and coordination of the IT and business functions, and the optimization of the IT value and performance. References =

Risk Maturity Assessment Explained | Risk Maturity Model

Key Risk Indicators - ISACA

Key Risk Indicators: What They Are and How to Use Them

Key Risk Indicators: Types and Examples

[CRISC Review Manual, 7th Edition]

The best way to provide assurance of the effectiveness of vendor security controls is to require independent control assessments. Independent control assessments are evaluations of thevendor’s security controls by a third-party auditor or assessor, such as an external auditor, a certification body, or a testing laboratory. Independent control assessments provide an objective and unbiased opinion on the adequacy and performance of the vendor’s security controls, as well as the compliance with relevant standards and regulations. Independent control assessments can also provide evidence and assurance to the customers of the vendor’s security posture and capabilities. Reviewing vendor control self-assessments (CSA), vendor service level agreement(SLA) metrics, or vendor references from existing customers are not as reliable or credible as independent control assessments, because they may be biased, incomplete, or outdated.

Managing cyber risk according to the organization’s risk management framework is the best recommendation to help ensure cyber risk is assessed and reflected in the enterprise-level risk profile, as it helps to integrate and align the cybersecurity risk management (CSRM) and the enterprise risk management (ERM) processes. A risk management framework is a set of principles, policies, and practices that guide and support the risk management activities within an organization. A risk management framework helps to establish a consistent, comprehensive, and coordinated approach to risk management across the organization and to the external stakeholders.

Managing cyber risk according to the organization’s risk management framework helps to ensure cyber risk is assessed and reflected in the enterprise-level risk profile by providing the following benefits:

It enables a holistic and comprehensive view of the cyber risk landscape and its interdependencies with the business processes and functions.

It facilitates the communication and collaboration among the business and IT stakeholders and enhances their understanding and awareness of the cyber risk exposure and control environment.

It supports the development and implementation of effective and efficient cyber risk response and mitigation strategies and actions that are aligned with the business risk appetite and objectives.

It provides feedback and learning opportunities for the cyber risk management and control processes and helps to foster a culture of continuous improvement and innovation.

The other options are not the best recommendations to help ensure cyber risk is assessed and reflected in the enterprise-level risk profile. Defining cyber roles and responsibilities across the organization is a good practice to clarify and assign the duties and accountabilities for the cyber risk management and control processes, but it does not directly address the cyber risk assessment and integration with the enterprise-level risk profile. Conducting cyber risk awareness training tailored specifically for senior management is a useful method to educate and engage the senior management in the cyber risk management and control processes, but it does not provide asystematic or consistent way to assess and reflect the cyber risk in the enterprise-level risk profile. Implementing a cyber risk program based on industry best practices is a possible action to improve and enhance the cyber risk management and control processes, but it does not ensure the alignment or integration with the organization’s risk management framework or the enterprise-level risk profile. References = Integrating Cybersecurity and Enterprise Risk Management (ERM) - NIST, IT Risk Resources | ISACA, Identifying and Estimating Cybersecurity Risk for Enterprise Risk …

Periodically reviewing big data strategies is the best option to minimize the risk of inaccurate data, because it allows the organization to assess the quality, validity, and reliability of the data sources and the analytics methods. It also enables the organization to identify and address any gaps, errors, or inconsistencies in the data and the results. By reviewing the big data strategies, the organization can ensure that the data analytics are aligned with the business objectives and the risk appetite.

Establishing an intellectual property agreement is not relevant to the risk of inaccurate data, as it is a legal measure to protect the ownership and use of the data, not its quality or accuracy.

Evaluating each of the data sources for vulnerabilities is a good practice, but it is not sufficient to minimize the risk of inaccurate data, as it only focuses on the security aspect of the data, not the validity or reliability of the data itself.

Benchmarking to industry best practice is a useful way to compare the performance and results of the data analytics, but it does not directly address the risk of inaccurate data, as it assumes that the data and the methods are already valid and reliable. References = Risk IT Framework, 2nd Edition, ISACA, 2019, page 62-63.

Key risk indicators (KRIs) are metrics or measures that provide information on the current or potential exposure and performance of an organization in relation to specific risks. KRIs can help to monitor and track the changes or trends in the risk level and the risk response over time, identify and alert the risk issues or events that require attention or action, evaluate and report the effectiveness and efficiency of the risk management processes and practices, and support and inform the risk decision making and improvement1.

The best way to enable the identification of trends in risk levels is to ensure that the correlation between risk levels and KRIs is positive, because it means that the KRIs are aligned with andreflective of the risk levels, and that they can capture and indicate the variations or movements in the risk levels accurately and reliably. A positive correlation between risk levels and KRIs can be achieved by:

Selecting and defining the KRIs that are relevant and appropriate for the specific risks that the organization faces, and that are consistent and comparable across different domains and contexts

Collecting and analyzing the data and information that are reliable and sufficient for the KRIs, and that are sourced from various methods and sources, such as risk assessments, audits, monitoring, alerts, or incidents

Applying and using the tools and techniques that are suitable and feasible for the KRIs, such as risk matrices, risk registers, risk indicators, or risk models

Reviewing and updating the KRIs periodically or as needed, and ensuring that they reflect the current or accurate risk levels, which may change over time or due to external factors23

The other options are not the best ways to enable the identification of trends in risk levels, but rather some of the factors or aspects of KRIs. Measurements for KRIs are repeatable is a factor that can enhance the reliability and validity of the KRIs, as it means that the KRIs can produce the same or similar results under the same or similar conditions. However, repeatability does not necessarily imply accuracy or sensitivity, and it may not capture or reflect the changes or trends in the risk levels. Quantitative measurements are used for KRIs is an aspect that can improve the objectivity and precision of the KRIs, as it means that the KRIs are expressed in numerical or measurable values, such as percentages, probabilities, or monetary amounts. However, quantitative measurements may not be suitable or feasible for all types of risks or KRIs, and they may not capture or reflect the complexity or uncertainty of the risk levels. Qualitative definitions for KRIs are used is an aspect that can enhance the understanding and communication of the KRIs, as it means that the KRIs are expressed in descriptive or subjective terms, such as high, medium, or low, based on criteria such as likelihood, impact, or severity. However, qualitative definitions may not be consistent or comparable across different risks or KRIs, and they may not capture or reflect the magnitude or variation of the risk levels. References =

Key Risk Indicators: What They Are and How to Use Them

Key Risk Indicators: A Practical Guide | SafetyCulture

Key Risk Indicators: Types and Examples

[CRISC Review Manual, 7th Edition]

Administrative controls are the best controls to be strengthened by a clear organizational code of ethics, because they are the policies, procedures, standards, and guidelines that define the expected behavior and conduct of the employees and management. A code of ethics is an example of an administrative control that sets the ethical principles and values of the organization and helps to prevent or deter unethical or illegal actions. The other options are not the best controls to be strengthened by a clear organizational code of ethics, because they are not directly related to the ethical culture or governance of the organization. Detective controls are the controls that monitor and report the occurrence of unwanted events or incidents. Technical controls are the controls that use hardware, software, or network devices to protect the information systems and data. Preventive controls are the controls that prevent or avoid the occurrence of unwanted events or incidents. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers

 A benchmark analysis is a process of comparing the organization’s performance, practices, and processes with those of other organizations in the same industry or sector. A benchmark analysis can provide the most useful information when determining the frequency of risk assessments, because it can help the organization to identify the best practices, standards, and expectations for security risk management in its industry. A benchmark analysis can also help the organization to assess its current level of maturity, capability, and compliance in relation to security risk management, and to determine the gaps and areas for improvement. By conducting a benchmark analysis, the organization can establish a realistic and appropriate frequency of risk assessments that aligns with its industry norms and its own risk profile. The other options are not as useful as a benchmark analysis, because they do not provide a comprehensive and relevant view of the security risk management landscape, but rather focus on specific or partial aspects of the organization’s situation. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, page 18.