CRISC Exam Dumps - Certified in Risk and Information Systems Control

The primary objective of collecting information and reviewing documentation when performing periodic risk analysis is to identify new or emerging risk issues that may affect the enterprise’s objectives, processes, or resources. This helps to update the risk profile and prioritize the risk responses accordingly. Satisfying audit requirements, surveying and analyzing historical risk data, and understanding internal and external threat agents are secondary objectives that support the primary objective of risk identification. References = Risk IT Framework, 2nd Edition, page 22; CRISC Review Manual, 6th Edition, page 64.

The first thing that should be done from a governance perspective to secure the information assets of a newly incorporated enterprise is to establish an inventory of information assets. An inventory of information assets is a document that lists and categorizes all the information assets that the organization owns, uses, or manages, such as data, documents, systems, applications, and devices. An inventory of information assets helps to identify and classify the information assets based on their value, sensitivity, and criticality, and to determine the appropriate level of protection and control for each asset. An inventory of information assets also helps to support the development and implementation of other information security activities, such as risk assessment, policy formulation, awareness training, and incident response. The other options are not the first thing that should be done, although they may be important steps or components of the information security governance. Defining information retention requirements and policies, providing information security awareness training, and establishing security management processes and procedures are all activities that can help to secure the information assets, but theyrequire the prior knowledge and understanding of the information assets. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.1.1, page 3-3.

The three lines of defense model is a framework that describes the roles and responsibilities of different stakeholders in the risk management and internal control processes of an organization. The three lines of defense are:

The first line of defense: the operational management and staff who are responsible for identifying, assessing, and responding to the risks, as well as implementing and maintaining the controls within their areas of activity.

The second line of defense: the risk management, compliance, and security functions who are responsible for establishing the risk policies and standards, providing guidance and support, monitoring and reporting on the risk performance and compliance, and facilitating the risk management and internal control processes across the organization.

The third line of defense: the internal audit function who is responsible for providing independent and objective assurance on the effectiveness and efficiency of the risk management and internal control processes, as well as recommending improvements and best practices. The stakeholders who are typically included as part of a line of defense within the three lines of defense model are the legal team, who belong to the second line of defense. The legal team is responsible for ensuring that the organization complies with the relevant laws and regulations, aswell as for advising and assisting the organization on the legal aspects and implications of the risk management and internal control processes. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.4.1, p. 32-33

 The best course of action for the risk practitioner who has identified that the agreed RTO with a SaaS provider is longer than the business expectation is to document the gap in the risk register and report to senior management. The risk register is the document that records the details of all identified risks, including their sources, causes, impacts, likelihood, and responses. The risk register should be updated regularly to reflect any changes in the risk environment or the risk status. Reporting to senior management is also important, because senior management is the highest level of authority and responsibility in the organization, and they are responsible for setting the strategic direction, objectives, and risk appetite of the organization. Senior management should also oversee the risk management process, and ensure that the risks are aligned with the organization’s goals and values. By documenting the gap in the risk register and reporting to senior management, the risk practitioner can communicate the issue clearly and effectively, and seek guidance and support for resolving the problem. Collaborating with the risk owner, including a right to audit clause, or advising the risk owner to accept the risk are not the best courses of action, because they may not be feasible, effective, or desirable in some situations, or they may require senior management approval or involvement. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

The risk practitioner’s most important action related to the decision to commit to a business activity with the knowledge that the risk exposure is higher than the risk appetite is to document formal acceptance of the risk. Formal acceptance of the risk means that the organization acknowledges and agrees to bear the risk and its potential consequences. Formal acceptance of the risk should be documented and approved by the appropriate authority level, such as senior management or the board of directors. Formal acceptance of the risk should also include the rationale, assumptions, and conditions for accepting the risk, as well as the monitoring and reporting mechanisms for the risk. Formal acceptance of the risk provides evidence and accountability for the risk management decision and helps to avoid disputes or misunderstandings in the future. The other options are not as important as documenting formal acceptance of the risk, as they are related to the alternatives, adjustments, or rejections of the risk, not the actual acceptance of the risk. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.2: IT Risk Response Options, page 133.

The conditional approval of the CIO’s proposal indicates the organization’s risk appetite. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. By setting a limit for expenditures before final approval, senior management is expressing their willingness to take a calculated risk with the new technology, but also their desire to control the potential loss or harm. Risk capacity, management capability, and treatment strategy are other possible factors, but they are not as relevant as risk appetite. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97

Robotic process automation (RPA) is the use of software robots or artificial intelligence (AI) agents to automate repetitive, rule-based tasks that are normally performed by humans. RPA can improve efficiency, accuracy, and scalability of business processes, but it can also introduce new risks or change the existing risk profile. Therefore, the risk practitioner’s best course of action is to reassess whether the mitigating controls that were designed for the human-performed processes are still effective and adequate for the RPA-enabled processes. This may involve reviewing the control objectives, testing the control performance, identifying the control gaps, and recommending the control enhancements or modifications. References = CRISC Review Manual, 7th Edition, page 177.

The most helpful input to develop risk scenarios associated with hosting an organization’s key IT applications in a cloud environment is conducting a risk workshop with key stakeholders. A risk workshop is a facilitated session that involves brainstorming, discussing, and analyzing the potential risks and opportunities related to a specific topic or project. A risk workshop helps to identify and prioritize the most relevant and significant risk scenarios, as well as to explore the possible causes, impacts, and responses. A risk workshop also helps to engage and align the key stakeholders, such as the business owners, IT managers, cloud providers, and risk experts, and to leverage their knowledge, experience, and perspectives. The other options are not as helpful as conducting a risk workshop, although they may provide some inputor information for the risk scenario development. Reviewing the results of independent audits, performing a site visit to the cloud provider’s data center, and performing a due diligence review are all activities that can help to assess the current state and performance of the cloud environment, but they do not necessarily generate or evaluate the risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.