CRISC Exam Dumps - Certified in Risk and Information Systems Control

A project sponsor is the person or group who provides the financial, political, or organizational support for a project, and who has the authority to approve or reject the project’s objectives, scope, budget, schedule, and deliverables.

The primary recipient of reports showing the progress of a current IT risk mitigation project should be the project sponsor, because they are ultimately responsible for the success or failure of the project, and they need to be informed of the project’s status, issues, risks, and achievements on a regular basis.

The other options are not the primary recipients of reports showing the progress of a current IT risk mitigation project. They are either secondary or not essential for project reporting.

The references for this answer are:

Risk IT Framework, page 21

Information Technology & Security, page 15

Risk Scenarios Starter Pack, page 13

The best way to mitigate the risk of customer identity theft is to implement layered security. Layered security is a defense-in-depth approach that applies multiple and diverse security controls at different levels and stages of the information system and the data lifecycle. Layered security can include physical, technical, and administrative controls, such as locks, firewalls, encryption, authentication, authorization, backup, audit, and policy. Layered security can help to protect the customer data and identity from unauthorized access, use, modification, disclosure, or destruction, by creating multiple barriers and deterrents for potential attackers, and by reducing the impact and likelihood of a successful breach. Layered security can also help to comply with the legal and regulatory requirements and standards for data privacy and protection, such as the Gramm-Leach-Bliley Act (GLBA), the Fair Credit Reporting Act (FCRA), and the Payment Card Industry Data Security Standard (PCI DSS)123.The other options are not the best way to mitigate the risk of customer identity theft, although they may be useful or complementary to layered security. Implementing monitoring techniques is a part of the layered security approach, but it is not sufficient, as it mainly focuses on detecting and responding to the incidents, rather than preventing or deterring them. Outsourcing to a local processor is a business decision that may or may not improve the security of the customer data and identity, depending on the quality and reliability of the service provider, and the terms and conditions of the outsourcing contract. Conducting an awareness campaign is a good practice that can help to educate and inform the customers and the employees about the common types, methods, and indicators of identity theft, and the best practices and precautions to prevent or report it, but it does not directly apply or enforce any security controls to the information system or the data.

 Emerging risk is a risk that is new or evolving, and has the potential to significantly affect the enterprise’s objectives, performance, or reputation. Emerging risk can arise from changes in the internal or external environment, such as technological innovations, regulatory developments, or social trends. The best way to support communication of emerging risk is to include it on the next enterprise risk committee agenda. The enterprise risk committee is a group of senior executives who oversee the enterprise-wide risk management program, and provide guidance and direction to the risk owners and practitioners. By including the emerging risk on the agenda, the risk practitioner can ensure that the enterprise risk committee is aware of the risk, its causes, impacts, and likelihood, and can decide on the appropriate risk response strategy and actions. The other options are not the best way to support communication of emerging risk, as they involve different aspects of the risk management process:

Update residual risk levels to reflect the expected risk impact means that the risk practitioner adjusts the risk levels after considering the existing or planned risk responses. This may not be feasible or accurate for emerging risk, as the risk responses may not be defined or implemented yet, or may not be effective for the new or evolving risk.

Adjust inherent risk levels upward means that the risk practitioner increases the risk levels before considering any risk responses. This may not reflect the true nature or magnitude of the emerging risk, as the inherent risk levels are based on the assumptions and estimates of the risk practitioner, and may not account for the uncertainties or complexities of the emerging risk.

Include it in the risk register for ongoing monitoring means that the risk practitioner records and tracks the emerging risk, its causes, impacts, likelihood, responses, and owners. This is an important step in the risk management process, but it does not necessarily support communication ofthe emerging risk, as the risk register may not be accessible or visible to all the relevant stakeholders, or may not be updated or reviewed frequently enough to capture the changes in the emerging risk. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.2.2, pp. 21-22.

Key risk indicators (KRIs) are metrics that provide information on the level of exposure to a given operational risk1. KRIs have upper and lower acceptable risk limits (warning thresholds) that trigger actions when exceeded2. These thresholds are based on the organization’s risk appetite or tolerance, which is the amount and type of risk that the organization is willing to accept in pursuit of its objectives3. Therefore, changes in risk appetite or tolerance would prompt changes in KRI thresholds, as the organization would need to adjust its risk monitoring and response accordingly. The other options are not the primary factors that would prompt changes in KRI thresholds, although they may have some influence on the risk management process. References = Risk IT Framework; IT Risk Resources; ISACA Risk Starter Kit; Key Risk Indicators; Key Risk Indicators: A Practical Guide

The risk owner is primarily accountable for risk treatment decisions, as they are the person or entity with the authority and responsibility to manage a particular risk. The risk owner shouldevaluate the available risk response options, select the most appropriate one, implement the chosen response, and monitor its effectiveness. The risk owner should also communicate and report on the risk status and any issues or changes. The business manager, data owner, and risk manager are not primarily accountable for risk treatment decisions, although they may be involved in the risk management process. The business manager is responsible for the overall performance and objectives of a business unit or function. The data owner is responsible for the security and quality of a specific data asset. The risk manager is responsible for facilitating and coordinating the risk management activities across the organization. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Identification, page 47.

Risk aggregation in a complex organization will be MOST successful when using the same scales in assessing risk, because it can help to ensure the consistency and comparability of the risk assessment results across different units, levels, and domains of the organization. Using the same scales in assessing risk can also help to avoid the potential errors or biases that may arise from using different scales, such as overestimating or underestimating the risk exposure, or misaligning the risk appetite and tolerance. The other options are not as important as using the same scales in assessing risk, because:

Option B: Utilizing industry benchmarks is a good way to improve the quality and validity of the risk assessment results, but it does not ensure the success of the risk aggregation, which is the process of combining and consolidating the risk assessment results into a holistic and comprehensive view of the risk profile and exposure of the organization.

Option C: Using reliable qualitative data for risk items is a useful way to capture and describe the risk items, which are the sources and causes of the risks, but it does not ensure the success of the risk aggregation, which is the process of quantifying and measuring the risk items, and their likelihood and impact on the business objectives and processes.

Option D: Including primarily low-level risk factors is a necessary way to identify and assess the risk factors, which are the characteristics and attributes of the risks, but it does not ensure the success of the risk aggregation, which is the process of prioritizing and ranking the risk factors, and their significance and relevance to the organization’s strategy and goals. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 105.

The best way to test the operational effectiveness of a data backup procedure is to perform a complete restoration of every file to a clean system and verify that there has not been any data corruption or loss. This will ensure that the backup procedure can successfully recover the data in the event of a disaster or incident. The other options are not sufficient to test the operational effectiveness of a data backup procedure, as they do not involve actually restoring the data and verifying its integrity and usability. References = How to review and test backup procedures to ensure data restoration; HOW TO TEST DATA BACKUPS: A BRIEF GUIDE; How to Test a Database Backup

 The most likely effect on the associated risk when the effectiveness of a control has decreased is that the residual risk changes. Residual risk is the risk that remains after the implementation of risk responses or controls. If the control becomes less effective, the residual risk will increase, as the risk exposure and impact will be higher than expected. The risk impact, the risk classification, and the inherent risk are not likely to change when the effectiveness of a control has decreased, as they are more related to the nature and characteristics of the risk, rather than the control performance. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.1.4, page 541

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 652.