CRISC Exam Dumps - Certified in Risk and Information Systems Control

IT capacity is the ability of an IT system or network to handle the current and future workload and performance demands. IT capacity can be affected by various factors, such as the numberand type of users, applications, devices, data, transactions, etc. IT capacity management is the process of planning, monitoring, and optimizing the IT resources to ensure that they meet the business needs and objectives. IT capacity management can help prevent issues such as system slowdowns, outages, errors, or failures, and improve the efficiency, reliability, and security of the IT system or network. One of the IT key risk indicators (KRIs) that provides management with the best feedback on IT capacity is the trends in IT resource usage. IT resource usage is the measure of how much of the IT resources, such as CPU, memory, disk, bandwidth, etc., are being consumed by the IT system or network. Trends in IT resource usage can help monitor and analyze the changes in the IT capacity over time, and identify the patterns, peaks, and bottlenecks in the IT resource consumption. Trends in IT resource usage can also help forecast the future IT capacity requirements, and plan for the appropriate IT resource allocation, optimization, or expansion. Trends in IT resource usage can provide management with valuable information on the current and potential IT capacity risks, and support the decision making and risk response for IT capacity management. References = Integrating KRIs and KPIs for Effective Technology Risk Management, p. 3-4.

 The global organization has adopted risk acceptance as the risk response with regard to privacy requirements, as it has decided to continue with the implementation of the application that does not address all privacy requirements across multiple jurisdictions, and bear the potential consequences of noncompliance. Risk avoidance, risk transfer, and risk mitigation are not the risk responses adopted by the organization, as they would involve avoiding, sharing, or reducing the risk of noncompliance with privacy requirements, respectively. References = CRISC Review Manual, 7th Edition, page 111.

ï‚· Risk Appetite:

Risk appetite is the amount and type of risk that an organization is willing to take in order to meet its objectives. It reflects the organization’s risk tolerance and guides decision-making at all levels.

ï‚· Impact of Market Changes:

A change in the market situation can alter the risk landscape, potentially affecting the organization’s ability to achieve its objectives. This might necessitate a reassessment of what level of risk is acceptable.

Senior management needs to ensure that the risk appetite remains aligned with the new market conditions and organizational goals.

ï‚· Reevaluation Process:

Reevaluating the risk appetite involves assessing the organization's capacity to bear risk and determining if the current acceptable risk levels are still appropriate.

This might involve more conservative or aggressive risk-taking strategies based on the new market dynamics.

ï‚· Other Considerations:

Risk Classification:This categorizes risks but does not directly address changes in acceptable risk levels.

Risk Policy:While important, the policy outlines the approach to managing risk and is influenced by the risk appetite.

Risk Strategy:This defines how risks are managed but should be aligned with the risk appetite.

ï‚· References:

The CRISC Review Manual emphasizes the importance of aligning risk appetite with the organization’s strategic objectives and market conditions (CRISC Review Manual, Chapter 1: Governance, Section 1.10 Risk Appetite, Tolerance, and Capacity) .

The business unit owner is accountable for authorizing application access in a SaaS environment because they are responsible for aligning access controls with business needs. They determine the roles and permissions needed to ensure operational effectiveness while adhering to the principle ofAccess Managementin the CRISC framework.

ï‚· Enterprise Risk Management (ERM):

ERM involves a comprehensive approach to identifying, assessing, managing, and monitoring risks across an organization. Effective governance of organizational assets is a key component.

ï‚· Importance of a Risk Profile:

Developing a detailed risk profile is the first step in supporting ERM implementation. It provides a clear understanding of the organization's risk landscape, including the types of risks, their potential impact, and likelihood.

A risk profile helps in prioritizing risks, allocating resources, and establishing appropriate risk management strategies.

ï‚· Steps to Develop a Risk Profile:

Identify all organizational assets and their importance to business operations.

Assess the vulnerabilities and threats associated with each asset.

Determine the potential impact and likelihood of risk events.

Document the findings to create a comprehensive risk profile.

ï‚· Supporting Implementation:

A detailed risk profile informs decision-makers and supports the development of policies, controls, and procedures to mitigate identified risks.

It serves as a foundation for continuous monitoring and improvement of the risk management program.

ï‚· Other Options:

Hiring experienced resources, scheduling internal audits, and conducting risk assessments are essential actions but come after establishing a detailed risk profile. The risk profile provides the necessary information to guide these activities effectively.

ï‚· References:

The CRISC Review Manual emphasizes the importance of developing a detailed risk profile as a foundational step in the ERM process (CRISC Review Manual, Chapter 1: Governance, Section 1.6.5 Asset Valuation)​​.

A risk awareness program is a set of activities and communication methods that aim to increase the understanding and knowledge of risk among the stakeholders of an organization. The primary objective of a risk awareness program is to enhance the organizational risk culture, which is the shared values, beliefs, and attitudes that influence how risk is perceived and managed in the organization. A risk awareness program can help to promote a risk-aware culture by:

•Educating stakeholders on the concepts and benefits of risk management

•Aligning risk management with the organization’s vision, mission, and objectives

•Encouraging stakeholder participation and collaboration in risk management processes

•Fostering a positive attitude towards risk taking and learning from failures

•Reinforcing risk management roles and responsibilities

•Recognizing and rewarding good risk management practices