CRISC Exam Dumps - Certified in Risk and Information Systems Control

Thepercentage of critical systemsrecovered within the definedRTOdirectly reflects the organization’s ability to meet its recovery goals. It is a leading measure of the DR program's success.

New regulatory requirements impacting IT are those that impose new obligations, restrictions, or standards on how an organization uses, manages, or secures its IT systems, data, or services1. Examples of such regulations include the GDPR, the CCPA, the HIPAA, or the PCI-DSS2. New regulatory requirements impacting IT can pose significant challenges and risks for an organization, such as:

Compliance costs and efforts, such as updating policies, procedures, and systems, training staff, or hiring experts

Noncompliance penalties and consequences, such as fines, lawsuits, sanctions, or reputational damages

Operational disruptions or inefficiencies, such as system changes, data migrations, or service interruptions

Competitive disadvantages or opportunities, such as losing or gaining customers, partners, or markets3

The first step that should be done when a company is made aware of new regulatory requirements impacting IT is to review the risk tolerance and appetite. Risk tolerance is the acceptable level of variation that an organization is willing to accept around its risk appetite. Risk appetite is the amount and type of risk that an organization is willing to take in order to meet its strategic objectives. By reviewing the risk tolerance and appetite, the company can:

Establish a clear and consistent understanding of the organization’s goals, values, and expectations regarding the new regulatory requirements impacting IT

Assess the current and potential impacts of the new regulatory requirements impacting IT on the organization’s performance, operations, or assets

Determine the level of risk exposure and acceptance that the organization is comfortable with, and identify the risk thresholds or limits that should not be exceeded

Align the risk management strategies and actions with the organization’s risk tolerance and appetite, and prioritize the most critical and urgent risks to be addressed

Communicate and report the risk tolerance and appetite to the stakeholders and regulators, and ensure transparency and accountability

References = Regulating emerging technology | Deloitte Insights, Ten Key Regulatory Challenges of 2024 - kpmg.com, The Risks of Non-Compliance with Data Protection Laws, [Risk Tolerance - COSO], [Risk Appetite - COSO], [Risk Appetite and Tolerance - IRM]

Risk avoidance involves ceasing activities that expose the organization to significant risks, such as shutting down the sales order system. This decision aligns withRisk Treatment Strategiesaimed at eliminating exposure.

Artificial intelligence (AI) solutions can offer significant benefits to an organization, such as improved efficiency, accuracy, and innovation. However, AI also poses new challenges and risks that need to be considered and addressed by senior management. Some of these risks include:

Ethical and social risks: AI solutions may have unintended or undesirable impacts on human values, rights, and behaviors, such as privacy, fairness, accountability, and transparency. For example, AI systems may exhibit bias, discrimination, or manipulation, or may infringe on personal data or autonomy.

Technical and operational risks: AI solutions may have vulnerabilities, errors, or failures that affect their performance, reliability, or security. For example, AI systems may be subject to hacking, tampering, or misuse, or may malfunction or produce inaccurate or harmful outcomes.

Legal and regulatory risks: AI solutions may have unclear or conflicting legal or regulatory implications or obligations, such as liability, compliance, or governance. For example, AI systems may raise questions about ownership, responsibility, or accountability, or may violate existing laws or regulations, or create new ones.

Therefore, a risk practitioner should communicate to senior management that AI potentially introduces new types of risk that need to be identified, assessed, and managed in alignment with the organization’s objectives, values, and risk appetite. References = ISACA CRISC Review Manual, 7th Edition, Chapter 3, Section 3.2.2, page 113.

When an organization restructures its business processes, the first step in revising the BCP is to identify new potentially disruptive scenarios that may affect the continuity of the critical functions and processes. This can be done by conducting a risk assessment or a business impact analysis (BIA) to determine the likelihood and impact of various threats and vulnerabilities onthe organization’s objectives and operations. By identifying new potentially disruptive scenarios, the organization can then update its recovery strategies, objectives, and plans accordingly.

Risk response options are the most important factor to determine as a result of a risk assessment, as they involve selecting the optimal strategy and actions to address the identified and assessed risks, and align them with the risk tolerance and appetite of the organization. Process ownership, risk appetite statement, and risk tolerance levels are not the most important factors, as they are more related to the governance, definition, or communication of the risk, respectively, rather than the response to the risk. References = CRISC Review Manual, 7th Edition, page 108.

When the cost of mitigating a risk exceeds the benefit,organizations may adjust their risk toleranceto accept a higher level of risk. Thus, financial feasibility influences how much risk the organization is willing to accept.

In the Three Lines Model, the first line (operational management) owns and manages risk through daily operations.

Per ISACA:

“Operational management, as the first line of defense, is responsible for maintaining effective internal controls and executing risk management processes.”

Oversight is the second line’s role; audits belong to the third line.

Hence, A is correct.

CRISC Reference: Domain 1 – IT Risk Governance, Topic: Three Lines of Defense Model.