CRISC Exam Dumps - Certified in Risk and Information Systems Control

A standardized risk taxonomy is a common language and structure for identifying, analyzing, and reporting risks across the enterprise. It enables consistent and comparable risk assessment and aggregation, as well as clear communication and coordination among different divisions. A list of control deficiencies, an enterprise risk ownership policy, and an updated risk tolerance metric are not sufficient to enable management of risk at the enterprise level, as they do not address the issue of risk alignment and integration among divisions. References = [CRISC Review Manual (Digital Version)], page 42; CRISC by Isaca Actual Free Exam Q & As, question 197.

The observation that would be of GREATEST concern to a risk practitioner reviewing the implementation status of management action plans is that management has not begun the implementation, because it indicates that the management action plans are not being executed or monitored, and that the risks are not being addressed or mitigated. The lack of implementation may also imply that the management action plans are not realistic, feasible, or aligned with the enterprise’s strategy and objectives. The other options are not as concerning as the lack of implementation, because:

Option A: Management has not determined a final implementation date is a concern, but not the greatest one, because it may affect the timely completion and delivery of the management action plans, but it does not necessarily mean that the management action plans are not being executed or monitored.

Option B: Management has not completed an early mitigation milestone is a concern, but not the greatest one, because it may indicate a delay or deviation in the progress and performance of the management action plans, but it does not necessarily mean that the management action plans are not being executed or monitored.

Option C: Management has not secured resources for mitigation activities is a concern, but not the greatest one, because it may affect the quality and effectiveness of the management actionplans, but it does not necessarily mean that the management action plans are not being executed or monitored. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 123.

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.

A risk heat map is a graphical tool that displays the overall risk of the project to senior management by showing the probability and impact of individual risks in a matrix format. A risk heat map can help to prioritize the risks, communicate the risk exposure, and monitor the risk response. A risk heat map can also show the risk appetite and tolerance levels of the organization, as well as the residual risk after the risk response. The other options are not the most effective ways to represent the overall risk of the project to senior management, although they may be useful or complementary to the risk heat map. Aggregated key performance indicators (KPIs) are metrics that measure the performance of the project against the objectives, but they do not show the uncertainty or variability of the project outcomes. Key risk indicators (KRIs) are metrics that measure the level of risk or the effectiveness of the risk response, but they do not show the relationship between the probability and impact of the risks. A centralizedrisk register is a document that records the details of the individual risks, such as the description, category, cause, effect, probability, impact, response, and status, but it does not show the overall risk of the project in a visual or concise way. References = Managing overall project risk, Project Risk Management – Quick Reference Guide, 10 Common Project Risks (Plus the Steps To Solve Them), What Is Project Risk Management: Benefits, Challenges, Best Practices

To ensure that new IT policies address the enterprise’s requirements, it is important to involve the business owners who are the primary stakeholders of the IT services and processes. Business owners can provide valuable input on the business objectives, risks, and expectations that the IT policies should align with and support. By involving business owners in the policy development process, the IT policies will be more relevant, realistic, and acceptable to the business units. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.

The correct answer isAbecause when thecost to mitigate a risk exceeds the financial impactif the risk occurs, the most appropriate recommendation is tomanage the risk within risk tolerance, which in practice means accept the risk if it is within acceptable thresholds. CRISC emphasizes cost-benefit analysis and avoiding controls whose cost is not justified by the benefit.

The other options are less appropriate:

B. Implement the risk mitigation planwould not be justified if mitigation costs more than the expected loss.

C. Reassess the risk frequentlymay be useful, but it is not the primary recommendation.

D. Increase the organization ' s risk appetiteis a governance decision and should not be adjusted merely to justify a single uneconomical mitigation.

Exact Extracts supporting the answer:

“When the cost to mitigate the risk is much greater than the benefit to be derived the best risk response is that the risk be accepted.”

“The cost of mitigating a risk should not exceed the expected benefit to be derived.”

“The BEST reason for an enterprise to decide not to reduce an identified risk is that the cost of mitigation exceeds the risk.”

“A global financial institution deciding not to take further action on a denial-of-service vulnerability found by the risk assessment team is most likely because the cost of countermeasure outweighs the value of the asset and potential loss.”

These extracts directly support accepting or managing the risk within tolerance rather than implementing unjustified mitigation.

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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.

Automated code reviews are most effective when integrated throughout the development lifecycle. Continuous reviews allow early detection and remediation of vulnerabilities, preventing security issues from propagating into later stages such as testing or production. Performing code reviews only at the end or once in production is less effective as vulnerabilities may already be embedded. The proactive approach in development reduces risk significantly