CRISC Exam Dumps - Certified in Risk and Information Systems Control

IT assets are the resources that support the organization’s business processes and objectives, such as hardware, software, data, and information. IT assets are the primary targets of IT risk, as they may be exposed to threats, vulnerabilities, and control deficiencies that could compromise their confidentiality, integrity, availability, or value. Therefore, identifying and classifying IT assets is the first step in developing relevant IT risk scenarios, as it helps to determine the scope, boundaries, and dependencies of the IT risk environment.

The other options are not the first things to review for identifying IT risk scenarios. Technology threats (A) are the potential sources of harm or damage to IT assets, such as natural disasters, cyberattacks, human errors, or sabotage. Technology threats are important to consider, but they are not the starting point for IT risk scenarios, as they depend on the context and characteristics of the IT assets. Security vulnerabilities © are the weaknesses or flaws in IT assets or controls that could be exploited by threats, such as outdated software, misconfigured systems, or insufficient encryption. Security vulnerabilities are also important to identify, but they are not the first thing to review, as they are specific to the IT assets and their configurations. IT risk register (D) is a document that records and tracks the identified IT risks, their analysis, evaluation, and response. IT risk register is a result of the IT risk assessment process, not an input to it.

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.

Determining Controls:

Acceptable Risk Level: The level of acceptable risk to the organization is the most important consideration because it directly influences the type and extent of controls implemented. Controls must be designed to keep risk within acceptable levels.

Risk Management Strategy: Aligning controls with the organization's risk appetite ensures that resources are used effectively and that critical information systems are adequately protected.

Comparison with Other Options:

Number of Threats: Important for understanding risk exposure but secondary to determining acceptable risk levels.

Available Budget: Budget constraints are important but should not compromise the implementation of necessary controls.

Number of Vulnerabilities: Identifying vulnerabilities is part of the risk assessment process, but controls are prioritized based on the acceptable risk level.

Best Practices:

Risk Assessment: Conduct thorough risk assessments to understand the potential impact of threats and vulnerabilities.

Control Effectiveness: Implement controls that are both cost-effective and capable of reducing risk to acceptable levels.

Continuous Monitoring: Regularly monitor and review controls to ensure they remain effective and aligned with the organization's risk tolerance.

The risk owner is the person who should be accountable for any related losses to the organization, because they are the person who has the authority and responsibility to manage the risk and its associated controls.The risk owner is also the person who accepts the risk and its residual level, and who monitors and reports on the risk status and performance. The IT risk manager, the server administrator, and the risk practitioner are all involved in the risk management process, but they are not the person who should be accountable for the risk and its outcomes, as they do not have the ultimate decision-making power and accountability for therisk. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.1.1, page 79

The most important information for the risk practitioner to communicate to senior management for contract negotiation purposes when the organization wants to transfer risk by purchasing cyber insurance is the current annualized loss expectancy report, as it provides an estimate of the potential financial loss or impact that theorganization may incur due to a cyber risk event in a given year, and helps to determine the optimal coverage and premium of the cyber insurance. The other options are not the most important information, as they are more related to the audit, asset, or industry aspects of the cyber risk, respectively, rather than the financial aspect of the cyber risk. References = CRISC Review Manual, 7th Edition, page 111.

ï‚· Understanding Reputational Risk:

Reputational risk arises from negative public perception, which can be fueled by disinformation campaigns. These campaigns spread false or misleading information about an organization, potentially damaging its reputation.

ï‚· Mitigating Reputational Risk:

The best way to mitigate this risk is to actively counteract false information and restore public trust. This involves debunking false stories and correcting misinformation promptly and effectively.

ï‚· Role of Public Relations:

Engaging public relations (PR) personnel is crucial in managing the organization's reputation. PR professionals are skilled in crafting messages, dealing with media, and using communication strategies to address and correct false narratives.

PR personnel can issue press releases, organize press conferences, and leverage social media to reach a wide audience, ensuring the correct information is disseminated.

ï‚· Monitoring and Awareness Training:

While monitoring digital platforms and providing awareness training are important, they are more preventive measures. Monitoring helps in early detection, and training aids in internalmanagement of such risks. However, they do not actively counteract the false information once it is in the public domain.

ï‚· Restricting Social Media:

Restricting social media usage on corporate networks does not address the core issue of disinformation campaigns. It may reduce internal risks but does not mitigate external reputational damage.

ï‚· References:

The CRISC Review Manual discusses strategies for managing reputational risk and highlights the importance of proactive communication and public relations efforts (CRISC Review Manual, Chapter 1: Governance, Section 1.3.4 The Value of Risk Communication)​​.

Local laws and regulations should be the primary consideration when assessing the risk of using IoT devices to collect and process PII, because they define the legal obligations and liabilities of the organization and the individuals involved. Non-compliance with local laws and regulations can result in fines, lawsuits, reputational damage, and loss of trust. Therefore, it is essential to understand and adhere to the applicable laws and regulations in the jurisdictions where the IoT devices operate and where the PII is stored, processed, and transferred.

References

•Considerations for Managing Internet of Things (IoT) Cybersecurity and Privacy Risks

•The Internet of Things (IoT) and Digitally Stored PII: Avoidable or Inevitable?

•Security Issues in IoT: Challenges and Countermeasures