CRISC Exam Dumps - Certified in Risk and Information Systems Control

 The most likely cause for a risk practitioner to reassess risk scenarios is a change in the regulatory environment. A regulatory environment is the set of laws, rules, and standards that apply to an organization and its activities, such as data privacy, security, compliance, or governance. A change in the regulatory environment can occur due to various factors, such as new legislation, court rulings, enforcement actions, or industry trends. A change in the regulatory environment can affect the risk scenarios that the organization faces, as it may introduce new or modified risks, or alter the probability or impact of existing risks. For example, a new regulation may require the organization to implement additional or different controls, or to report or disclose more information, which may increase the cost, complexity, or vulnerability of the organization’s processes and systems. A change in the regulatory environment may also affect the risk appetite, tolerance, and capacity of the organization, as it may impose different requirements or expectations for the organization’s risk management performance and outcomes. Therefore, a risk practitioner should reassess the risk scenarios when there is a change in the regulatory environment, to ensure that the risk scenarios are accurate, complete, and relevant, and that the risk response strategies and plans are appropriate, effective, and compliant. The other options are not the most likely cause, although they may be related or influential to the riskscenarios. A change in the risk management policy is a change in the rules and guidelines that define how the organization manages its risks, such as the roles and responsibilities, the processes and procedures, the tools and techniques, or the reporting and communication. A change in the risk management policy can affect the risk scenarios, as it may change the way the organization identifies, analyzes, evaluates, and responds to the risks, but it does not directly create or modify the risks themselves. A major security incident is an event or situation that compromises the confidentiality, integrity, or availability of the organization’s information or systems, such as a data breach, a denial-of-service attack, or a ransomware infection. A major security incident can affect the risk scenarios, as it may indicate or reveal the existence or severity of the risks, or trigger or escalate the consequences of the risks, but it is not a cause, rather it is an effect of the risks. An increase in intrusion attempts is an increase in the frequency or intensity of the unauthorized or malicious attempts to access or exploit the organization’s information or systems, such as phishing, malware, or brute-force attacks. An increase in intrusion attempts can affect the risk scenarios, as it may increase the likelihood or impact of the risks, or expose or exacerbate the vulnerabilities of the organization’s processes and systems, but it is not a cause, rather it is a manifestation of the risks. References = Risk Scenarios Toolkit -ISACA, How to Write Strong Risk Scenarios and Statements - ISACA, The Impact of Regulatory Change on Business - Deloitte

The first step for the risk practitioner to address the situation of extended network outages that have exceeded tolerance is to recommend a root cause analysis of the incidents. A root cause analysis is a process of identifying and resolving the underlying causes of a problem or an event. By performing a root cause analysis, the risk practitioner can determine why the network outages occurred, what factors contributed to them, and how they can be prevented or reduced in the future. Recommending additional controls, updating the risk tolerance level, and updating the incident-related risk trend are possible steps that may follow the root cause analysis, but they are not the first step. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 4; CRISC Review Manual, 6th Edition, page 153.

Data biasin machine learning algorithms can lead to inaccurate predictions or decisions, as biases in training data are amplified in the output. Addressing bias is essential for ethical and reliable algorithm performance.

ï‚· Understanding the Question:

The question asks what the most important update for keeping the risk register current is.

ï‚· Analyzing the Options:

A. Modifying organizational structures when lines of business merge:Reflects significant changes in the organization that impact risk profiles.

B. Adding new risk assessment results annually:Important but periodic.

C. Retiring risk scenarios that have been avoided:Necessary but not as impactful as major organizational changes.

D. Changing risk owners due to employee turnover:Important but secondary to major structural changes.

ï‚·

Organizational Changes:When lines of business merge, it can significantly alter the risk landscape, introducing new risks and changing the impact and likelihood of existing ones. Updating the risk register to reflect these changes is crucial for accurate risk management.

Impact on Risk Profiles:Mergers and acquisitions can affect every aspect of an organization, from operational processes to regulatory compliance, making it essential to update the risk register accordingly.

The most important information to review when developing plans for using emerging technologies is the organizational strategic plan. The organizational strategic plan is a document that defines the vision, mission, goals, and objectives of the organization. It also outlines the strategies, actions, and resources that are needed to achieve them. The organizational strategic plan provides the direction, alignment, and guidance for the use of emerging technologies, and ensures that they are aligned with and support the organizational needs and priorities. The other options are not as important as the organizational strategic plan, as they are related to the current state, specific area, or potential issues of the use of emerging technologies, not the overall purpose and value of the use of emerging technologies. References = Risk and InformationSystems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.2: IT Risk Identification Methods, page 19.

The percent of patches implemented within established timeframe is the best metric to demonstrate the effectiveness of an organization’s patch management process, as it measures how well the organization meets its patching objectives and reduces its exposure to vulnerabilities. This metric reflects the timeliness, completeness, and quality of the patching process, and can be compared against the organization’s patch management policy and standards. A high percent of patches implemented within established timeframe indicates that the organization has a mature and efficient patch management process that minimizes the risk of security breaches or operational disruptions due to unpatched systems.

The control environment is the set of internal and external factors and conditions that influence and shape the organization’s governance, risk management, and control functions. It includes the organization’s culture, values, ethics, structure, roles, responsibilities, policies, standards, etc.

Uncontrolled changes are changes or modifications to the control environment that are not planned, authorized, documented, or monitored, and that may have unintended or adverse consequences for the organization. Uncontrolled changes may be caused by various drivers or events, such as technological innovations, market trends, regulatory changes, customer preferences, competitor actions, environmental issues, etc.

The greatest concern when uncontrolled changes are made to the control environment is an increase in the level of residual risk, which is the amount and type of risk that remains after the implementation and execution of the risk responses or controls. An increase in the level of residual risk means that the risk responses or controls are not effective or sufficient to mitigate or prevent the risks, and that the organization may face unacceptable or intolerable consequences if the risks materialize.

An increase in the level of residual risk is the greatest concern when uncontrolled changes are made to the control environment, because it indicates that the organization’s risk profile and performance have deteriorated, and that the organization may not be able to achieve its objectives or protect its value. It also indicates that the organization’s risk appetite and tolerance have been violated, and that the organization may need to take corrective or compensating actions to restore the balance between risk and return.

The other options are not the greatest concerns when uncontrolled changes are made to the control environment, because they do not indicate the actual or potential impact or outcome of the risks, and they may not be relevant or actionable for the organization.

A decrease in control layering effectiveness means a decrease in the extent or degree to which the organization uses multiple or overlapping controls to address the same or related risks, and to provide redundancy or backup in case of failure or compromise of one or more controls. A decrease in control layering effectiveness may indicate a weakness or gap in the organization’s control design or implementation, but it does not indicate the actual or potential impact oroutcome of the risks, and it may not be relevant or actionable for the organization, unless the control layering is required or recommended by the organization’s policies or standards.

An increase in inherent risk means an increase in the amount and type of risk that exists in the absence of any risk responses or controls, and that is inherent to the nature or characteristics of the risk source, event, cause, or impact. An increase in inherent risk may indicate a change or variation in the organization’s risk exposure or level, but it does not indicate the actual or potential impact or outcome of the risks, and it may not be relevant or actionable for the organization, unless the inherent risk exceeds the organization’s risk appetite or tolerance.

An increase in control vulnerabilities means an increase in the number or severity of the weaknesses or flaws in the organization’s risk responses or controls that can be exploited or compromised by the threats or sources of harm that may affect the organization’s objectives or operations. An increase in control vulnerabilities may indicate a weakness or gap in the organization’s control design or implementation, but it does not indicate the actual or potential impact or outcome of the risks, and it may not be relevant or actionable for the organization, unless the control vulnerabilities are exploited or compromised by the threats or sources of harm. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 174

CRISC Practice Quiz and Exam Prep

Risk culture is the foundation upon which ERM is built. It dictates how employees perceive, communicate, and act on risk. A strong risk culture ensures consistency in risk behaviors, supports governance, and sustains long-term effectiveness of the ERM.