CRISC Exam Dumps - Certified in Risk and Information Systems Control

The best option to protect against a future recurrence of unauthorized access by a service provider’s administrator is D. Contractual requirements. Data encryption, intrusion prevention system, and two-factor authentication are all technical measures that can enhance the security of the data stored in the Infrastructure as a Service (IaaS) model, but they do not prevent the service provider’s administrator from accessing the data if they have the necessary credentials, keys, or permissions. Contractual requirements, on the other hand, are legal obligations that bind the service provider to respect the customer’s privacy and confidentiality, and to limit the access tothe data to only authorized and necessary personnel. Contractual requirements can also specify the penalties or remedies for any breach of contract, which can deter the service provider’s administrator from violating the terms of the agreement. Therefore, contractual requirements are the most effective way to protect against a future recurrence of unauthorized access by a service provider’s administrator12

1: What is Data Encryption? | Forcepoint 2: The elements of a contract: understanding contract requirements - Juro

According to the Risk and Information Systems Control documents, the risk practitioner should conclude that no action is required as there was no impact. The fact that there have been no interruptions to business operations despite the increasing hardware failure incidents indicates that the built-in redundancy and fault-tolerant architecture are effective in ensuring continuity.

Options A and C are not necessary in this scenario. A root cause analysis (Option A) might be considered if there were actual interruptions or impact on business operations. However, since there were no interruptions, a root cause analysis may not be immediately required. Similarly, upgrading hardware (Option C) may not be necessary if the existing controls are effectively preventing business disruptions.

References = Risk and Information Systems Control Study Manual

The risk owner is primarily accountable for risk treatment decisions, as they are the person or entity with the authority and responsibility to manage a particular risk. The risk owner shouldevaluate the available risk response options, select the most appropriate one, implement the chosen response, and monitor its effectiveness. The risk owner should also communicate and report on the risk status and any issues or changes. The business manager, data owner, and risk manager are not primarily accountable for risk treatment decisions, although they may be involved in the risk management process. The business manager is responsible for the overall performance and objectives of a business unit or function. The data owner is responsible for the security and quality of a specific data asset. The risk manager is responsible for facilitating and coordinating the risk management activities across the organization. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Identification, page 47.

ï‚· Role of the Board and Executive Management:

The board of directors and executive management are responsible for setting the overall strategic direction of the organization, including its risk tolerance.

They have the authority and oversight necessary to define the levels of risk that the organization is willing to accept in pursuit of its objectives.

ï‚· Defining Risk Tolerance:

Risk tolerance refers to the acceptable level of variation in performance relative to the achievement of objectives. It is essentially the degree of risk the organization is willing to endure.

The board and executive management establish risk tolerance based on the organization ' s strategic goals, capacity to absorb losses, and regulatory requirements.

ï‚· Importance of Senior Leadership:

Senior leadership ' s involvement ensures that risk tolerance is aligned with the organization ' s overall strategy and risk appetite.

It provides a top-down approach to risk management, ensuring consistency and alignment across the organization.

ï‚· Comparing Other Stakeholders:

IT Compliance and IT Audit:These functions are responsible for monitoring and ensuring adherence to policies but do not set risk tolerance.

Regulators and Shareholders:They influence risk management practices through external pressures but do not define risk tolerance directly.

Enterprise Risk Management (ERM):ERM frameworks support the implementation of risk management but the actual definition of risk tolerance comes from the board and executive management.

ï‚· References:

The CRISC Review Manual discusses how senior management, including the board, is responsible for defining risk tolerance and ensuring it aligns with the organization ' s risk appetite (CRISC Review Manual, Chapter 1: Governance, Section 1.10 Risk Appetite, Tolerance, and Capacity) .

 The control owner is the person who has the authority to approve an exception to a control. A control is a policy, procedure, or technical measure that is implemented to prevent or mitigate a risk. A control owner is responsible for the design, implementation, operation, and maintenance of the control, as well as for monitoring and reporting its performance and effectiveness. A control owner is also accountable for the approval of any changes or exceptions to the control, based on the risk assessment and business justification. An information security manager, a risk owner, and a risk manager are not the best choices, as they do not have the same level of authority, responsibility, and knowledge as the control owner in relation to the control. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 35.

According to the Risk and Information Systems Control Study Manual, the first step in prioritizing risk response is to address the high risk factors that have efficient and effective solutions. This means that management should focus on the risks that have the most impact on the organization’s objectives and can be mitigated with the least amount of resources and effort. This approach helps to optimize the risk response process and achieve the best results in terms of risk reduction and value creation. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.3.2, Page 223.