CRISC Exam Dumps - Certified in Risk and Information Systems Control

The level of risk in the IT risk profile is the aggregate measure of the likelihood and impact of IT-related risks that may affect the enterprise’s objectives and operations.

The risk appetite is the amount and type of risk that the enterprise is willing to accept in pursuit of its goals. It is usually expressed as a range or a threshold, and it is aligned with the enterprise’s strategy and culture.

If the level of risk in the IT risk profile has decreased and is now below management’s risk appetite, it means that the enterprise has more capacity and opportunity to take on additional risks that may offer higher rewards or benefits.

The best recommendation in this situation is to optimize the control environment, which is the set of policies, procedures, standards, and practices that provide the foundation for managing IT risks and controls. Optimizing the control environment means enhancing the efficiency and effectiveness of the controls, reducing the costs and complexity of compliance, and aligning the controls with the enterprise’s objectives and values.

Optimizing the control environment can help the enterprise to achieve the optimal balance between risk and return, and to leverage its risk management capabilities to create and protect value.

The other options are not the best recommendations, because they do not address the opportunity to improve the enterprise’s performance and resilience.

Realigning risk appetite to the current risk level may result in missing out on potential gains or advantages that could be obtained by taking more risks within the acceptable range.

Decreasing the number of related risk scenarios may reduce the scope and depth of risk analysis and reporting, and impair the enterprise’s ability to identify and respond to emerging or changing risks.

Reducing the risk management budget may compromise the quality and reliability of the risk management process and activities, and weaken the enterprise’s risk culture and governance. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 29-30, 34-35, 38-39, 44-45

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 145

Risk tolerance defines the boundaries for acceptable risk levels and directly impacts decision-making for mitigation strategies. A well-defined tolerance helps prioritize actions and allocate resources effectively, emphasizing its central role in theRisk Responsedomain.

When preparing a risk status report for periodic review by senior management, it is most important to ensure the report includes risk exposure in business terms. Risk exposure is the potential loss or harm that may result from a risk event. Expressing risk exposure in business terms can help senior management to understand the impact and significance of the risk on the organization’s objectives, performance, and value. A detailed view of individual risk exposures, a summary of incidents that have impacted the organization, and recommendations by an independent risk assessor are other possible contents of the report, but they are not as important as risk exposure in business terms. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 10; CRISC Review Manual, 6th Edition, page 140.

According to the CRISC Review Manual1, senior management support is the commitment and involvement of the top-level executives and leaders in the risk management process. Senior management support is the most important enabler of effective risk management, as it helps to establish and communicate the risk vision, strategy, and culture of the organization. Senior management support also helps to allocate the necessary resources, authority, and accountability for risk management, and to ensure the alignment of the risk management objectives and activities with the organization’s strategy, goals, and values. References = CRISC Review Manual1, page 198.

Key risk indicators (KRIs) are metrics that provide early warning signals of potential risk events or changes in the risk profile of an organization. They help to monitor the risk exposure and performance of the organization against its risk appetite and tolerance. They also enable timely and proactive risk responses and mitigation actions. Establishing KRIs is the most helpful in preventing risk events from materializing, as they can alert the organization of emerging risks and trigger preventive measures before the risks become significant or materialize. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, p. 114-115

Risk capacity is the amount of risk that an organization can financially afford to take, without jeopardizing its ability to meet its objectives or obligations. Risk capacity is determined by factors such as the organization’s income, assets, liabilities, and cash flow. An organization that has built up its cash reserves has increased its risk capacity, as it has more financial resources and flexibility to support additional risk. This may enable the organization to pursue more opportunities or initiatives that involve higher risk and higher reward.

Risk profile is a summary of the key risks that an organization faces, and their implications for the organization’s objectives and strategy. Risk profile may change due to factors such as new technologies, business initiatives, or external events, but not necessarily due to changes in cash reserves.

Risk indicators are metrics or indicators that help to monitor and evaluate the likelihood or impact of a risk, or the effectiveness or efficiency of a control. Risk indicators may vary depending on the risk sources, scenarios, or responses, but not necessarily due to changes in cash reserves.

Risk tolerance is the amount of risk that an organization is willing to accept, based on its risk appetite and risk capacity. Risk tolerance is influenced by factors such as the organization’s culture, values, and objectives, as well as the risk environment and expectations. Risk tolerance may change due to changes in cash reserves, but it is not the most likely impact, as it also depends on the organization’s risk appetite and other factors.

Monitoring the percentage of patches deployed within the target time frame is a critical key control indicator for the patch management process. It reflects the organization's ability to apply necessary updates promptly, reducing exposure to known vulnerabilities. Timely patch deployment is essential for maintaining system security and compliance with organizational policies.​

The best way to determine whether system settings are in alignment with control baselines is to perform configuration validation. Configuration validation is the process of verifying that the system settings and parameters are consistent with the predefined standards and requirements, and that they reflect the current and desired state of the system. Configuration validation helps to ensure that the system is configured correctly and securely, and that it complies with the relevant policies, regulations, and bestpractices. Configuration validation also helps to identify and correct any deviations or errors in the system settings, and to prevent or mitigate any potential risks or issues. The other options are not as effective as configuration validation, although they may provide some input or information for the system alignment. Control attestation, penetration testing, and internal audit review are all activities that can help to assess or evaluate the system alignment, but they do not necessarily determine or validate the system settings. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.