CRISC Exam Dumps - Certified in Risk and Information Systems Control

A key risk indicator (KRI) is a metric that measures the level and trend of a risk that may affect the organization’s objectives, operations, or performance1. A KRI threshold is a predefined value or range that indicates the acceptable or tolerable level of risk for the organization2. Theorganization’s risk appetite is the amount and type of risk that it is willing to take in order to meet its strategic goals3. Therefore, the most likely reason for senior management’s response is that the KRI threshold needs to be revised to better align with the organization’s risk appetite. This means that the current threshold is either too low or too high, resulting in false alarms or missed signals. By adjusting the threshold to reflect the organization’s risk appetite, senior management can ensure that the KRI provides relevant and actionable information for risk management and decision making. The other options are not the most likely reasons for senior management’s response, as they imply that the KRI is faulty, irrelevant, or misunderstood. The underlying data source for the KRI is using inaccurate data and needs to be corrected. This option assumes that the KRI is based on erroneous or unreliable data, which would affect its validity and reliability. However, this is not the most likely reason, as senior management would be expected to verify the data quality and accuracy before using the KRI for risk monitoring and reporting. The KRI is not providing useful information and should be removed from the KRI inventory. This option assumes that the KRI is not aligned with the organization’s objectives, strategies, or risk profile, which would affect its usefulness and value. However, this is not the most likely reason, as senior management would be expected to review and update the KRI inventory periodically to ensure that the KRIs are relevant and meaningful for risk management. Senior management does not understand the KRI and should undergo risk training. This option assumes that senior management lacks the knowledge or skills to interpret and use the KRI for risk management, which would affect their competence and confidence. However, this is not the most likely reason, as senior management would be expected to have sufficient risk awareness and education to understand and apply the KRI for risk management. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.4, Page 53.

Outsourcing IT security operations is a common practice that can provide benefits such as cost savings, access to specialized skills, and improved service quality12. However, outsourcing also introduces risks such as loss of control, dependency, contractual issues, and service failures12.

When an organization outsources its IT security operations to a third party, it does not transfer the accountability for the risk associated with the outsourced operations. Accountability is the obligation to answer for the execution of one’s assigned responsibilities34.

The organization’s management is ultimately accountable for the risk associated with the outsourced operations, as they are responsible for defining the organization’s risk appetite, strategy, and objectives, and for ensuring that the organization’s IT security operations are aligned with them34.

The organization’s management is also accountable for selecting, contracting, and overseeing the third party, and for ensuring that the third party meets the agreed service levels, standards, and compliance requirements34.

The organization’s management is also accountable for monitoring and reporting the risk associated with the outsourced operations, and for taking corrective actions when necessary34.

The other options are not ultimately accountable, but rather have different roles and responsibilities in relation to the outsourced operations. For example:

The third party’s management is responsible for delivering the IT security services according to the contract, and for managing the risk within their own organization34. They are accountable to the organization’s management, but not to the organization’s stakeholders.

The control operators at the third party are responsible for implementing and operating the IT security controls according to the service specifications, and for reporting any issues orincidents to the organization’s management34. They are accountable to the third party’s management, but not to the organization’s management or stakeholders.

The organization’s vendor management office is responsible for facilitating the relationship between the organization and the third party, and for supporting the organization’s management in the outsourcing process34. They are accountable to the organization’s management, but not for the risk associated with the outsourced operations. References =

1: Outsourcing IT Security: A Risk Management Perspective, ISACA Journal, Volume 2, 2019

2: The Cyber Security Risks Of Outsourcing, Cybersecurity Intelligence, January 4, 2022

3: Accountability for Information Security Roles and Responsibilities, Part 1, ISACA Journal, Volume 5, 2019

4: Risk IT Framework, ISACA, 2009

Detailed Explanation:A high number of exceptions often indicate misalignment betweenpoliciesand business needs. Reviewing policies helps determine if they are overly restrictive or need adjustments to reduce exceptions while maintaining security.

When determining an appropriate risk assessment approach, the most important factor to understand is the value of information assets. This is because the value of information assets determines the potential impact of risks and the level of protection required. The value of information assets can be assessed based on their confidentiality, integrity, availability, and relevance to the business objectives and processes. A risk assessment approach should be aligned with the value of information assets and the risk appetite of the organization. The other options are not the most important factors to understand when determining a risk assessment approach, although they may influence the choice of methods and tools. The complexity of the IT infrastructure may affect the scope and depth of the risk assessment, but it does not indicate the level of risk or the priority of risk management. The management culture may affect the risk tolerance and the risk communication, but it does not reflect the value of information assets or the risk exposure. The threats and vulnerabilities may affect the likelihood and severity of risks, but they do not measure the value of information assets or the risk acceptance. References = CRISC Review Manual, pages 38-391; CRISC Review Questions, Answers & Explanations Manual, page 582

 According to the CRISC Review Manual (Digital Version), the next course of action when an organization has determined a risk scenario is outside the defined risk tolerance level is to identify risk responses, which are the actions or measures taken to address the risk. Identifying risk responses helps to:

Reduce the likelihood and/or impact of the risk to an acceptable level

Align the risk response with the organization’s risk appetite and risk tolerance

Optimize the value and benefits of the risk response

Balance the costs and efforts of the risk response with the potential losses or damages caused by the risk

Coordinate and communicate the risk response with the relevant stakeholders

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.2: Risk Response Process, pp. 161-1621

According to the CRISC Review Manual (Digital Version), the right to audit the provider is the most important factor to help define the IT risk associated with outsourcing activity to a cloud-based service provider, as it enables the organization to verify the compliance and performance of the provider with the contractual obligations and service level agreements. The right to audit the provider helps to:

Assess the security, availability, confidentiality, integrity, and privacy of the data and processes hosted by the provider

Identify and evaluate the risks and controls related to the cloud-based services and the provider’s infrastructure

Monitor and measure the quality and effectiveness of the cloud-based services and the provider’s governance and management practices

Report and resolve any issues or incidents related to the cloud-based services and the provider’s operations

Ensure the alignment of the cloud-based services and the provider’s policies and standards with the organization’s objectives and requirements

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 176-1771

A key performance indicator (KPI) is a measurable value that demonstrates how effectively an organization is achieving its objectives. In the context of disaster recovery planning (DRP), a KPI should reflect the ability of the organization to recover its critical business processes and applications within the predefined time frames and service levels. One of the most important KPIs for DRP is the percentage of applications that met the recovery time objective (RTO) during DRP testing. The RTO is the maximum acceptable length of time that a business process or application can be down after a disaster. By measuring the percentage of applications that met the RTO during DRP testing, the organization can evaluate the performance and reliability of its DRP, identify any gaps or weaknesses, and implement corrective actions to improve its readiness and resilience. The other options are not the best KPIs for DRP, as they do not directly measure the effectiveness of the recovery process. The number of users that participated in the DRP testing is a measure of the involvement and awareness of the staff, but not of the outcome of the testing. The number of issues identified during DRP testing is a measure of the quality and completeness of the DRP, but not of the actual recovery time. The percentage of issues resolved as a result of DRP testing is a measure of the improvement and maturity of the DRP, but not of the current recovery capability. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.3.3, Page 138.

Risk mitigation procedures are the actions and plans that an organization implements to reduce the likelihood and impact of identified risks. Risk mitigation procedures should include the deployment of counter measures, which are the specific controls or solutions that address the root causes or sources of the risks, and prevent or minimize the potential losses or damages. For example, a counter measure for therisk of data breach could be encrypting the data or implementing a firewall. The deployment of counter measures should be based on a cost-benefit analysis, a risk assessment, and a risk response strategy. The other options are not necessarily part of risk mitigation procedures. Buying an insurance policy is an example of risk transfer,which is a risk response strategy that shifts the responsibility or burden of the risk to another party, such as an insurer or a vendor. However, risk transfer does not eliminate or reduce the risk itself, and it may involve additional costs or conditions. Acceptance of exposures is an example of risk acceptance, which is a risk response strategy that acknowledges the existence and consequences of the risk, and decides not to take any action to change the risk situation. However, risk acceptance does not mitigate the risk, and it may require contingency plans or reserves to deal with the potential outcomes. Enterprise architecture implementation is an example of a business process or project that may involve or create risks, but it is not a risk mitigation procedure itself. Enterprise architecture is the design and structure of an organization’s IT systems, networks, and resources, and how they align with the organization’s goals and strategies. Enterprise architecture implementation may require risk management activities, such as risk identification, assessment, and response, but it is not a risk mitigation procedure itself. References = Risk IT Framework, ISACA, 2022, p. 151