CRISC Exam Dumps - Certified in Risk and Information Systems Control

Risk response strategy is the approach that an organization takes to address the risks that it faces across its various functions, processes, and activities. Risk response strategy involves selecting and implementingthe appropriate risk response options, such as avoidance, mitigation, transfer, or acceptance, for each risk, based on the risk level, the risk appetite, and the cost-benefit analysis1.

The most important consideration for senior management when developing a risk response strategy is the risk appetite of the organization. Risk appetite is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk appetite reflects the organization’s risk attitude and its willingness to take on risk in specific scenarios. Risk appetite is usually expressed in a qualitative statement approved by the board of directors2.

Considering the risk appetite of the organization is essential for developing a risk response strategy, because it can help to:

Align the risk response strategy with the overall business strategy and vision, and ensure that the risk response options support the achievement of the organizational objectives

Balance the risk response strategy with the expected benefits and opportunities, and ensure that the risk response options do not eliminate or reduce the potential value or performance of the organization

Enhance the risk response strategy with the stakeholder expectations and requirements, and ensure that the risk response options meet the needs and interests of the customers, suppliers, partners, regulators, and other parties

Optimize the risk response strategy with the available resources and capabilities, and ensure that the risk response options are feasible and cost-effective for the organization34

The other options are not as important as the risk appetite of the organization for developing a risk response strategy, but rather some of the factors or outcomes of it. Cost of controls is the amount of resources and funds that are required to implement and maintain the risk response controls, such as policies, procedures, or technologies, that aim to prevent or reduce the negative effects of the risks. Cost of controls is a factor that can affect the selection and implementation of the risk response options, but it is not the primary consideration for developing the risk response strategy. Risk tolerance is the acceptable variation in the outcomes related to specific objectives or risks. Risk tolerance is a factor that can measure the risk analysis and guide the risk response, but it is not the primary consideration for developing the risk response strategy. Probability definition is the process of estimating the likelihood or frequency of the risk events, based on historical data, statistical analysis, expert judgment, or other methods. Probability definition is anoutcome of the risk analysis that can inform the risk response, but it is not the primary consideration for developing the risk response strategy. References =

Risk Response - ISACA

Risk Appetite vs. Risk Tolerance: What is the Difference? - ISACA

Risk Response Strategies: Types & Examples (+ Free Template)

Risk Response Strategy - ISACA

[CRISC Review Manual, 7th Edition]

According to the CRISC Review Manual (Digital Version), assessing changes in residual risk is the best approach for determining whether a risk action plan is effective, as it measures the impact and value of the risk response actions and controls on the risk level. Residual risk is the risk that remains after the risk response actions and controls have been implemented. Assessing changes in residual risk helps to:

Evaluate the extent to which the risk response actions and controls have reduced the likelihood and/or impact of the risk to an acceptable level

Identify and report any deviations, errors, or weaknesses in the risk response actions and controls and their performance

Recommend and implement corrective actions or improvement measures to address any issues or deficiencies in the risk response actions and controls

Monitor and measure the effectiveness and efficiency of the risk response actions and controls and their alignment with the organization’s risk appetite and risk tolerance

Update the risk register and the risk treatment plan to reflect the current risk status and the residual risk levels

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

The best way to determine the potential organizational impact of emerging privacy regulations is to conduct a privacy impact assessment (PIA). A PIA is a systematic process of identifying, analyzing, and evaluating the privacy risks and impacts of a new or existing system, process, program, or initiative that involves the collection, use, storage, or disclosure of personal information. A PIA can help to ensure that the enterprise complies with the emerging privacyregulations, and that the privacy rights and expectations of the individuals are respected and protected. A PIA can also help to identify the gaps, weaknesses, and opportunities for improvement in the enterprise’s privacy policies, procedures, and controls. Evaluating the security architecture maturity, mapping the new requirements to the existing control framework, and chartering a privacy steering committee are not as comprehensive and effective as conducting a PIA, as they do not address the specific privacy risks and impacts of the enterprise’s activities. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 192.

 The first course of action for a risk practitioner when an organization plans to adopt a cloud computing strategy is to perform a controls assessment. This means evaluating the existing controls in the organization and the cloud service provider, and identifying the gaps and weaknesses that need to be addressed. A controls assessment can help to determine the level of risk exposure and the suitability of the cloud service model and provider for the organization’s needs and objectives. It can also help to establish the baseline for monitoring and reporting on the cloud service performance and compliance. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2.2, p. 242-243

 Ensuring time synchronization of log sources is the most important consideration when developing a log collection and correlation strategy, as it enables the accurate and consistent analysis and correlation of log data from different sources and systems. Time synchronization can help to identify the sequence and causality of events, and to detect and respond to any anomalies or incidents. Time synchronization can also facilitate the compliance and audit of the log data, and support the forensic investigation and legal action if needed. References = Most Asked CRISC Exam Questions and Answers, Question 10. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 248. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 248. CRISC by Isaca Actual Free Exam Q&As, Question 9.

Robotic process automation (RPA) is the use of software robots or artificial intelligence (AI) agents to automate repetitive, rule-based tasks that are normally performed by humans. RPA can improve efficiency, accuracy, and scalability of business processes, but it can also introduce new risks or change the existing risk profile. Therefore, the risk practitioner’s best course of action is to reassess whether the mitigating controls that were designed for the human-performed processes are still effective and adequate for the RPA-enabled processes. This may involve reviewing the control objectives, testing the control performance, identifying the control gaps,and recommending the control enhancements or modifications. References = CRISC Review Manual, 7th Edition, page 177.

 According to the CRISC Review Manual1, single sign-on (SSO) is a method of authentication that allows a user to access multiple systems or applications with a single set of credentials. SSO can improve user convenience and productivity, but it also introduces some security risks. The greatest concern as a result of a single sign-on implementation is that unauthorized access may be gained to multiple systems, as this can compromise the confidentiality, integrity, and availability of the data and resources stored on those systems. If an attacker obtains the SSO credentials of a user, either by phishing, malware, or other means, they can Laccess all the systems or applications that the user is authorized for, without any additional authentication or verification. This can expose the organization to various threats, such as data leakage, theft, loss, corruption, manipulation, or misuse2345. References = CRISC Review Manual1, page 240, 253.

A risk profile is a summary of the nature and level of risk that an organization faces. It includes information such as the sources, causes, and consequences of the risks, their likelihood and impact, their interrelationships and dependencies, and their alignment with the risk appetite and tolerance. A risk profile is influenced by various factors, such as the organization’s objectives, strategies, activities, processes, resources, capabilities, culture, etc. When an organization configures a new business division, the factor that is most likely to be affected is the risk profile, as the new business division may introduce new or change existing risks, opportunities, and uncertainties that may affect the achievement of the organization’s objectives. Therefore, the organization should update its risk profile to reflect the currentand potential risks associated withthe new business division, and implement the appropriate risk management actions to optimize the risk exposure and performance. References = 4