An organization plans to implement a new Software as a Service (SaaS) speech-to-text solution
Which of the following is MOST important to mitigate risk associated with data privacy?
B
Explanation:
Utilizing secure encryption protocols is the most important factor to mitigate risk associated with
data privacy when implementing a new Software as a Service (SaaS) speech-to-text solution, as it
ensures that the data is protected from unauthorized access, interception, or modification during the
transmission and storage in the cloud. Setting up multi-factor authentication for users, approving the
solution architecture by IT, and including a risk transfer clause in the contract are not the most
important factors, as they may not address the data privacy issue, but rather the data access, quality,
or liability issue, respectively. Reference = CRISC Review Manual, 7th Edition, page 153.
The PRIMARY reason for periodically monitoring key risk indicators (KRIs) is to:
B
Explanation:
The primary reason for periodically monitoring key risk indicators (KRIs) is to detect changes in the
risk profile of the enterprise. KRIs are metrics that provide information on the level of exposure to a
specific risk or a group of risks. By monitoring KRIs, the enterprise can identifyany deviations from
the expected risk level, and take appropriate actions to adjust the risk response or the risk appetite.
Monitoring KRIs also helps to validate the effectiveness of risk mitigation controls and the accuracy
of risk assessments. Rectifying errors in results of KRIs, reducing costs of risk mitigation controls, and
continually improving risk assessments are possible benefits of monitoring KRIs, but they are not the
primary reason. Reference = Risk and Information Systems Control Study Manual, 7th Edition,
Chapter 4, Section 4.1.1.2, page 175.
While reviewing an organization's monthly change management metrics, a risk practitioner notes
that the number of emergency changes has increased substantially Which of the following would be
the BEST approach for the risk practitioner to take?
C
Explanation:
According to the CRISC Review Manual, a root cause analysis is a technique that identifies the
underlying causes of an event or a problem. It helps to determine the most effective actions to
prevent or mitigate the recurrence of the event or problem. A root cause analysis is the best
approach for the risk practitioner to take in this scenario, because it will help to understand why the
number of emergency changes has increased substantially and what can be done to address the
issue. The other options are not the best approaches, because they do not address the underlying
causes of the problem. Temporarily suspending emergency changes may disrupt the business
operations and create more risks. Documenting the control deficiency in the risk register is a passive
action that does not resolve the problem. Continuing monitoring change management metrics is an
ongoing activity that does not provide any insight into the problem. Reference = CRISC Review
Manual, 7th Edition, Chapter 3, Section 3.2.4, page 130.
Which of the following is the MOST important consideration for prioritizing risk treatment plans
when faced with budget limitations?
C
Explanation:
When prioritizing risk treatment plans under budget constraints, the focus should be onresidual risk
relative to appetite and tolerance. This ensures that resources are allocated to risks that exceed the
organization’s risk appetite, aligning treatment efforts with strategic objectives and minimizing
critical exposure.
Which of the following is the MOST important reason to link an effective key control indicator (KCI) to
relevant key risk indicators (KRIs)?
A
Explanation:
Key control indicators (KCIs) are metrics that measure how well a specific control is performing in
reducing the causes, consequences, or likelihood of a risk1. Key risk indicators (KRIs) are metrics that
measure changes in the risk exposure or the potential impact of a risk2. By linkingan effective KCI to
relevant KRIs, the organization can monitor changes in the risk environment and assess how the
control is influencing the risk level3. This can help the organization to:
Identify emerging or escalating risks and take timely and appropriate actions
Evaluate the effectiveness and efficiency of the control and make improvements if needed
Align the control with the risk appetite and tolerance of the organization
Communicate the risk and control status to stakeholders and regulators
Reference = Risk and Information Systems Control Study Manual, Chapter 6: Risk Response and
Mitigation4
The BEST criteria when selecting a risk response is the:
C
Explanation:
The effectiveness of risk response options is the best criteria when selecting a risk response, because
it reflects the degree to which the response can reduce the impact or likelihood of the risk, or
enhance the benefit or opportunity of the risk. The effectiveness of risk response options can be
evaluated by considering factors such as cost, feasibility, timeliness, and alignment with the
organization’s objectives and risk appetite. The other options are not as good as the effectiveness of
risk response options, because they do not measure the outcome or value of the response, but
rather focus on the input or process of the response, as explained below:
A . Capability to implement the response is a criteria that considers the availability and adequacy of
the resources, skills, and knowledge required to execute the response. While this is an important
factor to consider, it does not indicate how well the response can address the risk or achieve the
desired result.
B . Importance of IT risk within the enterprise is a criteria that considers the significance and priority
of the risk in relation to the organization’s strategy, objectives, and operations. Whilethis is an
important factor to consider, it does not indicate how well the response can address the risk or
achieve the desired result.
D . Alignment of response to industry standards is a criteria that considers the compliance and
conformity of the response with the best practices, norms, and expectations of the industry or sector.
While this is an important factor to consider, it does not indicate how well the response can address
the risk or achieve the desired result. Reference = Risk and Information Systems Control Study
Manual, Chapter 2, Section 2.2.2, page 40. How to Select Your Risk Responses -Rebel’s Guide to
Project Management, Risk Response Plan in Project Management: Key Strategies & Tips, Risk
Responses - options for managing risk - Stakeholdermap.com
During a risk treatment plan review, a risk practitioner finds the approved risk action plan has not
been completed However, there were other risk mitigation actions implemented. Which of the
fallowing is the BEST course of action?
C
Explanation:
The best course of action for a risk practitioner who finds that the approved risk action plan has not
been completed but other risk mitigation actions have been implemented is to verify the sufficiency
of mitigating controls with the risk owner. This is because the risk owner is the person who is
accountable for the risk and the risk response strategy, and therefore should be consulted to ensure
that the alternative actions are adequate and effective in reducing the risk to an acceptable level.
The other options are not the best course of action, although they may also be performed after
verifying the sufficiency of mitigating controls with the risk owner. Reviewing the cost-benefit of
mitigating controls, marking the risk status as unresolved within the risk register, and updating the
risk register with implemented mitigating actions are secondary actions that depend on the outcome
of the verification process. Reference = Risk and Information Systems Control Study Manual, 7th
Edition, Chapter 4, Section 4.3.2, p. 193.
Which of the following is the BEST risk management approach for the strategic IT planning process?
D
Explanation:
Identifying and assessing the risk scenarios associated with IT strategic initiatives is the best risk
management approach for the strategic IT planning process, because it helps to understand and
evaluate the potential or actual threats or opportunities that may affect the achievement or
implementation of the IT strategic initiatives, and to determine the appropriate risk responses and
controls. A risk scenario is a hypothetical situation or event that describes the source, cause,
consequence, and impact of a risk. A risk scenario can be positive or negative, depending on whether
it represents an opportunity or a threat. An IT strategic initiative is a project or program that supports
or enables the IT strategy, which is a plan that defines how IT supports and aligns with the
organization’s vision, mission, and strategy. The strategic IT planning process is a process of
developing, implementing, and monitoring the IT strategy and its associated IT strategic initiatives.
Identifying and assessing the risk scenarios is the best risk management approach, as it helps to
anticipate and prepare for the potential or actual outcomes of the IT strategic initiatives, and to
optimize the risk-reward balance and the value delivery of IT. Establishing key performance indicators
(KPIs) to track IT strategic initiatives, reviewing the IT strategic plan by the chief information security
officer (CISO) and enterprise risk management (ERM), and developing the IT strategic plan from the
organization-wide risk management plan are all possible risk management approaches for the
strategic IT planning process, but they are not the best approach, as they do not directly address the
identification and assessment of the risk scenarios associated with IT strategic initiatives. Reference =
Risk and Information Systems Control Study Manual, Chapter 2, Section 2.1.1, page 37
Which of the following practices BEST mitigates risk related to enterprise-wide ethical decision
making in a multi-national organization?
C
Explanation:
The best practice to mitigate risk related to enterprise-wide ethical decision making in a multi-
national organization is to provide ongoing awareness training to support a common risk culture. A
common risk culture is a set of shared values, beliefs, and behaviors that influence how the
organization identifies, analyzes, responds to, and monitors risks. Ongoing awareness training can
help to promote a common risk culture by educating the employees about the enterprise’s risk
management objectives, policies, procedures, roles, and responsibilities, as well as the ethical
standards and expectations that apply to their work. Ongoing awareness training can also help to
reinforce the benefits of ethical decision making and the consequences of unethical behavior.
Customized regional training on local laws and regulations, policies requiring central reporting of
potential procedure exceptions, and zero-tolerance policies for risk taking bymiddle-level managers
are also useful practices, but they are not as effective as ongoing awareness training to support a
common risk culture. Reference = CRISC Review Manual, 6th Edition, ISACA, 2015, page 37.
Which of the following would be the BEST way for a risk practitioner to validate the effectiveness of a
patching program?
C
Explanation:
Conducting vulnerability scans is the best way for a risk practitioner to validate the effectiveness of a
patching program. Vulnerability scans are automated tools that identify and report on the
vulnerabilities in a system or network, such as missing patches, misconfigurations, or outdated
software. Vulnerability scans can help the risk practitioner to verify that the patches have been
applied correctly and consistently, and that there are no remaining or new vulnerabilities that need
to be addressed. Conducting penetration testing, interviewing IT operations personnel, and
reviewing change control board documentation are also useful methods to evaluate the patching
program, but they are not as comprehensive, objective, or timely as vulnerabilityscans. Reference =
Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.3, page 2-28.
Which of the following would be the BEST recommendation if the level of risk in the IT risk profile
has decreased and is now below management's risk appetite?
A
Explanation:
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. Reference =
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
Senior management has asked the risk practitioner for the overall residual risk level for a process
that contains numerous risk scenarios. Which of the following should be provided?
D
Explanation:
Residual risk is the remaining risk after the risk response has been implemented. Residual risk can be
expressed as a combination of the probability and impact of the risk scenario, or as a single value
such as loss expectancy. Residual risk can be compared with the inherent risk, which is the risk level
before considering the existing controls or responses, to evaluate the risk reduction and value
creation of the risk response. Senior management has asked the risk practitioner for the overall
residual risk level for a process that contains numerous risk scenarios. The best way to provide this
information is to calculate the average of anticipated residual risklevels for each risk scenario, and to
present it as a single value or a range. This can help to provide a comprehensive and consistent view
of the residual risk exposure and performance of the process, as well as to align it with the
organization’s risk appetite and tolerance. The sum of residual risk levels for each scenario, the loss
expectancy for aggregated risk scenarios, or the highest loss expectancy among the risk scenarios are
not the best ways to provide the overall residual risk level, as they may overestimate or
underestimate the risk exposure and performance of the process, and may not reflect the actual risk
reduction and value creation of the risk response. Reference = Risk and Information Systems Control
Study Manual, Chapter 3, Section 3.2.2, p. 108-109
Which of the following BEST enables detection of ethical violations committed by employees?
D
Explanation:
Whistleblower Program:
Definition: A whistleblower program allows employees to report unethical or illegal activities within
the organization anonymously.
Detection of Ethical Violations: Employees are often in the best position to observe unethical
behavior. A well-structured whistleblower program encourages them to report such behavior without
fear of retaliation.
Anonymity and Protection: Providing anonymity and protection to whistleblowers increases the
likelihood that employees will report violations, thus enabling the organization to detect and address
ethical issues more effectively.
Comparison with Other Options:
Transaction Log Monitoring: While useful for detecting anomalies and potential fraud, it is not
specifically focused on ethical violations and may not capture all types of unethical behavior.
Access Control Attestation: This ensures that users have the correct access permissions but does not
directly detect unethical behavior.
Periodic Job Rotation: This can help prevent fraud by reducing the risk of collusion and providing
fresh perspectives on processes, but it does not directly detect ethical violations.
Best Practices:
Clear Reporting Channels: Ensure that the whistleblower program has clear and accessible reporting
channels.
Training and Awareness: Regularly train employees on the importance of reporting unethical
behavior and the protections offered by the whistleblower program.
Follow-up and Action: Ensure that reports are investigated thoroughly and appropriate actions are
taken to address verified violations.
Reference:
CRISC Review Manual: Emphasizes the importance of ethical behavior and the role of whistleblower
programs in detecting and addressing ethical violations within organizations.
ISACA Guidelines: Support the implementation of whistleblower programs as a key component of a
comprehensive risk management and ethical governance framework.
Which of the following is MOST likely to cause a key risk indicator (KRI) to exceed thresholds?
A
Explanation:
Occurrences of specific events are the most likely to cause a key risk indicator (KRI) to exceed
thresholds, as they represent the actual or potential realization of the risk. A KRI is a metric that
measures the level of risk exposure and the effectiveness of risk response strategies, and it has
predefined thresholds that indicate the acceptable or unacceptable risk status. When a specific event
occurs that affects the risk, such as a security breach, a system failure, or a compliance violation, the
KRI value may change and exceed the thresholds, triggering an alert or an action. A performance
measurement, the risk tolerance level, and risk scenarios are not the most likely to cause a KRI to
exceed thresholds, as they do not reflect the actual or potential occurrence of the risk, but rather the
expected or desired outcome, limit, or simulation of the risk. Reference = [CRISC Review Manual
(Digital Version)], page 121; CRISC by Isaca Actual Free Exam Q&As, question 217.
Which of the following criteria associated with key risk indicators (KRIs) BEST enables effective risk
monitoring?
C
Explanation:
Key risk indicators (KRIs) are metrics that help organizations monitor and assess potential risks that
may impact their operations, financial health, or overall performance1. KRIs should have certain
characteristics that make them effective for risk monitoring, such as:
Ability to measure the right thing (e.g., supports the decisions that need to be made)
Quantifiable (e.g., damages in dollars of profit loss)
Capability to be measured precisely and accurately
Relevant (measuring the right thing associated with decisions)2
Among the four options given, only option C (sensitivity to changes in risk levels) best enables
effective risk monitoring. This is because KRIs should be able to capture the changes in risk levels
over time and alert organizations to emerging or escalating risks3. A high sensitivity to changes in
risk levels indicates that theKRI is responsive and timely, and can help organizations take preventive
or corrective actions before the risks become too severe.
Reference = Key Risk Indicators: A Practical Guide, Key Risk Indicators: Examples & Definitions, Key
Risk Indicators - Wikipedia