CRISC Exam Dumps - Certified in Risk and Information Systems Control

A risk factor is a condition or event that may increase the likelihood or impact of a risk, which is the effect of uncertainty on objectives1. An information systems review is a process that involves examining and evaluating the adequacy and effectiveness of the information systems and their related controls, policies, and procedures2. The purpose of an information systems review is to identify and report the risk factors that may affect the confidentiality, integrity, availability, and performance of the information systems and their outputs3. The best way to ensure that the risk factors identified during an information systems review are addressed is to assign action items and deadlines to specific individuals, who are responsible and accountable for implementing the appropriate risk responses. A risk response is an action taken or plannedto mitigate or eliminate the risk, such as avoiding, transferring, reducing, or accepting the risk4. By assigning action items and deadlines to specific individuals, the organization can ensure that the risk factors are properly and promptly addressed, and that the progress and results of the risk responses are monitored and reported5. Informing business process owners of the risk, reviewing and updating the risk register, and implementing new control technologies are not the best ways to ensure that the risk factors identified during an information systems review are addressed, as they do not provide the same level of accountability and effectiveness as assigning action items and deadlines to specific individuals. Informing business process owners of the risk is a process that involves communicating and sharing the risk information with the persons who have the authority and accountability for a business process that is supported or enabled by the information systems6. Informing business process owners of the risk can help to raise their awareness and understanding of the risk, but it does not ensure that they will take the necessary actions to address the risk. Reviewing and updating the risk register is a process that involves checking and verifying that the risk register, which is a document that records and tracks the risks and their related information, is current, complete, and consistent7. Reviewing and updating the risk register can help to reflect the changes and updates in the risk factors and their status, but it does not ensure that the risk factors are resolved or reduced. Implementing new control technologies is a process that involves introducing or applying new software or hardware that can help to prevent, detect, or correct the risk factors affecting the information systems8. Implementing new control technologies can help to improve the security and performance of the information systems, but it does not ensure that the risk factors are eliminated or mitigated. References = 1: Risk Factors - an overview | ScienceDirect Topics2: Information Systems Audit and Control Association (ISACA) - ISACA3: Information Systems Audit: The Basics4: Risk Response Strategy and Contingency Plans - ProjectManagement.com5: Risk and Information Systems Control Study Manual, Chapter 3: Risk Response, Section 3.1: Risk Response Options, pp. 113-115.6: [Business Process Owner - Gartner IT Glossary] 7: Risk Register: A Project Manager’s Guide with Examples [2023] • Asana8: Technology Control Automation: Improving Efficiency, Reducing … - ISACA : [Business Process Owner - Roles and Responsibilities] : [Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.1: Risk Identification, pp. 57-59.] : [Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.]

 Following a significant change to a business process, the risk practitioner should advise the risk owner to first conduct a risk analysis to evaluate the current level of risk exposure and compare it with the previous level. This will help to verify whether the change has indeed reduced the risk, and by how much. The risk analysis will also help to identify any new or residual risks that may have emerged as a result of the change. The other options are not the first actions to take, but rather the subsequent steps after conducting a risk analysis. Reviewing the key risk indicators, updating the risk register, and reallocating risk response resources are all important activities, but they depend on the outcome of the risk analysis. References = CRISC EXAM TOPIC 2 LONG; CRISC Q&A Domain 1; Managing Change Risk - Oliver Wyman

According to the CRISC Review Manual1, vendor risk mitigation action items are the specific tasks and activities that are assigned to the vendors or the organization to address the identified risks and implementthe risk responses. The percentage of vendor risk mitigation action items completed on time is the best key performance indicator (KPI) to measure the effectiveness of a vendor risk management program, as it helps to evaluate the timeliness and quality of the vendor performance, the alignment of the vendor activities with the organization’s risk appetite and objectives, and the achievement of the expected outcomes and benefits of the risk responses. The percentage of vendor risk mitigation action items completed on time also helps to identify and resolve any issues or gaps in the vendor risk management process, and to improve the vendor relationship and communication. References = CRISC Review Manual1, page 230.

According to the CRISC Review Manual1, a risk action plan is a document that defines the specific actions, resources, responsibilities, and timelines for implementing the risk responses. A risk action plan should be developed after the results of a vulnerability assessment are shared with the relevant stakeholders, such as the business manager, to address the identified vulnerabilities and mitigate the associated risks. Developing a risk action plan is the next step in the risk management process, as it helps to ensure that the risk responses are executed effectively and efficiently, and that the residual risks are within the acceptable levels. References = CRISC Review Manual1, page 201.

The first factor that should be considered when assessing risk associated with the adoption of emerging technologies is the organizational strategy. The organizational strategy defines the vision, mission, goals, and objectives of the enterprise, and provides the direction and guidance for its activities and decisions. The adoption of emerging technologies should be aligned with the organizational strategy, and support its achievement and performance. The organizational strategy also helps to determine the risk appetite and tolerance of the enterprise, and the criteria for evaluating the risks and benefits of the emerging technologies. Cost-benefit analysis, control self-assessment, and business requirements are also important factors to consider when assessing risk associated with the adoption of emerging technologies, but they are not the first factor to consider. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.1.1, page 181

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 656.

 According to the CRISC Review Manual (Digital Version), the business significance of the information is the most important criterion when developing a response to an attack that would compromise data, as it determines the impact and severity of the attack on the organization’s objectives and performance. The business significance of the information helps to:

Assess the value and sensitivity of the data that is compromised or at risk of compromise

Evaluate the potential losses or damages that the organization may incur due to the data compromise

Prioritize the data recovery and restoration activities based on the criticality and urgency of the data

Communicate and coordinate the data breach response and notification with the relevant stakeholders, such as the data owners, the customers, the regulators, and the media

Enhance the data protection and security measures to prevent or mitigate future data compromise incidents

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 174-1751

The most important factor for the risk practitioner to understand when creating an initial IT risk register is the organizational objectives. The organizational objectives are the specific, measurable, achievable, relevant, and time-bound (SMART) goals that the organization aims to accomplish. The organizational objectives should be aligned with the organization’s vision, mission, and strategy, as well as the stakeholder expectations and needs. The organizational objectives should also reflect the desired outcomes and benefits of the organization, such as increasing revenue, reducing costs, improving quality, or enhancing customer satisfaction. Understanding the organizational objectives is the most important factor when creating an initial IT risk register, because it provides the context, scope, and criteria for identifying, analyzing, and prioritizing the IT risks that may affect or be affected by the organizational objectives. Understanding the organizational objectives also helps to align the IT risk management process with the organizational risk management process, and to communicate the value and impact of the IT risks and the IT risk responses to the senior management and other stakeholders. The other options are not the most important factor, although they may be relevant or influential to the IT risk register. Enterprise architecture (EA) is a conceptual blueprint that defines the structure and operation of an organization. EA describes the current and future state of the organization in terms of its business processes, information systems, and technology infrastructure, and the relationships and dependencies among them. EA also provides the principles, standards, and guidelines for designing, developing, and implementing the organization’s solutions and services. EA can help to understand the IT risk sources, causes, and effects, as well as the IT risk mitigation options and opportunities, but it does not define the purpose or the scope of the IT risk register. Control environment is the set of policies, procedures, and mechanisms that ensure the reliability, security, and quality of the organization’s activities and information. Control environment includes the tone and culture at the top, the roles and responsibilities for governance and oversight, the internal control framework and methodology, and the monitoring and reporting systems. Control environment can help to assess the IT risk levels and the IT risk responses, as well as to ensure the compliance and accountability of the IT risk management process, but it does not provide the context or the criteria for the IT risk register. IT objectives are the specific, measurable, achievable, relevant, and time-bound (SMART) goals that the IT function aims to accomplish. IT objectives should be aligned and consistent with the organizational objectives, as well as the IT strategy and IT governance. IT objectives should also reflect the expected outcomes and benefits of the IT function, such as delivering value, enabling innovation, or supporting transformation. IT objectives can help to identify and prioritize the IT risks that may affect or be affected by the IT objectives, but they are not the same as or more important than the organizational objectives. References = Three Steps to Creating a Simple IT Risk Register - Gartner, Risk Register Template and Examples | Prioritize and Manage Risk, IT Resources | Knowledge & Insights | ISACA

 Computer-enabled fraud is the use of information technology (IT) to commit or conceal fraudulent activities, such as theft, manipulation, or unauthorized access of data, systems, or networks. Computer-enabled fraud can pose significant risks to an organization, such as financial loss, reputational damage, legal liability, or regulatory sanctions. Therefore, an organization should establish a comprehensive and effective framework to prevent, detect, and respond to computer-enabled fraud. The framework should involve three lines of defense, which are the roles and responsibilities of different functions within theorganization to manage and control risks. The first line of defense consists of the business owners, whose role is to identify, assess, and manage risks, including computer-enabled fraud risks. The primary responsibility of the first line of defense related to computer-enabled fraud is to implement processes to detect and deter fraud. This means designing and executing controls that can prevent or reduce the occurrence of computer-enabled fraud, such as authentication, authorization, encryption, logging, or segregation of duties. This also means monitoring and reporting any suspicious or anomalous activities or transactions that may indicate computer-enabled fraud, such as unusual patterns, volumes, or frequencies of data or system access or usage. Implementing processes to detect and deter fraud can help the first line of defense to protect the organization’s assets, data, and reputation from computer-enabled fraud, and to comply with the organization’s policies and regulations. References = Three Lines of Defence, Roles of Three Lines of Defense for Information Security and Governance, THE THREE LINES OF DEFENSE IN EFFECTIVE RISK MANAGEMENT AND CONTROL, The Three Lines of Defense.