CRISC Exam Dumps - Certified in Risk and Information Systems Control

 The best control to help reduce the risk of fraudulent internal transactions in several business applications is the segregation of duties. Segregation of duties is the principle of dividing the roles and responsibilities of different individuals or groups involved in a business process or an IT service, so that no one person or group has complete control over the entire process or service. Segregation of duties can help to prevent or detect fraud, errors, conflicts of interest, or misuse of resources, by ensuring that there are checks and balances, and that there is adequate oversight and accountability. Segregation of duties can also help to reduce the risk of collusion, compromise, or coercion among the internal staff, by limiting their access and authority to thebusiness applications and data. Periodic user privileges review, log monitoring, and periodic internal audits are also useful controls, but they are not as effective as segregation of duties, as they are reactive and detective measures, rather than proactive and preventive measures. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

According to the Gaining the competitive edge – measuring and assessing an organization’s risk culture article, risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite should be aligned with the organization’s strategy, goals, and values, and should reflect the organization’s risk culture and capabilities. One of the main considerations when validating an organization’s risk appetite is the capacity to withstand loss, which is the ability of the organization to absorb the impact of adverse events without jeopardizing its viability or reputation. The capacity to withstand loss depends on various factors, such as the financial strength, the operational resilience, the governance structure, and the stakeholder expectations of the organization. By assessing the capacity to withstand loss, the organization can determine if its risk appetite is realistic and appropriate, or if it needs to be adjusted to match its risk profile and environment. References = Gaining the competitive edge – measuring and assessing an organization’s risk culture

Reviewing configuration settings is the best way for an organization to ensure that servers are compliant to security policy, because it helps to check and verify that the servers are configured and maintained according to the established security standards and guidelines, and that any deviations or violations are identified and corrected. A configuration setting is a parameter or option that defines the behavior or functionality of a server, such as a system, an application, or aservice. A security policy is a document that outlines the security objectives, principles, and rules that the organization and its employees must follow, and the consequences of non-compliance. Reviewing configuration settings is the best way, as it helps to ensure that the servers are secure and compliant, and that any security risks or issues are detected and resolved. Reviewing change logs, server access logs, and anti-malware compliance are all possible ways to ensure that servers are compliant to security policy, but they are not the best way, as they do not provide a comprehensive and consistent view of the configuration settings and their compliance status. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2, page 200

Monitoring the average time to complete tasks and monthly reporting of the findings during the month-end close process aligns with the definition of a Key Performance Indicator (KPI).

Understanding KPIs:

Performance Measurement:KPIs are used to measure how effectively a company is achieving its key business objectives. Monitoring the average time to complete tasks during the month-end close process provides a performance metric.

Tracking Efficiency:By reporting these findings monthly, management can track the efficiency and performance of the system load capabilities.

Specific Measure:

Task Completion Time:The average time to complete tasks is a specific, measurable indicator of performance. It helps in understanding how well the system handles load and identifies areas for improvement.

Continuous Improvement:Regular monitoring and reporting encourage continuous improvement, which is a core aspect of using KPIs.

IT risk scenarios are hypothetical situations that describe how IT-related risks can affect the organization’s objectives, operations, or assets1. IT risk scenarios help to make IT risk more concrete and tangible, and to enable proper risk analysis and assessment2. IT risk scenarios are developed after IT risks are identified, and are used as inputs for risk analysis, where the frequency and impact of the scenarios are estimated3.

The most important factor to the successful development of IT risk scenarios is threat and vulnerability analysis. Threat and vulnerability analysis is the process of identifying and evaluating the potential sources and causes of IT risks, such as malicious actors, natural disasters, human errors, or technical failures4. Threat and vulnerability analysis can help to:

Define the scope and boundaries of the IT risk scenarios, and ensure that they are relevant and realistic

Identify the critical assets, processes, or functions that are exposed or affected by the IT risks, and assess their value and importance to the organization

Determine the likelihood and methods of the threat events, and the existing or potential weaknesses or gaps in the IT control environment

Estimate the potential consequences and impacts of the IT risks, such as financial losses, operational disruptions, reputational damages, or compliance violations5

References = IT Scenario Analysis in Enterprise Risk Management - ISACA, IT Risk Scenarios - Morland-Austin, Threat and Vulnerability Analysis - Wikipedia, Threat and Vulnerability Analysis - ISACA

Ensuring senior management understands the organization’s risk universe in relation to the IT risk management program is primarily to define effective enterprise IT risk appetite andtolerance levels. This understanding is essential for setting the boundaries within which the organization is willing to operate regarding IT risks.

Defining Effective IT Risk Appetite and Tolerance Levels (Answer A):

Purpose: Senior management needs to understand the range and nature of IT risks to set appropriate risk appetite and tolerance levels.

Impact: This enables the organization to make informed decisions about which risks to accept, mitigate, transfer, or avoid.

Alignment: It ensures that the IT risk management strategy is aligned with the overall business objectives and risk posture of the organization.

Comparison with Other Options:

B. To execute the IT risk management strategy in support of business objectives:

Purpose: While important, it follows the definition of risk appetite and tolerance.

Limitation: Without understanding the risk universe, execution may be misaligned.

C. To establish business-aligned IT risk management organizational structures:

Purpose: Structural alignment is crucial but secondary to setting risk appetite and tolerance.

D. To assess the capabilities and maturity of the organization’s IT risk management efforts:

Purpose: This is part of the ongoing process but not the primary purpose of understanding the risk universe.

KRIs must be aligned to business processes to ensure they reflect actual risk conditions affecting critical operations. Misalignment can lead to inaccurate monitoring and ineffective response.

The most important thing to include in a risk assessment of an emerging technology is the impact and likelihood ratings of the risks associated with the technology. Impact and likelihood ratings are the measures of the potential consequences and probabilities of the risk events that could affect the achievement of the enterprise’s objectives. Impact and likelihood ratings can help to evaluate the level andnature of the risk exposure, and to prioritize the risks for further analysis and response. Impact and likelihood ratings can also help to communicate the risk profile and appetite of the enterprise, and to support the risk-based decision making. Risk response plans, risk and control ownership, and key controls are not as important as impact and likelihood ratings, as they are the outputs or outcomes of the risk assessment process, and not the inputs or components of the risk assessment process. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 49.