CRISC Exam Dumps - Certified in Risk and Information Systems Control

 In an environment where reduced time-to-market for new software products is a top business priority, the risk practitioner’s greatest concern should be whether sufficient resources are assigned to IT development projects. Resources include human, financial, technical, and physical assets that are needed to plan, design, develop, test, and deliver high-quality software products in a timely manner. If the IT development projects are under-resourced, they may face challenges such as delays, errors, defects, rework, scope creep, or failure to meet customer expectations or requirements. These challenges can increase the risk of losing competitive advantage, market share, customer satisfaction, or reputation. The other options are less critical, as they are not directly related to the core business priority of reducing time-to-market for new software products. Customer support help desk staff training, email infrastructure rollback plans, and corporate email system phishing detection are important aspects of information security and customer service, but they are not the primary drivers of software product development and delivery. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.2: Risk Response Options, p. 115-116.

Risk avoidance is a type of risk response that involves eliminating the risk entirely by not engaging in the activity that causes the risk or changing the conditions that create the risk1. Risk avoidance is usually applied when the potential impact or likelihood of the risk is high or unacceptable, and when the benefits of avoiding the risk outweigh the costs or losses of doing so2.

In this case, the organization has adopted risk avoidance as its risk response, because it has decided to postpone the decision that could trigger the risk. By delaying the decision, the organization is avoiding therisk of making a wrong or unfavorable choice among the multiple options. However, this may not be the best or most effective risk response, as it could also result in missed opportunities, wasted resources, or increased uncertainty3. The organization should consider the trade-offs and consequences of avoiding the risk, and explore other possible risk responses that could reduce or transfer the risk.

The other options are not the risk responses that the organization has adopted. Risk transfer means shifting the responsibility or burden of the risk to another party, such as a vendor or an insurer2. The organization has not transferred the risk to anyone else, but rather avoided it by postponing the decision. Risk mitigation means implementing controls or safeguards to minimize the negative effects of the risk2. The organization has not mitigated the risk by reducing its impact or likelihood, but rather avoided it by delaying the decision. Risk acceptance means acknowledging the risk and its consequences without taking any action to address it2. The organization has not accepted the risk by tolerating its potential outcomes, but rather avoided it by postponing the decision. References =

10 Risk Mitigation techniques you need to know - Stakeholdermap.com

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

[CRISC Review Manual, 7th Edition]

The primary objective of a risk identification process is to determine threats and vulnerabilities, which are the sources and causes of the risks that may affect the organization’s objectives. Threats are any events or circumstances that have the potential to harm or exploit the organization’s assets, such as people, information, systems, processes, or infrastructure1. Vulnerabilities are any weaknesses or gaps in the organization’s capabilities, controls, or defenses that may increase the likelihood or impact of the threats2. By determining threats and vulnerabilities, the organization can:

Identify and document all possible risks, regardless of whether they are internal or external, current or emerging, or positive or negative3.

Understand the nature and characteristics of the risks, such as their sources, causes, consequences, and interrelationships4.

Provide the basis for further risk analysis and evaluation, such as assessing the probability and severity of the risks, and prioritizing the risks according to their significance and urgency5.

References =

Threat - CIO Wiki

Vulnerability - CIO Wiki

Risk Identification - CIO Wiki

Risk Identification and Analysis - The National Academies Press

Risk Analysis - CIO Wiki

The best way to mitigate the risk to IT infrastructure availability is to establish a disaster recovery plan (DRP), because a DRP is a document that defines the procedures and resources needed to restore the IT infrastructure and resume the critical business functions in the event of a disaster or disruption. A DRP helps to minimize the downtime, data loss, and financial impact of a disaster, and ensures the continuity of operations and services. The other options are not the best ways to mitigate the risk to IT infrastructure availability, although they may also be helpful in supporting the DRP. Establishing recovery time objectives (RTOs), maintaining a current list of staff contact details, and maintaining a risk register are examples of planning or monitoring activities that aim to define the requirements, roles, and responsibilities for the disaster recovery process, but they do not address the actual implementation or execution of the DRP. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

The three lines of defense model is a framework that defines the roles and responsibilities of different functions in an organization for managing risks and ensuring effective internal control1. The three lines of defense are:

The first line of defense: the operational management and staff who are responsible for implementing and maintaining the internal control system and managing the risks within their areas of activity

The second line of defense: the oversight functions, such as risk management, compliance, and quality assurance, who provide guidance, support, and monitoring to the first line of defense and ensure that the internal control system is designed and operating effectively

The third line of defense: the internal audit function, who provides independent and objective assurance to the board and senior management on the adequacy and effectiveness of the internal control system and the performance of the first and second lines of defense2

The three lines of defense model facilitates a completely independent review of test results for evaluating control effectiveness, because it ensures that the internal audit function, as the third line of defense, has the authority, independence, and competence to conduct objective and unbiased assessments of the internal control system and report its findings and recommendations to the board and senior management3. The internal audit function can also use the test results from the first and second lines of defense as inputs for its own audit planning and testing, and verify their validity and reliability4.

References = The Three Lines of Defense in Effective Risk Management and Control - IIA, The Three Lines Model - IIA, The Role of Internal Audit in the Three Lines of Defense - IIA, Evaluating and Improving Internal Control in Organizations - IFAC

A data privacy officer is a role that is responsible for ensuring that the organization complies with the applicable laws, regulations, and standards regarding the collection, processing, storage, and disclosure of customer data1. A data privacy officer is also responsible for developing and implementing policies, procedures, and controls to protect the privacy and security of customer data, and to prevent or mitigate the risk of customer data loss2. A data privacy officer is the most helpful role in providing a high-level view of risk related to customer data loss, because:

A data privacy officer has the knowledge and expertise of the legal and ethical requirements and best practices for customer data protection, and can identify and assess the potential threats and vulnerabilities that may compromise customer data3.

A data privacy officer has the authority and accountability to oversee and monitor the customer data lifecycle, and to ensure that the organization follows the principles of data minimization, purpose limitation, accuracy, integrity, confidentiality, and accountability4.

A data privacy officer has the visibility and communication skills to report and advise the management and other stakeholders on the customer data risk profile, and to recommend and implement appropriate risk responses and improvement actions5.

The other options are not the most helpful roles in providing a high-level view of risk related to customer data loss, because:

A customer database manager is a role that is responsible for designing, developing, maintaining, and optimizing the database systems that store and manage customer data6. A customer database manager may have some technical skills and knowledge to protect the customer data from unauthorized access, modification, or deletion, but may not have the comprehensive or holistic view of the customer data risk, as they may focus only on the database level, and not on the organizational or regulatory level.

A customer data custodian is a role that is responsible for handling, processing, and storing customer data according to the instructions and permissions of the data owner7. A customer data custodian may have some operational duties and responsibilities to safeguard the customer data from accidental or intentional loss, damage, or disclosure, but may not have the strategic or analyticalview of the customer data risk, as they may follow only the predefined rules and procedures, and not the risk management principles and practices.

An audit committee is a group of independent directors or members that is responsible for overseeing and evaluating the organization’s financial reporting, internal control, and audit functions. An audit committee may have some oversight and assurance roles and responsibilities to review and verify the organization’s compliance and performance regarding customer data protection, but may not have the direct or proactive view of the customer data risk, as they may rely only on the audit reports and findings, and not on the risk assessment and analysis.

References =

Data Privacy Officer - CIO Wiki

What is a Data Protection Officer (DPO)? - Definition from Techopedia

Data Privacy Officer: Roles and Responsibilities - ISACA

Data Protection Principles - CIO Wiki

Data Privacy Officer: How to Be One and Why You Need One - ISACA

Database Manager - CIO Wiki

Data Custodian - CIO Wiki

[Audit Committee - CIO Wiki]

The data privacy officer is the best person to notify in case of a new malware that has severely impacted industry peers with data loss. The data privacy officer is responsible for ensuring that the enterprise complies with the applicable privacy laws and regulations, and that the personal data of the customers, employees, and other stakeholders are protected from unauthorized access, use, disclosure, or destruction. The data privacy officer can assess the potential impact of the malware on the enterprise’s data privacy obligations and risks, and coordinate the appropriate response and remediation actions. The customer database manager, the customer data custodian, and the audit committee are not the best persons to notify, as they do not have the same level of authority, responsibility, and expertise as the data privacy officer in dealing with data privacy issues. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 191.

The best method for identifying vulnerabilities is periodic network scanning. Network scanning is a process of scanning and probing the network devices, systems, and applications to discover and analyze their security weaknesses, such as configuration errors, outdated software, or open ports. Network scanning can help to identify the vulnerabilities that could be exploited by attackers to gain unauthorized access, compromise data, or disrupt services. Periodic network scanning is the best method, because it can provide a regular and comprehensive view of the network security posture, and it can detect and address the new or emerging vulnerabilities in a timely manner. Periodic network scanning can also help to comply with the legal and regulatory requirements and standards for network security, such as the ISO/IEC 27001, the NIST SP 800-53, or the PCI DSS123. The other options are not the best method, although they may be useful or complementary to periodic network scanning. Batch job failure monitoring is a process of monitoring and reporting the failures or errors that occur during the execution of batch jobs, such as data processing, backup, or synchronization. Batch job failure monitoring can help to identify the operational or technical issues that affect the performance or availability of the network services, but it does not directly identify the security vulnerabilities or the potential threats. Annual penetration testing is a process of simulating a real-world attack on the network devices, systems, and applications to evaluate their security defenses and resilience. Penetration testing can help to identify and exploit the vulnerabilities that could be used by attackers to compromise the network security, and to provide recommendations for improvement. However, annual penetration testing is not the best method, because it is not frequent or consistent enough to keep up with the changing and evolving network security landscape, and it may not cover all thenetwork components or scenarios. Risk assessments are a process of identifying, analyzing, and evaluating the risks associated with the network devices, systems, and applications. Risk assessments can help to estimate the probability and impact of the vulnerabilities and the threats, and to prioritize and respond to the risks accordingly. However, risk assessments are not the same as or a substitute for vulnerability identification, as they rely on the vulnerability information as an input, rather than an output. References = Vulnerability Testing: Methods, Tools, and 10 Best Practices, ISO/IEC 27001 Information Security Management, NIST SP 800-53 Rev. 5