CRISC Exam Dumps - Certified in Risk and Information Systems Control

According to the CRISC Review Manual (Digital Version), the organization’s culture is the most important factor affecting risk management in an organization, as it influences the risk awareness, risk attitude, risk behavior and risk communication of all stakeholders. The organization’s culture is defined as the shared values, beliefs, norms and expectations that guide the actions and interactions of the members of the organization. The organization’s culture affects how risk management is perceived, supported, implemented and integrated within the organization. A strong risk culture is one that:

Aligns with the organization’s vision, mission, strategy and objectives

Promotes a common understanding of risk and its implications for the organization

Encourages the identification, assessment, response and monitoring of risks at all levels

Fosters a proactive, collaborative and transparent approach to risk management

Empowers and rewards the stakeholders for taking ownership and accountability of risks

Enables continuous learning and improvement of risk management capabilities and maturity

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.3: IT Risk Culture, pp. 23-251

 The PRIMARY objective of the board of directors periodically reviewing the risk profile is to help ensure that the risk strategy is appropriate, because the risk strategy defines the enterprise’s risk appetite, tolerance, and objectives, and guides the risk management process and activities. The board of directors should review the risk profile to ensure that it reflects the current internal and external environment, and that it aligns with the enterprise’s strategy and goals. The other options are not the primary objective, because:

Option B: KRIs and KPIs are aligned is a desirable outcome of the risk strategy, but not the primary objective of the board of directors reviewing the risk profile. KRIs and KPIs are indicators that measure and monitor the risk exposure and performance of the enterprise, respectively, and they should be consistent with the risk strategy and objectives.

Option C: Performance of controls is adequate is a result of the risk response, but not the primary objective of the board of directors reviewing the risk profile. Performance of controls is the degree to which the controls are effective and efficient in mitigating the risks, and it should be evaluated and reported by the risk management function and the internal audit function.

Option D: The risk monitoring process has been established is a prerequisite for the risk profile, but not the primary objective of the board of directors reviewing the risk profile. The risk monitoring process is the process of tracking and reporting the risk status and performance, and it should be implemented and executed by the risk management function and the business process owners. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 119.

Continuous risk management process improvement is the practice of evaluating and enhancing the risk management process on a regular basis, to ensure that it is effective, efficient, and aligned with the business objectives and strategy. Continuous risk management process improvement can help identify and address the gaps, weaknesses, or opportunities for improvement in the risk management process, and ensure that the process is responsive and adaptable to the changing risk environment. The most effective method for continuous risk management process improvement is periodic assessments, which are systematic and objective evaluations of the risk management process, performed at predefined intervals or after significant events. Periodic assessments can help measure and monitor the performance and maturity of the risk management process, using criteria such as the risk management framework, standards, policies, procedures, methods, tools, roles, responsibilities, and results. Periodic assessments can also help identify and analyze the strengths, weaknesses, threats, and opportunities of the risk management process, and provide feedback and recommendations for improvement. Periodic assessments can also help communicate and report the status and progress of the risk management process to the stakeholders, and obtain their input and support for improvement actions. References = Continuous Risk Management Guidebook, p. 7-8, ISO 31000: risk management and its continuous improvement, How Continuous Monitoring Drives Risk Management.

Personally identifiable information (PII) is any information that can be used to identify, contact, or locate an individual, such as name, address, phone number, email, social security number, etc1. PII is subject to various laws and regulations that aim to protect the privacy and security of individuals’ data1. Organizations that collect, store, process, or transmit PII have a responsibility to safeguard it from unauthorized access, use, disclosure, modification, or destruction1.

One of the best practices for protecting PII is to implement access controls, which are mechanisms that restrict access to PII based on the principle of least privilege2. Access controls ensure that only authorized personnel who have a legitimate need to access PII can do so, and that they can only perform the actions that are necessary for their roles and responsibilities2. Access controls can be implemented at different levels, such as network, system, application, or data level, and can use various methods, such as passwords, tokens, biometrics, encryption, etc2.

If an organization’s shared drive contains PII that can be accessed by all personnel, this poses a high risk of data breach, theft, loss, or misuse, which could result in legal, financial, reputational, or operational consequences for the organization and the individuals whose data is compromised3. Therefore, the most effective risk response is to protect the sensitive information with access controls, such as:

Classify the PII according to its sensitivity and impact level, and assign appropriate labels and permissions to the data files and folders2.

Restrict access to the shared drive to only those personnel who have a valid business reason to access the PII, and grant them the minimum level of access required to perform their tasks2.

Implement strong authentication and authorization mechanisms, such as multifactor authentication, role-based access control, or attribute-based access control, to verify the identity and privileges of the users who access the shared drive2.

Encrypt the PII stored on the shared drive, and use secure protocols and channels to transmit the data over the network2.

Monitor and audit the access and activities on the shared drive, and generate logs and reports to detect and respond to any unauthorized or anomalous events2.

The other options are not as effective as access controls, because they do not directly address the root cause of the risk, which is the lack of access restrictions on the shared drive. Implementing a data loss prevention (DLP) solution, which is a tool that monitors and prevents the leakage of sensitive data, may help to detect and block some unauthorized data transfers, but it does not prevent unauthorized access or viewing of the PII on the shared drive4. Re-communicating the data protection policy, which is a document that defines the rules and responsibilities for handling PII, may help to raise awareness and compliance among the personnel, but it does not enforce or verify the actual implementation of the policy. Implementing a data encryption solution, which is a technique that transforms the PII into an unreadable format, may help to protect the confidentiality of the data, but it does not prevent unauthorized access or modification of the data, and it may introduce additional complexity and overhead to the data management process.

References = Guide to Protecting the Confidentiality of Personally Identifiable Information (PII), Best Practices for Protecting PII, How to Secure Personally Identifiable Information against Loss or Compromise, Data Loss Prevention (DLP) | Microsoft 365 security, [Protecting Personal Information: A Guide for Business], [Encryption - Wikipedia]

According to the Operational Risk: Overview, Importance, and Examples article, operational risk is the risk of loss resulting from inadequate or failed internal processes, people, and systems. One of the factors that can increase operational risk is the complexity of IT infrastructure, which refers to the number, variety, and interdependence of IT components, such as hardware, software, networks, and data. A complex IT infrastructure can pose challenges for IT management, such as increased costs, reduced performance, lower reliability, higher vulnerability, and more difficulty in troubleshooting and maintenance. Therefore, minimizing the complexity of IT infrastructure can help reduce IT operational risk, as it can simplify IT operations, improve IT efficiency and effectiveness, enhance IT security and resilience, and facilitate IT innovation and adaptation. References = Operational Risk: Overview, Importance, and Examples

According to the What Is Risk Management & Why Is It Important? article, risk management is the systematic process of identifying, assessing, and mitigating threats or uncertainties that can affect your organization. The primary goal of a risk management program is to help ensure objectives are met, by aligning the risk management process with the organization’s strategy, vision, mission, values, and objectives. By having a risk management program, an organization can identify potential problems before they occur and have a plan for addressing them, as well as monitor and report on the effectiveness of the risk responses. This can help the organization to achieve its desired outcomes and create value for its stakeholders. References = What Is Risk Management & Why Is It Important?

According to the CRISC Review Manual1, the risk register is a tool that records the results of risk identification, analysis, evaluation, and treatment. The risk register should be updated whenever there is a change in the risk profile, such as when a risk response is implemented or a new risk is identified. Updating the risk register allows the organization to monitor the current status of risks and the effectiveness of risk responses. Therefore, the next step for the risk practitioner after identifying a risk with high impact and very low likelihood that is covered by insurance is to update the risk register with the new information. References = CRISC Review Manual1, page 191.

A risk heat map is a graphical tool that displays the overall risk of the project to senior management by showing the probability and impact of individual risks in a matrix format. A risk heat map can help to prioritize the risks, communicate the risk exposure, and monitor the risk response. A risk heat map can also show the risk appetite and tolerance levels of the organization, as well as the residual risk after the risk response. The other options are not the most effective ways to represent the overall risk of the project to senior management, although they may be useful or complementary to the risk heat map. Aggregated key performance indicators (KPIs) are metrics that measure the performance of the project against the objectives, but they do not show the uncertainty or variability of the project outcomes. Key risk indicators (KRIs) are metrics that measure the level of risk or the effectiveness of the risk response, but they do not show the relationship between the probability and impact of the risks. A centralized risk register is a document that records the details of the individual risks, such as the description, category, cause, effect, probability, impact, response, and status, but it does not show the overall risk of the project in a visual or concise way. References = Managing overall project risk, Project Risk Management – Quick Reference Guide, 10 Common Project Risks (Plus the Steps To Solve Them), What Is Project Risk Management: Benefits, Challenges, Best Practices