CRISC Exam Dumps - Certified in Risk and Information Systems Control

 According to the CRISC 351-400 topic3 Flashcards, the greatest concern when using a generic set of IT risk scenarios for risk analysis is that the risk factors might not be relevant to the organization. This is because generic risk scenarios are not tailored to the specific context, objectives, and environment of the organization, and they may not capture the unique threats, vulnerabilities, and impacts that the organization faces. Therefore, using generic risk scenarios may result in inaccurate or incomplete risk assessment and analysis, and may lead to ineffective or inappropriate risk responses. To avoid this, the organization should customize the risk scenarios to reflect its own situation and needs, and involve the relevant stakeholders and experts in the process. References = CRISC 351-400 topic3 Flashcards, Generic IT Risk Scenarios for Risk Analysis: The Greatest Concern

An IT risk register is a document that records and tracks the IT risks that have been identified and assessed by the risk practitioner. It contains information such as the risk description, the risk owner, the risk level, the risk response, the risk status, and the risk monitoring and reporting activities. An IT risk register is a dynamic document that needs to be updated regularly to reflect the changes in the IT environment and the risk landscape. When a software upgrade renders an existing key control ineffective, the risk practitioner should update the IT risk register to indicate the new risk level, the new risk response, and the new risk monitoring and reporting activities. This will ensure that the IT risk register remains accurate, relevant, and useful for IT risk management. Updating the IT risk register is more important than updating the audit engagement letter, the risk profile, or the change control documentation, because the IT risk register is the primary source of information and guidance for managing IT risks. The audit engagement letter is a formal agreement between the auditor and the auditee that defines the scope, objectives, and terms of the audit. The risk profile is a summary of the organization’s risk appetite, risk tolerance, and risk exposure. The change control documentation is a record of the changes that have been made to the IT systems and processes. These documents are important for IT risk management, but they are not as critical as the IT risk register for updating when a key control becomes ineffective. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: Risk Register, pp. 69-711

Inherent risk rating is a measure of the natural level of risk that is part of an application, before any controls are applied1. Inherent risk rating helps to identify and prioritize the applications that pose the highest risk to the organization and require the most attention and resources for risk management2. The responsibility for determining the inherent risk rating of an application should belong to the risk practitioner, as they have the expertise and knowledge to perform a comprehensive and consistent risk assessment of the application, using a standard methodology and criteria3. The risk practitioner should also communicate and report the inherent risk rating of the application to the relevant stakeholders, such as the application owner, senior management, and business process owner, and provide recommendations for risk mitigation4. The application owner, senior management, and business process owner are not the best choices for determining the inherent risk rating of an application, as they may not have the same level of skill and objectivity as the risk practitioner. The application owner is the person who has the authority and accountability for the application and its performance5. The application owner may be involved in providing input and feedback to the risk practitioner during the risk assessment process, but they may not be able to assess the inherent risk rating of the application independently and impartially, as they may have a vested interest in the application’s success and reputation6. Senior management is the group of executives who set the strategic direction and objectives of the organization and oversee its performance7. Senior management may be involved in approving and endorsing the risk assessment process and its results, but they may not be able to assess the inherent risk rating of the application in detail and depth, as they may have a broader and higher-level perspective of the organization’s risk profile and priorities8. The business process owner is the person who has the authority and accountability for a business process that is supported or enabled by the application. The business process owner may be involved in providing input and feedback to the risk practitioner during the risk assessment process, but they may not be able to assess the inherent risk rating of the application accurately and comprehensively, as they may have a limited and specific view of the application’s functionality and value. References = 2: Introduction to application risk rating & assessment | Infosec3: Application Security Risk: Assessment and Modeling - ISACA4: Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.1: Inherent Risk Rating - Shared Assessments - Third Party Risk Management5: [Application Owner - Gartner IT Glossary] 6: Perform Inherent Risk Analysis - Oracle7: [Senior Management - Definition, Roles and Responsibilities] 8: Rating Inherent and Residual Risk - Barn Owl : [Business Process Owner - Gartner IT Glossary] : [Business Process Owner - Roles and Responsibilities]

A risk mitigation action plan is a document that specifies the actions to be taken to address the identified risks, the resources required, the timelines, the owners, and the expected outcomes. The risk owner is the person who has the authority and accountability to manage the risk and its response. The risk practitioner is the person who supports the risk owner in the risk management process. The best course of action for the risk practitioner when the manager of a risk mitigation action plan is replaced and a new control is implemented is to communicate the decision to the risk owner for approval. This will ensure that the risk owner is aware of the change, agrees with the new control, and approves the modification of the action plan. The other options are not the best course of action, as they may not involve the risk owner, who is ultimately responsible for the risk and its response. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.1.1.1, pp. 95-96.

A loss event is an occurrence that results in a negative consequence or damage for an organization, such as a data breach, a cyberattack, or a natural disaster. The impact of a loss event is the extent or magnitude of the harm or loss caused by the event, such as financial losses, reputational damage, operational disruptions, or legal liabilities. A newly enacted information privacy law that significantly increases financial penalties for breaches of personally identifiable information (PII) will most likely increase the impact of a loss event for an organization affected by the new law, because it will increase the potential cost and severity of a data breach involving PII. The other options are not as likely as an increase in loss event impact, because they do not directly result from the new law, but rather depend on other factors, such as the organization’s risk management capabilities, as explained below:

A. Increase in compliance breaches is not a likely outcome, because it assumes that the organization will not comply with the new law, which would expose it to more risks and penalties. A rational organization would try to comply with the new law by implementing appropriate controls and measures to protect PII and prevent data breaches.

C. Increase in residual risk is not a likely outcome, because it assumes that the organization will not adjust its risk response strategies to account for the new law, which would leave it with more risk exposure than desired. A prudent organization would try to reduce its residual risk by enhancing its risk mitigation controls or transferring its risk to a third party, such as an insurance company.

D. Increase in customer complaints is not a likely outcome, because it assumes that the organization will experience more data breaches involving PII, which would affect its customer satisfaction and loyalty. A responsible organization would try to avoid data breaches by improving its security posture and practices, and by communicating transparently and effectively with its customers about the new law and its implications. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.1.1, page 32.

 According to the IT Risk Management - Basics and Best Practices article, one of the best practices for IT risk management is to keep the risk register up to date. A risk register is a document that records the identified risks, their causes, impacts, likelihood, responses, and status. A risk register is a vital tool for IT risk management, as it helps to track and monitor the risks throughout their lifecycle, and to communicate the risks to the relevant stakeholders. However, a risk register is only useful if it reflects the current situation and environment of the organization. Therefore, the risk register should be regularly updated to capture any changes in the risk profile, such as new risks, resolved risks, modified risks, or escalated risks. Updating the risk register will help to ensure that the risk management process is effective and efficient, and that the risk responses are appropriate and timely. References = IT Risk Management - Basics and Best Practices

The maturity of an IT risk management program is most influenced by the organization’s risk culture, as this reflects the shared values, beliefs, and attitudes that shape how the organization perceives and responds to risk. The risk culture determines the level of awareness, commitment, and involvement of the stakeholders in the IT risk management process, as well as the degree of integration and alignment with the enterprise’s objectives and strategy. A mature IT risk management program requires a strong and positive risk culture that fosters trust, collaboration, and accountability among the stakeholders, and supports continuous improvement and learning. The other options are not the most influential factors for the maturity of an IT risk management program, although they may have some impact or relevance. Benchmarking results against similar organizations can provide useful insights and comparisons, but they do not necessarily reflect the organization’s own risk culture or context. Industry-specific regulatory requirements can impose certain standards and expectations, but they do not guarantee the effectiveness or efficiency of the IT risk management program. Expertise available within the IT department can enhance the technical and operational aspects of the IT risk management program, but it does not ensure the strategic and cultural alignment with the enterprise. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, page 23.

A risk heat map is a kind of risk matrix where risks are ranked based on their potential impact and their likelihood of occurring, which allows you to prioritize the risks that pose the greatest threat. The severity of each risk is indicated by color, usually green for low risk, red for high risk, and yellow for medium risk. Therefore, from a single data point on a risk heat map, one can interpret the risk magnitude, which is the product of impact and likelihood. The other options are not directly related to a single data point on a risk heat map, but rather to the overall risk management strategy and context. References = Risk Assessment and Analysis Methods: Qualitative and Quantitative; What Is a Risk Heat Map, and How Can It Help Your Risk Management Strategy; CRISC Certified in Risk and Information Systems Control – Question599