CRISC Exam Dumps - Certified in Risk and Information Systems Control

Cross-business representation is most important to the effectiveness of a senior oversight committee for risk monitoring. Here’s a

Importance of Cross-business Representation:

Comprehensive Risk Perspective: Having representatives from different business units ensures that the committee has a comprehensive view of risks across the entire organization. This diverse representation helps in identifying and assessing risks that may impact various parts of the business differently.

Informed Decision-Making: Members from different business areas can provide unique insights and expertise, leading to more informed and balanced decision-making processes.

Improved Communication: Cross-business representation facilitates better communication and collaboration across the organization, ensuring that risk management practices are understood and implemented consistently.

Comparison with Other Options:

Key Risk Indicators (KRIs): While important for monitoring specific risks, KRIs alone do not ensure the effectiveness of the oversight committee without a diverse representation to interpret and act on these indicators.

Risk Governance Charter: A risk governance charter outlines the roles, responsibilities, and processes for risk management, but its effectiveness depends on the active participation of diverse business representatives.

Organizational Risk Appetite: Understanding the organizational risk appetite is crucial, but without cross-business representation, the risk appetite may not be appropriately reflected or acted upon across all business areas.

Best Practices:

Diverse Membership: Ensure that the oversight committee includes members from all key business units and functions to provide a holistic view of organizational risks.

Regular Meetings: Schedule regular meetings to review and discuss risk management activities, KRIs, and emerging risks with input from all representatives.

Clear Communication: Establish clear communication channels between the oversight committee and business units to ensure that risk management practices are effectively implemented and monitored.

A risk register is a document that records and tracks the information and status of the identified risks and their responses. It includes the risk description, category, source, cause, impact, probability, priority, response, owner, action plan, status, etc.

Periodically reviewing and updating a risk register with details on identified risk factors primarily helps to provide a current reference to stakeholders for risk-based decisions, which are the decisions that are made based on the consideration and evaluation of the risks and their responses. Providing a current reference to stakeholders for risk-based decisions helps to ensure that the decisions are consistent, appropriate, and proportional to the level and nature of the risks, and that they support the organization’s objectives and values. It also helps to optimize the balance between risk and return, and to create and protect value for the organization and its stakeholders.

The other options are not the primary benefits of periodically reviewing and updating a risk register with details on identified risk factors, because they do not address the main purpose and benefit of a risk register, which is to provide a current reference to stakeholders for risk-based decisions.

Minimizing the number of risk scenarios for risk assessment means reducing the scope and depth of risk analysis and reporting, and impairing the organization’s ability to identify and respond to emerging or changing risks. Periodically reviewing and updating a risk register with details onidentified risk factors does not necessarily minimize the number of risk scenarios for risk assessment, and it may not be a desirable or beneficial outcome for the organization.

Aggregating risk scenarios identified across different business units means combining or consolidating the risks that are identified by different parts or functions of the organization, and creating a holistic or integrated view of the organization’s risk profile. Periodically reviewing and updating a risk register with details on identified risk factors does not necessarily aggregate risk scenarios identified across different business units, and it may not be a sufficient or effective way to achieve a holistic or integrated view of the organization’s risk profile.

Building a threat profile of the organization for management review means creating or developing a summary or representation of the potential threats or sources of harm that may affect the organization’s objectives and operations, and presenting or reporting it to the senior management for their awareness and approval. Periodically reviewing and updating a risk register with details on identified risk factors does not necessarily build a threat profile of the organization for management review, and it may not be a comprehensive or reliable way to create or develop a summary or representation of the potential threats or sources of harm that may affect the organization. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 172

CRISC Practice Quiz and Exam Prep

Awareness training is the most likely control that failed in this scenario, as it is designed to educate employees on the proper handling and protection of sensitive data, and the consequences of violating the organizational policy. Awareness training can help to prevent or reduce the occurrence of human errors, such as inadvertently removing a file from the premises, that may result in data loss or breach. The other options are not the most likely controls that failed, as they are either not directly related to the scenario or not sufficient to prevent the incident. Background checks are used to verify the identity, qualifications, and trustworthiness of potential or current employees, but they do not ensure that employees will always follow the policy or avoidmistakes. User access is used to restrict the access to information systems or resources based on the identity, role, or credentials of the user, but it does not prevent the user from copying or removing the data once they have access. Policy management is used to create, communicate, and enforce the organizational policy, but it does not ensure that employees will understand orcomply with the policy. References = Sensitive Data Essentials – The Lifecycle Of A Sensitive File; Personal data breach examples | ICO; How do I prevent staff accidentally sending personal information … - GCIT; 10 Ways to Protect Sensitive Employee Information; My personal data has been lost after a breach, what are my rights …

An anti-virus program is a software that detects and removes malicious software, such as viruses, worms, or ransomware, from the IT assets, such as computers, servers, or networks. The effectiveness of an anti-virus program can be measured by the key performance indicators (KPIs) that reflect the achievement of the program objectives and the alignment with the enterprise’s risk appetite and tolerance. The best KPI to measure the effectiveness of an anti-virus program is the percentage of IT assets with current malware definitions. Malware definitions are the files or databases that contain the signatures or patterns of the known malicious software, and they are used by the anti-virus program to scan and identify the malware. The percentage of IT assets with current malware definitions indicates how well the anti-virus program is able to protect the IT assets from the latest or emerging threats, and reduce the exposure and impact of the risks associated with the malware. The other options are not as good as the percentage of IT assets with current malware definitions, as they may not reflect the quality or timeliness of the protection, or the alignment with the enterprise’s risk appetite and tolerance. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.3.2.1, pp. 171-172.

According to the CRISC Review Manual1, stakeholders are the individuals or groups that have an interest or stake in the outcome of the IT system and its risks. Stakeholders include the system owners, users, operators, developers, managers, auditors, regulators, and customers. It is most important to ensure that agreement is obtained from stakeholders when testing the security of an IT system, as this helps to define the scope, objectives, and expectations of the test, and to obtain the necessary authorization, support, and resources for the test. Agreement from stakeholders also helps to avoid any conflicts, disruptions, or misunderstandings that may arise during or after the test, and to ensure the validity and acceptance of the test results and recommendations. References = CRISC Review Manual1, page 198, 224.

Comprehensive and Detailed Explanation (aligned to ISACA CRISC guidance)

On discovering that IoT devices handling sensitive data lack proper security controls, the risk practitioner’s next step is to assess the threat and associated impact. CRISC emphasizes that after identifying a weakness, the practitioner must evaluate likelihood (threat capability, exposure, existing safeguards) and impact (data confidentiality, integrity, availability, regulatory fines, operational disruption). This analysis determines how serious the situation is and how urgently it must be addressed. Only once risk level is understood should specific treatments—such as device management, hardening, segmentation, or RBAC—be designed and prioritized. Evaluating risk appetite and tolerance is necessary when deciding whether residual risk is acceptable, but it follows (not precedes) the technical risk assessment of the scenario.

 According to the CRISC Review Manual1, lessons learned from materialized risk scenarios are the insights and knowledge gained from analyzing the causes, impacts, and responses of actual risk events that occurred in the past. Lessons learned from materialized risk scenarios are the most helpful resource when creating a manageable set of IT risk scenarios, as they help to identify and prioritize the most relevant and realistic risks that could affect the organization’s objectives, processes, and resources. Lessons learned from materialized risk scenarios also helpto improve the risk management practices and capabilities, and to avoid repeating the same mistakes or gaps in the future. References = CRISC Review Manual1, page 206.

A risk owner is the individual who is accountable for the management of a specific risk. A risk owner can decide to accept a high-impact risk if the control that mitigates the risk is adversely affecting the process efficiency. However, before updating the risk register, which is a document that records and tracks the identified risks and their responses, it is most important for the risk practitioner to obtain approval from senior management. Senior management is the group of executives who have the authority and responsibility for the strategic direction and performance of the organization. Obtaining approval from senior management can help ensure that the risk acceptance decision is aligned with the organization’s risk appetite and policies, and that the potential consequences of the high-impact risk are understood and accepted by the top-level decision makers. Obtaining approval from senior management can also help communicate and justify the risk acceptance decision to other stakeholders, such as regulators, auditors, customers, etc., and avoid any conflicts or misunderstandings that may arise from the risk acceptance decision. References = Why Assigning a Risk Owner is Important and How to Do It Right, Risk Ownership: A brief guide, Creating a Risk Register: All You Need to Know.