CRISC Exam Dumps - Certified in Risk and Information Systems Control

According to the ERM - Step 3 - Risk Treatment article, risk transfer is a risk treatment option that involves passing ownership and/or liability of a risk to a third party, such as an insurance company, a contractor, or a supplier. Risk transfer is usually adopted when the organization does not have the capability or the resources to manage the risk internally, or when the cost of transferring the risk is lower than the cost of retaining the risk. In this case, the organization has outsourced its lease payment process to a service provider who lacks evidence of compliance with a necessary regulatory standard. This means that the organization has transferred the risk of non-compliance to the service provider, who is now responsible for ensuring that the lease payment process meets the regulatory requirements. Therefore, the answer is B. Transfer. References = ERM - Step 3 - Risk Treatment

A service level agreement (SLA) is a contract between a SaaS vendor and a customer that defines the quality and availability of the SaaS service, as well as the responsibilities and obligations of both parties. An SLA is most important to include in a SaaS vendor agreement because it sets the expectations and standards for the SaaS service, provides a mechanism for measuring and monitoring the serviceperformance, and establishes the remedies and penalties for service failures or breaches. An SLA can also help to mitigate the risks and liabilities associated with SaaS delivery, such as data security, privacy, compliance, and disaster recovery. The other options are not the most important to include in a SaaS vendor agreement, although they may be beneficial or desirable depending on the context and nature of the SaaS service. An annual contract review is a process of evaluating and revising the SaaS vendor agreement to reflect the changing needs and circumstances of the customer and the vendor, but it is not a mandatory or essential element of the agreement. A requirement to adopt an established risk management framework is a way of ensuring that the SaaS vendor follows the best practices and standards for identifying, assessing, and mitigating the risks related to the SaaS service, but it is not a specific or measurable term of the agreement. A requirement to provide an independent audit report is a way of verifying and validating the SaaS vendor’s compliance with the SLA and other contractual obligations, but it is not a direct or primary component of the agreement. References = SaaS Agreements: Key Contractual Provisions, SaaS Agreement: Everything You Need to Know, Essential checklist for SaaS agreement negotiations, KeyClauses To Understand and Evaluate in SaaS Contracts, SaaS Reseller Agreement: Everything You Need to Know

 According to the Key Performance Indicators for Vulnerability Management article, the number of vulnerabilities remediated is a key performance indicator that measures the effectiveness of a vulnerability remediation program. This KPI indicates how many vulnerabilities have been successfully mitigated or fixed within a given time frame. A higher number can imply that the organization is effectively managing its exposures and reducing its risk level. The number of vulnerabilities remediated can also be compared with the number of new vulnerabilities identified to evaluate the progress and performance of the vulnerability remediation program. References = Key Performance Indicators for Vulnerability Management

Read rights: The permission to view or access the content of a file or a folder1.

Application files: The files that contain the code, data, or resources of an application or a program2.

Controlled server environment: A server environment that is managed and secured by a set of policies, procedures, and tools3.

Business process owner: The person who is responsible for the design, execution, and performance of a business process.

Read rights to application files in a controlled server environment should be approved by the business process owner. The business process owner is the person who has the authority and accountability for the business process that uses or depends on the application files. The business process owner should approve the read rights to application files in a controlled server environment to:

Ensure that the read rights are aligned with the business needs and objectives

Prevent unauthorized or unnecessary access to the application files

Protect the confidentiality, integrity, and availability of the application files

Comply with the relevant laws and regulations that govern the access to the application files

The other options are not the best choices for approving the read rights to application files in a controlled server environment, because they do not have the same level of authority, responsibility, or knowledge as the business process owner. The database administrator, who is the person who manages and maintains the database systems and data, may have the technical skills and access to grant the read rights to application files, but they may not have the business insight or approval to do so. The chief information officer, who is the person who oversees the IT strategy and operations of the organization, may have the executive power and oversight to approve the read rights to application files, but they may not have the specific or detailed knowledge of the business process or the application files. The systems administrator, who is the person who configures and maintains the server systems and networks, may have the administrative privileges and tools to grant the read rights to application files, but they may not have the business understanding or authorization to do so.

References = Read Permission - an overview | ScienceDirect Topics, What is an Application File? - Definition from Techopedia, What is a Server Environment? - Definition from Techopedia, [Business Process Owner: Definition, Roles, and Responsibilities]

 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

 Strong authentication is the most effective measure against external threats to an organization’s confidential information. Confidential information is any data or information that is sensitive, proprietary, or valuable to the organization, and that should not be disclosed to unauthorized parties1. External threats are malicious actors outside the organization who attempt to gain unauthorized access to the organization’s networks, systems, and data, using various methods such as malware, hacking, or social engineering2. Strong authentication is a method of verifying the identity and legitimacy of a user or device before granting access to the organization’s resources or data3. Strong authentication typically involves the use of multiple factors or methods of authentication, such as passwords, tokens, biometrics, orcertificates4. Strong authentication can prevent or reduce the risk of external threats to the organization’s confidential information, by making it more difficult and costly for the attackers to compromise the credentials or devices of the authorized users, and by limiting the access to the data or resources that are relevant and necessary for the users’ roles and responsibilities5. The other options are not the most effective measures against external threats to the organization’s confidential information, as they are either less secure or less relevant than strong authentication. Single sign-on is a method of allowing a user to access multiple systems or applications with a single set of credentials, without having to log in separately for each system or application6. Single sign-on can improve the user experience and convenience, as well as reduce the administrative burden and cost of managing multiple accounts and passwords. However, single sign-on is not the most effective measure against external threats to the organization’s confidential information, as it can also increase the risk of credential compromise or misuse, and create a single point of failure or attack for the attackers to access multiple systems or data. Data integrity checking is a method of ensuring that the data or information is accurate, complete, and consistent, and that it has not been altered or corrupted by unauthorized parties or processes. Data integrity checking can involve the use of techniques such as checksums, hashes, digital signatures, or encryption. Data integrity checking can enhance the quality and reliability of the data or information, as well as detect and prevent any unauthorized or malicious changes or tampering. However, data integrity checking is not the most effective measure against external threats to the organization’s confidential information, as it does not prevent or reduce the risk of data theft or leakage, and it does not verify the identity or legitimacy of the users or devices accessing the data. Intrusion detection system is a system that monitors the network or system activities and events, and detects and alerts any suspicious or malicious behaviors or anomalies that may indicate an attempted or successful breach or attack. Intrusion detection system can help to identify and respond to external threats to the organization’s networks, systems, and data, by providing visibility and awareness of the network or system status and activities, and by enabling timely and appropriate actions or countermeasures. However, intrusion detection system is not the most effective measure againstexternal threats to the organization’s confidential information, as it is a reactive or passive system that does not prevent or block the attacks, and it may generate false positives or negatives that can affect its accuracy and efficiency. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1, Page 189.

A risk profile is a summary of the key risks that an organization faces, along with the corresponding risk responses, risk owners, and risk indicators1. A risk profile is a useful tool for communicating and reporting the risk status and performance to the management and other stakeholders2. When developing a risk profile for management approval, the most useful information to include is the residual risk and the risk appetite, because:

Residual risk is the level of risk that remains after the implementation of risk responses3. It indicates the degree of exposure or uncertainty that the organization still faces, and the potential impact or consequences of the risk events. Residual risk helps the management to evaluate the effectiveness and adequacy of the risk responses, and to decide whether to accept, reduce, transfer, or avoid the risk4.

Risk appetite is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives5. It reflects the organization’s risk culture, strategy, and priorities, and provides a basis for setting risk thresholds and targets. Risk appetite helps the management to align the risk profile with the organizational goals and values, and to ensure that the risk responses are consistent and proportional to the risk level6.

The other options are not the most useful information when developing a risk profile for management approval, because:

Strength of detective and preventative controls is a measure of how well the controls can identify or prevent the occurrence or impact of the risk events7. It is a part of the risk response information, but it does not provide a comprehensive or holistic view of the risk profile. It does not show the residual risk or the risk appetite, which are more relevant and important for the management approval.

Effectiveness and efficiency of controls is a measure of how well the controls achieve their intended objectives and how well they use the available resources8. It is a part of the risk performance information, but it does not provide a complete or balanced view of the risk profile. It does not show the residual risk or the risk appetite, which are more significant and meaningful for the management approval.

Inherent risk and risk tolerance are related but different concepts from residual risk and risk appetite. Inherent risk is the level of risk that exists before the implementation of risk responses3. Risk tolerance is the acceptable variation or deviation from the risk appetite or the risk objectives5. They are useful for the risk assessment and analysis, but they do not provide the current or desired state of the risk profile. They do not show the residual risk or the risk appetite, which are more critical and valuable for the management approval.

References =

Risk Profile - CIO Wiki

Risk Profile: Definition, Example, and How to Create One

Residual Risk - CIO Wiki

What is Residual Risk? - Definition from Techopedia

Risk Appetite - CIO Wiki

Risk Appetite: What It Is and Why It Matters - Gartner

Preventive and Detective Controls - CIO Wiki

Control Effectiveness and Efficiency - CIO Wiki

The most important element of an organization’s risk register to update following the commissioning of a new financial reporting system is the risk rating of affected financial processes. A risk rating is a measure of the level and nature of the risk exposure, based on the impact and likelihood of the risk events. A risk rating can help to prioritize and respond to the risks, and to monitor and report the risk status. A new financial reporting system may introduce new or different risks, or change the existing risks, that could affect the financial processes of the organization, such as data quality, accuracy, timeliness, compliance, or security. Therefore, the risk rating of affected financial processes should be updated to reflect the current risk situation and to ensure that the risk register is accurate and complete. Key risk indicators (KRIs), the owner of the financial reporting process, and the list of relevant financial controls are not asimportant as the risk rating of affected financial processes, as they are not directly affected by the commissioning of a new financial reporting system, and they do not measure the risk exposure and impact of the financial processes. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 48.