CRISC Exam Dumps - Certified in Risk and Information Systems Control

Residual risk is the remaining risk after the risk response has been implemented. Residual risk can be expressed as a combination of the probability and impact of the risk scenario, or as a single value such as loss expectancy. Residual risk can be compared with the inherent risk, which is the risk level before considering the existing controls or responses, to evaluate the risk reduction and value creation of the risk response. Senior management has asked the risk practitioner for the overall residual risk level for a process that contains numerous risk scenarios. The best way to provide this information is to calculate the average of anticipated residual risklevels for each risk scenario, and to present it as a single value or a range. This can help to provide a comprehensive and consistent view of the residual risk exposure and performance of the process, as well as to align it with the organization’s risk appetite and tolerance. The sum of residual risk levels for each scenario, the loss expectancy for aggregated risk scenarios, or the highest loss expectancy among the risk scenarios are not the best ways to provide the overall residual risk level, as they may overestimate or underestimate the risk exposure and performance of the process, and may not reflect the actual risk reduction and value creation of the risk response. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.2, p. 108-109

 Cost-benefit analysis is the most helpful tool to show risk reduction based on when developing risk treatment alternatives for a business case, because it compares the expected costs and benefits of each alternative and helps to select the most optimal and feasible one. Cost-benefit analysis also helps to justify the investment and resources required for the risk treatment plan and to demonstrate the value and return of the risk reduction. The other options are not the most helpful tools, although they may also be considered when developing risk treatment alternatives. Risk appetite, regulatory guidelines, and control efficiency are examples of factors or criteria that influence the selection of risk treatment alternatives, but they do not show the risk reduction based on the alternatives. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

Assigning accountability to risk owners is the best way to ensure implementation of corrective action plans, because it clarifies the roles and responsibilities of those who are in charge of managing and mitigating the risks. Contracting to third parties, establishing employee awareness training, and setting target dates tocomplete actions are all helpful measures, but they do not guarantee the implementation of corrective action plans without accountability. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.3, page 105

The primary basis for prioritizing risk responses is the impact of the risk. The impact of the risk is the consequence or effect of the risk on the organization’s objectives or operations, such as financial loss, reputational damage, operational disruption, or legal liability. The impact of therisk is one of the key dimensions of risk analysis, along with the likelihood of the risk. The impact of the risk helps to determine the severity and priority of the risk, and to select the most appropriate and effective risk response. The impact of the risk also helps to evaluate the cost-benefit and trade-off of the risk response, and to measure the residual risk and the risk performance. The other options are not the primary basis for prioritizing risk responses, although they may be considered or influenced by the impact of the risk. The replacement cost of the business asset, the cost of risk mitigation controls, and the classification of the business asset are all factors that could affect the value or importance of the business asset, but they do not necessarily reflect the impact of the risk on the business asset or the organization. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-25.

The first step is to assess whether the ineffective controls result in residual risk exceeding the risk appetite. This establishes the urgency and priority of remediation efforts and ensures alignment with enterprise risk thresholds, reflecting principles ofRisk Assessment and Prioritization.

 A risk register is a tool that records and tracks the information about the identified risks, such as the risk description, category, owner, probability, impact, response strategy, status, and action plan. Reviewing the risk register is the best way to help an organization gain insight into its overall risk profile, which is the summary of the nature and level of risk that the organization faces. By reviewing the risk register, the organization can obtain a comprehensive and holistic view of the sources, causes, and consequences of the risks, their likelihood and impact, their interrelationships and dependencies, and their alignment with therisk appetite and tolerance. The risk register can also help the organization to prioritize the risks, allocate the resources, select the risk responses, monitor the risk performance, and evaluate the risk outcomes. References = CRISC Review Manual, 7th Edition, page 99.

Customizing the risk profile presentation ensures that stakeholders receive information in a format and context relevant to their roles. Tailored communication improves understanding, aligns risk discussions with decision-making needs, and ensures the stakeholders are equipped to act on the information effectively.

Project Delta should be deferred by management, as it has the lowest return on investment (ROI) among the four competing projects. ROI is a measure of the profitability or efficiency of a project, calculated by dividing the net benefits by the total costs. Project Delta has a net benefit of $100,000 and a total cost of $200,000, resulting in an ROI of 0.5. The other projects have higher ROIs: Project Alpha has an ROI of 1.0, Project Bravo has an ROI of 0.8, and Project Charlie has an ROI of 0.6. Therefore, Project Delta is the least attractive option for reducingoverall IT risk, and management should prioritize the other projects instead. References = How to Manage Project Risk: A 5-Step Guide; Matching the right projects with the right resources; Risk Types in Project Management