CRISC Exam Dumps - Certified in Risk and Information Systems Control

Key risk indicators provide predictive insights into emerging risks, enabling timely interventions to keep risks within acceptable levels. This aligns with Risk Monitoring and Reporting best practices.

Obtaining risk owner approval ensures accountability and alignment of changes with the organization’s risk strategy. This step is essential under the Risk Governance and Accountability principles of CRISC.

 Segmenting the application within the existing network is the most effective control to manage a legacy application that relies on software that has reached the end of extended support, as it isolates the application from the rest of the network and reduces the attack surface and the potential impact of a compromise. Subscribing to threat intelligence, applying patches for a newer version of the application, and increasing the frequency of regular system and data backups are not the most effective controls, as they may not address the root cause of the risk, or may introduce additional costs or complexities, respectively. References = CRISC Review Manual, 7th Edition, page 153.

The effectiveness of risk treatment determines whether the selected response sufficiently mitigates the identified risk. This consideration ensures alignment with risk appetite and reduces residual risk to acceptable levels, reflecting the priorities set out in the Risk Response and Treatment domain of CRISC.

Automated asset management software is the best method to track asset inventory because it can provide real-time, accurate, and comprehensive data on the location, condition, value, and usage of assets. It can also help to optimize asset utilization, reduce costs, improve compliance, and enhance security.

References

•Free Asset Tracking Templates | Smartsheet

•5 Best Asset Management Software (2023) – Forbes Advisor

•What Is Asset Tracking? Benefits & How It Works - Forbes

•Inventory and Asset Tracking: Keep it Simple (But Powerful)

Relationship between Risk Appetite and Risk Tolerance:

Risk Appetite: Defined as the amount of risk an organization is willing to accept in pursuit of its objectives. It is a broad measure that reflects the organization's strategy and goals.

Risk Tolerance: Refers to the acceptable level of variation in performance relative to achieving objectives. It is narrower and can sometimes exceed the risk appetite in specific situations where deviations are permissible.

Contextual Understanding:

Controlled Exceedance: Risk tolerance allows for occasional and controlled exceedance of the risk appetite, typically under specific conditions and for compelling business reasons.

Management Decisions: Decisions to exceed risk appetite should be carefully considered and documented, ensuring they do not threaten the overall risk capacity of the organization.

Comparison with Other Options:

Independent of Each Other: Incorrect, as risk tolerance is related to risk appetite.

Risk Tolerance Determines Risk Appetite: Incorrect, risk appetite is generally broader and set before determining risk tolerance.

Synonymous: Incorrect, they are distinct concepts with risk tolerance providing operational flexibility within the boundaries set by risk appetite.

Best Practices:

Clear Definitions: Clearly define and communicate the organization’s risk appetite and risk tolerance.

Regular Reviews: Regularly review and adjust risk appetite and tolerance to align with changes in business strategy and external environment.

CRISC Review Manual: Provides detailed definitions and examples illustrating the relationship between risk appetite and risk tolerance .

ISACA Guidelines: Emphasize the importance of understanding and managing the interplay between risk appetite and tolerance for effective risk management .

References:

Establishing a code of conduct for employee behavior is the most important factor for managing ethical risk, because it defines the standards and expectations for ethical conduct and decision making within the organization, and provides guidance and direction for employees to act in a responsible and ethical manner. Ethical risk is the risk of violating the moral principles or values that govern the behavior and actions of individuals or organizations, such as honesty, integrity, fairness, or respect. A code of conduct is a document that outlines the ethical principles, values, and rules that the organization and its employees must follow, and the consequences of non-compliance. A code of conduct helps to promote a positive and ethical culture within the organization, and to prevent or mitigate the ethical risks that may arise from conflicts of interest, fraud, corruption, discrimination, or other misconduct. Involving senior management in resolving ethical disputes, developing metrics to trend reported ethics violations, and identifying the ethical concerns of each stakeholder are all useful factors for managing ethical risk, but they are not the most important factor, as they do not directly address the ethical conduct and decision making of employees. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.5.1, page 67

Continuous monitoring ensures that risk events are promptly identified and addressed, maintaining program security and aligning with Risk Monitoring and Response protocols.