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Free ISACA CRISC Exam Questions (page: 19)

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PDF with 1895 Questions

When developing risk scenario using a list of generic scenarios based on industry best practices, it is MOST imported to:

  1. Assess generic risk scenarios with business users.
  2. Validate the generic risk scenarios for relevance.
  3. Select themaximum possible risk scenarios from the list.
  4. Identify common threats causing generic risk scenarios

Answer(s): B

Explanation:

The most important step when developing risk scenarios using a list of generic scenarios based on industry best practices is to validate the generic risk scenarios for relevance. The generic risk scenarios may not be applicable or suitable for the specific context, objectives, and environment of the organization. Therefore, the risk practitioner should validate the relevance of the generic risk scenarios by comparing them with the organization's risk profile, risk appetite, and risk criteria. Assessing generic risk scenarios with business users, selecting the maximum possible risk scenarios from the list, and identifying common threats causing generic risk scenarios are other steps that may be useful, but they are not as important as validating the relevance of the generic risk scenarios. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.



Which of the following would offer the MOST insight with regard to an organization's risk culture?

  1. Risk management procedures
  2. Senior management interviews
  3. Benchmark analyses
  4. Risk management framework

Answer(s): B

Explanation:

Senior management interviews would offer the MOST insight with regard to an organization's risk culture, because they can reveal the attitudes, values, beliefs, and behaviors of the seniormanagement towards risk management, and how they influence and support the risk management process and activities in the organization. Senior management interviews can also provide information on the risk appetite, tolerance, and objectives of the organization, and how they are communicated and implemented across the organization. The other options are not as insightful as senior management interviews, because:
Option A: Risk management procedures are the steps and methods that define how the risk management process and activities are performed in the organization, but they do not necessarily reflect the risk culture of the organization, which is more about the human and behavioral aspects of risk management.
Option C: Benchmark analyses are the comparisons of the performance and practices of the organization with those of similar or successful organizations, but they do not necessarily reflect the risk culture of the organization, which is more about the internal and unique aspects of risk management.
Option D: Risk management framework is the set of rules and standards that guide and support the risk management process and activities in the organization, but it does not necessarily reflect the risk culture of the organization, which is more about the leadership and commitment aspects of risk management. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 82.



Which of the following is MOST important for management to consider when deciding whether to invest in an IT initiative that exceeds management's risk appetite?

  1. Risk management budget
  2. Risk management industry trends
  3. Risk tolerance
  4. Risk capacity

Answer(s): C

Explanation:

The most important factor for management to consider when deciding whether to invest in an IT initiative that exceeds management's risk appetite is C. Risk tolerance1 According to the CRISC Review Manual, risk tolerance is the acceptable level of variation that management is willing to allow for any specific risk as the enterprise pursues its objectives. Risk tolerance reflects the degree of uncertainty that an organization is prepared to accept in relation to achieving its goals2
When an IT initiative exceeds management's risk appetite, it means that the potential benefits of the initiative are outweighed by the potential negative consequences or losses that could result from the initiative. However, management may still decide to invest in the initiative if the level of uncertainty or variation is within the organization's risk tolerance. For example, management may accept a higher level of risk for a strategic or innovative initiative that could provide a competitive advantage or a significant return on investment3



Which of the following is MOST important to consider when determining the value of an asset during the risk identification process?

  1. The criticality of the asset
  2. The monetary value of the asset
  3. The vulnerability profile of the asset
  4. The size of the asset's user base

Answer(s): A

Explanation:

The criticality of the asset is the most important factor to consider when determining the value of an asset during the risk identification process, because it reflects the importance or significance of the asset to the organization's objectives or functions, and the potential impact or consequence of losing or compromising the asset. An asset is a resource or capability that has value to the organization, such as data, systems, applications, infrastructure, or people. The value of an asset is a measure of the worth or benefit of the asset to the organization, and the cost or loss of the asset to the organization. The risk identification process is a process of systematically identifying the sources and types of risk that an organization faces, and estimating their likelihood and impact. The criticality of the asset is the most important factor, as it helps to prioritize and focus on the assets that have the highest value and impact, and to determine the appropriate level of protection and investment for the assets. The monetary value of the asset, the vulnerability profile of the asset, and the size of the asset's user base are all possible factors to consider when determining the value of an asset, but they are not the most important factor, as they do not directly reflect the criticality of the asset to the organization's objectives or functions. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 83



An organizational policy requires critical security patches to be deployed in production within three weeks of patch availability.
Which of the following is the BEST metric to verify adherence to the policy?

  1. Maximum time gap between patch availability and deployment
  2. Percentage of critical patches deployed within three weeks
  3. Minimum time gap between patch availability and deployment
  4. Number of critical patches deployed within three weeks

Answer(s): A

Explanation:

The best metric to verify adherence to the policy that requires critical security patches to be deployed in production within three weeks of patch availability is the maximum time gap between patch availability and deployment, as it measures the longest duration that the organization takes to apply the patches, and ensures that it does not exceed the policy limit. The other options are not the best metrics, as they may not reflect the actual or optimal compliance with the policy, or may not be relevant or measurable for the policy, respectively. References = CRISC Review Manual, 7th Edition, page 110.



Which of the following is the BEST method for assessing control effectiveness?

  1. Ad hoc control reporting
  2. Control self-assessment
  3. Continuous monitoring
  4. Predictive analytics

Answer(s): C

Explanation:

Control effectiveness is the degree to which a control achieves its intended objective and mitigates the risk that it is designed to address. It is measured by comparing the actual performance and outcome of the control with the expected or desired performance and outcome.
The best method for assessing control effectiveness is continuous monitoring, which is the process of collecting, analyzing, and reporting on the performance and outcome of the controls on an ongoing basis. Continuous monitoring provides timely and accurate information on the status and results of the controls, and enables the identification and correction of any issues or gaps in the control environment. Continuous monitoring can be performed using various techniques, such as automated tools, dashboards, indicators, metrics, logs, audits, reviews, etc. Continuous monitoring can also be integrated with the risk management process, and aligned with the organization's objectives and risk appetite.
The other options are not the best methods for assessing control effectiveness, because they do not provide the same level of timeliness, accuracy, and completeness of information on the performance and outcome of the controls.
Ad hoc control reporting is the process of collecting, analyzing, and reporting on the performance and outcome of the controls on an irregular or occasional basis. Ad hoc control reporting may be triggered by specific events, requests, or incidents, and it may not cover all the relevant or critical controls. Ad hoc control reporting may not provide sufficient or consistentinformation on the control effectiveness, and it may not enable the timely and proactive identification and correction of any issues or gaps in the control environment. Control self-assessment is the process of allowing the control owners or operators to evaluate and report on the performance and outcome of their own controls. Control self-assessment can provide useful insights and feedback from the control owners or operators, and it can enhance their awareness and accountability for the control effectiveness. However, control self-assessment may not be objective, reliable, or independent, and it may not cover all the relevant or critical controls. Control self-assessment may not provide sufficient or consistent information on the control effectiveness, and it may not enable the timely and proactive identification and correction of any issues or gaps in the control environment. Predictive analytics is the process of using statistical techniques and models to analyze historical and current data, and to make predictions or forecasts about future events or outcomes. Predictive analytics can provide useful insights and trends on the potential performance and outcome of the controls, and it can support the decision making and planning for the control effectiveness. However, predictive analytics may not be accurate, valid, or reliable, and it may not reflect the actual or current performance and outcome of the controls. Predictive analytics may not provide sufficient or consistent information on the control effectiveness, and it may not enable the timely and proactive identification and correction of any issues or gaps in the control environment. References = ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 40-41, 47-48, 54-55, 58-59, 62-63 ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 150 CRISC Practice Quiz and Exam Prep



Which of the following is MOST important for effective communication of a risk profile to relevant stakeholders?

  1. Emphasizing risk in the risk profile that is related to critical business activities
  2. Customizing the presentation of the risk profile to the intended audience
  3. Including details of risk with high deviation from the risk appetite
  4. Providing information on the efficiency of controls for risk mitigation

Answer(s): B

Explanation:

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.



The PRIMARY focus of an ongoing risk awareness program should be to:

  1. enable better risk-based decisions.
  2. define appropriate controls to mitigate risk.
  3. determine impact of risk scenarios.
  4. expand understanding of risk indicators.

Answer(s): A

Explanation:

The primary focus of an ongoing risk awareness program should be to enable better risk- based decisions, as this can help the organization to achieve its objectives, optimize its performance, and manage its risks effectively. An ongoing risk awareness program is a process of educating, communicating, and engaging the stakeholders about the organization's risk management framework, methodology, and practices. An ongoing risk awareness program can help the stakeholders to understand the risk context, criteria, appetite, and profile of the organization, and to identify, assess, treat, monitor, and review the risks that may affect their roles and responsibilities. By doing so, an ongoing risk awareness program can empower the stakeholders to make informed and rational decisions that balance the benefits and costs of risk-taking, and that align with the organization's strategy and goals.


Reference:

·ISACA, Risk IT Framework, 2nd Edition, 2019, p. 761 ·ISACA, Managing Human Risk Requires More Than Just Awareness Training2



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