Which of the following situations reflects residual risk?
Answer(s): D
Residual riskrefers to the risk that remains after mitigation measures have been applied. It represents the exposure that an organization decides to accept, transfer, or further address, aligning with its risk appetite and tolerance.
A PRIMARY advantage of involving business management in evaluating and managing risk is that management:
Involving business management in evaluating and managing risk is beneficial, as it enables management to have a comprehensive and holistic view of the risk environment and its impact on the organization's objectives and strategy. By participating in the risk management process, management can make better-informed business decisions, as they can consider the risk factors and implications of their choices, and align their decisions with the organization's risk appetite and tolerance. Involving business management in evaluating and managing risk can also enhance the risk culture and governance of the organization, and foster a proactive and collaborative approach to risk management. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 253. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 253. CRISC by Isaca Actual Free Exam Q&As, Question 9.
A risk practitioner has been asked to propose a risk acceptance framework for an organization. Which of the following is the MOST important consideration for the risk practitioner to address in the framework?
Answer(s): C
When proposing a risk acceptance framework for an organization, the most important consideration for the risk practitioner is to clearly define the individuals or roles authorized to approve risk acceptance. This ensures that the process is controlled, accountable, and aligned with the organization's risk management policies.Risk Acceptance Framework:Purpose:A risk acceptance framework provides structured criteria and processes for deciding whether to accept a risk. This includes evaluating the risk against the organization's risk appetite and tolerance.Authorization:Identifying who has the authority to accept risk is critical. This ensures that only those with the appropriate knowledge, experience, and understanding of the organization's risk appetite and strategic objectives can make these decisions.Importance of Authorized Individuals:Accountability:Clearly defined roles for risk acceptance ensure accountability. It is essential that those making the decisions are accountable for the outcomes and understand the potential impact of their decisions.Consistency:By defining specific roles, the organization ensures consistency in risk acceptance decisions, reducing the likelihood of ad-hoc or inconsistent risk management practices.Alignment with Strategy:Authorized individuals are typically those who understand the strategic objectives of the organization, ensuring that risk acceptance aligns with these goals.
The CRISC Review Manual emphasizes that risk acceptance must be formally authorized by individuals with the appropriate level of authority and responsibility within the organization . According to ISACA's guidelines, effective risk management frameworks must include clear definitions of who can accept risks to ensure proper oversight and alignment with organizational goals .
An organization has established a single enterprise-wide risk register that records high-level risk scenarios. The IT risk department has created its own register to record more granular scenarios applicable to IT. Which of the following is the BEST way to ensure alignment between these two registers?
Answer(s): A
Mapping granular scenarios to high-level register items ensures consistency and alignment across different levels of risk management. This approach supportsIntegrated Risk Management Frameworks.
Which of the following provides the MOST helpful reference point when communicating the results of a risk assessment to stakeholders?
According to the CRISC Review Manual1, risk tolerance is the acceptable level of variation that management is willing to allow for any particular risk as it pursues its objectives. Risk tolerance provides a helpful reference point when communicating the results of a risk assessment to stakeholders, as it helps to compare the current level of risk exposure with the desired level of risk exposure, and to prioritize and allocate resources for risk response. Risk tolerance also helps to align the risk assessment results with the stakeholder expectations and preferences, and to facilitate risk-based decision making. References = CRISC Review Manual1, page 192.
Post your Comments and Discuss ISACA CRISC exam prep with other Community members:
Our website is free, but we have to fight against AI bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the CRISC content, but please register or login to continue.