Which of the following is the MOST appropriate key control indicator (KCI) to help an organization prevent successful cyber risk events on the external-facing infrastructure?
Answer(s): C
The percentage of unpatched DMZ servers is a critical KCI for preventing cyber risk events on external-facing infrastructure. Unpatched servers are vulnerable to exploitation, and monitoring this indicator helps ensure timely application of security updates, reducing the risk of successful attacks.
ISACA CRISC Review Manual, 7th Edition, Chapter 4: Information Technology and Security, Section: Key Control Indicators.
The results of a risk assessment reveal risk scenarios with high impact and low likelihood of occurrence. Which of the following would be the BEST action to address these scenarios?
Developing a risk response plan is the best action to address the risk scenarios with high impact and low likelihood of occurrence, because it helps to define and implement the appropriate actions to reduce or eliminate the risk, or to prepare for and recover from the potential consequences. A risk response plan is a document that outlines the strategies and tactics for managing the identified risks, such as avoiding, transferring, mitigating, or accepting the risk. A risk response plan also assigns the roles and responsibilities for the risk owners and stakeholders, and sets the timelines and budgets for the risk response activities. A risk scenario with high impact and low likelihood of occurrence is a rare but severe event that may cause significant disruption or damage to the organization or its objectives, such as a natural disaster, a cyberattack, or a pandemic. Therefore, developing a risk response plan is the best action to address these scenarios, as it helps to minimize the exposure and impact of the risk, and to enhance the resilience and recovery of the organization. Assembling an incident response team, creating a disaster recovery plan (DRP), and initiating a business impact analysis (BIA) are all important actions to perform as part of the risk response plan, but they are not the best action, as they do not cover the whole spectrum of risk response strategies and activities. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.2, page 103
Which of the following should be the PRIMARY driver for the prioritization of risk responses?
Answer(s): B
Risk Appetite:Risk appetite defines the level of risk that an organization is willing to accept in pursuit of its objectives. It serves as a benchmark for evaluating and prioritizing risk responses.Prioritizing Risk Responses:When determining how to address risks, the primary consideration should be whether the residual risk falls within the organization's risk appetite. If a risk exceeds the appetite, it needs to be mitigated, transferred, or avoided. If it is within the appetite, it might be accepted.Influence of Other Factors:Residual Risk:Important but must be evaluated against the risk appetite to determine if it is acceptable.Mitigation Cost:Relevant for decision-making but secondary to aligning with risk appetite. Inherent Risk:Initial risk assessment before controls are applied, but prioritization is based on residual risk and risk appetite.
The CRISC Review Manual highlights the role of risk appetite in guiding the prioritization of risk responses (CRISC Review Manual, Chapter 3: Risk Response and Mitigation, Section 3.2.1 Prioritizing Risk Responses) .
Which of the following activities BEST facilitates effective risk management throughout the organization?
Risk management is the process of identifying, analyzing, evaluating, treating, monitoring, and communicating the risks that may affect the achievement of an organization's objectives. The activity that best facilitates effective risk management throughout the organization is conducting periodic risk assessments, which are the systematic and structured methods of identifying and analyzing the potential sources and consequences of risk events. By conducting periodic risk assessments, an organization can proactively identify and prioritize the risks that pose the greatest threat or opportunity, and implement theappropriate risk responses to optimize the risk exposure and align it with the risk appetite and tolerance. References = CRISC Review Manual, 7th Edition, page 63.
Which of the following situations would BEST justify escalation to senior management?
Answer(s): A
Residual risk exceeds acceptable limits, because it indicates that the risk level is higher than the organization's risk appetite or tolerance, and that the risk responses and controls are insufficient or ineffective. Residual risk is the level of risk remaining in a process or procedure following the implementation of risk controls to limit or remove it. Escalation is a process that increases theawareness and involvement of higher-level stakeholders or authorities in a risk issue or situation. Escalation is appropriate when the risk issue or situation is outside the scope or authority of the current risk owner or manager, and requires the attention or action of the senior management or the board of directors. Residual risk exceeding acceptable limits is the best situation to justify escalation, as it implies that the current risk owner or manager cannot manage the risk within the predefined boundaries or expectations, and that the senior management or the board of directors need to intervene or approve the risk acceptance or transfer.Residual risk being inadequately recorded, residual risk remaining after controls have been applied, and residual risk equaling current risk are all possible situations that may require escalation, but they are not the best situations, as they do not necessarily indicate that the risk level is higher than the acceptable limits, and that the senior management or the board of directors need to be involved.
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