A risk practitioner's BEST guidance to help an organization develop relevant risk scenarios is to ensure the scenarios are:
Answer(s): C
Risk scenarios should reflect probable events to ensure relevance and practicality in risk assessments. This guidance supports theRisk Identification and Scenario Developmentprocess.
When an organization is having new software implemented under contract, which of the following is key to controlling escalating costs?
Answer(s): B
The key to controlling escalating costs when an organization is having new software implemented under contract is change management, which is the process of identifying, evaluating, approving, and implementing changes to the project scope, schedule, budget, or quality1. Change management can help to control escalating costs by:Establishing a clear and agreed-upon baseline for the project deliverables, requirements, and expectations, and ensuring that they are aligned with the contract terms and conditions2. Defining and enforcing a formal and consistent change control process, which includes the roles and responsibilities, the criteria and methods, and the documentation and communication of the changes3.Assessing and prioritizing the proposed changes, and determining their impact and feasibility, and their alignment with the project objectives and constraints4. Obtaining the approval and authorization of the relevant stakeholders, such as the project sponsor, the project manager, the contractor, or the customer, before implementing the changes5.Monitoring and measuring the performance and outcome of the changes, and ensuring that they are delivered within the agreed scope, schedule, budget, and quality6.References =Change Management - CIO WikiProject Scope Management - CIO WikiChange Control - CIO WikiChange Impact Analysis - CIO WikiChange Approval - CIO WikiChange Evaluation - CIO Wiki
An application runs a scheduled job that compiles financial data from multiple business systems and updates the financial reporting system. If this job runs too long, it can delay financial reporting. Which of the following is the risk practitioner's BEST recommendation?
Answer(s): D
The risk practitioner's best recommendation is to consider providing additional system resources to this job, as this would help to reduce the likelihood and impact of the risk of delaying financial reporting. Providing additional system resources, such as memory, CPU, disk space, or bandwidth, can improve the performance and efficiency of the application and the scheduled job. This can also help to avoid potential errors, failures, or interruptions that could affect the quality and timeliness of the financial data and reporting. The other options are not the best recommendations for this situation. Implementing database activity and capacity monitoring is a good practice to identify and analyze the root causes of performance issues, but it does not directly address the risk of delaying financial reporting. Ensuring the business is aware of the risk is an important step to communicate and escalate the risk, but it does not provide a solution or mitigation strategy. Ensuring the enterprise has a process to detect such situations is a preventive measure to avoid or minimize the occurrence ofthe risk, but it does not eliminate or reduce the risk. References = Practical Recommendations for Better Enterprise Risk Management - ISACA, HR Risk Management:A Practitioner's Guide - AIHR, Isaca CRISC today updated questions - Verified by Isaca Experts
An organization is adopting block chain for a new financial system. Which of the following should be the GREATEST concern for a risk practitioner evaluating the system's production readiness?
Answer(s): A
The greatest concern for a risk practitioner when an organization is adopting blockchain for a new financial system is the limited organizational knowledge of the underlying technology. Blockchain is a distributed ledger technology that enables secure and transparent transactions among multiple parties without the need for intermediaries or central authorities. Blockchain technology has many potential benefits for the financial sector, such as reducing costs, increasing efficiency, enhancing security, and improving trust. However, blockchain technology also poses many challenges and risks for the organization, such as technical complexity, interoperability issues, regulatory uncertainty, and cultural resistance. The limited organizational knowledge of the underlying technology is the greatest concern, because it affects the ability and readiness of the organization to adopt, implement, use, and maintain the blockchain system effectively and securely. The limited organizational knowledge could also result in poor decision-making, inadequate governance, insufficient training, and increased vulnerability to errors, fraud, or attacks. The other options are not as concerning as the limited organizational knowledge, although they may also pose some difficulties or limitations for the blockchain adoption. Lack of commercial software support, varying costs related to implementation and maintenance, and slow adoption of the technology across the financial industry are all factors that could affect the feasibility and sustainability of the blockchain system, but they do not directly affect the capability and maturity of the organization. References = 5
Which of the following observations would be GREATEST concern to a risk practitioner reviewing the implementation status of management action plans?
The observation that would be of GREATEST concern to a risk practitioner reviewing the implementation status of management action plans is that management has not begun the implementation, because it indicates that the management action plans are not being executed or monitored, and that the risks are not being addressed or mitigated. The lack of implementation may also imply that the management action plans are not realistic, feasible, or aligned with the enterprise's strategy and objectives. The other options are not as concerning as the lack of implementation, because:Option A: Management has not determined a final implementation date is a concern, but not the greatest one, because it may affect the timely completion and delivery of the management action plans, but it does not necessarily mean that the management action plans are not being executed or monitored.Option B: Management has not completed an early mitigation milestone is a concern, but not the greatest one, because it may indicate a delay or deviation in the progress and performance of the management action plans, but it does not necessarily mean that the management action plans are not being executed or monitored.Option C: Management has not secured resources for mitigation activities is a concern, but not the greatest one, because it may affect the quality and effectiveness of the management actionplans, but it does not necessarily mean that the management action plans are not being executed or monitored. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 123.
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