An organization is conducting a review of emerging risk. Which of the following is the BEST input for this exercise?
Answer(s): D
The best input for conducting a review of emerging risk is the annual threat reports. Emerging risk is the risk that arises from new or evolving sources, or from existing sources that have not been previously considered or recognized. Emerging risk may have significant impact on the organization's objectives, strategies, operations, or reputation, and may require new or different risk responses. Annual threat reports are the reports that provide information and analysis on the current and future trends, developments, and challenges in the threat landscape, such as cyberattacks, natural disasters, geopolitical conflicts, or pandemics. Annual threat reports can help to identify and assess the emerging risk, as they can provide insights into the sources, drivers, indicators, and scenarios of the emerging risk, as well as the potential impact and likelihood of the emerging risk. Annual threat reports can also help to benchmark and compare the organization's risk exposure and preparedness with the industry and the peers, and to prioritize and respond to the emerging risk. Audit reports, industry benchmarks, and financial forecasts are not as useful as annual threat reports, as they do not focus on the emerging risk, and may not capture the latest or future changes in the threat landscape. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 50.
Which of the following is the GREATEST benefit to an organization when updates to the risk register are made promptly after the completion of a risk assessment?
Answer(s): B
The greatest benefit to an organization when updates to the risk register are made promptly after the completion of a risk assessment is optimized risk treatment decisions. Risk treatment decisions are the choices made by the organization on how to respond to the identified risks, such as avoiding, transferring,mitigating, or accepting them. Optimized risk treatment decisionsare those that align with the organizational risk appetite and objectives, and provide the best balance between the costs and benefits of the risk response actions. Updating the risk register promptly after the completion of a risk assessment helps to optimize risk treatment decisions by providing the most current and accurate information on the risk exposure and control environment. By updating the risk register, the organization can ensure that the risk scenarios, risk levels, risk owners, risk responses, and risk indicators are consistent with the risk assessment results and reflect the changes in the internal and external environment. Updating the risk register also helps to prioritize the risks and allocate the resources more effectively and efficiently for risk treatment. Updating the risk register also facilitates the communication, collaboration, and accountability among the stakeholders involved in the risk management and control processes. The other options are not the greatest benefits to an organization when updates to the risk register are made promptly after the completion of a risk assessment. Improved senior management communication is a benefit of updating the risk register, as it helps to inform and involve the senior management in the risk management and control processes, but it is not the greatest benefit. Enhanced awareness of risk management is a benefit of updating the risk register, as it helps to educate and engage the staff and other stakeholders in the risk management and control processes, but it is not the greatest benefit. Improved collaboration among risk professionals is a benefit of updating the risk register, as it helps to coordinate and integrate the efforts andexpertise of the risk professionals, but it is not the greatest benefit. References = Risk Register: Examples, Benefits, and Best Practices, IT Risk Resources | ISACA, Discover 10 major benefits for keeping a risk register
Within the three lines of defense model, the PRIMARY responsibility for ensuring risk mitigation controls are properly configured belongs with:
Answer(s): A
In the three lines of defense model, the primary responsibility for ensuring risk mitigation controls are properly configured belongs to line management.First Line of Defense:Operational Management:Line management is part of the first line of defense and is responsible for managing risks and implementing controls in their day-to-day operations. Direct Control:They have the most direct control over processes and are best positioned to ensure that risk mitigation controls are properly configured and functioning as intended.Responsibilities:Implementation and Monitoring:Line management is responsible for both implementing the controls and monitoring their effectiveness. They are on the front lines of risk management and are integral to maintaining control effectiveness. Accountability:They are accountable for ensuring that controls are aligned with the organization's risk management policies and procedures.
The CRISC Review Manual clearly outlines the roles in the three lines of defense model, emphasizing that operational management (line management) holds the primary responsibility for risk control implementation and configuration .
The GREATEST benefit of including low-probability, high-impact events in a risk assessment is the ability to:
Low-probability, high-impact events are those that have a low chance of occurring but would cause significant harm if they do. These events are often difficult to predict and quantify, but they can have a major impact on the organization's objectives, reputation, or operations. By including these events in a risk assessment, the organization can develop understandable and realistic risk scenarios that reflect the potential consequences of different outcomes1. This can help the organization to prioritize its risk management activities and allocate its resources accordingly.References = Risk and Information Systems Control Study Manual, Chapter 5: Risk Assessment Process
Which of the following is the BEST metric to demonstrate the effectiveness of an organization's patch management process?
The percent of patches implemented within established timeframe is the best metric to demonstrate the effectiveness of an organization's patch management process, as it measures how well the organization meets its patching objectives and reduces its exposure to vulnerabilities. This metric reflects the timeliness, completeness, and quality of the patching process, and can be compared against the organization's patch management policy and standards. A high percent of patches implemented within established timeframe indicates that the organization has a mature and efficient patch management process that minimizes the risk of security breaches or operational disruptions due to unpatched systems.
·ISACA, Risk and Information Systems Control Review Manual, 7th Edition, 2020, p. 2501 ·ISACA, Practical Patch Management and Mitigation2 ·NIST, Guide to Enterprise Patch Management Planning3
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