Isaca Updated CRISC Exam Questions and Answers by audrey

Applying risk appetite is the most important topic to cover in a training session to communicate risk assessment methodologies. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. It is a key element of the risk management framework and influences the risk assessment process. Applying risk appetite helps to ensure a consistent risk view within the organization by providing a common basis for evaluating and prioritizing risks, aligning risk responses with business goals, and communicating risk information to stakeholders. The other options are not the most important topics to cover in a training session to communicate risk assessment methodologies, although they may be relevant and useful. Applying risk factors is a technique to quantify or qualify the likelihood and impact of risks based on predefined criteria or scales. Referencing risk event data is a source of information to identify and analyze risks based on historical or current incidents. Understanding risk culture is a factor that affectsthe risk behavior and attitude of the organization and its people. References = CRISC Review Manual, pages 40-411; CRISC Review Questions, Answers & Explanations Manual, page 612

 Strong authentication is the most effective measure against external threats to an organization’s confidential information. Confidential information is any data or information that is sensitive, proprietary, or valuable to the organization, and that should not be disclosed to unauthorized parties1. External threats are malicious actors outside the organization who attempt to gain unauthorized access to the organization’s networks, systems, and data, using various methods such as malware, hacking, or social engineering2. Strong authentication is a method of verifying the identity and legitimacy of a user or device before granting access to the organization’s resources or data3. Strong authentication typically involves the use of multiple factors or methods of authentication, such as passwords, tokens, biometrics, orcertificates4. Strong authentication can prevent or reduce the risk of external threats to the organization’s confidential information, by making it more difficult and costly for the attackers to compromise the credentials or devices of the authorized users, and by limiting the access to the data or resourcesthat are relevant and necessary for the users’ roles and responsibilities5. The other options are not the most effective measures against external threats to the organization’s confidential information, as they are either less secure or less relevant than strong authentication. Single sign-on is a method of allowing a user to access multiple systems or applications with a single set of credentials, without having to log in separately for each system or application6. Single sign-on can improve the user experience and convenience, as well as reduce the administrative burden and cost of managing multiple accounts and passwords. However, single sign-on is not the most effective measure against external threats to the organization’s confidential information, as it can also increase the risk of credential compromise or misuse, and create a single point of failure or attack for the attackers to access multiple systems or data. Data integrity checking is a method of ensuring that the data or information is accurate, complete, and consistent, and that it has not been altered or corrupted by unauthorized parties or processes. Data integrity checking can involve the use of techniques such as checksums, hashes, digital signatures, or encryption. Data integrity checking can enhance the quality and reliability of the data or information, as well as detect and prevent any unauthorized or malicious changes or tampering. However, data integrity checking is not the most effective measure against external threats to the organization’s confidential information, as it does not prevent or reduce the risk of data theft or leakage, and it does not verify the identity or legitimacy of the users or devices accessing the data. Intrusion detection system is a system that monitors the network or system activities and events, and detects and alerts any suspicious or malicious behaviors or anomalies that may indicate an attempted or successful breach or attack. Intrusion detection system can help to identify and respond to external threats to the organization’s networks, systems, and data, by providing visibility and awareness of the network or system status and activities, and by enabling timely and appropriate actions or countermeasures. However, intrusion detection system is not the most effective measure againstexternal threats to the organization’s confidential information, as it is a reactive or passive system that does not prevent or block the attacks, and it may generate false positives or negatives that can affect its accuracy and efficiency. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.2.1, Page 189.

 A control self-assessment (CSA) is a technique that allows managers and work teams directly involved in business units, functions, or processes to participate in assessing the organization’s risk management and control processes. The main purpose of conducting a CSA is to gain a better understanding of the control effectiveness in the organization, which means how well the controls are designed, implemented, and operated to achieve the desired outcomes and mitigate the risks. A CSA can help to identify the strengths and weaknesses of the existing controls, as well as the gaps and opportunities for improvement. A CSA can also help to enhance the awareness, ownership, and accountability of the control environment among the managers and staff. The other options are not the main purpose of conducting a CSA, although they may be related or beneficial. Gaining a better understanding of the risk in the organization is a result of conducting a CSA, but it is not the primary goal. The primary goal is to evaluate the controls that address the risks, not the risks themselves. Adjusting the controls prior to an external audit is a possible action that may follow a CSA, but it is not the reason for conducting a CSA. The reasonfor conducting a CSA is to improve the control effectiveness, not to prepare for an audit. Reducing the dependency on external audits is a potential benefit of conducting a CSA, but it is not the objective of conducting a CSA. The objective of conducting a CSA is to enhance the internal control assurance, not to replace the external audit assurance. References = CRISC Review Manual, pages 153-1541; CRISC Review Questions, Answers & Explanations Manual, page 802

A key risk indicator (KRI) is a metric that provides information on the level of exposure to a given risk or the potential impact of a risk. KRIs are used to monitor changes in risk levels and alert management when a risk exceeds a predefined threshold or tolerance. KRIs can help provide early warning of a high-risk condition and enable timely response and mitigation actions. A risk register is a tool that records and tracks the identified risks, their likelihood, impact, and status. A risk assessment is a process that identifies, analyzes, andevaluates risks. A key performance indicator (KPI) is a metric that measures the achievement of a specific goal or objective. References = Risk IT Framework, pages 22-231; CRISC Review Manual, pages 44-452