Isaca Updated CRISC Exam Questions and Answers by elian

Corporate culture is the set of values, beliefs, and norms that shape the behavior and attitude of an organization and its people. Corporate culture alignment is the degree of consistency and compatibility between the corporate culture and the organization’s vision, mission, strategy, andobjectives. Corporate culture misalignment is the situation where the corporate culture is not aligned with the organization’s goals and expectations, and may hinder or undermine the achievement of those goals. The acceptance of control costs that exceed risk exposure is most likely an example of corporate culture misalignment, as it indicates that the organization is not following a rational and optimal approach to risk management. The organization is spending more resources on controlling risks than the potential benefits or losses that the risks entail, which may result in inefficiency, waste, or opportunity cost. The organization may also be overemphasizing the importance of risk avoidance or mitigation, and neglecting the potential value creation or innovation that may arise from taking or accepting some risks. The other options are not the best answers, as they do not explain the situation of accepting control costs that exceed risk exposure. Low risk tolerance is the degree of variation from the risk appetite that the organization is not willing to accept. Low risk tolerance may lead to excessive or unnecessary controls, but it does not necessarily mean that the control costs exceed the riskexposure. High risk tolerance is the degree of variation from the risk appetite that the organization is willing to accept. High risk tolerance may lead to insufficient or ineffective controls, but it does not imply that the control costs exceed the risk exposure. Corporate culture alignment is the situation where the corporate culture is aligned with the organization’s goals and expectations, and supports and facilitates the achievement of those goals. Corporate culture alignment would not result inaccepting control costs thatexceed risk exposure, as it would imply a balanced and rational approach to risk management. References = CRISC Review Manual, pages 22-231; CRISC Review Questions, Answers & Explanations Manual, page 812

Control processes are the procedures and activities that aim to ensure the effectiveness and efficiency of the organization’s operations, the reliability of its information, and the compliance with its policies and regulations12.

The ongoing efficiency of control processes is the degree to which the control processes achieve their intended results with minimum resources, costs, or waste34.

The best way to determine the ongoing efficiency of control processes is to analyze key performance indicators (KPIs), which are quantifiable measures of progress toward an intended result, such as a strategic objective or a desired outcome56.

Analyzing KPIs is the best way because it provides a systematic and consistent method of evaluating the performance of the control processes, and identifying the areas of improvement or optimization56.

Analyzing KPIs is also the best way because it enables the organization to monitor and report the efficiency of the control processes to the relevant stakeholders, and to take corrective or preventive actions when necessary56.

The other options are not the best way, but rather possible sources of information or inputs that may support or complement the analysis of KPIs. For example:

Performing annual risk assessments is a way to identify and evaluate the risks that may affect the organization’s objectives, and to determine the adequacy and effectiveness ofthe control processes in mitigating those risks12. However, this way is not the best because it is periodic rather than continuous, and may not capture the changes or trends in the efficiency of the control processes12.

Interviewing process owners is a way to collect and verify the information and feedback from the people who are responsible for designing, implementing, and operating the control processes12. However, this way is not the best because it is subjective and qualitative, and may not provide reliable or comparable data on the efficiency of the control processes12.

Reviewing the risk register is a way to examine and update the documentation and status of the risks and the control processes that are associated with them12. However, this way is not the best because it is descriptive rather than analytical, and may not measure or evaluate the efficiency of the control processes12. References =

1: Risk IT Framework, ISACA, 2009

2: IT Risk Management Framework, University of Toronto, 2017

3: The Control Process | Principles of Management4

4: Control Management: What it is + Why It’s Essential | Adobe Workfront5

5: What is a Key Performance Indicator (KPI)? Guide & Examples - Qlik1

6: What is a Key Performance Indicator (KPI)? - KPI.org2

The most important factor to consider when assessing the residual risk of implementing encryption for data at rest is the key management. Key management is the process of generating, storing, distributing, using, and destroying the cryptographic keys that are used to encrypt anddecrypt the data. Key management is essential for ensuring the security, availability, and integrity of the encrypted data, as well as for complying with the legal and regulatory requirements. Poor key management could result in the loss, theft, compromise, or corruption of the keys, which could lead to unauthorized access, data breach, data loss, or data recovery failure. Therefore, key management must be considered to assess the residual risk, which is the risk that remains after the risk treatment, such as encryption, is applied. Data retention requirements, data destruction requirements, and cloud storage architecture are not as important as key management, as they do not directly affect the encryption and decryption of the data, and they may not introduce significant residual risk. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

The main benefit of using key risk indicators (KRIs) for an organization is that they provide an early warning that a risk threshold is about to be reached. KRIs are metrics that measure the likelihood and impact of risks, and help monitor and prioritize the most critical risks. KRIs also help to trigger timely and appropriate risk responses, before the risk becomes unmanageable orunacceptable. The other options are not the main benefit of using KRIs, although they may be secondary benefits or outcomes. KRIs signal that a change in the control environment has occurred, provide a basis to set the risk appetite for an organization, and assist in the preparation of the organization’s risk profile. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.1, page 4-36.