Isaca Updated CRISC Exam Questions and Answers by camilla

According to the Risk and Information Systems Control documents, the risk practitioner should conclude that no action is required as there was no impact. The fact that there have been no interruptions to business operations despite the increasing hardware failure incidents indicates that the built-in redundancy and fault-tolerant architecture are effective in ensuring continuity.

Options A and C are not necessary in this scenario. A root cause analysis (Option A) might be considered if there were actual interruptions or impact on business operations. However, since there were no interruptions, a root cause analysis may not be immediately required. Similarly, upgrading hardware (Option C) may not be necessary if the existing controls are effectively preventing business disruptions.

References = Risk and Information Systems Control Study Manual

Implementing mock phishing exercises is the most effective way to validate organizational awareness of cybersecurity risk, because it helps to measure and test the knowledge and behavior of the employees regarding the detection and prevention of phishing attacks, which are one of the most common and dangerous forms of cybersecurity risk. A phishing attack is a fraudulent attempt to obtain sensitive or confidential information, such as usernames, passwords, or credit card details, by impersonating a legitimate or trusted entity, such as a bank, a government agency, or a colleague, through email, phone, or other communication channels. A mock phishing exercise is a simulated phishing attack that is conducted by the organization or a thirdparty to assess the level of awareness and readiness of the employees to recognize and respond to phishing attacks, and to provide feedback and training to improve their skills andknowledge. Implementing mock phishing exercises is the most effective way, as it helps to validate the actual and practical awareness of cybersecurity risk, and to identify and address the gaps or weaknesses in the employees’ awareness and behavior. Conducting security awareness training, updating the information security policy, and requiring two-factor authentication are all useful ways to enhance organizational awareness of cybersecurity risk, but they are not the most effective way, as they do not directly validate the awareness and behavior of the employees regarding phishing attacks. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158

 Risk culture is the system of values and behaviors present in an organization that shapes risk decisions of management and employees1. Risk culture influences how the organization perceives, responds to, and manages the risks that may affect its objectives, operations, or assets2.

The scenario described in the question best demonstrates an organization’s risk culture, because it shows how the management team’s attitude and actions towards risk are driven by the organization’s values and goals. In this case, the organization’s risk culture is characterized by:

A high risk appetite and tolerance, which means that the organization is willing to take and accept significant risks in order to achieve its strategic objectives of launching a new product and penetrating new markets

A low risk awareness and sensitivity, which means that the organization does not pay enough attention or consideration to the potential IT risk factors, threats, and vulnerabilities that may affect its product development and market entry

A weak risk governance and control, which means that the organization does not have adequate or effective policies, procedures, or mechanisms to identify, assess, respond, or monitor the IT risks and their impacts

References = Risk Culture of Companies | ERM - Enterprise Risk Management Initiative …, Taking control of organizational risk culture | McKinsey

An effective risk management program is a systematic and consistent process of identifying, analyzing, evaluating, treating, monitoring, and communicating risks that may affect the achievement of the organization’s objectives12.

The best indication of an effective risk management program is that the residual risk, which is the risk remaining after risk treatment, is within the organizational risk appetite, which is the amount and type of risk that the organization is willing to accept in pursuit of its objectives12.

This indicates that the organization has successfully implemented appropriate risk responses that align with its risk strategy and criteria, and that the organization is able to balance the potential benefits and costs of taking risks12.

The other options are not the best indication, but rather components or outcomes of an effective risk management program. For example:

Risk action plans are approved by senior management is an outcome of an effective risk management program that demonstrates the commitment and accountability of the leadership for risk management12.

Mitigating controls are designed and implemented is a component of an effective risk management program that involves reducing the likelihood or impact of a risk event12.

Risk is recorded and tracked in the risk register is a component of an effective risk management program that involves documenting and updating the risk information and status12. References =

1: Risk IT Framework, ISACA, 2009

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