Isaca Updated CISM Exam Questions and Answers by helena

 Key risk indicators (KRIs) are metrics that measure the level of risk exposure and the likelihood of occurrence of potential adverse events that can affect the organization’s objectives and performance. KRIs are used to monitor changes in the risk environment and to provide early warning signals for potential issues that may require management attention or intervention. KRIs are also used to communicate the risk status and trends to the relevant stakeholders and to support risk-based decision making12.

The primary reason to monitor KRIs related to information security is to alert on unacceptable risk. Unacceptable risk is the level of risk that exceeds the organization’s risk appetite, tolerance, or threshold, and that poses a significant threat to the organization’s assets, operations, reputation, or compliance. Unacceptable risk can result from internal or external factors, such as cyberattacks, data breaches, system failures, human errors, fraud, natural disasters, or regulatory changes. Unacceptable risk can have severe consequences for the organization, such as financial losses, legal liabilities, operational disruptions, customer dissatisfaction, or reputational damage12.

By monitoring KRIs related to information security, the organization can identify and assess the sources, causes, and impacts of unacceptable risk, and take timely and appropriate actions to mitigate, transfer, avoid, or accept the risk. Monitoring KRIs can also help the organization to evaluate the effectiveness and efficiency of the existing information security controls, policies, and procedures, and to identify and implement any necessary improvements or enhancements. Monitoring KRIs can also help the organization to align its information security strategy and objectives with its business strategy and objectives, and to ensure compliance with the relevant laws, regulations, standards, and best practices12.

While monitoring KRIs related to information security can also serve other purposes, such as identifying residual risk, reassessing risk appetite, or benchmarking control performance, these are not the primary reason for monitoring KRIs. Residual risk is the level of risk that remains after applying the risk treatment options, and it should be within the organization’s risk appetite, tolerance, or threshold. Reassessing risk appetite is the process of reviewing and adjusting the amount and type of risk that the organization is willing to take in pursuit of its objectives, and it should be done periodically or when there are significant changes in the internal or external environment. Benchmarking control performance is the process of comparing the organization’s information security controls with those of other organizations or industry standards, and it should be done to identify and adopt the best practices or to demonstrate compliance12. References = Integrating KRIs and KPIs for Effective Technology Risk Management, The Power of KRIs in Enterprise Risk Management (ERM) - Metricstream, What Is a Key Risk Indicator? With Characteristics and Tips, KRI Framework for Operational Risk Management | Workiva, Key risk indicator - Wikipedia

Requiring the provider to follow stringent data classification procedures is the BEST way to ensure data is not co-mingled or exposed when using a cloud service provider, because it helps to define the sensitivity and confidentiality levels of the data and the corresponding security controls and access policies that should be applied. Data classification procedures can help to prevent unauthorized access, disclosure, modification, or deletion of the data, as well as to segregate the data from other customers’ data.

References =

CISM Review Manual, 16th Edition, ISACA, 2020, p. 72: “Data classification is the process of assigning a level of sensitivity to data that reflects its importance and the impact of its disclosure, alteration, or destruction.”

CISM Review Manual, 16th Edition, ISACA, 2020, p. 73: “Data classification should be based on the business requirements for confidentiality, integrity, and availability of the data, and should consider the legal, regulatory, and contractual obligations of the enterprise.”

Best Practices to Manage Risks in the Cloud - ISACA: “Commingling of data: A big concern many enterprises have with public cloud services is the commingling of data with that of the cloud provider’s other customers. One of your first questions should be: “How do you ensure that my data is not commingled with others?” How does the cloud provider ensure that only your team has access to your data?”

 Server-based malware protection is not enforced is the issue that would be of GREATEST concern to an information security manager, as it exposes the web-based application and its data to potential threats from malicious software that can compromise the confidentiality, integrity, and availability of the information. Server-based malware protection is a security control that monitors and blocks malicious activities on the server where the application runs, such as viruses, worms, trojans, ransomware, etc. Without server-based malware protection, the web-based application may be vulnerable to attacks that can damage or destroy the data stored on the server, or disrupt the normal functioning of the application. The other issues are also important, but not as critical as server-based malware protection. The application does not use a secure communications protocol may expose sensitive data in transit to eavesdropping or interception by unauthorized parties. The application is configured with restrictive access controls may limit the access rights of legitimate users to authorized resources, but it does not prevent unauthorized users from accessing them through other means. The business process has only one level of error checking may result in incorrect or inconsistent data entry or processing, but it does not guarantee data quality or accuracy. References = CISM Review Manual, 16th Edition, page 1751; CISM Review Questions, Answers & Explanations Manual, 10th Edition, page 812

The effective execution of an incident response plan depends largely on the competence and readiness of the response team, who are responsible for carrying out the tasks and activities defined in the plan. Therefore, the best way to facilitate the effective execution of an incident response plan is to ensure that the response team is trained on the plan, and that they are familiar with their roles, responsibilities, procedures, and tools. Training the response team on the plan will also help to improve their confidence, communication, coordination, and collaboration during an incident response. The other options are not the best ways to facilitate the effective execution of an incident response plan, although they may be important factors for developing or improving the plan. The plan should be based on risk assessment results and industry best practice, but these do not guarantee that the plan will be executed effectively. The incident response plan should align with the IT disaster recovery plan, but this does not ensure that the response team is prepared and capable of executing the plan. References = CISM Review Manual, 16th Edition, page 1031

The best way to facilitate the effective execution of an incident response plan is to ensure that the response team is trained on the plan. An incident response plan is a set of instructions that defines the roles, responsibilities, procedures, and tools for detecting, responding to, and recovering from security incidents. An incident response team is a group of individuals that are assigned to perform specific tasks and activities during an incident response process. The response team may include security analysts, IT staff, legal counsel, public relations, and other stakeholders. To execute an incident response plan effectively, the response team needs to be trained on the plan, which means they need to be familiar with the following aspects of the plan: The scope and objectives of the plan The roles and responsibilities of each team member The communication and escalation protocols The incident classification and prioritization criteria The incident response procedures and tools The incident documentation and reporting requirements The incident review and improvement processes By training the response team on the plan, the organization can ensure that the team members are prepared and confident to handle any security incidents that may occur, and that they can perform their tasks efficiently and consistently. The other options are not the best way to facilitate the effective execution of an incident response plan, although they may be some steps or outcomes of the process. The plan being based on risk assessment results is a desirable practice, as it ensures that the plan is aligned with the organization’s risk profile and addresses the most relevant and likely threats and vulnerabilities. However, it does not guarantee that the plan will be executed effectively unless the response team is trained on the plan. The plan being based on industry best practice is a desirable practice, as it ensures that the plan follows established standards and guidelines for incident response. However, it does not guarantee that the plan will be executed effectively unless the response team is trained on the plan. The incident response plan aligning with the IT disaster recovery plan (DRP) is a desirable practice, as it ensures that the plans are consistent and coordinated in terms of objectives, scope, roles, procedures, and tools. However, it does not guarantee that the plan will be executed effectively unless the response team is trained on the plan