Isaca Updated CRISC Exam Questions and Answers by dolcie

 Customer behavior data is the information that reflects how customers interact with a brand, product, or service, such as their preferences, needs, motivations, and feedback1. Collecting customer behavior data through social media advertising can help an organization to understand its target market, improve its customer experience, and optimize its marketing strategies2.

However, collecting customer behavior data through social media advertising also poses significant business risks, especially for a global organization that operates in different countries. Among the four options given, the most important business risk to be considered is the regulatory requirements that may differ in each country. This means that the organization should:

Be aware of the different laws and regulations that govern the collection, processing, storage, and transfer of personal data in each country, such as the GDPR in the EU, the CCPA in California, or the PDPA in Singapore3

Ensure that the organization complies with the relevant data protection and privacy rules and standards in each country, such as obtaining consent, providing notice, ensuring security, and respecting rights4

Avoid or mitigate the potential legal, financial, reputational, or operational consequences of violating the data protection and privacy laws and regulations in each country, such as fines, lawsuits, sanctions, or loss of trust5

References = What is Customer Behavior Data?, How to Collect Customer Behavior Data for Marketing, Data Protection Laws Around the World, Data Protection and Privacy: The Age of Intelligent Machines, The Risks of Non-Compliance with Data Protection Laws

The effective implementation of a risk treatment plan is best indicated by managing residual risk within the organization’s appetite and tolerance levels. Residual risk is the remaining risk aftercontrols have been applied, and ensuring it is within acceptable levels demonstrates that the risk treatment plan is effective.

Managing Residual Risk within Appetite and Tolerance (Answer B):

Definition: Residual risk is the risk remaining after risk treatment measures have been implemented.

Significance: Managing residual risk within the set appetite and tolerance levels shows that the implemented controls are effective and aligned with the organization’s risk management objectives.

Outcome: It ensures that the organization's risk exposure is kept within acceptable boundaries, thereby protecting its assets and operations.

Comparison with Other Options:

A. Inherent risk is managed within an acceptable level:

Definition: Inherent risk is the risk before any controls are applied.

Limitation: The focus should be on residual risk post-treatment.

C. Risk treatments are aligned with industry peers:

Purpose: While benchmarking is useful, it does not directly indicate the effectiveness of risk treatment.

D. Key controls are identified and documented:

Purpose: Identifying and documenting controls is necessary, but effectiveness is shown by managing residual risk.

According to the CRISC Review Manual, risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite is a key factor in communicating the risk associated with IT in business terms, because it helps to align the IT risk management with the business strategy and goals. Risk appetite also helps to define the risk tolerance and thresholds, which are the acceptable levels of variation around the objectives. The other options are not the correct answers, because they are not essential for communicating the risk associated with IT in business terms. Compliance objectives are the objectives that an organization must achieve to comply with the applicable laws, regulations, standards, andcontracts. Organizational objectives are the objectives that an organization sets to achieve its mission, vision, and values. Inherent and residual risk are the risk levels before and after applying the risk responses, respectively. References = CRISC Review Manual, 7th Edition, Chapter 2, Section 2.1.1, page 66.

Service level agreements (SLA) are contracts that define the expected level of performance and quality of service that an IT service provider will deliver to its customers. SLA are the best indicators that an organization has implemented IT performance requirements, as they specifythe measurable and verifiable criteria that the IT service provider must meet or exceed, such as availability, reliability, security, and responsiveness. SLA also establish the roles and responsibilities of the parties involved, the methods of monitoring and reporting the service performance, and the consequences of non-compliance or breach of the agreement. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 232. CRISC by Isaca Actual Free Exam Q&As, Question 9. CRISC Sample Questions 2024, Question 232. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 232.