Isaca Updated CRISC Exam Questions and Answers by zayd

 Understanding the Question:

The question seeks to identify which source provides the most useful information for evaluating the effectiveness of existing controls.

 Analyzing the Options:

A. Previous audit reports:Provide historical data but might not reflect current risks.

B. Control objectives:These are standards to be achieved, not current evaluations.

C. Risk responses in the risk register:Useful but focused on specific responses rather than overall effectiveness.

D. Changes in risk profiles:Reflect current and emerging risks, providing a dynamic view of control effectiveness.

 Detailed Explanation:

Risk Profiles:Evaluating changes in risk profiles helps understand how effective existing controls are against current threats. If risk levels are increasing, it may indicate that controls are insufficient or need updating.

Proactive Adjustment:By monitoring changes in risk profiles, organizations can proactively adjust their controls to address new or evolving risks.

Risk appetite determined by senior management reflects the enterprise's willingness to accept certain levels of risk, including noncompliance. This decision underscores the strategic trade-offs made in risk management, a key element inGovernance and Risk Policy Alignment.

The greatest benefit of using IT risk scenarios is that they facilitate communication of risk, as they provide a clear and realistic description of the risk sources, events, impacts, and responses, and enable the stakeholders to understand and appreciate the risk exposure and appetite of the organization. Supporting compliance with regulations, providing evidence of risk assessment, and enabling the use of key risk indicators (KRIs) are also benefits of using IT risk scenarios, but they are not the greatest benefit, as they are more related to the outcomes or consequences of risk communication, rather than the process or value of risk communication. References = CRISC Review Manual, 7th Edition, page 100.