Isaca Updated CRISC Exam Questions and Answers by kamari

Risk responses are the actions or strategies that are taken to address the risks that may affect the organization’s objectives, performance, or value creation12.

The most effective way to increase the likelihood that risk responses will be implemented is to assign ownership, which is the process of identifying and appointing the individuals or groups who are responsible and accountable for the execution and monitoring of the risk responses34.

Assigning ownership is the most effective way because it ensures the clarity and commitment of the roles and responsibilities for the risk responses, and avoids the confusion or ambiguity that may arise from the lack of ownership34.

Assigning ownership is also the most effective way because it enhances the communication and collaboration among the stakeholders involved in the risk responses, and provides the feedback and input that are necessary for the improvement and optimization of the risk responses34.

The other options are not the most effective way, but rather possible steps or tools that may support or complement the assignment of ownership. For example:

Creating an action plan is a step that involves defining and documenting the specific tasks, resources, timelines, and deliverables for the risk responses34. However, this step is not the most effective way because it does not guarantee the implementation of the risk responses, especially if there is no clear or agreed ownership for the action plan34.

Reviewing progress reports is a tool that involves collecting and analyzing the information and data on the status and performance of the risk responses, and identifying the issues or gaps that need to be addressed34. However, this tool is not the most effective way because it does not ensure the implementation of the risk responses, especially if there is no ownership for the progress reports or the corrective actions34.

Performing regular audits is a tool that involves conducting an independent and objective assessment of the adequacy and effectiveness of the risk responses, and providing the findings and recommendations for improvement56. However, this tool is not the most effective way because it does not ensure the implementation of the risk responses,especially if there is no ownership for the audit results or the follow-up actions56. References =

1: Risk IT Framework, ISACA, 2009

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

3: Risk Response Plan in Project Management: Key Strategies & Tips1

4: ProjectManagement.com - How to Implement Risk Responses2

5: IT Audit and Assurance Standards, ISACA, 2014

6: IT Audit and Assurance Guidelines, ISACA, 2014

Key risk indicators (KRIs) are metrics that help organizations monitor and evaluate the level of risk they are exposed to. They provide early warning signals of potential issues that could affect the achievement of organizational goals12.

The most important data source for monitoring KRIs is automated logs collected from different systems, which are records that capture and store the details and history of the transactions or activities that are performed by the organization’s processes, systems, or controls34.

Automated logs collected from different systems are the most important data source because they provide timely and accurate data and information on the performance and status of the organization’s operations, and enable the detection and reporting of any deviations, anomalies, or issues that may indicate a risk event34.

Automated logs collected from different systems are also the most important data source because they support the accountability and auditability of the organization’s operations, and facilitate the investigation and resolution of any risk event34.

The other options are not the most important data sources, but rather possible inputs or factors that may influence or affect the KRIs. For example:

Directives from legal and regulatory authorities are documents that provide the expectations and obligations of the external authorities or bodies that govern or oversee the organization’s activities and operations, such as laws, regulations, standards, or contracts5 . However, these documents are not the most important data source becausethey do not directly measure or monitor the level of risk exposure, but rather provide the criteria or framework for risk compliance5 .

Audit reports from internal information systems audits are documents that provide the findings and recommendations of the independent and objective assessment of the adequacy and effectiveness of the organization’s information systems, processes, and controls . However, these documents are not the most important data source because they do not directly measure or monitor the level of risk exposure, but rather provide the assurance or improvement for risk management .

Trend analysis of external risk factors is a technique that involves analyzing and forecasting the changes and impacts of the external factors that influence the organization’s operations, such as technology, competition, regulation, or customer behavior . However, this technique is not themost important data source because it does not directly measure or monitor the level of risk exposure, but rather provide the insight or prediction for risk identification . References =

1: Key Risk Indicators: A Practical Guide | SafetyCulture1

2: Key risk indicator - Wikipedia2

3: Database Activity Monitoring - Wikipedia3

4: Database Activity Monitoring (DAM) | Imperva4

5: Regulatory Compliance - Wikipedia5

Regulatory Compliance Management Software | MetricStream

IT Audit and Assurance Standards, ISACA, 2014

IT Audit and Assurance Guidelines, ISACA, 2014

Trend Analysis - Investopedia

Trend Analysis: A Definition and Examples

According to the CRISC Review Manual (Digital Version), the next course of action when there is a gap between the acceptable downtime and the actual recovery time of an application is to prepare a cost-benefit analysis of alternatives available to reduce the gap. The cost-benefit analysis should compare the costs of implementing different risk response options, such as avoidance, mitigation, transfer or acceptance, with the benefits of reducing the impact and likelihood of the risk. The cost-benefit analysis should also consider the alignment of the risk response options with the enterprise’s risk appetite, business objectives and strategy. The cost-benefit analysis should help the application owner and the risk owner to select the most appropriate risk response option that optimizes the value of the application and minimizes the residual risk.

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.2: Risk Response Process, pp. 162-1631

The risk owner is the person who has the authority and accountability to manage a specific risk and its associated controls. The risk owner is also responsible for ensuring that the risk is within the acceptable level and that the risk response is effective and efficient. In this case, the risk owner is also the owner of the business service that depends on the managed hosting service. Therefore, the risk owner should be notified of the new information about the flood risk first, as they have the most interest and influence on the risk and its impact on the business objectives. The risk owner can then decide on the appropriate actions to take, such as reviewing the contract terms, requesting additional controls, or changing the service provider. The other options are not the correct answers because they are not the primary stakeholders of the risk and its consequences. The data center manager is an employee of the managed hosting service provider, not the organization that procured the service. The data center manager may not have the authority or the incentive to address the flood risk or inform the organization. The site manager is also an employee of the managed hosting service provider, and their role is to conduct annual risk assessments under the contract. The site manager may not be aware of the new information or have the responsibility to communicate it to the organization. The CIO is the senior executive who oversees the IT strategy and operations of the organization. The CIO may have a general interest in the managed hosting service and its risks, but they are not the direct owner or managerof the specific risk or the business service that relies on the service. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 702