Isaca Updated CRISC Exam Questions and Answers by mario

The best input to assess the inherent risk impact of leakage of customer data is the number of customer records held. Inherent risk impact is a measure of the potential severity or consequence of a risk event, before considering the existing controls. Inherent risk impact can be based on quantitative or qualitative factors, such as financial, operational, reputational, or legal factors.The number of customer records held is the best input, because it directly reflects the amount and type of data that could be leaked, and the potential harm or loss that could result from the leakage. The number of customer records held can also help to estimate the probability and frequency of the leakage, as well as the effectiveness and efficiency of the controls. The more customer records the organization holds, the higher the inherent risk impact of leakage, and the more controls the organization needs to implement and maintain. The other options are not the best input, although they may be related or influential to the inherent risk impact. The number of databases that host customer data is a measure of the complexity or diversity of the data storage and management systems, but it does not directly indicate the amount or type of data that could be leaked, or the potential harm or loss that could result from the leakage. The number of databases that host customer data may also vary depending on the design and configuration of the systems, which may not reflect the inherent risk impact. The number of encrypted customer databases is a measure of the security or protection of the data storage and management systems, but it is not an input to the inherent risk impact, rather it is an output or a result of the control implementation. The number of encrypted customer databases may also depend on the quality and reliability of the encryption methods and keys, which may not indicate the inherent risk impact. The number of staff members having access to customer data is a measure of the exposure or vulnerability of the data to internal threats, such as unauthorized or malicious actions by the staff members. The number of staff members having access to customer data can affect the inherent risk impact, but it is not the best input, as it does not account for the external threats, such as hackers or competitors, or the amount or type of data that could be leaked, or the potential harm or loss that could result from the leakage. References = What is Inherent Risk? You Could Be at Risk of a Data Breach | UpGuard, Data leakage: A data leak is an unintentional exposure of sensitive data on the internet. For example, an employee might upload customer data files to an unsecured server. Lack of encryption: This is the storing, sending, or transferring information without converting it into ciphertext first.

Differences in regulatory requirements are the most important factor for a multinational organization to consider when developing its security policies and standards. This is because different countries or regions may have different laws, regulations, or standards that govern the protection of information and data, such as the General Data Protection Regulation (GDPR) in the European Union, the Health Insurance Portability and Accountability Act (HIPAA) in the United States, or the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada. A multinational organization must comply with the applicable regulatoryrequirements in each jurisdiction where it operates, or it may face legal, financial, or reputational risks. Therefore, the organization should develop its security policies and standards in a way that meets or exceeds the minimum regulatory requirements, and also aligns with its business objectives and risk appetite. According to the CRISC Review Manual 2022, one of the key elements of IT governance is to ensure compliance withexternal laws and regulations1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, differences in regulatory requirements is the correct answer to this question2.

Regional competitors’ policies and standards, ability to monitor and enforce compliance, and industry-standard templates are not the most important factors for a multinational organization to consider when developing its security policies and standards. These factors may be useful or relevant, but they are not as critical or mandatory as the differences in regulatory requirements. Regional competitors’ policies and standards may provide some insights or benchmarks, but theymay not reflect the organization’s specific needs or risks. Ability to monitor and enforce compliance is an important aspect of implementing and maintaining security policies and standards, but it does not determine the content or scope of the policies and standards. Industry-standard templates may offer some guidance or best practices, but they may not cover all the regulatory requirements or the organization’s unique circumstances.

Key performance indicators (KPIs) are metrics that measure the achievement of objectives and the effectiveness of processes. KPIs can help management report on risk by providing quantitative and qualitative information on the risk profile, the risk appetite, the risk response, and the risk outcomes. KPIs can also help monitor and communicate the progress and results of risk management activities, such as risk identification, assessment, mitigation, and reporting. KPIs can be aligned with the strategic,operational, and tactical goals of the organization, and can be tailored to the specific needs and expectations of different stakeholders. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Key Risk Indicators and Key Performance Indicators, p. 197-199.

 Digital Signature Software:

Digital signatures are used to verify the authenticity and integrity of a message, document, or software. They provide cryptographic proof that the information has not been altered and that it comes from a verified source.

 Importance of Nonrepudiation:

Nonrepudiation ensures that the sender of the message cannot deny having sent the message and the recipient cannot deny having received it. This is critical for legal and security purposes, as it provides undeniable proof of the origin and integrity of the information.

 Selecting Digital Signature Software:

When selecting digital signature software, the most important consideration is that it provides strong nonrepudiation capabilities. This ensures that all parties involved can trust the authenticity and integrity of the signed data.

 Comparing Other Considerations:

Availability:Ensures the software is accessible when needed but does not directly impact the trustworthiness of the signatures.

Accuracy:Important but generally inherent in properly functioning digital signature software.

Completeness:Ensures all required information is included but nonrepudiation is the critical factor for security and legal purposes.

 References:

The CISSP Study Guide emphasizes the importance of nonrepudiation in digital signature technology to ensure authenticity and accountability (Sybex CISSP Study Guide, Chapter 7: PKI and Cryptographic Applications)​​.