Isaca Updated CRISC Exam Questions and Answers by morgan

The risk practitioner’s BEST course of action is to validate the transfer of risk and update the register to reflect the change, because outsourcing the backup and recovery procedures to a third-party cloud provider does not eliminate the risk, but rather transfers it to the service provider. The risk practitioner should verify that the service provider has adequate controls and capabilities to handle the backup and recovery procedures, and that the contractual agreement specifies the roles and responsibilities of both parties. The risk practitioner should also update the risk register to reflect the new risk owner and the residual risk level. The other options are not the best course of action, because:

Option A: Accepting the risk and documenting contingency plans for data disruption is not the best course of action, because it implies that the risk practitioner is still responsible for the risk, even though it has been transferred to the service provider. Contingency plans are also reactive measures, rather than proactive ones.

Option B: Removing the associated risk scenario from the risk register due to avoidance is not the best course of action, because it implies that the risk has been eliminated, which is not the case. The risk still exists, but it has been transferred to the service provider. The risk register should reflect the current risk status and ownership.

Option C: Mitigating the risk with compensating controls enforced by the third-party cloud provider is not the best course of action, because it implies that the risk practitioner is still involved in the risk management process, even though the risk has been transferred to the service provider. The risk practitioner should rely on the service provider’s controls and capabilities, andmonitor their performance and compliance. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 196.

According to the definition of key control indicators (KCIs), they are metrics that provide information on the extent to which a given control is meeting its intended objectives in terms of loss prevention, reduction, etc.1 Therefore, option D is the correct answer, as it reflects the purpose and function of KCIs. The other options are not accurate descriptions of KCIs, as they do not directly relate to the performance or outcome of the control. Option A is more relevant to the efficiency or productivity of the control, not its effectiveness. Option B is more relevant to the role of key risk indicators (KRIs), which measure the level of risk exposure or potentialimpact of risk events2. Option C is also more related to KRIs, as they monitor changes in the likelihood or frequency of adverse events due to risk factors2.

The most significant benefit of using a consistent risk ranking methodology across an organization is that it enables a clear understanding of risk levels, as this facilitates the comparison and prioritization of risks, the communication and reporting of risks, and the alignment of risk management with the enterprise’s objectives and strategy. A consistent risk ranking methodology is a set of criteria and scales that are used to measure and rate the likelihood and impact of risks, as well as other factors such as urgency, velocity, and persistence. A consistent risk ranking methodology ensures that the risk assessment results are objective, reliable, and comparable across different business units, processes, and projects. The other options are not the most significant benefits of using a consistent risk ranking methodology,although they may be secondary benefits or outcomes of doing so. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Assessment, page 97.

According to the Section 4: Quiz 40 - Business Continuity Plan Flashcards, the best indication of the effectiveness of a business continuity program is the successful performance of business continuity tests and the resolution of any issues that arise. Business continuity tests are exercises that simulate various scenarios of disruption or disaster and evaluate the organization’s ability to recover and resume its critical functions. Business continuity tests can help to validate the assumptions, objectives, and strategies of the business continuity program, as well as to identify and address any gaps, weaknesses, or errors in the business continuity and disaster recovery plans. By performing business continuity tests regularly and effectively, the organization can ensure that its business continuity program is aligned with its needs andexpectations, and that it can cope with any potential crisis. References = Section 4: Quiz 40 - Business Continuity Plan Flashcards