Isaca Updated CRISC Exam Questions and Answers by harlow

Local laws and regulations should be the primary consideration when assessing the risk of using IoT devices to collect and process PII, because they define the legal obligations and liabilities of the organization and the individuals involved. Non-compliance with local laws and regulations can result in fines, lawsuits, reputational damage, and loss of trust. Therefore, it is essential to understand and adhere to the applicable laws and regulations in the jurisdictions where the IoT devices operate and where the PII is stored, processed, and transferred.

References

•Considerations for Managing Internet of Things (IoT) Cybersecurity and Privacy Risks

•The Internet of Things (IoT) and Digitally Stored PII: Avoidable or Inevitable?

•Security Issues in IoT: Challenges and Countermeasures

Optimized risk management is achieved when risk is reduced to meet risk appetite, which is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite reflects the strategic goals and priorities of the organization, as well as its risk culture and tolerance. Reducing risk with strategic initiatives, within resource availability, or below risk appetite are all possible approaches, but they do not necessarily optimize risk management, as they may result in over- or under-investment in risk mitigation, or misalignment with business objectives. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.2, page 47

An incentive program is most likely implemented to manage the risk associated with loss of employees, as it aims to motivate, retain, and reward the employees who have valuable skills, knowledge, and experience, and to reduce the risk of employee turnover, dissatisfaction, or underperformance. Data, reputation, and customer lists are not the organizational assets that are most likely managed by an incentive program, as they are more related to the information, image, or relationship of the organization, respectively, rather than the human capital of the organization. References = CRISC Review Manual, 7th Edition, page 100.

•A risk owner is the person or entity that has the authority and responsibility to manage a specific risk1. The risk owner is accountable for the implementation and effectiveness of the risk response strategy and the risk treatment plan2.

•Identifying the risk owner is the first step when a new risk scenario has been identified, because the risk owner is the key stakeholder who will be involved in the subsequent steps of the risk management process, such as risk analysis, risk evaluation, risk treatment, and risk monitoring2.

•Identifying the risk owner also helps to clarify the roles and responsibilities of different parties involved in the risk management process, such as the risk manager, the risk analyst, the risk committee, and the risk auditor3. This can improve the communication, coordination, and collaboration among the risk management team and ensure that the risk is managed effectively and efficiently.

•Estimating the residual risk (option A) is not the first step when a new risk scenario has been identified, because the residual risk is the risk that remains after the risk treatment plan has been implemented2. Therefore, estimating the residual risk requires prior steps such as risk analysis, risk evaluation, and risk treatment.

•Establishing key risk indicators (KRIs) (option B) is not the first step when a new risk scenario has been identified, because KRIs are metrics or data points that provide early warning signals or information about the level or trend of a risk4. Therefore, establishing KRIs requires prior steps such as risk identification, risk analysis, and risk evaluation.

•Designing control improvements (option C) is not the first step when a new risk scenario has been identified, because control improvements are part of the risk treatment plan, which is the set of actions and resources needed to implement the chosen risk response strategy2. Therefore,designing control improvements requires prior steps such as risk analysis, risk evaluation, and risk response selection.

References =

•Risk Owner - Institute of Internal Auditors

•Risk Treatment Plan - ISACA

•Risk Management Roles and Responsibilities - 360factors

•Key Risk Indicators: A Practical Guide | SafetyCulture