Isaca Updated CGEIT Exam Questions and Answers by salman

The primary consideration for an enterprise when deciding whether to adopt a qualitative risk assessment method is:

The level of detail and accuracy required for the risk assessment. Qualitative risk assessment is a method that uses scenarios, subjectivity, and knowledge to evaluate risks. It does not provide specific objective measurements of exposure, but rather a relative ranking or rating of risks based on their likelihood and impact1. Qualitative risk assessment is suitable for situations where the data is scarce, uncertain, or incomplete, or where the risk assessment needs to be done quickly and easily1. However, qualitative risk assessment may also be biased, inconsistent, or inaccurate, as it depends on the judgment and experience of the risk assessors1. Therefore, an enterprise should consider the level of detail and accuracy required for the risk assessment before choosing a qualitative method. If the enterprise needs more precise and reliable estimates of risk exposure, it may opt for a quantitative method instead1.

The other options are not the primary consideration for an enterprise when deciding whether to adopt a qualitative risk assessment method. The method identifies areas to immediately address vulnerabilities, enables an analysis of recommended controls, and provides a platform for all departments to contribute to the risk assessment are all possible benefits or outcomes of using a qualitative risk assessment method, but they are not the main factor that influences the decision to use it. They may also apply to other methods of risk assessment, such as quantitative or hybrid methods2.

A new regulation introduces a potential risk that must be assessed to understand its impact on the enterprise’s operations and compliance obligations. The CGEIT Review Manual 8th Edition stresses that the first step in addressing new risks, such as regulations, is to conduct a risk assessment to evaluate their significance and implications.

Extract from CGEIT Review Manual 8th Edition (Domain 3: Risk Optimization):"When a new regulation is identified, the first step is to assess the associated risk, including its potential impact on operations, compliance requirements, and the likelihood of enforcement. This assessment informs subsequent actions, such as developing mitigation plans or updating governance frameworks." (Approximate reference: Domain 3, Section on Risk Assessment)

Assessing the risk associated with the new regulation (option D) provides the enterprise with a clear understanding of the regulation’s impact, enabling informed decisions about compliance, mitigation, or strategic adjustments.

Why not the other options?

A. Request an action plan from the risk team: An action plan is premature without first assessing the risk’s scope and impact.

B. Determine whether the board wants to comply with the regulation: The board’s decision on compliance should be informed by a risk assessment, not precede it.

C. Update the risk management framework: Updating the framework may be necessary later but is not the first step, as the specific risk must be understood first.

Boards are most concerned with whether IT investments aredelivering the expected value and business outcomes. Thus, therealization of benefits in the business caseis the most relevant indicator of IT strategy execution effectiveness.

Risk metrics, SLAs, and spending detail are important butdo not directly measure success in achieving strategic outcomes.

For Zero Trust architecture, which emphasizes "never trust, always verify,"evaluating the vendor’s security practices is critical. A thorough security assessment ensures that the vendor aligns with Zero Trust principles, such as identity verification, micro-segmentation, and continuous monitoring.

Although having a feature list and contracting template are important downstream activities, and benchmarking can help shortlist vendors, thecore of Zero Trust lies in trust minimization and verification. Hence, vetting a vendor's capability to enforce security controls is paramount.