Isaca Updated CRISC Exam Questions and Answers by niall

 According to the CRISC Review Manual (Digital Version), the main reason to continuously monitor IT-related risk is to ensure risk levels are within acceptable limits of the organization’srisk appetite and risk tolerance. The risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives, while the risk tolerance is the acceptable variation in outcomes related to specific performance measures linked to objectives. Continuous monitoring is a process that tracks the security state of an information system on an ongoing basis and maintains the security authorization for the system over time. Continuous monitoring helps to:

Provide ongoing assurance that the implemented security controls are operating effectively and efficiently

Detect changes in the risk profile of the information system and the environment of operation

Identify new or emerging threats and vulnerabilities that may affect the information system

Support risk-based decisions by providing timely and relevant risk information to stakeholders

Facilitate the implementation of corrective actions and risk mitigation strategies

Promote accountability and transparency in the risk management process

Enhance the security awareness and culture within the organization

References = CRISC Review Manual (Digital Version), Chapter 4: IT Risk Monitoring and Reporting, Section 4.1: IT Risk Monitoring, pp. 213-2141

IT risk scenarios are hypothetical situations or occurrences that illustrate the potential impact of IT-related threats or opportunities on the organization’s objectives, performance, or value creation12.

Business risk scenarios are hypothetical situations or occurrences that illustrate the potential impact of business-related threats or opportunities on the organization’s objectives, performance, or value creation34.

The best way for the risk practitioner to address the concerns of the business executives who question why they have been assigned ownership of IT-related risk scenarios is to describe IT risk scenarios in terms of business risk, which is a technique that involves translating and communicating the IT risk scenarios into the language and context of the business risk scenarios, and highlighting the linkages and dependencies between them56.

Describing IT risk scenarios in terms of business risk is the best way because it helps the business executives to understand and appreciate the relevance and importance of IT risk scenarios, andhow they affect the achievement of the organization’s goals and the delivery of value to the stakeholders56.

Describing IT risk scenarios in terms of business risk is also the best way because it helps the business executives to accept and fulfill their roles and responsibilities as the owners of IT risk scenarios, and to collaborate and coordinate with the IT team and other stakeholders in the risk management process56.

The other options are not the best ways, but rather possible alternatives or supplements that may support or enhance the description of IT risk scenarios in terms of business risk. For example:

Recommending the formation of an executive risk council to oversee IT risk is a way that involves establishing and empowering a group of senior leaders from different business units and functions to provide the strategic direction, guidance, and oversight for the IT risk management process78. However, this way is not the best way because it does not directlyaddress the concerns of the business executives who question why they have been assigned ownership of IT risk scenarios, and it may not be feasible or effective without a clear and common understanding of IT risk scenarios among the council members78.

Providing an estimate of IT system downtime if IT risk materializes is a way that involves quantifying and communicating the potential loss or disruption of the IT systems or services that support the organization’s operations, if the IT risk scenarios occur9 . However, this way is not the best way because it does not fully capture or convey the impact of IT risk scenarios on the organization’s objectives, performance, or valuecreation, and it may not be relevant or meaningful for some IT risk scenarios that are not related to IT system downtime9 .

Educating business executives on IT risk concepts is a way that involves providing and delivering the knowledge and skills on the principles, frameworks, and techniques of IT risk management, and the roles and responsibilities of the IT risk owners and stakeholders . However, this way is not the best way because it does not specifically address the concerns of the business executives who question why they have been assigned ownership of IT risk scenarios, and it may not be sufficient or effective without a practical and contextual application of IT risk concepts to the organization’s situation and goals . References =

1: IT Scenario Analysis in Enterprise Risk Management - ISACA2

2: New Toolkit and Course From ISACA Help Practitioners Develop Risk Scenarios - ISACA1

3: Business Risk - Investopedia3

4: Business Risk: Definition, Types, Examples & How to Manage4

5: Risk IT Framework, ISACA, 2009

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

7: Executive Risk Council - ISACA5

8: Executive Risk Council: A Guide to Success6

9: IT System Downtime - ISACA7

IT System Downtime: Causes, Costs, and How to Prevent It8

IT Risk Education - ISACA9

IT Risk Education: A Guide to Success

New risk exposures due to changes in the business environment are the possibilities and impacts of new or emerging threats or opportunities that may affect the organization’s objectives, performance, or value creation, as a result of changes in the internal or external factors that influence the organization’s operations, such as technology, competition, regulation, or customer behavior12.

The most helpful tool in identifying new risk exposures due to changes in the business environment is a SWOT analysis, which is a technique that involves identifying and analyzing the strengths, weaknesses, opportunities, and threats (SWOT) that are relevant to the organization’s situation, goals, and capabilities34.

A SWOT analysis is the most helpful tool because it helps the organization to scan and assess the business environment, and to identify and prioritize the new or emerging risk exposures that may arise from the changes in the environment34.

A SWOT analysis is also the most helpful tool because it helps the organization to align and adapt its strategy and actions to the changes in the environment, and to leverage its strengths and opportunities, and mitigate its weaknesses and threats34.

The other options are not the most helpful tools, but rather possible sources or inputs that may be used in a SWOT analysis. For example:

Standard operating procedures are documents that describe the routine tasks and processes that are performed by the organization, and the policies and standards that govern them56. However, these documents are not the most helpful tools because they may not reflect or capture the changes in the business environment, and they may need to be revised or updated to address the new or emerging risk exposures56.

Industry benchmarking is a technique that involves comparing and contrasting the performance and practices of the organization with those of the similar or leadingorganizations in the same or related industry, and identifying the gaps or opportunities for improvement78. However, this technique is not the most helpful tool because it may not provide a comprehensive or holistic view of the business environment, and it may not align with the organization’s specific situation, goals, or capabilities78.

Control gap analysis is a technique that involves assessing and evaluating the adequacy and effectiveness of the controls that are designed and implemented to mitigate the risks, and identifying and addressing the areas or aspects that need to be improved or added . However, this technique is not the most helpful tool because it is reactive rather than proactive, and it may not identify or anticipate the new or emerging risk exposures that may result from the changes in the business environment . References =

1: Risk IT Framework, ISACA, 2009

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

3: SWOT Analysis - ISACA1

4: SWOT Analysis: What It Is and When to Use It2

5: Standard Operating Procedure - Wikipedia3

6: How to Write Effective Standard Operating Procedures (SOP)4

7: Benchmarking - Wikipedia5

8: Benchmarking: Definition, Types, Process, Advantages & Examples6

Control Gap Analysis - ISACA7

Control Gap Analysis: A Step-by-Step Guide8

 The best method to identify unnecessary controls is reviewing system functionalities associated with business processes, because this can help to determine whether the controls are relevant, effective, and efficient for the current business needs and objectives. System functionalities are the capabilities and features of IT systems that support the execution and performance of business processes. Business processes are the set of interrelated activities that transform inputs into outputs to deliver value to customers or stakeholders. By reviewing system functionalities associated with business processes, an organization can assess whether the controls are aligned with the process requirements, expectations, and outcomes, and whether they add value or create waste. The review can also identify any gaps, overlaps, redundancies, or conflicts among the controls, and any changes or improvements that are needed to optimize the controls. The other options are less effective methods to identify unnecessary controls. Evaluating the impact of removing existing controls can help to measure the benefits and costs of the controls, but it does not address the root causes or sources of the unnecessary controls. Evaluating existing controls against audit requirements can help to ensure compliance and assurance, but it does not consider the business context or purpose of the controls. Monitoring existing key risk indicators (KRIs) can help to measure the level and impact of risks, but it does not evaluate the suitability oradequacy of the controls. References = Surveying Staff to Identify Unnecessary Internal Controls - Methodology and Results