Isaca Updated CRISC Exam Questions and Answers by husna

According to the Risk Appetite vs. Risk Tolerance: What is the Difference? article, risk tolerance is the acceptable level of variation that an organization is willing to accept around a specific objective. Risk tolerance is usually expressed as a range or a limit, and it helps to guide the decision making and risk taking of the organization. The best way to promote adherence to the risk tolerance level set by management is to define the expectations in the enterprise risk policy, which is a document that establishes the organization’s risk management framework, principles, and objectives. By defining the expectations in the enterprise risk policy, the organization can communicate the risk tolerance level to all the relevant stakeholders, and ensure that they understand and follow the risk management guidelines and standards. This can help to create aconsistent and coherent risk culture across the organization, and to avoid any deviations or violations of the risk tolerance level. References = Risk Appetite vs. Risk Tolerance: What is the Difference?

The best indicator to senior management that IT processes are improving is the changes in the position in the maturity model. A maturity model is a framework that defines the levels of capability and performance of a process, such as IT processes, based on the criteria such as governance, management, control, measurement, and improvement. A maturity model can help to assess the current state and the desired state of the IT processes, and to identify the gaps, strengths, and opportunities for improvement. A maturity model can also help to communicate the progress and the value of the IT processes to the senior management, and to support the strategic alignment and integration of the IT processes with the business objectives. Changes in the position in the maturity model indicate that the IT processes are improving, as they show that the IT processes are moving from a lower level to a higher level of maturity, and that they are achieving higher standards of quality, efficiency, and effectiveness. Changes in the number of intrusions detected, changes in the number of security exceptions, and changes to the structure of the risk register are not as good as changes in the position in the maturity model, as they do not provide a comprehensive and consistent measure of the IT processes improvement, and they may not reflect the actual impact and performance of the IT processes. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 36.

 The best person to own the unmitigated risk of the technology is the IT system owner. The IT system owner is the person or entity that has the authority and responsibility for the acquisition, development, maintenance, and operation of the IT system. The IT system owner is also responsible for ensuring that the IT system meets the business requirements, security standards, and compliance obligations of the enterprise. The IT system owner should own the unmitigated risk of the technology, as they are in the best position to understand the nature and impact of the risk, and to implement the appropriate risk responses to reduce the risk exposure to an acceptable level. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.3.1, page 251234

Cyber risk insurance is a type of insurance policy that provides coverage against losses and damages caused by cyber incidents such as data breaches, hacking, and other cyber attacks. When an organization decides to purchase cyber risk insurance, it transfers the risk of financial loss due to a cyber incident to the insurance company. In the scenario described in the question, the organization allowed its cyber risk insurance to lapse while seeking a new insurance provider. This means that the organization is currently not covered by any cyber risk insurance policy and is therefore exposed to financial losses due to cyber incidents. The risk practitioner should report to management that the risk has been accepted. Accepting risk means that the organization is aware of the potential consequences of the risk and has decided not to take any action to mitigate, transfer, or avoid it. The other options are not correct because they do not reflect the current situation of the organization. The organization has not transferred the risk to another party, as it has no cyber risk insurance policy in place. The organization has not mitigated the risk, as it has not implemented anycontrols or measures to reduce the likelihood or impact of the risk. The organization has not avoided the risk, as it has not eliminated the source or cause of the risk or changed its activities to prevent the risk from occurring. References = CRISC Review Manual, pages 32-331; CRISC Review Questions, Answers & Explanations Manual, page 752