CRISC Isaca Certified in Risk and Information Systems Control Free Practice Exam Questions (2025 Updated)

 The data owner is accountable for the confidentiality of the data that is outsourced to a third party with servers located in a foreign country. The data owner is the person or entity that has the authority and responsibility to classify, label, and protect the data according to the organization’s policies and standards. The data owner is also responsible for defining the data access rights and privileges, and for ensuring that the data is handled in compliance with the applicable laws and regulations. The data owner retains the accountability for the data even when it is outsourced to a third party, and must monitor and evaluate the security performance and compliance of the service provider. The third-party data custodian, the data custodian, and the regional office executive are not accountable for the confidentiality of the data, as they have different roles and responsibilities in the outsourcing process. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 5, Section 5.2.1.2, page 2461

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 654.

A risk register is a tool that records and tracks the risks that may affect the organization, as well as the actions that are taken or planned to manage them1. A risk register provides the best evidence that the IT risk profile is up to date, because it reflects the current and potential IT risks that the organization faces, as well as their likelihood, impact, severity, owner, status, and response2. An IT risk profile is a document that describes the types, amounts, and priority of ITrisk that the organization finds acceptable and unacceptable3. An IT risk profile is developed collaboratively with various stakeholders within the organization, including business leaders, data and process owners, enterprise risk management, internal and external audit, legal, compliance, privacy, and IT risk management and security4. By maintaining and updating the risk register regularly, the organization can ensure that the IT risk profile is aligned with the changing IT risk environment, and that the IT risk management activities and performance are consistent and effective. The other options are not the best evidence that the IT risk profile is up to date, as they are either less comprehensive or less relevant than the risk register. A risk questionnaire is a tool that collects and analyzes the opinions and perceptions of the stakeholders about the risks that may affect the organization5. A risk questionnaire can help to identify and assess the risks, as well as to communicate and report on the risk status and issues. However, a risk questionnaire is not the best evidence that the IT risk profile is up to date, as it may not capture all the IT risks that the organization faces, or reflect the actual or objective level and nature of the IT risks. A management assertion is a statement or declaration made by the management about the accuracy and completeness of the information or data that they provide or report. A management assertion can help to increase the confidence and trust of the stakeholders and auditors in the information or data, as well as to demonstrate the accountability and responsibility of the management. However, a management assertion is not the best evidence that the IT risk profile is up to date, as it does not provide the details or outcomes of the IT risk management activities or performance, or verify the validity and reliability of the IT risk information or data. A compliance manual is a document that contains the policies, procedures, and standards that the organization must follow to meet the legal, regulatory, or contractual requirements that apply to its activities or operations. A compliance manual can help to ensure the quality and consistency of the organization’s compliance activities or performance, as well as to avoid or reduce the penalties or sanctions for non-compliance. However, a compliance manual is not the best evidence that the IT risk profile is up to date, as it does not address the IT risks that the organization faces, or the IT risk management activities or performance. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.5, Page 55.

 Risk monitoring is the process of tracking and evaluating the performance and effectiveness of the risk management process and controls, and identifying any changes or emerging risks that may affect theenterprise’s objectives and strategy. The primary benefit of risk monitoring is that it facilitates risk-aware decision making, as it provides timely and relevant information and feedback to the decision-makers and stakeholders, and enables them to adjust the risk strategy and response actions accordingly. Risk monitoring also helps to ensure that the risk management process is aligned with the enterprise’s risk appetite and tolerance, and supports the achievement of the enterprise’s goals and value creation. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 239. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 239. CRISC Sample Questions 2024, Question 239.

According to ISACA, a risk register is a tool to record and track the identified risks, their ratings, responses, and status. The primary purpose of a risk register is to provide a centralized view of risk for the organization, as it enables the consolidation, communication, and reporting of risk information across different levels, units, and functions. A risk register can also support the risk management process, such as risk identification, assessment, treatment, monitoring, and review.

The first step in selecting a risk response after a penetration test reveals several vulnerabilities in a web-facing application is to assess the level of risk associated with the vulnerabilities, as it involves evaluating the likelihood and impact of the vulnerabilities being exploited, and comparing them with the risk tolerance and appetite of the organization. Correcting the vulnerabilities, developing a risk response action plan, and communicating the vulnerabilities are possible steps in selecting a risk response, but they are not the first step, as they require the prior knowledge of the risk level and the optimal risk response. References = CRISC Review Manual, 7th Edition, page 108.

•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

 According to the How Important Is Source Code Escrow - ISACA article, the purpose of requiring source code escrow in a contractual agreement is to ensure that the source code isavailable if the vendor ceases to exist. Source code escrow is the deposit of the source code of software with a third-party escrow agent, who releases it to the licensee only if certain conditions are met, such as the bankruptcy, merger, or acquisition of the licensor. This arrangement protects the licensee from losing access to the software support and maintenance, and allows them to continue using and modifying the software as needed. Therefore, the answer is B. ensure that the source code is available if the vendor ceases to exist. References = How Important Is Source Code Escrow - ISACA

Unapproved changes to firewall rules can lead tocritical security vulnerabilitiesordisruptions to business services, representing adirect impact on the business. This is more critical than documentation or governance concerns.

The best way to ensure the effective decision-making of an IT risk management committee is to enroll key stakeholders as members. Key stakeholders are the individuals or groups who have an interest or influence in the IT risk management process, such as business owners, senior management, IT managers, auditors, regulators, customers, and suppliers. By involving key stakeholders in the IT risk management committee, the committee can benefit from their diverse perspectives, expertise, and experience, and ensure that the IT risk management decisions are aligned with the business objectives, priorities, and expectations. Key stakeholders can also provide valuable input, feedback, and support for the IT risk management activities, and help communicate and implement the IT risk management decisions across the organization. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 36.

 Understanding the Question:

The question focuses on the primary reason for communicating risk assessment results to data owners.

 Analyzing the Options:

A. Design of appropriate controls:This is important but not the primary reason for communication.

B. Industry benchmarking of controls:This is secondary to the main goal of communicating risk.

C. Prioritization of response efforts:This enables data owners to allocate resources and address the most critical risks first.

D. Classification of information assets:This is typically part of the initial risk assessment process, not the main communication goal.



Communication of Risk Assessment Results:Ensuring data owners understand the results of risk assessments allows them to make informed decisions on where to focus their efforts.

Prioritization:Data owners can prioritize their actions based on the assessed risk levels, ensuring that resources are allocated efficiently to mitigate the most significant risks.

The primary reason for sharing risk assessment reports with senior stakeholders is to support decision-making for risk response. Risk assessment reports are documents that summarize the results of the risk assessment process, such as the risk sources, causes, impacts, likelihood, and levels. Risk assessment reports also provide recommendations for risk response options, such as avoiding, reducing, transferring, or accepting the risk. Sharing risk assessment reports with senior stakeholders helps to inform them of the current risk situation, and to solicit their input, feedback, or approval for the risk response actions. The other options are not the primary reason for sharing risk assessment reports, although they may be secondary reasons or outcomes. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 4-13.

The best course of action when a risk practitioner identifies a database application that has been developed and implemented by the business independently of IT is to include the application in IT risk assessments. IT risk assessments are the process of identifying, analyzing, and evaluating the IT-related risks that could affect the achievement of the enterprise’s objectives. By including the application in IT risk assessments, the risk practitioner can identify the potential threats, vulnerabilities, and impacts associated with the application, and recommend the appropriatecontrols and mitigation strategies to reduce the risk to an acceptable level. Escalating the concern to senior management, documenting the reasons for the exception, and proposing that the application be transferred to IT are not the best courses of action, as they do not address the risk exposure and impact of the application, and may not be feasible or desirable for the business. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 47.

 The most important reason to revisit a previously accepted risk is to ensure that the risk levels have not changed. A previously accepted risk is a risk that the organization has decided to tolerate or retain without taking any further action, because the risk is either low or unavoidable, or the cost or effort of mitigation outweighs the potential benefit. However, risk acceptance is not a static or permanent decision, as the risk levels may change over time due to various factors, such as new threats, vulnerabilities, impacts, or opportunities. Therefore, it is essential to revisit a previously accepted risk periodically or when there is a significant change in the internal or external environment, to verify that the risk is still within the acceptable range and that the risk acceptance rationale is still valid. If the risk levels have increased or decreased, the organization may need to revise the risk acceptance decision and consider other risk response options, such as avoidance, reduction, sharing, or exploitation. The other options are not the most important reason to revisit a previously accepted risk, although they may be relevant or necessary depending on the context and nature of the risk. Updating risk ownership is a part of the risk governance process, which ensures that the roles and responsibilities for managing the risk are clearly defined and assigned, but it does not affect the risk levels or the risk acceptance decision. Reviewing the risk acceptance with new stakeholders is a part of the risk communication process, which ensures that the risk information and the risk acceptance rationale are shared and understood by the relevant parties, but it does not change the risk levels or the risk acceptance decision. Ensuring that the controls are still operating effectively is a part of the risk monitoring and review process, which ensures that the risk response actions are implemented and maintained properly, but it does not apply to the accepted risks, as they do not have any additionalcontrols. References = Understanding Accepted Risk - SC Dashboard | Tenable®, Risk Acceptance — ENISA, Accepting Risk - Overview, Advantages, Disadvantages, Alternatives

The best recommendation for a risk practitioner when an employee lost a personal mobile device that may contain sensitive corporate information is to initiate a remote data wipe. A remote data wipe is a process of erasing the data stored on a device remotely, using a command sent over anetwork or a wireless connection. A remote data wipe can help to prevent the unauthorized access, use, disclosure, or theft of the sensitive corporate information, and to minimize the potential impact of the loss on the enterprise’s reputation, operations, and compliance. A remote data wipe can also help to comply with the data breach notification laws and regulations, and to reduce the legal liability and penalties. Conducting a risk analysis, invoking the incident response plan, and disabling the user account are not as immediate and effective as initiating a remote data wipe, as they do not address the primary risk of data exposure and loss. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

 The primary purpose of a business impact analysis (BIA) is to evaluate the priority of business operations in case of disruption. A BIA is a process that identifies and analyzes the potential effects of various types of disruptions on the enterprise’s critical business functions and processes. A BIA helps to determine the recovery objectives, such as the recovery time objective (RTO) and the recovery point objective (RPO), for each business operation, based on the impactof disruption on the enterprise’s objectives, reputation, compliance, and stakeholders. A BIA also helps to identify the dependencies, resources, and interdependencies of the business operations, and to rank them according to their importance and urgency. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.2.1, page 671

Backups are the best control to mitigate the impact of a failed IT system upgrade project that has resulted in the corruption of an organization’s asset inventory database, as they allow theorganization to restore the data from a previous state and resume normal operations. Encryption, authentication, and configuration are not the best controls, as they do not address the data corruption issue, but rather the datasecurity, access, and quality issues, respectively. References = CRISC Review Manual, 7th Edition, page 153.

 The best way to facilitate the development of effective IT risk scenarios is to utilize a cross-functional team. A cross-functional team is a group of people with different skills, expertise, and perspectives who work together to achieve a common goal. A cross-functional team can help to create realistic, comprehensive, and relevant IT risk scenarios by bringing diverse knowledge, experience, and insights from various domains and functions. A cross-functional team can alsohelp to identify and address the interdependencies, interactions, and impacts of IT risks across the organization. The other options are not the best ways to facilitate the development of effective IT risk scenarios, although they may be useful or necessary depending on the context and nature of the IT risks. Participation by IT subject matter experts is important, but it is notsufficient, as IT risks may affect or be affected by non-IT factors and stakeholders. Integration of contingency planning is a part of the risk response process, which follows the risk scenario development process, but it is not the same as creating the risk scenarios. Validation by senior management is a quality assurance step that ensures the accuracy and completeness of the risk scenarios, but it is not the same as facilitating the development of the risk scenarios. References = Six Steps to Using Risk Scenarios for Improved Risk Management, IT Risk Scenarios - Morland-Austin, IT Risk Resources | ISACA

The risk practitioner should verify the cost-benefit of the new controls being implemented to ensure that they are aligned with the enterprise’s risk appetite and strategy, and that they provide value to the business. The other options are not as important as verifying the cost-benefit of the new controls, because:

Option A: Updating the risk register is a good practice, but it does not provide assurance that the new controls are effective and efficient.

Option B: Ensuring risk monitoring for the project is initiated is also a good practice, but it is not as urgent as verifying the cost-benefit of the new controls, which should be done before the project is closed.

Option C: Conducting and documenting a BIA is not relevant to the scenario, as the project is already completed and the new controls are implemented. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 184.

According to the CRISC Review Manual (Digital Version), reviewing the business impact analysis (BIA) will best help an organization select a recovery strategy for critical systems, as it provides an assessment of the potential impact and consequences of a disruption to the organization’s critical business functions and processes. Reviewing the BIA helps to:

Identify and prioritize the critical systems and their dependencies that support the critical business functions and processes

Estimate the maximum tolerable downtime (MTD) and the recovery time objective (RTO) for each critical system

Evaluate the feasibility and cost-effectiveness of various recovery strategies and options for each critical system

Select the most appropriate recovery strategy and option for each critical system based on the organization’s objectives and requirements

Develop and implement the recovery plan and procedures for each critical system

References = CRISC Review Manual (Digital Version), Chapter 3: IT Risk Response, Section 3.3: Risk Response Options, pp. 174-1751

The most important factor for senior management to review during an acquisition is the risk appetite and tolerance of the target organization. The risk appetite and tolerance reflect the amount and type of risk that an organization is willing to accept in pursuit of its objectives. By reviewing the risk appetite and tolerance of the target organization, senior management can determine if they are compatible with their own, and if the acquisition will create any significant risk exposure or opportunity for the acquiring organization. Risk framework and methodology, key risk indicator (KRI) thresholds, and risk communication plan are other factors that may be reviewed, but they are not as important as the risk appetite and tolerance. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.

Data privacy protection is the process of safeguarding the personal information of individuals from unauthorized access, use, disclosure, modification, or destruction. Personal information is any information that can be used to identify, locate, or contact an individual, such as name, address, phone number, email, social security number, etc. When there are plans for a business initiative to make use of personal information, the primary consideration related to data privacyprotection is to do not collect or retain data that is not needed. This means that the organization should only collect the minimum amount of personal information that is necessary for the purpose of the business initiative, and should only retain the data for as long as it is required by law or business needs. By doing so, the organization can reduce the risk of data breaches,comply with the data protection regulations, respect the data subjects’ rights, and enhance the trust and reputation of the organization. References = CRISC Review Manual, 7th Edition, page 159.

A RACI matrix clearly defines roles and responsibilities, making it the primary reference for identifying accountability. This aligns withRisk Governance Practicesfor clarifying ownership.

According to the Risk and Information Systems Control Study Manual, inherent risk is the risk that exists before any controls or mitigating factors are considered. Inherent risk is influenced by the nature and complexity of the business activities, the environment, and the technology involved. A new policy that allows staff members to remotely connect to the organization’s IT systems via personal or public computers is likely to increase the inherent risk of the organization, as it introduces new threats and vulnerabilities that may compromise the confidentiality, integrity, and availability of the IT systems and data. For example, personal or public computers may not have adequate security measures, such as antivirus software, firewalls, encryption, or authentication, and may expose the organization to malware, hacking, data leakage, or unauthorized access. Therefore, the answer is B. Inherent risk. References = Riskand Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.1.1, Page 97. Remote Work: How to Secure Your Data

The effective implementation of a risk treatment plan is best indicated by managing residual risk within the organization’s appetite and tolerance levels. Residual risk is the remaining risk aftercontrols have been applied, and ensuring it is within acceptable levels demonstrates that the risk treatment plan is effective.

Managing Residual Risk within Appetite and Tolerance (Answer B):

Definition: Residual risk is the risk remaining after risk treatment measures have been implemented.

Significance: Managing residual risk within the set appetite and tolerance levels shows that the implemented controls are effective and aligned with the organization’s risk management objectives.

Outcome: It ensures that the organization's risk exposure is kept within acceptable boundaries, thereby protecting its assets and operations.

Comparison with Other Options:

A. Inherent risk is managed within an acceptable level:

Definition: Inherent risk is the risk before any controls are applied.

Limitation: The focus should be on residual risk post-treatment.

C. Risk treatments are aligned with industry peers:

Purpose: While benchmarking is useful, it does not directly indicate the effectiveness of risk treatment.

D. Key controls are identified and documented:

Purpose: Identifying and documenting controls is necessary, but effectiveness is shown by managing residual risk.

A high number of exceptions often indicate misalignment betweenpoliciesand business needs. Reviewing policies helps determine if they are overly restrictive or need adjustments to reduce exceptions while maintaining security.

A balanced scorecard is a strategic management tool that helps to measure and communicate the performance of an organization or a program against its goals and objectives. A balanced scorecard typicallyconsists of four perspectives: financial, customer, internal process, and learning and growth. Each perspective has a set of key performance indicators (KPIs) that reflect the critical success factors and desired outcomes of the organization or the program1.

A balanced scorecard is most useful for reporting on the overall status and effectiveness of the IT risk management program, because it can provide a comprehensive and balanced view of the program’s performance across multiple dimensions. A balanced scorecard can help to align the IT risk management program with the business strategy and vision, and to demonstrate the value and impact of the program to the stakeholders. A balanced scorecard can also help to identify the strengths and weaknesses of the IT risk management program, and to monitor and improve the program’s processes and outcomes2.

The other options are not as useful as a balanced scorecard for reporting on the overall status and effectiveness of the IT risk management program. A capability maturity level is a measure of the maturity and quality of a process or a practice, based on a predefined set of criteria andstandards. A capability maturity level can help to assess and benchmark the IT risk management program’s processes and practices, but it does not provide a holistic view of the program’s performance and results3. An internal audit plan is a document that outlines the scope, objectives, and methodology of an internal audit activity. An internal audit plan can help to evaluate and verify the IT risk management program’s controls and compliance, but it does not provide a strategic view of the program’s goals and outcomes4. A control self-assessment (CSA) is a technique that involves the participation of the process owners and the staff in assessing the effectiveness and efficiency of their own controls. A CSA can help to enhance the awareness and ownership of the IT risk management program’s controls, but it does not provide an objective and independent view of the program’s performance and impact. References =

Balanced Scorecard Basics - Balanced Scorecard Institute

Using the Balanced Scorecard to Measure and Manage IT Risk

Capability Maturity Model Integration (CMMI) Overview

Internal Audit Planning: The Basics - The IIA

[Control Self-Assessment - ISACA]

Obfuscating customer information ensures data privacy by rendering sensitive details unintelligible to unauthorized parties, reducing the risk of exposure during transit or processing. This aligns withData Protection and Privacy Regulationsunder risk management frameworks, emphasizing safeguarding personally identifiable information.

Artificial intelligence (AI) solutions can offer significant benefits to an organization, such as improved efficiency, accuracy, and innovation. However, AI also poses new challenges and risks that need to be considered and addressed by senior management. Some of these risks include:

Ethical and social risks: AI solutions may have unintended or undesirable impacts on human values, rights, and behaviors, such as privacy, fairness, accountability, and transparency. For example, AI systems may exhibit bias, discrimination, or manipulation, or may infringe on personal data or autonomy.

Technical and operational risks: AI solutions may have vulnerabilities, errors, or failures that affect their performance, reliability, or security. For example, AI systems may be subject to hacking, tampering, or misuse, or may malfunction or produce inaccurate or harmful outcomes.

Legal and regulatory risks: AI solutions may have unclear or conflicting legal or regulatory implications or obligations, such as liability, compliance, or governance. For example, AI systems may raise questions about ownership, responsibility, or accountability, or may violate existing laws or regulations, or create new ones.

Therefore, a risk practitioner should communicate to senior management that AI potentially introduces new types of risk that need to be identified, assessed, and managed in alignment with the organization’s objectives, values, and risk appetite. References = ISACA CRISC Review Manual, 7th Edition, Chapter 3, Section 3.2.2, page 113.

 Discussing and managing risk as a team is the greatest benefit for an organization with a strong risk awareness culture, as it enables the organization to share and communicate the risk information and knowledge among all the stakeholders, and to collaborate and coordinate the risk management activities and responsibilities. Discussing and managing risk as a team can also help to foster a positive and proactive attitude toward risk, and to align the risk management process with the organization’s strategy and objectives. Discussing and managing risk as a team can also enhance the risk governance and accountability, and support the risk learning and improvement. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 252. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 252. CRISC by Isaca Actual Free Exam Q&As, Question 9.

The best time to evaluate current control effectiveness when implementing an IT risk management program is during the risk assessment, as it involves measuring and testing the performance and adequacy of the existing controls, and identifying any control gaps ordeficiencies that may affect the risk level and response. Before defining a framework, when evaluating risk response, and when updating the risk register are not the best times, as they are more related to the design, selection, or reporting of the controls, respectively, rather than theevaluation of the control effectiveness. References = CRISC Review Manual, 7th Edition, page 154.

 The main purpose of selecting a risk response is to mitigate the residual risk to be within tolerance. Residual risk is the risk that remains after applying a risk response. Risk tolerance is the amount and type of risk that an organization is willing to accept in order to achieve its objectives. Risk response is the process of selecting and implementing actions to address risk. The goal of risk response is to reduce the residual risk to a level that is acceptable to the organization and its stakeholders. The other options are not the main purpose of selecting a risk response, although they may be secondary benefits or outcomes. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-23.

The organization control environment is most effective when the controls perform as intended. The controls are the mechanisms or measures that are designed and implemented to prevent, detect, or correct the risks that may affect the achievement of the objectives. The controls perform as intended when they provide reasonable assurance that the risks are mitigated or managed to an acceptable level, and that the objectives are met or exceeded. The performance of the controls can be measured and evaluated by using key performance indicators (KPIs) and key risk indicators (KRIs). The other options are not as indicative of the effectiveness of the control environment, as they are related to the review, implementation, or efficiency of the controls, not the performance or assurance of the controls. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.3: IT Control Assessment, page 69.

By aligning risk scenarios with business objectives, risk practitioners can accurately measure the potential loss (materiality) based on business value. This enhances prioritization and allows for risk treatment to be directed toward what impacts the organization’s mission and goals the most.

According to the ISACA CRISC Review Manual, an enterprise risk management (ERM) process is a holistic approach to identifying, analyzing, responding to, and monitoring all types of risk that affect the achievement of the enterprise’s objectives. The ERM process should consider all types of risk, including strategic, operational, financial, compliance, and reputational risks. Among these, strategic risks are the most important, as they have the potential to affect the enterprise’s mission, vision, and goals. Therefore, risk with strategic impact should be includedin the ERM process. References = ISACA CRISC Review Manual, 7th Edition, Chapter 1, Section 1.2.1, page 17.

The risk practitioner shouldfirst review the methodology of the BIAbecause the BIA identifies critical processes and the impacts of disruptions. This ensures that any identified risks are grounded in reliable, updated business impact data.

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Key risk indicators (KRIs) are metrics that provide information on the level of exposure to a given operational risk1. KRIs have upper and lower acceptable risk limits (warning thresholds) that trigger actions when exceeded2. These thresholds are based on the organization’s risk appetite or tolerance, which is the amount and type of risk that the organization is willing to accept in pursuit of its objectives3. Therefore, changes in risk appetite or tolerance would prompt changes in KRI thresholds, as the organization would need to adjust its risk monitoring and response accordingly. The other options are not the primary factors that would prompt changes in KRI thresholds, although they may have some influence on the risk management process. References = Risk IT Framework; IT Risk Resources; ISACA Risk Starter Kit; Key Risk Indicators; Key Risk Indicators: A Practical Guide

Information security metrics are quantitative or qualitative measures that indicate the performance and effectiveness of the information security processes, controls, and objectives. The primary goal of developing information security metrics is to enable continuous improvement of the information security program and to align it with the business goals and strategy. Information security metrics can help to identify the strengths and weaknesses of thesecurity program, to monitor and report on the progress and outcomes of the security initiatives, to evaluate the return on investment and value of the security activities, and to provide feedback and guidance for improvement actions. Information security metrics should be relevant, reliable, consistent, and actionable. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.2, p. 116-117

 A recovery time objective (RTO) is the maximum acceptable time that a business process or function can be disrupted or unavailable before it causes significant damage or loss to the organization. A business continuity plan (BCP) is a document that describes how the organization will resume its critical business operations in the event of a disaster or disruption. A disaster recovery plan (DRP) is a document that describes how the organization will restore its IT systems and infrastructure in the event of a disaster or disruption. The RTO defined in the BCP and the DRP should be consistent and aligned, as they both support the continuity and recovery of the business. If the RTO defined in the BCP is shorter than the RTO defined in the DRP, it means that the BCP expects the business process or function to be restored faster than the DRP can provide. This can create a gap or a conflict between the BCP and the DRP, and can compromise the effectiveness and efficiency of the continuity and recovery efforts. Therefore, the best way for the risk practitioner to address this concern is to communicate the discrepancy to the DR manager for follow-up, meaning that the risk practitioner should report the issue and its implications to the DR manager, who is responsible for developing and maintaining the DRP. The DR manager should review the discrepancy and determine whether it is justified or not, and whether it requires any adjustment or alignment of the RTOs in the BCP and the DRP. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.4.2, p. 206-207

IT risk scenarios are hypothetical situations that describe how IT-related risks can affect the organization’s objectives, operations, or assets1. IT risk scenarios help to make IT risk more concrete and tangible, and to enable proper risk analysis and assessment2. IT risk scenarios are developed after IT risks are identified, and are used as inputs for risk analysis, where the frequency and impact of the scenarios are estimated3.

The most important factor to the successful development of IT risk scenarios is threat and vulnerability analysis. Threat and vulnerability analysis is the process of identifying and evaluating the potential sources and causes of IT risks, such as malicious actors, natural disasters, human errors, or technical failures4. Threat and vulnerability analysis can help to:

Define the scope and boundaries of the IT risk scenarios, and ensure that they are relevant and realistic

Identify the critical assets, processes, or functions that are exposed or affected by the IT risks, and assess their value and importance to the organization

Determine the likelihood and methods of the threat events, and the existing or potential weaknesses or gaps in the IT control environment

Estimate the potential consequences and impacts of the IT risks, such as financial losses, operational disruptions, reputational damages, or compliance violations5

References = IT Scenario Analysis in Enterprise Risk Management - ISACA, IT Risk Scenarios - Morland-Austin, Threat and Vulnerability Analysis - Wikipedia, Threat and Vulnerability Analysis - ISACA

The best way to mitigate the risk of reputational damage from inappropriate use of social media sites by employees is to implement training and awareness programs that educate them on the acceptable andunacceptable use of social media, the potential consequences of violating the policy, and the best practices for protecting the organization’s reputation and information. Training and awareness programs can also help to foster a culture of risk awareness and responsibility among employees, and encourage them to report any incidents or issues related to social media use. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.2.4, page 131.

The primary purpose of creating and documenting control procedures is to help manage risk to acceptable tolerance levels. Control procedures are the specific actions or steps that are performed to achieve the control objectives and mitigate the risks. Control procedures should be documented to provide clear guidance, consistency, and accountability for the control activities. Documenting control procedures also helps to monitor and evaluate the effectiveness andefficiency of the controls, and to identify and address any gaps or weaknesses. The other options are not the primary purpose of creating and documenting control procedures, although they may be secondary benefits or outcomes. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, page 1-15.

 A rule-based data loss prevention (DLP) tool is a software solution that identifies and helps prevent unsafe or inappropriate sharing, transfer, or use of sensitive data. It can help an organization monitor and protect sensitive information across on-premises systems, cloud-based locations, and endpoint devices. It can also help an organization comply with regulations such as the Health Insurance Portability and Accountability Act (HIPAA) and General Data Protection Regulation (GDPR). A rule-based DLP tool works by comparing content to the organization’s DLP policy, which defines how the organization labels, shares, and protects data without exposing it to unauthorized users. The tool can then apply protective actions such as encryption, access restrictions, and alerts. As a result of implementing a rule-based DLP tool, the most likely change is the reduction of risk likelihood, which is the probability of a risk event occurring. By detecting and preventing data breaches, exfiltration, or unwanted destruction of sensitive data, a rule-based DLP tool can lower the chance of such incidents happening and thus decrease the risk likelihood. The other options are less likely to change as a result of implementing a rule-based DLP tool. Risk velocity is the speed at which a risk event impacts an organization, which depends on factors such as the nature of the threat, the response time, and the recovery process. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives, which depends on factors such as the organization’s culture, strategy, and stakeholder expectations. Risk impact is the potential loss or damage that a risk event can cause to an organization, which depends on factors such as the severity of the incident, the extent of theexposure, andthe resilience of the organization. While a rule-based DLP tool may have some influence on these factors, it is not the primary driver of change for them. References = Risk IT Framework, ISACA, 2022, p. 13

The percentage of unpatched systems is best classified as a Key Risk Indicator (KRI). KRIs are metrics used by organizations to provide an early signal of increasing risk exposures in various areas of the business. Here’s a

Understanding KRIs:

Definition: KRIs are specific metrics that provide insights into the risk level of an organization. They help in identifying potential risks that could impact the business negatively if not addressed promptly.

Purpose: KRIs are used to monitor the effectiveness of risk management strategies and to provide an early warning system for emerging risks.

Percentage of Unpatched Systems as a KRI:

Indicator of Vulnerability: The percentage of unpatched systems directly indicates how vulnerable an organization is to cyber threats. Unpatched systems are a common entry point for attackers, making this metric critical for assessing the organization's exposure to cyber risks.

Impact on Security Posture: A high percentage of unpatched systems can significantly increase the likelihood of security incidents, making it a valuable metric for risk management.

Proactive Risk Management: By monitoring this KRI, organizations can take proactive measures to address vulnerabilities before they are exploited.

Comparison with Other Options:

Threat Vector: A threat vector refers to the path or means by which a threat can reach and impact an asset. It is not a metric like the percentage of unpatched systems.

Critical Success Factor (CSF): CSFs are essential elements necessary for an organization to achieve its mission. While important, they are not specific metrics used to measure risk.

Key Performance Indicator (KPI): KPIs measure how effectively an organization is achieving its key business objectives. While related, KPIs focus on performance rather than risk exposure.

A risk heat map is a graphical tool that displays the level of risk for each risk area based on the impact and likelihood of occurrence. It also provides a summary of the risk assessment results, such as the number and severity of risks, the risk appetite and tolerance, and the risk response strategies. A risk heat map can help senior management to understand the risk profile of the organization, prioritize the risks that need attention, and allocate resources accordingly. A risk heat map is more effective than the other options because it can communicate complex information in a simple and visual way, and it can highlight the key risk areas and trends. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.2, page 97.

A data classification program helpsidentify appropriate controlsby categorizing data based on sensitivity and criticality. This ensures that data protection measures are aligned with its value and risk level, improving overall security posture.

The effectiveness of anti-malware software is the degree to which it can detect, prevent, and remove malicious software (malware) from the system or network. Malware is any software that is designed to harm, exploit, or compromise the functionality, security, or privacy of the system or network1. Some common types of malware are viruses, worms, Trojans, ransomware, spyware, adware, and rootkits2.

One of the best indicators of the effectiveness of anti-malware software is the number of successful attacks by malicious software, which means the number of times that malware has managed to bypass, evade, or disable the anti-malware software and cause damage or disruption to the system or network. The lower the number of successful attacks, the higher the effectiveness of the anti-malware software. This indicator can measure the ability of the anti-malware software to protect the system or network from known and unknown malware threats, and to respond and recover from malware incidents34.

The other options are not the best indicators of the effectiveness of anti-malware software, because:

Number of staff hours lost due to malware attacks is a measure of the impact or consequence of malware attacks on the productivity or performance of the staff. It does not directly reflect the ability of the anti-malware software to detect, prevent, or remove malware, as there may be other factors that affect the staff hours lost, such as the severity of the attack, the availability of backup or recovery systems, or the skills and awareness of the staff5.

Number of downtime hours in business critical servers is a measure of the impact or consequence of malware attacks on the availability or reliability of the servers. It does notdirectly reflect the ability of the anti-malware software to detect, prevent, or remove malware, as there may be other factors that affect the downtime hours, such as the type of the server, the configuration of the network, or the maintenance of the hardware6.

Number of patches made to anti-malware software is a measure of the maintenance or improvement of the anti-malware software. It does not directly reflect the ability of the anti-malware software to detect, prevent, or remove malware, as there may be other factors that affect the number of patches, such as the frequency of the updates, the quality of the software, or the compatibility of the system7.

References =

What is Malware? - Definition from Techopedia

Common Types of Malware and Their Impact - Techopedia

What is Anti-Malware? Everything You Need to Know (2023) - SoftwareLab

The 10 Best Malware Protection Solutions Compared for 2024 - Techopedia

The Cost of Malware Attacks - Security Boulevard

The Impact of Malware on Business - Kaspersky

What is Patch Management? - Definition from Techopedia

The risk associated with malicious functionality in outsourced application development is that the vendor may introduce unauthorized or harmful code into the enterprise’s system, which could compromise its security, integrity, or performance.

To mitigate this risk, the enterprise should perform an in-depth code review with an expert who can verify that the code meets the specifications, standards, and quality requirements, and that it does not contain any malicious or unwanted functionality.

A code review is a systematic examination of the source code of a software program, which can identify errors, vulnerabilities, inefficiencies, or deviations from best practices. A code review can also ensure that the code is consistent, readable, maintainable, and well-documented.

An expert is someone who has the knowledge, skills, and experience to perform the code review effectively and efficiently. An expert may be an internal or external resource, depending on the availability, cost, and independence of the reviewer.

A code review should be performed before the code is deployed to the production environment, and preferably at multiple stages of the development life cycle, such as design, testing, and integration.

A code review can also be complemented by other techniques, such as automated code analysis, testing, and scanning tools, which can detect common or known issues in the code. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, p. 143

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 143

The best method for identifying vulnerabilities is periodic network scanning. Network scanning is a process of scanning and probing the network devices, systems, and applications to discover and analyze their security weaknesses, such as configuration errors, outdated software, or open ports. Network scanning can help to identify the vulnerabilities that could be exploited by attackers to gain unauthorized access, compromise data, or disrupt services. Periodic network scanning is the best method, because it can provide a regular and comprehensive view of the network security posture, and it can detect and address the new or emerging vulnerabilities in a timely manner. Periodic network scanning can also help to comply with the legal and regulatory requirements and standards for network security, such as the ISO/IEC 27001, the NIST SP 800-53, or the PCI DSS123. The other options are not the best method, although they may be useful or complementary to periodic network scanning. Batch job failure monitoring is a process of monitoring and reporting the failures or errors that occur during the execution of batch jobs, such as data processing, backup, or synchronization. Batch job failure monitoring can help to identify the operational or technical issues that affect the performance or availability of the network services, but it does not directly identify the security vulnerabilities or the potential threats. Annual penetration testing is a process of simulating a real-world attack on the network devices, systems, and applications to evaluate their security defenses and resilience. Penetration testing can help to identify and exploit the vulnerabilities that could be used by attackers to compromise the network security, and to provide recommendations for improvement. However, annual penetration testing is not the best method, because it is not frequent or consistent enough to keep up with the changing and evolving network security landscape, and it may not cover all thenetwork components or scenarios. Risk assessments are a process of identifying, analyzing, and evaluating the risks associated with the network devices, systems, and applications. Risk assessments can help to estimate the probability and impact of the vulnerabilities and the threats, and to prioritize and respond to the risks accordingly. However, risk assessments are not the same as or a substitute for vulnerability identification, as they rely on the vulnerability information as an input, rather than an output. References = Vulnerability Testing: Methods, Tools, and 10 Best Practices, ISO/IEC 27001 Information Security Management, NIST SP 800-53 Rev. 5

As the threat landscape evolves, reporting on IT risk profile trends enables the organization tostay proactive. It helps ensure controls and strategies remain effective againstnew or increasing threats.

The programming project leader solely reviewing test results before approving the transfer to production would be a weakness in procedures for controlling the migration of changes to production libraries, because it violates the principle of segregation of duties, and it exposes the production libraries to the risk of unauthorized or erroneous changes. The programming project leader is responsible for developing and testing the changes, but not for approving and deploying them. The approval and deployment of the changes should be done by an independent and authorized party, such as the change control board or the operations manager. The other options are not weaknesses, but rather good practices, because:

Option B: Test and production programs being in distinct libraries is a good practice, because it prevents the accidental or intentional overwriting or mixing of the test and production programs, and it ensures the integrity and security of the production libraries.

Option C: Only operations personnel being authorized to access production libraries is a good practice, because it restricts the access and modification of the production libraries to the qualified and accountable staff, and it prevents the unauthorized or inappropriate access or modification of the production libraries by other parties.

Option D: A synchronized migration of executable and source code from the test environment to the production environment being allowed is a good practice, because it ensures the consistency and completeness of the changes, and it avoids the potential errors or discrepancies that may arise from the manual or partial migration of the changes. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 215.

Information security risk factors are the sources of uncertainty that may affect the confidentiality, integrity, or availability of information assets within an organization. Information security risk factors can include threats, vulnerabilities, or impacts that may compromise the security of information assets. Information security risk factors should be mitigated when developing in-house applications, which are software applications that are designed, developed, and maintained by the organization itself, rather than by external vendors or providers. Mitigating information security risk factors when developing in-house applications canhelp prevent or reduce the occurrence or consequences of security incidents, such as data breaches, cyberattacks, unauthorized access, or data loss. The best way to ensure that information security risk factors are mitigated when developing in-house applications is to identify information security controls in the requirements analysis. The requirements analysis is the stage of the system development life cycle (SDLC) where the business needs and expectations of the application are defined and documented. The requirements analysis should include the functional and non-functional requirements of the application, such as the features, functions, performance, quality, reliability, and security of the application. Identifying information security controls in the requirements analysis can help ensure that the security requirements of the application are clearly specified and agreed upon by the stakeholders, and that they are aligned with the organization’s security policies, standards, and regulations. Identifying information security controls in the requirements analysis can also help ensure that the security requirements are integrated into the design, development, testing, and deployment of the application, and that they are verified and validated throughout the SDLC. Identifying information security controls in the requirements analysis can also help ensure that the security requirements are traceable, measurable, and manageable, and that they can be monitored and reviewed for effectiveness and efficiency. References = THE SYSTEM DEVELOPMENT LIFE CYCLE (SDLC), p. 2-3, System Development Life Cycle - GeeksforGeeks, 7.3: Systems Development Life Cycle - Engineering LibreTexts, What Is SDLC? 7 Phases of System Development Life Cycle - Intetics.

Residual risk is the remaining risk after implementing risk responses, such as controls or mitigation strategies. With the deployment of an IAM solution, the organization has addressed certain access-related risks. Updating the risk register to reflect the new residual risk levels ensures accurate tracking and informs future risk management decisions.

 According to the CRISC Review Manual (Digital Version), an effective control environment is best indicated by controls that manage risk within the organization’s risk appetite, as this reflects the alignment of thecontrol objectives and activities with the organization’s strategic goals and risk preferences. The risk appetite is the amount and type of risk that the organization is willing to accept in pursuit of its objectives. Managing risk within the organization’s risk appetite helps to:

Balance the potential benefits and costs of risk-taking and risk response

Optimize the use of the organization’s resources and capabilities

Enhance the value and performance of the organization

Foster a risk-aware culture that supports the organization’s vision and mission

References = CRISC Review Manual (Digital Version), Chapter 2: IT Risk Assessment, Section 2.3: IT Risk Assessment Process, pp. 93-941

 A policy exception is a deviation from the established policies, standards, or procedures of the enterprise, such as the information security policy. A policy exception may be granted by the management when there is a valid business reason or justification for the deviation, and when the risk associated with the deviation is acceptable or mitigated. The best course of action when a business unit has decided to accept the risk of implementing an off-the-shelf, commercialsoftware package that uses weak password controls is to obtain management approval for policy exception. This will ensure that the business unit is aware of the implications and consequences of the policy exception, and that the management agrees with the risk acceptance and approves the policy exception. The other options are not the best course of action, as they involve different risk response strategies or outcomes:

Develop an improved password software routine means that the business unit modifies or enhances the password controls of the software package, such as by increasing the password length, complexity, or expiration. This may not be a feasible or effective way to address the risk of weak password controls, as it may violate the terms and conditions of the software vendor, or may not be compatible or consistent with the software package.

Select another application with strong password controls means that the business unit replaces the software package with another application that has better password controls, such as by using encryption, authentication, or authorization. This may not be a desirable or efficient way to address the risk of weak password controls, as it may incur additional costs, delays, or complexities, or may not meet the business requirements or expectations of the business unit.

Continue the implementation with no changes means that the business unit proceeds with the software package without any modifications or improvements to the password controls, or without any approval or documentation of the policy exception. This may not be a responsible or ethical way to address the risk of weak password controls, as it may expose the enterprise to legal, financial, or reputational risks, or may compromise the security or compliance of the enterprise. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.4.1.1, pp. 121-122.

 Anonymizing personal data in non-production environments means replacing the real data with fictitious but realistic data that does not allow identification of the individuals. This is a good way to mitigate the risk of sensitive personal data leakage from a software development environment, as it reduces the exposure of the data to unauthorized access or misuse. Tokenizing personal data only in test environments is not sufficient, as the data may still be exposed in other non-production environments, such as development or staging. Data loss prevention tools (DLP) installed in passive mode may detect and report data leakage incidents, but they do not prevent them from happening. Multi-factor authentication for access to non-production environments may enhance the security of the access, but it does not protect the data from being leaked by authorized users or compromised by other means. References = CRISC Review Manual (Digital Version), page 226; CRISC Review Questions, Answers & Explanations Database, question 195.

A preventive control is a type of control that aims to avoid or reduce the occurrence of an undesirable event or risk. A preventive control can be implemented through technical, administrative, or physical means. A new policy that forbids copying of data onto removablemedia is an example of a preventive control, because it prevents unauthorized data exfiltration or leakage through removable devices, such as flash drives or external hard disk drives. A preventive control is different from the other types of controls, as explained below:

A detective control is a type of control that aims to discover or identify the occurrence of an undesirable event or risk. A detective control can be implemented through monitoring, auditing, or reporting activities. An example of a detective control is a log analysis tool that detects any unauthorized access or modification of data on a system.

A directive control is a type of control that aims to guide or instruct the behavior or actions of individuals or groups. A directive control can be implemented through policies, procedures, standards, or rules. An example of a directive control is a training program that teaches employees how to handle sensitive data securely and appropriately.

A deterrent control is a type of control that aims to discourage or dissuade individuals or groups from performing an undesirable event or risk. A deterrent control can be implemented throughsanctions, penalties, or consequences. An example of a deterrent control is a warning message that informs users of the legal implications of copying data onto removable media without authorization. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.2.1, page 38.

 Risk impact is the potential loss or damage that a risk event can cause to an organization. Risk impact can be expressed in qualitative or quantitative terms, such as financial, reputational, operational, or legal. A risk register is a tool that records and tracks the key information about the identified risks, such as their description, likelihood, impact, response, and status. A risk register helps an organization to monitor and manage its risks effectively and efficiently. When there is a change in the external or internal environment that affects the organization’s risks, such as new regulations, the risk register should be updated to reflect this change. The most important element of the risk register to update in this case is the risk impact, because the new regulations have significantly increased the penalties for data breaches, which means that the potential loss or damage that a data breach can cause to the organization has also increased. By updating the risk impact, the organization can reassess the severity and priority of the data breach risk, and adjust its risk response accordingly. The other elements of the risk register are less important toupdate in this case. The risk trend shows the direction and rate of change of the risk over time, which may or may not be affected by the new regulations. The risk appetite is the amount and type of risk that the organization is willing to accept in pursuit of its objectives, which is unlikely to change due to the new regulations. The risk likelihood is the probability of a risk event occurring, which is also independent of the new regulations. References = Risk IT Framework, ISACA, 2022, p. 131

First-hand direct observation of the controls in operation is the best way to confirm the existence and operating effectiveness of information systems controls because it provides the auditor with the most reliable and persuasive evidence. Direct observation involves inspecting the physicaland logical aspects of the controls, such as the hardware, software, network, data, procedures, and personnel involved in the information systems. Direct observation also allows the auditor to verify that the controls are functioning as intended, and to identify any deviations or weaknesses that may affect the reliability of the information systems. Direct observation can be performed by using various techniques, such as walkthroughs, inquiries, inspections, reperformance, and analytical procedures1. References = Auditing Standard No. 13, The Auditor’s Responses to the Risks of Material Misstatement, PCAOB, 20101