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

Risk aggregation in a complex organization will be MOST successful when using the same scales in assessing risk, because it can help to ensure the consistency and comparability of the risk assessment results across different units, levels, and domains of the organization. Using the same scales in assessing risk can also help to avoid the potential errors or biases that may arise from using different scales, such as overestimating or underestimating the risk exposure, or misaligning the risk appetite and tolerance. The other options are not as important as using the same scales in assessing risk, because:

Option B: Utilizing industry benchmarks is a good way to improve the quality and validity of the risk assessment results, but it does not ensure the success of the risk aggregation, which is the process of combining and consolidating the risk assessment results into a holistic and comprehensive view of the risk profile and exposure of the organization.

Option C: Using reliable qualitative data for risk items is a useful way to capture and describe the risk items, which are the sources and causes of the risks, but it does not ensure the success of the risk aggregation, which is the process of quantifying and measuring the risk items, and their likelihood and impact on the business objectives and processes.

Option D: Including primarily low-level risk factors is a necessary way to identify and assess the risk factors, which are the characteristics and attributes of the risks, but it does not ensure the success of the risk aggregation, which is the process of prioritizing and ranking the risk factors, and their significance and relevance to the organization’s strategy and goals. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 105.

Scalable infrastructure ensures the system can handle increased load without failure, thus minimizing the risk of downtime or degraded performance during traffic spikes.

Theimpact to business objectivesis paramount when developing risk scenarios, as the primary purpose of risk management is to protect and support business objectives. Understanding the impact helps tailor scenarios to potential risks that could disrupt key operations or strategic goals.

 An IT risk appetite statement is a document that expresses the amount and type of IT risk that an organization is willing to accept or pursue in order to achieve its objectives. An IT risk appetite statement can help guide the IT risk management process, by setting the boundaries, criteria, andtargets for IT risk identification, assessment, response, and reporting. An IT risk appetite statement should be aligned with the organization’s overall risk appetite and strategy, and should be reviewed and updated periodically to reflect the changes in the internal and external environment. One of the factors that would most likely result in updates to an IT risk appetite statement is changes in senior management. Senior management is the group of executives who have the authority and responsibility for the strategic direction and performance of the organization. Changes in senior management can affect the IT risk appetite statement, as they may introduce new perspectives, priorities, expectations, or preferences for IT risk taking or avoidance. Changes in senior management can also affect the IT risk appetite statement, as they may require new or revised IT objectives, goals, or initiatives, which may entail different levelsor types of IT risk. Therefore, changes in senior management should trigger a review and update of the IT risk appetite statement, to ensure that it is consistent and compatible with the new leadership and direction of the organization. References = Organisations must define their IT risk appetite and tolerance, Risk Appetite Statements - Institute of Risk Management, Develop Your Technology Risk Appetite - Gartner.

 A risk treatment plan is a document that describes the actions and resources required to implement the chosen risk response for a specific risk scenario. A risk response can be to accept, avoid, transfer, or mitigate the risk. The effectiveness of a risk treatment plan can be measured by how well it reduces the risk exposure and achieves the desired outcomes. The best evidence that a selected risk treatment plan is effective is to evaluate the residual risk level, which is the remaining risk after the risk treatment plan has been implemented. The residual risk level should be within the organization’s risk appetite and tolerance, and should reflect the actual risk reduction and value creation of the risk treatment plan. Evaluating the residual risk level can also help to identify any gaps or issues that need to be addressed, and to monitor and report on the risk performance and improvement. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.2, p. 108-109

Control processes are the procedures and activities that aim to ensure the effectiveness and efficiency of the organization’s operations, the reliability of its information, and the compliance with its policies and regulations12.

The ongoing efficiency of control processes is the degree to which the control processes achieve their intended results with minimum resources, costs, or waste34.

The best way to determine the ongoing efficiency of control processes is to analyze key performance indicators (KPIs), which are quantifiable measures of progress toward an intended result, such as a strategic objective or a desired outcome56.

Analyzing KPIs is the best way because it provides a systematic and consistent method of evaluating the performance of the control processes, and identifying the areas of improvement or optimization56.

Analyzing KPIs is also the best way because it enables the organization to monitor and report the efficiency of the control processes to the relevant stakeholders, and to take corrective or preventive actions when necessary56.

The other options are not the best way, but rather possible sources of information or inputs that may support or complement the analysis of KPIs. For example:

Performing annual risk assessments is a way to identify and evaluate the risks that may affect the organization’s objectives, and to determine the adequacy and effectiveness ofthe control processes in mitigating those risks12. However, this way is not the best because it is periodic rather than continuous, and may not capture the changes or trends in the efficiency of the control processes12.

Interviewing process owners is a way to collect and verify the information and feedback from the people who are responsible for designing, implementing, and operating the control processes12. However, this way is not the best because it is subjective and qualitative, and may not provide reliable or comparable data on the efficiency of the control processes12.

Reviewing the risk register is a way to examine and update the documentation and status of the risks and the control processes that are associated with them12. However, this way is not the best because it is descriptive rather than analytical, and may not measure or evaluate the efficiency of the control processes12. References =

1: Risk IT Framework, ISACA, 2009

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

3: The Control Process | Principles of Management4

4: Control Management: What it is + Why It’s Essential | Adobe Workfront5

5: What is a Key Performance Indicator (KPI)? Guide & Examples - Qlik1

6: What is a Key Performance Indicator (KPI)? - KPI.org2

The migration to a jurisdiction with heavy fines for data leakage primarily affects the potential impact of a risk event. This change should be reflected in the risk impact factor, as the financial consequences of a risk event would be significantly higher.

The most effective key risk indicator (KRI) for monitoring risk related to a bring your own device (BYOD) program is the number of incidents originating from BYOD devices, as it directly measures the impact and frequency of the potential threats and vulnerabilities associated with the use of personal devices for accessing company data and systems. A BYOD program can pose various risks to an organization, such as data loss or breach, malware infection, unauthorized access, compliance violation, or device theft or loss12. The number of incidents originating from BYOD devices can help to identify and quantify these risks, and to trigger appropriate risk response actions when the incidents exceed the acceptable thresholds. The other options are not the most effective KRIs, as they do not directly measure the risk level or impact of the BYOD program. The number of users who have signed a BYOD acceptable use policy may indicate the awareness and compliance of the users, but not the actual risk exposure or mitigation. The budget allocated to the BYOD program security controls may indicate the investment and efficiency of the risk management, but not the effectiveness or necessity. The number of devices enrolled in the BYOD program may indicate the scope and scale of the risk, but not the severity or likelihood. References = Key Risk Indicators: A Practical Guide; KRI Framework for Operational Risk Management

The best way to mitigate the risk to operations caused by severe weather events is to develop a business continuity plan (BCP). A BCP is a document that describes the procedures and resources needed to ensure the continuity of the organization’s critical functions and processes in the event of a disruption or disaster. A BCP helps to identify the recovery objectives, strategies, and priorities, as well as the roles and responsibilities of the recovery team members. A BCP also helps to prepare and test the recovery capabilities and resources, such as alternate locations, backup systems, and communication channels. The other options are not as effective as developing a BCP, although they may be part of the BCP process or outcomes. Preparing a cost-benefit analysis to evaluate relocation, preparing a disaster recovery plan (DRP), and conducting a business impact analysis (BIA) for an alternate location are all activities that can help to develop or implement a BCP, but they are not the best way to mitigate the risk to operations. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.2.1, page 5-9.

A RACI matrix is a tool that assigns the roles and responsibilities for each risk, such as who is responsible, accountable, consulted, and informed. A RACI matrix helps to clarify the expectations and accountabilities for each risk owner and stakeholder, and to ensure that the risk is managed and monitored effectively and efficiently.

A risk register is a document that records and tracks the identified risks, their likelihood, impact, and mitigation strategies. A risk register does not assign the accountability for each risk, but rather the ownership and response.

A risk catalog is a collection of risks that have been identified and categorized based on common attributes, such as source, type, or impact. A risk catalog does not assign the accountability for each risk, but rather the classification and description.

A risk scenario is a technique that simulates the possible outcomes of different risk events and assesses their impact on the enterprise’s objectives and operations. A risk scenario does not assign the accountability for each risk, but rather the analysis and evaluation.

 A bring your own device (BYOD) initiative allows employees to use their personal devices, such as smartphones, tablets, or laptops, for work purposes. This can provide benefits such as increased productivity, flexibility, and employee satisfaction. However, it also introducessignificant risks, such as data loss, data leakage, malware infection, unauthorized access, and compliance violations. Among these risks, data loss is of greatest concern for an organization, as it can have severe consequences, such as reputational damage, legal liability, financial loss, and competitive disadvantage. Data loss can occur due to various reasons, such as device theft, loss, damage, or disposal, accidental deletion, unauthorized transfer, or malicious attack. Therefore, an organization considering the adoption of a BYOD initiative should implement appropriate controls, such as encryption, authentication, remote wipe, backup, and data classification, to protect the data stored or accessed on the personal devices. References = Bring Your Own Device (BYOD) Policy: What You Need to Know, BYOD Risks: What You Need to Know, BYOD Security: 8 Risks and How to Mitigate Them

The most important outcome of reviewing the risk management process is assuring that the risk profile supports the IT objectives, because this ensures that the organization is managing its IT-related risks in alignment with its business goals and priorities. The risk profile is a summary of the key risks that the organization faces, their likelihood, impact, and response strategies. The IT objectives are the specific and measurable outcomes that the organization expects to achieve from its IT investments and activities. Byreviewing the risk management process, the organization can evaluate whether the risk profile is accurate, complete, and up-to-date, and whether the risk responses are effective, efficient, and consistent with the IT objectives. The review can also identify any gaps, issues, or opportunities for improvement in the risk management process, and provide recommendations for enhancing the process and its outcomes. The review can also help to communicate and report the value and performance of the risk management process to the senior management, the board of directors, and other stakeholders. References = Risk IT Framework, ISACA, 2022, p. 17

The organization has adopted the risk treatment of transfer, which means that it has shifted some or all of the potential negative consequences of a risk event to another party, such as a vendor, an insurer, or a partner. By including penalties for loss of availability in the contract, the organization has transferred the financial impact of a service disruption to the vendor, who will be liable for compensating the organization for the loss. Transfer does not eliminate the risk, but it reduces the organization’s exposure to the risk.

Instead of relying solely on the provider’s internal assessment, the client should validate control effectiveness throughindependent audit reports(e.g., SOC 2 Type II). These provide third-party assurance.

 A cloud access security broker (CASB) solution is the best way to enforce access control for an organization that uses multiple cloud technologies, as it provides a centralized and consistent platform to manage and monitor the access to various cloud services and applications. A CASB solution can help to implement and enforce the enterprise’s access policies and standards, as well as to detect and prevent unauthorized or malicious access attempts. Senior management support of cloud adoption strategies, creation of a cloud access risk management policy, and expansion of security information and event management (SIEM) to cloud services are not the best ways to enforce access control for an organization that uses multiple cloud technologies, as they do not provide the technical capabilities or tools to manage and monitor the access to various cloud services and applications. References = CRISC by Isaca Actual Free Exam Q&As, question 210; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 210.

 The situation where the cost of maintaining a control has grown to exceed the potential loss is best described as an over-controlled environment, as it indicates that the control is not cost-effective and may be unnecessary or excessive. Insufficient risk tolerance, optimized control management, and effective risk management are not the best descriptions, as they do not reflect the imbalance between the control cost and the potential loss. References = CRISC Review Manual, 7th Edition, page 149.

According to the CRISC Review Manual1, threat impact analysis is the process of estimating and evaluating the potential effects of a threat event on the organization’s objectives, processes, resources, and risks. Threat impact analysis helps to quantify and qualify the severity and likelihood of the threat, and to identify the possible consequences and implications for the organization. Communicating the results of the threat impact analysis is the most effective way to improve stakeholders’ understanding of the effect of a potential threat, as it helps to inform and educate the stakeholders about the nature and magnitude of the threat, and to solicit their feedback and input for the risk response. Communicating the results of the threatimpact analysis also helps to align the stakeholder expectations and preferences, and to facilitate risk-based decision making and action planning. References = CRISC Review Manual1, page 208.

When reviewing a report on the performance of control processes, it is most important to verify whether the residual risk objectives have been achieved, as this indicates the extent to which the control processes have reduced the risk to an acceptable level. Residual risk is the risk that remains after the implementation of controls, and it should be aligned with the risk appetite and tolerance of the enterprise. Business process objectives, regulatory standards, and control process design are not the most important factors to verify,as they do not directly measure the effectiveness and efficiency of the control processes in managing the risk. References = CRISCPractice Quiz and Exam Prep; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 209.

The level of risk in the IT risk profile is the aggregate measure of the likelihood and impact of IT-related risks that may affect the enterprise’s objectives and operations.

The risk appetite is the amount and type of risk that the enterprise is willing to accept in pursuit of its goals. It is usually expressed as a range or a threshold, and it is aligned with the enterprise’s strategy and culture.

If the level of risk in the IT risk profile has decreased and is now below management’s risk appetite, it means that the enterprise has more capacity and opportunity to take on additional risks that may offer higher rewards or benefits.

The best recommendation in this situation is to optimize the control environment, which is the set of policies, procedures, standards, and practices that provide the foundation for managing IT risks and controls. Optimizing the control environment means enhancing the efficiency and effectiveness of the controls, reducing the costs and complexity of compliance, and aligning the controls with the enterprise’s objectives and values.

Optimizing the control environment can help the enterprise to achieve the optimal balance between risk and return, and to leverage its risk management capabilities to create and protect value.

The other options are not the best recommendations, because they do not address the opportunity to improve the enterprise’s performance and resilience.

Realigning risk appetite to the current risk level may result in missing out on potential gains or advantages that could be obtained by taking more risks within the acceptable range.

Decreasing the number of related risk scenarios may reduce the scope and depth of risk analysis and reporting, and impair the enterprise’s ability to identify and respond to emerging or changing risks.

Reducing the risk management budget may compromise the quality and reliability of the risk management process and activities, and weaken the enterprise’s risk culture and governance. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 29-30, 34-35, 38-39, 44-45

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 145

The best course of action when a recent regulatory requirement has the potential to affect an organization’s use of a third party to supply outsourced business services is to conduct a gap analysis, as it involves comparing the current and desired states of compliance, and identifying any gaps or discrepancies that need to be addressed. Terminating the outsourcing agreement, identifying compensating controls, and transferring risk to the third party are not the best courses of action, as they may not be feasible, effective, or appropriate, respectively, and may require the prior knowledge of the compliance gaps and risks. References = CRISC Review Manual, 7th Edition, page 111.

A risk event is an occurrence or situation that has a negative impact on the objectives, operations, or resources of an enterprise. A data breach at the company to be acquired is a risk event for the acquiring organization, because it can affect the value, reputation, or performance of the acquisition. A risk event can also trigger other risks or consequences that may require further actions or responses. The other options are not the correct answers, because they do not describe the situation accurately. A threat event is an occurrence or situation that exploits a vulnerability or causes harm to an asset or process. An inherent risk is the risk that exists before applying any controls or treatments. A security incident is an event that violates the security policies or procedures of an enterprise. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

 Changes in methods used to calculate probability present the greatest challenge for an IT risk practitioner who wants to report on trends in historical IT risk levels, as they may introduce inconsistency and incomparability in the risk assessment results over time. Probability is a key factor in determining the level and priority of IT risks, and different methods may produce different values for the same risk scenario. For example, some methods may use historical data, expert judgment, or simulation techniques to estimate the likelihood of a risk event. If the methods used to calculate probability change frequently or vary across different business units or processes, the IT risk practitioner may face difficulty in aggregating, normalizing, and reporting the risk levels and trends. The other options are not the greatest challenges for reporting on trends in historical IT risk levels, although they may pose some difficulties or limitations. Qualitative measures for potential loss events are subjective and imprecise, but they can stillprovide a relative ranking of risks and their impacts. Changes in owners for identified IT risk scenarios may affect the accountability and responsibility for managing the risks, but they do not necessarily affect the risk levels or trends. Frequent use of risk acceptance as a treatment option may indicate a high risk appetite ortolerance, but it does not prevent the IT risk practitioner from reporting on the risk levels or trends. References = Risk and Information Systems Control Study Manual, Chapter 5: Risk and Control Monitoring and Reporting, page 181.

Requiring MFA increases the security of digital wallets by adding an additional layer of authentication, making it harder for unauthorized users to gain access. This aligns withAccess Control Standardsand significantly reduces the likelihood of fraud.

 Contractually obligating the supplier to follow privacy laws is the best way to mitigate the risk of violating privacy laws when transferring personal information to a supplier, because it ensures that the supplier is legally bound to comply with the applicable laws and regulations that protect the privacy and security of the personal information. This also creates a clear accountability andliability for the supplier in case of a privacy breach, and defines the rights and obligations of both parties in relation to the personal information. The other options are not the best ways to mitigate the risk of violating privacy laws, although they may also be helpful in reducing the likelihood or impact of a privacy breach. Encrypting the data while in transit to the supplier, requiring independent audits of the supplier’s control environment, and utilizing blockchain during the data transfer are examples of technical or assurance controls that aim to protect the confidentiality, integrity, and availability of the personal information, but they do not address the legal or contractual aspects of the privacy laws. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

 The primary reason for establishing various threshold levels for a set of key risk indicators (KRIs) is to take appropriate actions in a timely manner. KRIs are metrics that provide information on the level of exposure to a given risk or the effectiveness of the controls in place. Threshold levels are predefined values that indicate when the risk level is acceptable, tolerable, or unacceptable. By establishing various threshold levels for a set of KRIs, the enterprise can monitor the risk situation and trigger the necessary responses before the risk becomes too severe or costly to mitigate. The other options are not the primary reasons for establishing various threshold levels, although they may be secondary benefits or outcomes of doing so. References = Risk and Information Systems Control Study Manual, Chapter 5: Risk and Control Monitoring and Reporting, page 189.

Automation of control monitoring is the application of technology to allow continuous or high-frequency, automated monitoring of controls to validate the effectiveness of controls designed to mitigate risk1.

Automation of control monitoring can provide benefits such as increased test coverage, improved timeliness, reduced risk velocity, greater visibility, improved consistency, and the ability to identify trends23.

However, automation of control monitoring also involves costs such as the acquisition, implementation, maintenance, and updating of the technology, as well as the training and support of the staff who use it45.

Therefore, the primary consideration when assessing the automation of control monitoring is the cost-benefit analysis of automation, which compares the expected benefits and costs of automation and determines whether the benefits outweigh the costs or vice versa45.

The other options are not the primary consideration, but rather secondary or tertiary factors that may influence the decision to automate or not. For example, the impact due to failure of controland the frequency of failure of control are aspects of the risk assessment that may indicatethe need for automation, but they do not provide the basis for evaluating the feasibility and desirability of automation45. Similarly, the contingency plan for residual risk is a component of the risk response that may include automation as a risk mitigation strategy, but it does not measure the effectiveness and efficiency of automation45. References =

2: A Practical Approach to Continuous Control Monitoring, ISACA Journal, Volume 2, 2015

3: Continuous Controls Monitoring: The Next Generation Of Controls Testing, Forbes Technology Council, June 2, 2022

1: Making Continuous Controls Monitoring Work for Everyone, ISACA Now Blog, June 13, 2022

4: Controls Automation - Monitoring vs. Operation - Part 3, Turnkey Consulting, July 29, 2021

5: What’s Continuous Control Monitoring and Why Is It Important?, MetricStream Blog, October 15, 2019

The most important factor when developing risk scenarios is obtaining input from key stakeholders. A risk scenario is a description of a possible event or situation that could affect the enterprise’s objectives, processes, or resources. Obtaining input from key stakeholders, such as business owners, process owners, subject matter experts, or external parties, helps to ensure that the risk scenarios are realistic, relevant, and comprehensive. It also helps to identify the sources,drivers, indicators, likelihood, impact, and responses of the risk scenarios, and to align them with the enterprise’s risk appetite and tolerance. Obtaining input from key stakeholders also fosters a collaborative and participatory approach to risk management, and enhances the risk awareness and ownership among the stakeholders. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.3, page 621

The best approach to mitigate the risk associated with a control deficiency is to implement compensating controls. A control deficiency is a situation where a control is missing, ineffective, or inefficient, and cannot provide reasonable assurance that the objectives or requirements are met. A compensating control is a control that provides an alternative or additional measure of protection when the primary or preferred control is not feasible or effective. A compensating control can help to reduce the likelihood and/or impact of the risk associated with the control deficiency, and maintain the compliance or performance level. The other options are not as effective as implementing compensating controls, as they are related to the analysis, assessment, or provision of the risk, not the mitigation of the risk. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

The best course of action for a system administrator who suspects a colleague may be intentionally weakening a system’s validation controls in order to pass through fraudulent transactions is B. Share the concern through a whistleblower communication channel1

According to the CRISC Review Manual, a whistleblower communication channel is a mechanism that allows employees to report suspected fraud or unethical behavior without fear of retaliation or reprisal. A whistleblower communication channel is part of an effective fraud detection and prevention framework, and it helps to promote a culture of integrity and accountability within the organization2

The other options are not as effective or appropriate as sharing the concern through a whistleblower communication channel, because:

•A. Implementing compensating controls to deter fraud attempts may not address the root cause of the problem, and it may also create additional complexity and cost for the system. Moreover, it may not prevent the colleague from finding other ways to bypass the controls or collude with external parties.

•C. Monitoring the activity to collect evidence may expose the system administrator to legal or ethical risks, especially if the monitoring is done without proper authorization or due process. Itmay also delay the reporting and resolution of the issue, and potentially allow more fraudulent transactions to occur.

•D. Determining whether the system environment has flaws that may motivate fraud attempts may be useful for understanding the context and the factors that contribute to the fraud risk, but it does not address the immediate concern of reporting the suspected fraud. It may also imply that the system administrator is trying to justify or rationalize the colleague’s behavior, rather than holding them accountable.

1: CRISC Review Questions, Answers & Explanations Database, Question ID: 100002 2: CRISC Review Manual, 7th Edition, page 224

Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. One of the elements of risk appetite is the enterprise’s capacity to absorb loss, which is the maximum amount of loss that an organization can withstand without jeopardizing its existence or strategic objectives. The effectiveness of compensating controls, the residual risk affected by preventive controls, and the amount of inherent risk considered appropriate are not elements of risk appetite, but rather factors that influence the risk assessment and responseprocesses. References = [CRISC Review Manual (Digital Version)], page 41; CRISC Review Questions, Answers & Explanations Database, question 196.

 The most important consideration when selecting an external service provider for outsourcing the payroll function is the internal controls to ensure data privacy. The payroll function involves processing and storingsensitive personal and financial information of the employees, such as salaries, taxes, benefits, bank accounts, etc. This information needs to be protected from unauthorized access, disclosure, modification, or loss, as it may result in legal, regulatory, reputational, or financial consequences for the organization and the employees. Therefore, the external service provider should have adequate internal controls, such as encryption, access control, backup, logging, monitoring, etc., to ensure data privacy and compliance with the organization’s policies and standards. Disaster recovery plan, right to audit, and transparency ofKPIs are also important considerations when selecting an external service provider, but they are not as important as internal controls to ensure data privacy. 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 648.

The three lines of defense model is a framework that describes the roles and responsibilities of different stakeholders in the risk management and internal control processes of an organization. The three lines of defense are:

The first line of defense: the operational management and staff who are responsible for identifying, assessing, and responding to the risks, as well as implementing and maintaining the controls within their areas of activity.

The second line of defense: the risk management, compliance, and security functions who are responsible for establishing the risk policies and standards, providing guidance and support, monitoring and reporting on the risk performance and compliance, and facilitating the risk management and internal control processes across the organization.

The third line of defense: the internal audit function who is responsible for providing independent and objective assurance on the effectiveness and efficiency of the risk management and internal control processes, as well as recommending improvements and best practices. The stakeholders who are typically included as part of a line of defense within the three lines of defense model are the legal team, who belong to the second line of defense. The legal team is responsible for ensuring that the organization complies with the relevant laws and regulations, aswell as for advising and assisting the organization on the legal aspects and implications of the risk management and internal control processes. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.4.1, p. 32-33

Risk strategies are the plans and actions that an organization adopts to manage its risks and to achieve its objectives. Risk strategies should be aligned with the organization’s vision, mission, values, and culture, as well as its internal and external environment. The most important consideration when developing risk strategies is the long-term organizational goals, meaning that the risk strategies should support and enable the organization to pursue and attain its desired future state and outcomes. The long-term organizational goals should guide the risk identification, assessment, response, and monitoring processes, as well as the risk appetite and tolerance levels. The long-term organizational goals should also be communicated and cascaded throughout the organization to ensure the risk awareness and engagement of all stakeholders. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, p. 27-28

The most common concern associated with outsourcing to a service provider is unauthorized data usage, which means the misuse, disclosure, or theft of the organization’s data by the service provider or its employees, contractors, or subcontractors1. Unauthorized data usage can pose significant risks to the organization, such as:

Data security and privacy breaches, which can compromise the confidentiality, integrity, and availability of the data, and expose the organization to legal liability, regulatory penalties, reputational damage, or loss of trust and credibility2.

Data quality and accuracy issues, which can affect the reliability and validity of the data, and impair the decision-making, reporting, or performance of the organization3.

Data ownership and control issues, which can limit the access and rights of the organization to its own data, and create dependency or lock-in with the service provider4.

The other options are not the most common concern associated with outsourcing to a service provider, because:

Lack of technical expertise is a potential but not prevalent concern associated with outsourcing to a service provider, as it may affect the quality and efficiency of the services provided by the service provider, and the compatibility and integration of the services with the organization’s systems and processes5. However, most service providers have sufficient technical expertise in their domain or field, and they can offer specialized skills or resources that the organization may not have internally6.

Combining incompatible duties is a possible but not frequent concern associated with outsourcing to a service provider, as it may create conflicts of interest or segregation of duties issues for the service provider or the organization, and increase the risk of errors, fraud, or abuse7. However, most service providers have adequate governance and control mechanisms to prevent or mitigate such issues, and they can adhere to the organization’s policies and standards regarding the separation of duties8.

Denial of service attacks is a rare but not common concern associated with outsourcing to a service provider, as it may disrupt the availability or functionality of the services provided by the service provider, and affect the operations or continuity of the organization. However, most service providers have robust security measures and contingency plans to protect and recover from such attacks, and they can ensure the resilience and reliability of the services.

References =

Unauthorized Data Usage - CIO Wiki

What is outsourcing? Definitions, benefits, challenges, processes, advice | CIO

The Pros and Cons of Outsourcing in 2023 - GrowthForce

13 Common Problems of Outsourcing and How to Avoid Them - ENOU Labs

The Top 10 Problems with Outsourcing Implementation - SSON

10 problems with outsourcing (+ Solutions for each) - Time Doctor Blog

Segregation of Duties - CIO Wiki

Outsourcing Governance - CIO Wiki

[Denial-of-Service Attack - CIO Wiki]

[Business Continuity Planning - CIO Wiki]

A data privacy officer is a role that is responsible for ensuring that the organization complies with the applicable laws, regulations, and standards regarding the collection, processing, storage, and disclosure of customer data1. A data privacy officer is also responsible for developing and implementing policies, procedures, and controls to protect the privacy and security of customer data, and to prevent or mitigate the risk of customer data loss2. A data privacy officer is the most helpful role in providing a high-level view of risk related to customer data loss, because:

A data privacy officer has the knowledge and expertise of the legal and ethical requirements and best practices for customer data protection, and can identify and assess the potential threats and vulnerabilities that may compromise customer data3.

A data privacy officer has the authority and accountability to oversee and monitor the customer data lifecycle, and to ensure that the organization follows the principles of data minimization, purpose limitation, accuracy, integrity, confidentiality, and accountability4.

A data privacy officer has the visibility and communication skills to report and advise the management and other stakeholders on the customer data risk profile, and to recommend and implement appropriate risk responses and improvement actions5.

The other options are not the most helpful roles in providing a high-level view of risk related to customer data loss, because:

A customer database manager is a role that is responsible for designing, developing, maintaining, and optimizing the database systems that store and manage customer data6. A customer database manager may have some technical skills and knowledge to protect the customer data from unauthorized access, modification, or deletion, but may not have the comprehensive or holistic view of the customer data risk, as they may focus only on the database level, and not on the organizational or regulatory level.

A customer data custodian is a role that is responsible for handling, processing, and storing customer data according to the instructions and permissions of the data owner7. A customer data custodian may have some operational duties and responsibilities to safeguard the customer data from accidental or intentional loss, damage, or disclosure, but may not have the strategic or analyticalview of the customer data risk, as they may follow only the predefined rules and procedures, and not the risk management principles and practices.

An audit committee is a group of independent directors or members that is responsible for overseeing and evaluating the organization’s financial reporting, internal control, and auditfunctions. An audit committee may have some oversight and assurance roles andresponsibilities to review and verify the organization’s compliance and performance regarding customer data protection, but may not have the direct or proactive view of the customer data risk, as they may rely only on the audit reports and findings, and not on the risk assessment and analysis.

References =

Data Privacy Officer - CIO Wiki

What is a Data Protection Officer (DPO)? - Definition from Techopedia

Data Privacy Officer: Roles and Responsibilities - ISACA

Data Protection Principles - CIO Wiki

Data Privacy Officer: How to Be One and Why You Need One - ISACA

Database Manager - CIO Wiki

Data Custodian - CIO Wiki

[Audit Committee - CIO Wiki]

Reviewing the risk register change log is the best way for management to validate whether risk response activities have been completed, because it helps to track and monitor the changes and updates that have been made to the risk register, and to verify that the risk response activities have been implemented and closed. A risk register is a document that captures, identifies, assesses and tracks risk as part of the risk management process4. A risk register change log is a record that documents the date, description, and reason for each change or update that is made to the risk register. A risk response activity is an action or task that is performed to implement the chosen risk response strategy for a specific risk, such as avoid, transfer, mitigate, or accept. Reviewing the risk register change log is the best way, as it helps to ensure that the risk register is accurate and current, and that the risk response activities have been completed and reported. Reviewing evidence of risk acceptance, control effectiveness test results, and control design documentation are all possible ways to validate whether risk response activities have been completed, but they are not the best way, as they may not cover all the risk response activities, and they may not reflect the changes or updates in the risk register. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.1, page 101

According to the CRISC Review Manual (Digital Version), the best way to validate the results of a vulnerability assessment is to perform a penetration test, which is a type of security testing that simulates an attack on the IT assets and processes to exploit the identified vulnerabilities and evaluate the potential impact and severity of the attack. Performing a penetration test helps to:

Confirm the existence and exploitability of the vulnerabilities detected by the vulnerability assessment

Measure the effectiveness and efficiency of the existing security controls and countermeasures

Identify and prioritize the risks and gaps in the security posture of the IT assets and processes

Recommend and implement appropriate remediation and mitigation actions to address the vulnerabilities and risks

Enhance the security awareness and resilience of the organization

References = CRISC Review Manual (Digital Version), Chapter 1: IT Risk Identification, Section 1.5: IT Risk Identification Methods and Techniques, pp. 36-371

To ensure IT asset protection, having procedures for risk assessments on IT assets is the most important. These procedures enable an organization to systematically identify, evaluate, and mitigate risks associated with its IT assets. This process is crucial for understanding thevulnerabilities and threats that could potentially harm the assets and for implementing the necessary controls to protect them.

Procedures for Risk Assessments on IT Assets (Answer A):

Importance: Regular risk assessments help in identifying vulnerabilities and threats to IT assets, allowing the organization to prioritize and implement appropriate risk mitigation strategies.

Implementation: These procedures should be well-documented and regularly updated to reflect the changing threat landscape and the organization's evolving IT infrastructure.

Outcome: Effective risk assessments ensure that IT assets are protected from potential risks, thereby safeguarding the organization's data, systems, and overall IT environment.

Comparison with Other Options:

B. An IT asset management checklist:

Purpose: This helps in tracking and managing IT assets.

Limitation: It does not address risk assessment and mitigation directly.

C. An IT asset inventory populated by an automated scanning tool:

Purpose: Provides a detailed list of IT assets.

Limitation: While it helps in knowing what assets exist, it does not assess the risks associated with those assets.

D. A plan that includes processes for the recovery of IT assets:

Purpose: Focuses on recovery after an incident.

Limitation: It is reactive rather than proactive in protecting assets.

A contingency plan is a set of actions and procedures that aim to ensure the continuity of critical business functions in the event of a disruption or disaster. An alternate processing site is a location where the organization can resume its information systems operations in case the primary site is unavailable or damaged. The most important consideration when establishing a contingency plan and an alternate processing site for a company located on a moderate earthquake fault is to ensure that the alternative site does not reside on the same fault, no matter how far apart they are. This is because an earthquake can affect a large area along the fault line, and potentially damage both the primary and the alternative site, rendering them unusable. By choosing an alternative site that is not on the same fault, the company can reduce the risk of losing both sites, and increase the likelihood of restoring its operations quickly and effectively. The other options are not as important as the alternative site location, because they do not address the main threat of an earthquake, but rather focus on specific or partial aspects of the contingency plan, as explained below:

A. The alternative site is a hot site with equipment ready to resume processing immediately is a consideration that relates to the availability and readiness of the alternative site, but it does not ensure that the site is safe and secure from an earthquake. A hot site is a type of alternative site that has the necessary hardware, software, and network components to resume the information systems operations with minimal or no downtime. However, if the hot site is on the same fault asthe primary site, it may not be accessible or functional after an earthquake, and the company may lose both sites and the data stored on them.

B. The contingency plan provides for backup media to be taken to the alternative site is a consideration that relates to the integrity and recoverability of the data, but it does not ensure that the site is safe and secure from an earthquake. Backup media are devices or systems that store copies of the data and information that are essential for the organization’s operations. Taking backup media to the alternative site can help the company to restore its data and resume its operations in case the primary site is damaged or destroyed. However, if the alternative site is on the same fault as the primary site, it may not be accessible or functional after an earthquake, and the company may lose both sites and the backup media.

C. The contingency plan for high priority applications does not involve a shared cold site is a consideration that relates to the performance and reliability of the alternative site, but it does not ensure that the site is safe and secure from an earthquake. A shared cold site is a type of alternative site that has the necessary space and infrastructure to accommodate the information systems operations, but does not have the hardware, software, or network components installed. A shared cold site is shared by multiple organizations, and may not be available or suitable for the company’s high priority applications, which require more resources and customization. However, if the alternative site is on the same fault as the primary site, it may not be accessible or functional after an earthquake, and the company may lose both sites and the ability to resume its high priority applications. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.2.1, page 115. How to conduct a contingency planning process - IFRC, CP-4(2): Alternate Processing Site - CSF Tools - Identity Digital, Information System Contingency Planning Guidance - ISACA

 The control owner should be responsible for evaluating the residual risk after a compensating control has been implemented. A compensating control is a control that provides an alternative or additional measure of protection when the primary or preferred control is not feasible or effective. A residual risk is the risk that remains after the risk response or mitigation has beenapplied. The control owner is the person who has the authority and responsibility for designing, implementing, and monitoring the controls that enforce the policy. The control owner can assess the impact and effectiveness of the compensating control on the residual risk, and report the results and recommendations to the risk owner or the risk practitioner. The other options are not as responsible as the control owner, as they are related to the compliance, ownership, or management of the risk, not the evaluation of the control. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.4: Key Control Indicators, page 211.

Risk tolerance represents the acceptable deviation from the organization’s risk appetite. Any change in the risk profile that surpasses the defined tolerance must be reported to executives. This enables risk-informed decision-making and adjustment of mitigation strategies. It ensures the business stays within defined risk boundaries.

The main purpose of a risk register is to enable well-informed risk management decisions by providing a comprehensive and up-to-date record of all the identified risks, their analysis, and their responses. A risk register is a tool that helps to document, monitor, and communicate the status and outcome of risk management activities. A risk register also facilitates the review and evaluation of the effectiveness of risk management processes and controls. Documenting the risk universe, promoting an understanding of risk,and identifying stakeholders are possible benefits of a risk register, but they are not the main purpose. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.1.3, page 531

1: ISACA Certified in Risk and Information Systems Control (CRISC®) Exam Guide, Answer to Question 640.

The first course of action for an organization that has received notification that it is a potential victim of a cybercrime that may have compromised sensitive customer data is to invoke the incident response plan. An incident response plan is a set of procedures and guidelines that defines the roles and responsibilities of the incident response team, the communication and escalation channels, the incident identification and classification criteria, the incident containment and eradication strategies, the incident recovery and restoration activities, and the incident documentation and reporting requirements. Invoking the incident response plan as soon as possible is crucial to minimize the damage and disruption caused by the cybercrime, to preserve the evidence and facilitate the investigation, and to comply with the legal andregulatory obligations. The other options are not the first course of action, although they may be subsequent or concurrent steps in the incident response process. Determining the business impact is a part of the incident assessment and prioritization phase, which helps to evaluate the severity and scope of the incident and to allocate the appropriate resources and actions. Conducting a forensic investigation is a part of the incident analysis and evidence collection phase, which helps to identify the source and cause of the incident and to support the legal and disciplinary actions. Invoking the business continuity plan (BCP) is a part of the incident recovery and restoration phase, which helps to resume the normal operations and services and to mitigate the adverse effects of the incident. References = The National Cyber Incident Response Plan (NCIRP), Cyber Incident Response Plan | Cyber.gov.au, [Cyber Incident Response: A Framework for Preparation and Success], [Cyber Incident Response Plan: How to Create One for Your Business]

According to the ISACA Risk and Information Systems Control study guide and handbook, the control owners in the IT department should determine whether risk responses still effectively address risk after a restructuring and outsourcing of certain functions. This is because the restructuring and outsourcing may have changed the risk profile, the control environment, and the control activities of the IT department. The control owners should review the existing risk responses and evaluate if they are still appropriate, adequate, and efficient in mitigating the risks associated with the outsourced functions. The control owners should also monitor the performance and compliance of the service providers and ensure that the contractual obligations and service level agreements are met12

1: ISACA Risk and Information Systems Control Study Guide, 4th Edition, page 33 2: ISACA Risk and Information Systems Control Handbook, 1st Edition, page 25

A risk profile is a summary of the nature and level of risk that an organization faces. It includes information such as the sources, causes, and consequences of the risks, their likelihood and impact, their interrelationships and dependencies, and their alignment with the risk appetite and tolerance. A risk profile is influenced by various factors, such as the organization’s objectives, strategies, activities, processes, resources, capabilities, culture, etc. When an organization configures a new business division, the factor that is most likely to be affected is the risk profile, as the new business division may introduce new or change existing risks, opportunities, and uncertainties that may affect the achievement of the organization’s objectives. Therefore, the organization should update its risk profile to reflect the currentand potential risks associated withthe new business division, and implement the appropriate risk management actions to optimize the risk exposure and performance. References = 4

 The performance of a client-facing application is the measure of how well the application meets the expectations and requirements of the clients who use it. The performance of a client-facing application can be affected by various factors, such as functionality, usability, reliability, availability, security, and scalability. Continuously monitoring the performance of a client-facing application is the process of collecting, analyzing, and reporting on the performance data and metrics of the application over time. Continuously monitoring the performance of a client-facing application can help identify and resolve issues, improve quality, optimize resources, and enhance client satisfaction. The most important thing to ensure when continuously monitoring the performance of a client-facing application is that the objectives are confirmed with the business owner. The business owner is the person or entity who has the authority and responsibility for the business value and outcomes of the application. The business owner defines the objectives, goals, and requirements of the application, and sets the performance criteria and targets. Confirming the objectives with the business owner can help ensure that the performance monitoring is aligned with the business needs and expectations, and that the performance data and metrics are relevant, accurate, and meaningful. References = Risk and Information SystemsControl Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.3: Continuous Monitoring, p. 203-205.

Risk management is the process of identifying, analyzing, evaluating, treating, monitoring, and communicating the risks that may affect the achievement of an organization’s objectives. The activity that best facilitates effective risk management throughout the organization is conducting periodic risk assessments, which are the systematic and structured methods of identifying and analyzing the potential sources and consequences of risk events. By conducting periodic risk assessments, an organization can proactively identify and prioritize the risks that pose the greatest threat or opportunity, and implement theappropriate risk responses to optimize the risk exposure and align it with the risk appetite and tolerance. References = CRISC Review Manual, 7th Edition, page 63.

Risk tolerance is the most useful input when evaluating the appropriateness of risk responses, as it defines the acceptable level of risk for the organization and guides the selection of the optimal risk response. Incident reports, cost-benefit analysis, and control objectives are also useful inputs, but they are not the most useful, as they provide information on the actual or potential impact, cost, and effectiveness of the risk responses, but not the desired level of risk. References = CRISC Review Manual, 7th Edition, page 108.

 The most effective way to resolve the situation and define a comprehensive risk treatment plan would be to perform a root cause analysis. A root cause analysis is a method of identifying and addressing the underlying factors or causes that led to the occurrence of a problem or incident1. In this case, the problem or incident is the malware infection that affected the organization. By performing a root cause analysis, the organization can determine how and why the malware was able to infect the systems, what vulnerabilities or weaknesses were exploited, what controls orprocesses failed or were missing, and what actions or decisions contributed to the situation. A root cause analysis can help the organization to prevent or reduce the recurrence of similar incidents, as well as to improve the effectiveness and efficiency of the risk management process. A root cause analysis can also help the organization to define a comprehensive risk treatment plan, which is a set of actions or measures that are taken to modify the risk, such as reducing, avoiding, transferring, or accepting the risk2. Based on the findings and recommendations of the root cause analysis, the organization can select and implement the most appropriate risk treatment option for the malware risk, as well as for any other related or emerging risks. The risk treatment plan should also include the roles and responsibilities, resources, timelines, and performance indicators for the risk treatmentactions3. The other options are not the most effective ways to resolve the situation and define a comprehensive risk treatment plan, as they are either less thorough or less relevant than a root cause analysis. A gap analysis is a method of comparing the current state and the desired state of a process, system, or organization, and identifying the gaps or differences between them4. A gap analysis can help the organization to identify the areas of improvement or enhancement, as well as the opportunities or challenges for achieving the desired state. However, a gap analysis is not the most effective wayto resolve the situation and define a comprehensive risk treatment plan, as it does not address the causes or consequences of the malware infection, or the actions or measures to mitigate the risk. An impact assessment is a method of estimating the potential effects or consequences of a change, decision, or action on a process, system, or organization5. An impact assessment can help the organization to evaluate the benefits and costs, as well as the risks and opportunities, of a proposed or implemented change, decision, or action. However, an impact assessment is not the most effective way to resolve the situation and define a comprehensive risk treatment plan, as it does not investigate the origin or nature of the malware infection, or the solutions or alternatives to manage the risk. A vulnerability assessment is a method of identifying and analyzing the weaknesses or flaws in a process, system, or organization that can be exploited by threats to cause harm or loss6. A vulnerability assessment can help the organization to discover and prioritize the vulnerabilities, as well as to recommend and implement the controls or measures to reduce or eliminate them. However, a vulnerability assessment is not the most effective way to resolve the situation and define a comprehensive risk treatment plan, as it does not consider the root causes or impacts of the malware infection, or the risk treatment options or plans to address the risk. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.1.8, Page 61.

The second line (risk management, compliance) provides oversight and support to the first line (operations). It monitors risk-related activities, issues alerts, and helps ensure controls are properly designed and implemented, but does not own the risk.

Differences in regulatory requirements are the most important factor for a multinational organization to consider when developing its security policies and standards. This is because different countries or regions may have different laws, regulations, or standards that govern the protection of information and data, such as the General Data Protection Regulation (GDPR) in the European Union, the Health Insurance Portability and Accountability Act (HIPAA) in the United States, or the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada. A multinational organization must comply with the applicable regulatoryrequirements in each jurisdiction where it operates, or it may face legal, financial, or reputational risks. Therefore, the organization should develop its security policies and standards in a way that meets or exceeds the minimum regulatory requirements, and also aligns with its business objectives and risk appetite. According to the CRISC Review Manual 2022, one of the key elements of IT governance is to ensure compliance withexternal laws and regulations1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, differences in regulatory requirements is the correct answer to this question2.

Regional competitors’ policies and standards, ability to monitor and enforce compliance, and industry-standard templates are not the most important factors for a multinational organization to consider when developing its security policies and standards. These factors may be useful or relevant, but they are not as critical or mandatory as the differences in regulatory requirements. Regional competitors’ policies and standards may provide some insights or benchmarks, but theymay not reflect the organization’s specific needs or risks. Ability to monitor and enforce compliance is an important aspect of implementing and maintaining security policies and standards, but it does not determine the content or scope of the policies and standards. Industry-standard templates may offer some guidance or best practices, but they may not cover all the regulatory requirements or the organization’s unique circumstances.

The control owner is the person who is responsible for designing, implementing, monitoring, and maintaining a control. The control owner is best suited to determine whether a new control properly mitigates data loss risk within a system, as they have the most knowledge and authority over the control. The control owner should also evaluate the effectiveness and efficiency of the control and report any issues or gaps to the risk owner.

The other options are not the best suited to determine whether a new control properly mitigates data loss risk within a system. The data owner is the person who has the accountability and authority over the data and its classification. The data owner may not have the technical expertise or access to evaluate the new control. The risk owner is the person who has the accountability and authority to manage a specific risk. The risk owner may not have the detailed knowledge orinvolvement in the new control. The system owner is the person who has the accountability and authority over the system and its operation. The system owner may not have the direct responsibility or oversight of the new control. References = CRISC TOPIC 3 EXAM SHORT Flashcards, CRISC-1-50 topic3 Flashcards, CRISC Certified in Risk and Information Systems Control – Question609

Penetration test resultsprovide direct evidence of the vendor’s technical security posture and ability to defend against real-world attacks. This is more effective than reviewing contracts or benchmarking, which are indirect measures.

The best way to prevent future occurrences of active network accounts belonging to former employees is to conduct a comprehensive review of access management processes. This review should include verifying that the access rights of all employees are updated regularly, especially when they change roles or leave the organization. The review should also ensure that there are clear policies and procedures for granting, modifying, and revoking access rights, and that these are followed consistently and documented properly. The review should also identify and address any gaps or weaknesses in the access management processes that could lead to unauthorized orinappropriate access. By conducting a comprehensive review of access management processes, the organization can improve its security posture and reduce the risk of data breaches or misuse of resources. References = IT audit: The ultimate guide [with checklist] | Zapier, IT auditing and controls – planning the IT audit [updated 2021]

A risk mitigation action plan is a document that specifies the actions to be taken to address the identified risks, the resources required, the timelines, the owners, and the expected outcomes. The risk owner is the person who has the authority and accountability to manage the risk and its response. The risk practitioner is the person who supports the risk owner in the risk management process. The best course of action for the risk practitioner when the manager of a risk mitigation action plan is replaced and a new control is implemented is to communicate the decision to the risk owner for approval. This will ensure that the risk owner is aware of the change, agrees with the new control, and approves the modification of the action plan. The other options are not the best course of action, as they may not involve the risk owner, who is ultimately responsible for the risk and its response. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.1.1.1, pp. 95-96.

Thelatest security assessmentprovides a detailed evaluation of the control’s performance and identifies gaps or weaknesses. This is critical for determining the effectiveness of a system security control in mitigating threats.

A risk is the possibility of an event that may have a negative impact on the achievement of an organization’s objectives. A risk can be measured by the probability and impact of the event, which indicate the likelihood and consequence of the event. A risk manager is a person who is responsible for performing risk management activities, such as identifying, analyzing, evaluating, treating, monitoring, and communicating risks. When an organization retains footage from its data center security camera for 30 days when the policy requires 90-day retention, the risk manager’s best response to the business owner who challenges whether the situation is worth remediating is to evaluate the risk as a measure of probable loss, which means to estimate thepotential harm or damage that may result from the non-compliance with the policy. By evaluating the risk as a measure of probable loss, the risk manager can provide the business owner with the rationale and justification for the risk remediation, and help the business owner to understand the cost-benefit analysis of the risk response. References = CRISC Review Manual, 7th Edition, page 63.

A risk practitioner is a person who is responsible for performing risk management activities, such as identifying, analyzing, evaluating, treating, monitoring, and communicating risks. When an organization is implementing a project to automate the purchasing process, including the modification of approval controls, the task that is the responsibility of the risk practitioner is to verify that the existing controls continue to properly mitigate the defined risk. This means thatthe risk practitioner should ensure that the automation and modification of the approval controls do not introduce new risks or change the existing risk profile, and that the controls are still effective and adequate for the purchasing process. The risk practitioner should also monitor the performance and compliance of the controls, and recommend any improvements or adjustments as needed. References = CRISC Review Manual, 7th Edition, page 177.