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

The MOST critical requirement to include in the contract is the confidentiality of customer data, because it is a legal and ethical obligation of the bank to protect the privacy and security of its customers’ personal and financial information. Outsourcing the statement printing function to an external service provider exposes the customer data to potential unauthorized access, disclosure, or misuse by the service provider or its sub-contractors. Therefore, the contract should specify the terms and conditions for the handling, storage, and disposal of the customer data, as well as the penalties for any breach of confidentiality. The other options are not as critical as the confidentiality of customer data, because:

Option A: Monitoring of service costs is an important requirement to ensure that the service provider delivers the statement printing function within the agreed budget and scope, but it is not as critical as the confidentiality of customer data, which has legal and reputational implications for the bank.

Option B: Provision of internal audit reports is a useful requirement to verify that the service provider complies with the internal and external standards and regulations for the statement printing function, but it is not as critical as the confidentiality of customer data, which is a core value of the bank and its customers.

Option C: Notification of sub-contracting arrangements is a relevant requirement to ensure that the service provider does not delegate the statement printing function to another party without the bank’s consent and oversight, but it is not as critical as the confidentiality of customer data, which is the primary responsibility of the bank and its service provider. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 197.

 Purpose of a Risk Register:

A risk register consolidates all identified risks, their status, and mitigation actions in one place. It serves as a tool for tracking and managing risks systematically.

 Facilitating Risk Management Functions:

By documenting risk scenarios, a risk register provides a comprehensive view of potential threats and their impact on the organization.

It enables effective communication and review of these scenarios with stakeholders, ensuring that all relevant parties are aware of and understand the risks.

 Engaging Stakeholders:

Reviewing the risk register with stakeholders helps in validating the risks, assessing their impact, and determining appropriate responses.

It fosters collaboration and ensures that risk management activities are aligned with the stakeholders' expectations and the organization's objectives.

 Comparing Other Functions:

Analyzing Risk Appetite:While important, this is not the primary function of a risk register.

Influencing Risk Culture:The risk register contributes to risk culture but is primarily a tracking and communication tool.

Articulating Senior Management's Intent:This is more related to policy and strategy documents, whereas the risk register is a practical tool for managing specific risks.

 References:

The CRISC Review Manual highlights the role of the risk register in consolidating risk information and facilitating stakeholder engagement (CRISC Review Manual, Chapter 2: IT Risk Assessment, Section 2.6 Risk Register)​​ .

The number of suspected malicious activities reported since the policy's implementation directly measures thepolicy's effectiveness in identifying and mitigating insider threats. This aligns withKey Performance Indicators (KPIs)used to evaluate control outcomes.

Reviewing historical risk events is most useful for the risk assessment process within the risk management life cycle. Risk assessment is the process of identifying, analyzing, and evaluating the risks that may affect the project or the organization1. Reviewing historical risk events can help to:

Identify the sources, causes, and consequences of past risks and learn from the successes and failures of previous projects or organizations

Analyze the likelihood and impact of potential risks based on historical data and trends, and use statistical methods or models to estimate the probability and severity of risk scenarios

Evaluate the level of risk exposure and compare it with the risk appetite and tolerance of the project or the organization, and prioritize the risks that need further attention or action

Use historical risk events as inputs or examples for risk identification and analysis techniques, such as brainstorming, checklists, interviews, surveys, SWOT analysis, root cause analysis, or Monte Carlo simulation2

References = Risk and Information Systems Control Study Manual, Chapter 5: Risk Assessment Process3

A key risk indicator (KRI) is a metric that provides information on the level of exposure to a given risk or the potential impact of a risk. KRIs are used to monitor changes in risk levels and alert management when a risk exceeds a predefined threshold or tolerance. KRIs can help provide early warning of a high-risk condition and enable timely response and mitigation actions. A risk register is a tool that records and tracks the identified risks, their likelihood, impact, and status. A risk assessment is a process that identifies, analyzes, andevaluates risks. A key performance indicator (KPI) is a metric that measures the achievement of a specific goal or objective. References = Risk IT Framework, pages 22-231; CRISC Review Manual, pages 44-452

Payroll system risk mitigation plans are the actions that are taken to reduce or eliminate the risk associated with payroll processing. When a migration from an in-house developed system to an external cloud-based solution is affecting a previously rated key risk scenario related to payroll processing, the first part of the risk register that should be updated is the payroll system risk mitigation plans. This is because the migration may introduce new risks or change the existing risks, and the risk mitigation plans may need to be revised or replaced accordingly. Updating the payroll system risk mitigation plans can help ensure that the risk level is acceptable and the payroll process is secure and reliable. According to the CRISC Review Manual 2022, one of the key risk treatment techniques is to update the risk action plan, which is a document that outlines the risk mitigation plans1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, updating the risk mitigation plans is the correct answer to this question2.

Payroll system risk factors, payroll process owner, and payroll administrative controls are not the first part of the risk register that should be updated when a migration is affecting a key risk scenario. Payroll system risk factors are the sources or causes of risk, such as threats, vulnerabilities, or uncertainties. Payroll process owner is the person who is responsible for the payroll process and its outcomes. Payroll administrative controls are the policies, procedures, or guidelines that govern the payroll process. These parts of the risk register may also need to be updated, but they are not as urgent or critical as the risk mitigation plans. Updating the risk factors, process owner, and administrative controls can help identify, assess, and monitor the risk, but they do not directly address the risk response. The risk response is the most important part of the risk management process, as it determines how the risk is handled and controlled.

IT governance is the process of ensuring that IT supports the organization’s objectives and strategies, and that IT risks are managed appropriately. IT governance involves defining the roles, responsibilities, and accountabilities of the IT stakeholders, establishing the IT policies, standards, and procedures, and monitoring and evaluating the IT performance and outcomes1.

An organization that automatically approves exceptions to security policies on a recurring basis is most likely the result of ineffective IT governance, because it indicates that the organization:

Lacks a clear and consistent IT strategy and direction, and does not align IT with the business goals and needs

Fails to implement and enforce the IT policies, standards, and procedures, and does not ensure the compliance and accountability of the IT users and providers

Neglects to identify and assess the IT risks, and does not implement the appropriate risk responses and controls

Does not monitor and measure the IT performance and outcomes, and does not review and improve the IT processes and practices23

The other options are not the most likely results of ineffective IT governance, but rather some of the possible causes or consequences of it. A lack of mitigating actions for identified risk is a possible consequence of ineffective IT governance, as it implies that the organization does not have a systematic and proactiveapproach to IT risk management, and does not address the IT risks in a timely and effective manner. Decreased threat levels is a possible cause of ineffective IT governance, as it may create a false sense of security and complacency, and reduce the motivation and urgency to implement and follow the IT policies, standards, and procedures. Ineffective service delivery is a possible consequence of ineffective IT governance, as it means that the organization does not deliver the IT services that meet the expectations and requirements of the customers and stakeholders, and does not ensure the quality and reliability of the IT services. References =

IT Governance - ISACA

IT Governance: What It Is and Why You Need It

IT Governance: The Benefits of an Effective Enterprise IT Governance Framework

[CRISC Review Manual, 7th Edition]

An increase in the number of security incidents is the most significant indicator of the need to perform a penetration test, because it suggests that the organization’s IT systems or networks are vulnerable to attacks and may not have adequate security controls in place. A penetration test is a simulated attack on an IT system or network to identify and exploit its weaknesses and evaluate its security posture. A penetration test can help to discover and remediate the vulnerabilities that may have caused or contributed to the security incidents, and to prevent or reduce the likelihood and impact of future incidents. An increase in the number of high-risk audit findings, an increase in the percentage of turnover in IT personnel, and an increase in the number of infrastructure changes are all possible indicators of the need to perform a penetration test, but they are not the most significant indicator, as they do not directly reflect the actual or potential occurrence of security incidents. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.2, page 200

 The best method of creating risk awareness in an organization is to ensure senior management commitment to risk training. Senior management plays a vital role in setting the tone and direction of the risk culture and governance in the organization. By demonstrating their support and participation in risk training, they can influence and motivate the employees to follow the risk policies and procedures, and to enhance their risk knowledge and skills. Marking the risk register available to project stakeholders, providing regular communication to risk managers, and appointing the risk manager from the business units are other methods of creating risk awareness, but they are not as effective as ensuring senior management commitment to risk training. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

Key risk indicator (KRI): A metric that measures the level of risk exposure or the likelihood of a risk event1.

KRI threshold: A predefined value or range that triggers an alert or action when the KRI reaches or exceeds it2.

Loss expectancy: The estimated amount of loss that an organization may incur due to a risk event3.

The most helpful thing in developing KRI thresholds is loss expectancy information. Loss expectancy information provides an estimate of the potential or expected impact of a risk event on the organization’s operations, reputation, or objectives. Loss expectancy information can help an organization to:

Quantify and prioritize the risks that pose the greatest threat to the organization

Determine the acceptable level of risk exposure or tolerance for each risk

Set the appropriate value or range for the KRI threshold that reflects the risk appetite and the risk mitigation strategy

Monitor and measure the performance and effectiveness of the risk management process and controls

Loss expectancy information can be derived from various sources, such as historical data, statistical analysis, expert judgment, or simulation models3.

The other options are not as helpful as loss expectancy information in developing KRI thresholds, because they do not directly address the potential or expected impact of a risk event.Control performance predictions, which are the forecasts or estimates of how well the risk management controls will perform in preventing, detecting, or mitigating risks, may help to evaluate the adequacy and efficiency of the risk management process and controls, but they do not provide a clear and quantifiable measure of the risk impact. IT service level agreements (SLAs), which are the contracts or agreements that define the quality and availability of IT services, may help to establish the standards and expectations for IT service delivery and performance, but they do not provide a comprehensive and current view of the risk exposure or likelihood. Remediation activity progress, which is the status or outcome of the actions taken to address and resolve a risk event, may help to monitor and report the effectiveness and compliance of the risk management process and controls, but it is usually done after the risk event has occurred and resolved, not before.

References = Key Risk Indicators: Definition, Examples, and Best Practices, KRI Framework for Operational Risk Management | Workiva, Loss Expectancy: Definition, Calculation, and Examples

The best way to protect company sensitive information from being exposed when an organization allows employee use of social media accounts for work purposes is to require employees to sign nondisclosure agreements. Nondisclosure agreements are legal contracts that prohibit the employees from disclosing or sharing the company sensitive information with unauthorized parties, such as competitors, media, or regulators. Nondisclosure agreements also specify the scope, duration, and conditions of the nondisclosure obligation, and the penalties or remedies for breaching the agreement. Requiring employees to sign nondisclosure agreements is the best way to protect company sensitive information, as it helps to prevent or deter the employees from exposing or leaking the company sensitive information on social media, and to hold the employees accountable and liable for their actions. Requiring employees to signnondisclosure agreements also helps to comply with the legal and regulatory requirements for data protection and privacy. Educating employees on what needs to be kept confidential, implementing a data loss prevention (DLP) solution, and taking punitive action against employees who expose confidential data are also useful ways, but they are not as effective as requiring employees to sign nondisclosure agreements, as they are either dependent on the employees’ awareness or behavior, or reactive or corrective measures, rather than proactive or preventive measures. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

 The PRIMARY objective of the board of directors periodically reviewing the risk profile is to help ensure that the risk strategy is appropriate, because the risk strategy defines the enterprise’s risk appetite, tolerance, and objectives, and guides the risk management process and activities. The board of directors should review the risk profile to ensure that it reflects the current internal and external environment, and that it aligns with the enterprise’s strategy and goals. The other options are not the primary objective, because:

Option B: KRIs and KPIs are aligned is a desirable outcome of the risk strategy, but not the primary objective of the board of directors reviewing the risk profile. KRIs and KPIs are indicators that measure and monitor the risk exposure and performance of the enterprise, respectively, and they should be consistent with the risk strategy and objectives.

Option C: Performance of controls is adequate is a result of the risk response, but not the primary objective of the board of directors reviewing the risk profile. Performance of controls is the degree to which the controls are effective and efficient in mitigating the risks, and it should be evaluated and reported by the risk management function and the internal audit function.

Option D: The risk monitoring process has been established is a prerequisite for the risk profile, but not the primary objective of the board of directors reviewing the risk profile. The risk monitoring process is the process of tracking and reporting the risk status and performance, and it should be implemented and executed by the risk management function and the business process owners. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 119.

 The primary objective for requiring an independent review of an organization’s IT risk management process should be to assess gaps in IT risk management operations and strategicfocus, as this helps to identify the strengths and weaknesses of the current process, and to provide recommendations for improvement and alignment with the enterprise’s objectives and environment. An independent review is an objective and unbiased evaluation of the IT risk management process by a qualified and competent party that is not involved in the process. An independent review can help to ensure the quality, effectiveness, and efficiency of the IT risk management process, as well as to enhance the credibility and confidence of the process. Confirming that IT risk assessment results are expressed as business impact, verifying implemented controls to reduce the likelihood of threat materialization, and ensuring IT risk management is focused on mitigating potential risk are not the primary objectives for requiring an independent review of an organization’s IT risk management process, but rather the expected outcomes or benefits of the independent review. References = CRISC Certified in Risk and Information Systems Control – Question219; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 219.

An intrusion detection system (IDS) is a network security tool that monitors and analyzes network traffic for signs of malicious or suspicious activity, such as unauthorized access, data exfiltration, malware infection, or denial-of-service attack. An IDS can detect and alert the organization to potential threats based on predefined rules or signatures, or based on anomalies or deviations from normal network behavior. An IDS can also generate logs that record the details of the network events and incidents, such as the source, destination, content, and context of the network traffic. By analyzing the IDS logs, the organization can identify and validate the suspicious network activity, and determine its scope, impact, and root cause. The organization can also use the IDS logs to support the incident response and remediation process, and to improve the network security and resilience. The other options are less effective ways to ensure that suspicious network activity is identified. Analyzing server logs can provide some information about the network activity, but it may not be sufficient or timely to detect and validate the suspicious or malicious activity, as server logs only capture the events or activities that occur on the server, and not on the entire network. Using a third-party monitoring provider can help to outsource the network monitoring and analysis function, but it may not be the best option, as it may introduce additional risks, such as data privacy, vendor reliability, or service quality issues. Coordinating events with appropriate agencies can help to share information and resources with other organizations or authorities, such as law enforcement, regulators, or industry peers, but it may not be the best option, as it may depend on the availability andcooperation of theagencies, and it may not be feasible or desirable to disclose the network activity to external parties. References = Monitoring for Suspicious Network Activity: Key Tips to Secure Your Network 1

The software version is the component of a software inventory that best enables the identification and mitigation of known vulnerabilities. The software version is the specific release or update of a software product that has a unique identifier, such as a number or a name. The software version indicates the features, functions, and security patches that are included in the software product. By knowing the software version, the organization can compare it with the latest available version and identify any missing or outdated security fixes. The organization can then mitigate the known vulnerabilities by updating or upgrading the software to the latest version. The other components of a software inventory, such as the assigned software manager, the software support contract expiration, and the software licensing information, are not as directly related tothe identification and mitigation of known vulnerabilities, although they may provide some contextual or administrative information. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.3.2, page 2-25.

 The most important requirement to include in an outsourcing contract to help ensure sensitive data stored with a service provider is secure is a third-party assessment report of control environment effectiveness. This will help to verify that the service provider has implemented adequate security controls and practices to protect the data, and that they comply with the enterprise’s security policies and standards. A third-party assessment report also provides an independent and objective assurance of the service provider’s security posture and performance. Incidents related to data loss, risk assessment results, and cyber insurance policy are also important requirements to include in an outsourcing contract, but they are not as important as a third-party assessment report. 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 643.

 A risk practitioner’s best course of action when a business manager wants to leverage an existing approved vendor solution from another area within the organization is to assess the risk associated with the new use case. This is because the new use case may introduce different or additional risks that were not considered or addressed in the original approval. For example, the new use case may involve different data types, volumes, or sensitivities; different business processes, functions, or objectives; different regulatory or contractual requirements; or different technical or operational dependencies. Therefore, the risk practitioner should perform a vendor risk assessment (VRA) to identify, evaluate, and mitigate the potential risks of the new use case and ensure that the vendor solution meets the organization’s riskappetite and tolerance12. Recommending allowing the new usage based on prior approval is not the best course of action, as it may overlook or underestimate the risks of the new use case and expose the organization to unacceptable levels of risk. Requesting a new third-party review is not the best course of action,as it may be unnecessary or redundant if the vendor solution has already been reviewed and approved for another use case within the organization. Requesting revalidation of the original use case is not the best course of action, as it may not address the specific risks of the new use case and may also delay or disrupt the existing use case. References = Risk and Information SystemsControl Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.

An IT risk threat analysis is best used to establish risk scenarios. A risk scenario is a description of a possible event or situation that may affect the achievement of the IT objectives. A riskscenario consists of three elements: a threat, a vulnerability, and an impact. A threat is a potential cause of an unwanted incident. A vulnerability is a weakness or flaw that can be exploited by a threat. An impact is the consequence or effect of the incident on the IT objectives. An IT risk threat analysis is a technique that identifies and evaluates the threats that may pose a risk to the IT assets and processes. An IT risk threat analysis can help to establish risk scenarios by providing the information and context for the threat element of the risk scenario. The other options are not as directly related to an IT risk threat analysis, as they are related to the outcomes, measures, or responsibilities of the IT risk management process, not the inputs or sources of the IT risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.3: IT Risk Scenarios, page 23.

Monitoring control effectivenesscan be done by all lines to varying degrees. The first line monitors during execution, the second provides oversight, and the third provides independent assurance.

 Risk appetite is the broad-based amount of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite reflects the level of risk that the organization is prepared to take to achieve its strategic goals, and provides guidance and boundaries for the risk management activities and decisions. To define the risk management strategy, which is the plan and approach for managing the risks that may affect the achievement of the organization’s objectives, the factor that must be set by the board of directors is the risk appetite. The board of directors is the highest governing body of the organization, and has the ultimate responsibility and authority for setting the direction and oversight of the organization. By setting the risk appetite, the board of directors can communicate its expectations and preferences for the risk exposure and performance of the organization, and ensure alignment with the business objectives and strategies. References = 3

According to the CRISC Review Manual1, risk nomenclature and taxonomy is the set of terms and definitions that are used to describe and classify risks and their attributes. Risk nomenclature and taxonomy is the most important consideration when aligning IT risk management with the enterprise risk management (ERM) framework, as it helps to ensure a common and consistent understanding and communication of risks across the organization. Risk nomenclature and taxonomy also helps to integrate and harmonize the IT risk management processes and activities with the ERM framework, and to facilitatethe aggregation and reporting of risks at different levels of the organization. References = CRISC Review Manual1, page 197.

A risk heat map is a kind of risk matrix where risks are ranked based on their potential impact and their likelihood of occurring, which allows you to prioritize the risks that pose the greatest threat. The severity of each risk is indicated by color, usually green for low risk, red for high risk, and yellow for medium risk. Therefore, from a single data point on a risk heat map, one can interpret the risk magnitude, which is the product of impact and likelihood. The other options are not directly related to a single data point on a risk heat map, but rather to the overall risk management strategy and context. References = Risk Assessment and Analysis Methods: Qualitative and Quantitative; What Is a Risk Heat Map, and How Can It Help Your Risk Management Strategy; CRISC Certified in Risk and Information Systems Control – Question599

According to the CRISC Review Manual1, senior management support is the commitment and involvement of the top-level executives and leaders in the risk management process. Senior management support is the most important enabler of effective risk management, as it helps to establish and communicate the risk vision, strategy, and culture of the organization. Senior management support also helps to allocate the necessary resources, authority, and accountability for risk management, and to ensure the alignment of the risk management objectives and activities with the organization’s strategy, goals, and values. References = CRISC Review Manual1, page 198.

The risk owner should be someone who has the authority, responsibility, and knowledge to manage the risk effectively and align it with the organizational strategy and objectives. The risk owner should also be able to communicate the impact of the risk on the business operations and the value proposition of the risk response. Understanding the effect of loss events on business operations is a key criterion for assigning risk owners, as it helps to prioritize and mitigate the risks that matter most to the organization.

References

•Why Assigning a Risk Owner is Important and How to Do It Right

•How to Write Strong Risk Scenarios and Statements - ISACA

•What Everybody Ought To Know About Project Risk Owners

Key Risk Indicators (KRIs) are metrics used by organizations to provide early warning signs of potential risks, including unauthorized data disclosure. By monitoring KRIs, organizations can proactively identify vulnerabilities and take corrective actions before a risk materializes. This proactive approach is essential in minimizing the potential impact of data breaches.​

According to ISACA's CRISC Review Manual, KRIs are defined as "metrics capable of showing that the enterprise is, or has a high probability of being, subject to a risk that exceeds the defined risk appetite." They are critical to the measurement and monitoring of risk and performance optimization. ​ISACA

While data backups (Option B) are vital for data recovery post-incident, they do not prevent unauthorized disclosures. An incident response plan (Option C) is reactive, focusing on responding after an incident has occurred. Cyber insurance (Option D) provides financial compensation post-incident but does not prevent the occurrence of data breaches.​

Therefore, implementing and monitoring KRIs is the most proactive approach to minimizing the potential impact of unauthorized data disclosure.

The audit planning process is the process of defining and describing the scope, objectives, and approach of the internal audit that is performed to assess and evaluate the adequacy and effectiveness of the organization’s governance, risk management, and control functions. The audit planning process involves identifying and prioritizing the audit areas, topics, or issues, and allocating the audit resources, time, and budget.

The most important information for a risk practitioner to provide to the internal audit department during the audit planning process is the annual risk assessment results, which are the outcomes or outputs of the risk assessment process that measures and compares the likelihood and impact of various risk scenarios, and prioritizes them based on their significance and urgency. The annual risk assessment results can help the internal audit department to plan the audit by providing the following information:

The level and priority of the risks that may affect the organization’s objectives and operations, and the potential consequences or impacts that they may cause for the organization if they materialize.

The gap or difference between the current and desired level of risk, and the extent or degree to which the risk responses or controls contribute to or affect the gap or difference.

The cost-benefit or feasibility analysis of the possible actions or plans to address or correct the risks and their responses, and the expected or desired outcomes or benefits that they may provide for the organization.

The other options are not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because they do not provide the same level of detail and insight that the annual risk assessment results provide, and they may not be relevant or actionable for the internal audit department.

Closed management action plans from the previous audit are the actions or plans that have been implemented or completed by the management to address or correct the findings or recommendations from the previous internal audit that was performed. Closed management action plans from the previous audit can provide useful information on the progress and performance of the management in improving and optimizing the organization’s governance, risk management, and control functions, but they are not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because they do not indicate the current or accurate state and performance of the organization’s risk profile, and they may not cover all the relevant or emerging risks that may exist or arise.

An updated vulnerability management report is a report that provides the information and status of the vulnerabilities or weaknesses in the organization’s assets, processes, or systems that can be exploited or compromised by the threats or sources of harm that may affect the organization’s objectives or operations. An updated vulnerability management report can provide useful information on the existence and severity of the vulnerabilities, and the actions or plans to mitigate or prevent them, but it is not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because it does not indicate the likelihood and impact of the risk scenarios that are associated with the vulnerabilities, and the potential consequences or impacts that they may cause for the organization.

A list of identified generic risk scenarios is a list that contains the descriptions or representations of the possible or hypothetical situations or events that may cause or result in a risk for the organization, without specifying the details or characteristics of the risk source, event, cause, orimpact. A list of identified generic risk scenarios can provide useful information on the types or categories of the risks that may affect the organization, but it is not the most important information for a risk practitioner to provide to the internal audit department during the audit planning process, because it does not indicate the level and priority of the risks, and the potential consequences or impacts that they may cause for the organization. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48, 54-55, 58-59, 62-63

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 188

CRISC Practice Quiz and Exam Prep

The most important element to update when an organization’s risk appetite changes is the key risk indicators (KRIs). KRIs are metrics that provide an early warning of increasing risk exposure in various areas of the organization. They help to monitor the level of risk and to trigger risk responses when the risk exceeds the risk appetite. The risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk reportingmethodology, key performance indicators (KPIs), and risk taxonomy are other elements that may be updated, but they are not as important as the KRIs. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 12; CRISC Review Manual, 6th Edition, page 215.

The best way to enable a risk practitioner to understand management’s approach to organizational risk is to know the risk appetite and risk tolerance of the organization. Risk appetite is the amount and type of risk that an organization is willing to pursue, retain, or take in order to achieve its objectives. Risk tolerance is the amount and type of risk that an organization is willing to accept in relation to specific performance measures, such as availability, reliability, or security. Risk appetite and risk tolerance reflect the management’s attitude, preferences, and expectations towards risk, and guide the risk management process, such as risk identification, assessment, response, and monitoring. The other options are not as effective as knowing the risk appetite and risk tolerance, although they may provide some input or context for understanding the management’s approach to organizational risk. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.1, page 1-8.

 According to the CRISC Review Manual, formal approval of the account by the user’s manager is the best evidence that a user account has been properly authorized, because it ensures that the user’s role and access rights are consistent with the business needs and the principle of least privilege. The user’s manager is responsible for verifying the user’s identity, job function, and access requirements, and for approving or rejecting the account request. The other options are not the best evidence of proper authorization, because they do not involve the user’s manager’s approval. An email from the user accepting the account is a confirmation of the account creation, but it does not indicate that the account was authorized by the user’s manager. Notification from human resources that the account is active is an administrative process that does not verify the user’s access rights and role. User privileges matching the request form is a verification of the account configuration, but it does not ensure that the request form was approved by the user’s manager. References = CRISC Review Manual, 7th Edition, Chapter 4, Section 4.1.2, page 163.

According to the CRISC Review Manual1, the risk register is a tool that records the results of risk identification, analysis, evaluation, and treatment. The risk register should be populated as soon as possible in the risk management process, to capture and document the risks and their attributes. The best time for the risk practitioner to start populating the risk register is when identifying risk scenarios, as this is the first step in the risk identification process. Risk scenarios are hypothetical situations that describe the potential causes, impacts, and responses of a risk event. Identifying risk scenarios helps to generate a comprehensive and relevant list of risks that can be recorded in the risk register. References = CRISC Review Manual1, page 191, 206.

The maturity of organizational risk management refers to the degree to which risk management is embedded and integrated into the organization’s culture, processes, and decision-making1. A higher level of maturity implies that the organization has a clear and consistent understanding ofits risk appetite and tolerance, and that it can effectively identify, assess, respond, monitor, and communicate risks2.

The best way to address the issue of participants focusing on the financial cost to mitigate risk rather than choosing the most appropriate response is to raise the maturity of organizational risk management. This can help to:

Ensure that risk management is aligned with the organization’s strategic objectives and values, and that risk responses are based on the potential impact and likelihood of risks, not just on the cost of mitigation

Foster a risk-aware culture that encourages proactive and collaborative risk management, and that recognizes and rewards good risk management practices

Provide adequate training and guidance for risk management roles and responsibilities, and ensure that risk management skills and competencies are developed and maintained

Implement a robust and consistent risk management framework, methodology, and tools that support the risk management process and enable continuous improvement and learning

Enhance the quality and reliability of risk information and reporting, and ensure that risk management performance and outcomes are measured and evaluated3

References = Risk Maturity Model - Wikipedia, Risk Maturity Model - ISACA, Risk Maturity Model - IRM

A risk register is a document that is used as a risk management tool to identify and track risks that may affect a project or an organization1. A risk register should be updated regularly to reflect the current status and changes of the risks, as well as the actions taken to mitigate or resolve them2. The most comprehensive information for updating a risk register would come from the results of the latest risk assessment, which is a process that involves identifying, analyzing, and evaluating the risks and their potential impacts3. A risk assessment provides a detailed and systematic overview of the risks, theirsources, causes, likelihood, severity, and consequences, as well as the existing and planned controls andresponses4. A risk assessment also helps to prioritize the risks based on their level of exposure and urgency, and to align them with the organization’s risk appetite and tolerance5. Therefore, the results of the latest risk assessment would provide the most relevant and complete information for updating a risk register and ensuring that it reflects the current risk profile and situation of the project or the organization. Results of a risk forecasting analysis are not the most comprehensive information for updating a risk register, as they do not provide a complete picture of the risks and their impacts. A risk forecasting analysis is a technique that uses historical data, trends, and scenarios to estimate the potential outcomes and impacts of future events that may affect the organization’s objectives and performance6. A risk forecasting analysis can help to anticipate and prepare for the risks, but it does not provide specific information on the sources, causes, likelihood, severity, and consequences of the risks, nor the existing and planned controls and responses. A review ofcompliance regulations is not the most comprehensive information for updating a risk register, as it does not cover all the aspects and dimensions of risk management. A review of compliance regulations is a process that involves checking and verifying that the organization’s activities, processes, and systems are in accordance with the applicable laws, rules, and standards7. A review of compliance regulations can help to identify and mitigate the risks related to legal or regulatory violations, but it does not provide specific information on the other types and sources of risks, such as operational, strategic, financial, or reputational risks, nor the existing and planned controls and responses. Findings of the most recent audit are not the most comprehensive information for updating a risk register, as they do not provide a current and holistic view of the risks and their impacts. An audit is an independent examination and evaluation of the organization’s activities, processes, and systems, to provide assurance and advice on their adequacy and effectiveness. An audit can help to identify and report the issues or gaps in the organization’s risk management, but it does not provide specific information on the current status and changes of the risks, nor the existing and planned controls and responses. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.

A risk assessment is a process of identifying, analyzing, and evaluating the risks that may affect the enterprise’s objectives and operations. It involves determining the likelihood and impact of various risk scenarios, and prioritizing them based on their significance and urgency.

A WiFi access point is a device that allows wireless devices to connect to a wired network using radio signals. It can provide convenience and flexibility for users, but it can also introduce security risks, such as unauthorized access, data leakage, malware infection, or denial of service attacks.

If departments have installed their own WiFi access points on the enterprise network, without proper authorization, configuration, or monitoring, it means that they have bypassed the network security policy and controls, and created potential vulnerabilities and exposures for the enterprise.

The most important information to include in a report to senior management is the potential business impact of this risk, which is the estimated loss or damage that the enterprise may suffer if the risk materializes. The potential business impact can be expressed in terms of financial, operational, reputational, or legal consequences, and it can help senior management to understand the severity and urgency of the risk, and to decide on the appropriate risk response and allocation of resources.

The other options are not the most important information to include in a report to senior management, because they do not convey the magnitude and significance of the risk, and they may not be relevant or actionable for senior management.

The network security policy is the set of rules and guidelines that define the security objectives, requirements, and responsibilities for the enterprise network. It is important to have a clear and comprehensive network security policy, and to ensure that it is communicated, enforced, and monitored across the enterprise, but it is not the most important information to include in a report to senior management, because it does not indicate the actual or potential impact of the risk, and it may not reflect the current or desired state of the network security.

The WiFi access point configuration is the set of parameters and settings that define the functionality, performance, and security of the WiFi access point. It is important to have a secure and consistent WiFi access point configuration, and to follow the best practices and standards for wireless network security, but it is not the most important information to include in a report to senior management, because it does not indicate the actual or potential impact of the risk, and it may not be relevant or understandable for senior management.

The planned remediation actions are the steps and measures that are intended to mitigate, transfer, avoid, or accept the risk, and to restore the normal operation and security of the enterprise network. It is important to have a feasible and effective plan for remediation actions, and to implement and monitor them in a timely and efficient manner, but it is not the most important information to include in a report to senior management, because it does not indicate the actual or potential impact of the risk, and it may not be feasible or appropriate without senior management’s approval or support. References =

ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 19-20, 23-24, 27-28, 31-32, 40-41, 47-48

ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 146

A cause-and-effect diagram, also known as a fishbone diagram or an Ishikawa diagram, is a graphical tool that helps to identify and analyze the potential causes and effects of a problem or an event. A cause-and-effect diagram can be used to develop technical risk scenarios related to a recently developed ERP system, because it can help to:

Break down the complex problem or event into manageable and measurable categories and subcategories of causes and effects

Visualize the relationships and interactions among the various factors that contribute to the problem or event

Identify the root causes and the most significant effects of the problem or event

Generate ideas and hypotheses for testing and validating the problem or event

Communicate and present the problem or event clearly and logically to the stakeholders1

A cause-and-effect diagram can be constructed by following these steps:

Define the problem or event and write it in a box on the right side of the diagram

Draw a horizontal line from the box to the left side of the diagram, representing the main spine of the fishbone

Identify the major categories of causes that affect the problem or event, such as people, process, technology, environment, etc., and write them on the branches of the spine

For each category, brainstorm and list the possible subcategories and specific causes that influence the problem or event, and write them on the sub-branches of the spine

For each cause, identify and list the possible effects or consequences that result from the problem or event, and write them on the sub-sub-branches of the spine

Analyze the diagram and prioritize the causes and effects based on their frequency, severity, and controllability

Develop technical risk scenarios based on the most critical causes and effects, and describe how they could affect the ERP system and the organization1

A cost-benefit analysis is the best method to assist in justifying an investment in automated controls, as it helps to compare and evaluate the costs and benefits of the investment and to determine its feasibility and profitability. A cost-benefit analysis is a process of identifying, measuring, and comparing the expected costs and benefits of a project or a decision, such asinvesting in automated controls. A cost-benefit analysis can help to justify an investment in automated controls by providing the following benefits:

It enables a data-driven and evidence-based approach to decision making, rather than relying on subjective or qualitative judgments.

It facilitates a consistent and standardized way of assessing and communicating the value and impact of the investment across the organization and to the external stakeholders.

It supports the alignment of the investment with the organizational strategy and objectives, and helps to evaluate the achievement of the desired outcomes.

It helps to identify and prioritize the opportunities and challenges of the investment, and to develop and implement appropriate strategies and actions to address them.

It provides feedback and learning opportunities for the investment and its outcomes, and helps to foster a culture of continuous improvement and innovation.

The other options are not the best methods to assist in justifying an investment in automated controls. Alignment of investment with risk appetite is an important aspect of risk management, but it does not directly address the costs and benefits of the investment. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Alignment of investment with risk appetite helps to ensure that the investment is consistent with the organizational risk tolerance and preferences,and does not expose the organization to excessive or unacceptable risk. Elimination of compensating controls is a possible benefit of investing in automated controls, but it is not a method to justify the investment. Compensating controls are alternative or additional controls that are implemented to mitigate the risk when the primary or preferred controls are not feasible or effective. Elimination of compensating controls can help to reduce the complexity and costs of the control environment, and to improve the efficiency and reliability of the controls. Reduction in personnel costs is a possible benefit of investing in automated controls, but it is not a method to justify the investment. Personnel costs are the expenses related to the staff and employees involved in the processes or functions that are automated. Reduction in personnel costs can help to increase the profitability and productivity of the organization, and to allocate the resources more effectively and efficiently. References = Cost Benefit Analysis: An Expert Guide | Smartsheet, IT Risk Resources | ISACA, Automation - Efficiency, Cost-Savings, Robotics | Britannica

The data privacy manager is the best person to an application system used to process employee personal data, because they are responsible for ensuring that the organization complies with the applicable data protection laws and regulations, and that the personal data of employees are collected, stored, processed, and disposed of in a secure and ethical manner. The data privacy manager is also responsible for establishing and maintaining the data privacy policies, procedures, and controls, and for conducting data privacy impact assessments and audits. The compliance manager, the system administrator, and the human resources (HR) manager are all involved in the of the application system, but they are not the best person to it, as they do not have the primary accountability and expertise for data privacy. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158