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Key risk indicators (KRIs) are metrics that provide information about the level of exposure to a specific risk or a group of risks.

Reviewing KRIs is the most helpful way to determine the effectiveness of an organization’s IT risk mitigation efforts. This means that the organization monitors and evaluates the actual results and outcomes of the risk responses, compares them with the risk appetite and tolerance of the organization, identifies any deviations or breaches that may require attention or action, and reports them to the appropriate parties for decision making or improvement actions.

The other options are not the most helpful ways to determine the effectiveness of an organization’s IT risk mitigation efforts. They are either secondary or not essential for risk management.

The references for this answer are:

Risk IT Framework, page 15

Information Technology & Security, page 9

Risk Scenarios Starter Pack, page 7

Key control indicators (KCIs) are metrics that measure the performance and effectiveness of the controls that are implemented to mitigate the risks. KCIs can help to monitor the status and health of the controls, as well as to identify any issues or gaps that need to be addressed. The primary reason to adopt KCIs in the risk monitoring and reporting process is to provideassessments of mitigation effectiveness, meaning that they can help to evaluate how well the controls are reducing the risk exposure and achieving the desired outcomes. KCIs can also help to support the risk management decision making and improvement actions, as well as to demonstrate the value and benefits of the controls. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1.2, p. 115-116

The most effective way to mitigate the risk of unintentional data disclosure through the use of social media sites is to conduct user awareness training. User awareness training is a process of educating and informing the users about the security policies, procedures, and practices that are relevant and applicable to their roles and responsibilities. User awareness training can help to increase the knowledge, understanding, and compliance of the users regarding the data protection and privacy requirements, and the potential risks and consequences of data disclosure through social media sites. User awareness training can also help to influence the behavior, attitude, and culture of the users toward data security and privacy. The other options are not as effective as conducting user awareness training, as they are related to the technical, procedural, or contractual measures to mitigate the risk, not the human or behavioral measures to mitigate the risk. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

Residual risk is the risk that remains after the risk response has been implemented. Risk tolerance is the acceptable level of variation from the desired outcome or objective. If the residual risk is within the risk tolerance, it means that the risk response has been effective in reducing the risk to an acceptable level.

References

•ISACA CRISC Review Manual, 7th Edition, Domain 3: Risk Response, Section 3.1.1: Residual Risk

•Residual Risk: Definition, Formula & Management - Video & Lesson Transcript | Study.com

•Risk Tolerance - ISACA

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

Arisk maphelps stakeholders understand how risk scenarios align with the organization’srisk appetite. This visualization facilitates informed decision-making and ensures risk responses are consistent with organizational priorities.

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

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Effective risk communication best benefits an organization by helping personnel make better-informed decisions. Risk communication is the process of exchanging information and opinions among stakeholders about the nature, magnitude, significance, or control of a risk. By communicating risk information clearly and consistently, the organization can enhance the understanding and awareness of the risk, and enable the personnel to make decisions that are aligned with the risk appetite and objectives of the organization. Assisting the development of a risk register, improving the effectiveness of IT controls, and increasing participation in the risk assessment process are other possible benefits, but they are not as important as helping personnel make better-informed decisions. 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 approach to bring your own device (BYOD) service delivery that provides the best protection from data loss is to enforce strong passwords and data encryption. BYOD is a service delivery model that allows the users to use their own personal devices, such as smartphones, tablets, or laptops, to access the enterprise’s network, applications, or data. BYOD can provide various benefits, such as increased productivity, flexibility, and satisfaction of the users, as well as reduced costs and maintenance of the enterprise. However, BYOD also poses various risks, such as data loss, data breach, malware infection, or unauthorized access, as the personal devices may not have the same level of security and control as the enterprise-owned devices. Enforcing strong passwords and data encryption is the best approach to protect the data on the personal devices, as it helps to prevent or limit the unauthorized access, disclosure, or theft of the data, especially if the devices are lost, stolen, or compromised. Enforcing strong passwords and data encryption also helps to comply with the legal and regulatory requirements for data protection and privacy. Enabling data wipe capabilities, penetration testing and session timeouts, and implementing remote monitoring are also useful approaches, but they are not as effective as enforcing strong passwords and data encryption, as they are either reactive or detective measures, rather than proactive or preventive measures. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 217.

According to the ISACA Risk and Information Systems Control study guide and handbook, the most important reason to communicate control effectiveness to senior management is to ensure management understands the current risk status. Control effectiveness is a measure of how well a control reduces the likelihood or impact of a risk event. By communicating control effectiveness, risk managers can provide management with relevant and timely information about the residual risk level, the risk appetite and tolerance, and the potential gaps or weaknesses in the control environment. This can help management make informed decisions about risk response strategies, resource allocation, and risk oversight12

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 standardized risk taxonomy is a common language and structure for identifying, analyzing, and reporting risks across the enterprise. It enables consistent and comparable risk assessment and aggregation, as well as clear communication and coordination among different divisions. A list of control deficiencies, an enterprise risk ownership policy, and an updated risk tolerance metric are not sufficient to enable management of risk at the enterprise level, as they do not address the issue of risk alignment and integration among divisions. References = [CRISC Review Manual (Digital Version)], page 42; CRISC by Isaca Actual Free Exam Q&As, question 197.

The best evidence of an effective risk treatment plan is that the risk tolerance threshold is above the asset residual risk, because this means that the risk treatment plan has reduced the risk to a level that is acceptable to the enterprise. The risk tolerance threshold is the maximum amount of risk that the enterprise is willing to accept for a given asset or process. The asset residual risk is the remaining risk after applying the risk treatment plan. The risk treatment plan is effective if the asset residual risk is lower than or equal to the risk tolerance threshold. The other options are not the best evidence, although they may also be indicators of an effective risk treatment plan. The inherent risk being below the asset residual risk, the remediation cost being below the asset business value, and the remediation being completed within the asset recovery time objective (RTO) are examples of desirable or expected outcomes of the risk treatment plan, but they do not directly measure the effectiveness of the risk treatment plan. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

•A risk treatment plan is a document that describes the actions and resources needed to implement the chosen risk response strategy for each identified risk1. A risk response strategy is the way an organization decides to address a risk, such as avoiding, accepting, mitigating, or transferring it2.

•Sometimes, a risk treatment plan may not be completed on time due to various reasons, such as delays, resource constraints, technical issues, or changes in the risk environment. In such cases, the best approach is to implement compensating controls until the preferred action can be completed3.

•Compensating controls are alternative or additional controls that provide a similar level of assurance or protection as the original controls, when the latter are not feasible or sufficient3. Compensating controls can help to reduce the residual risk or maintain the risk within the acceptable level until the risk treatment plan is fully executed3.

•For example, if the risk treatment plan involves installing a firewall to protect the network from external threats, but the firewall is not available or compatible with the current system, a compensating control could be to use encryption, authentication, or monitoring tools to secure the network traffic until the firewall is installed3.

•Implementing compensating controls is better than the other options because it allows the organization to continue with the risk treatment plan while maintaining an adequate level of security and compliance. The other options are not advisable for the following reasons:

oReplacing the action owner with a more experienced individual (option A) may not solve the problem if the issue is not related to the action owner’s competence or performance. Moreover, replacing the action owner may cause disruption, confusion, or conflict in the risk management process.

oChanging the risk response strategy of the relevant risk to risk avoidance (option C) may not be possible or desirable if the risk is associated with a critical or beneficial activity or process. Risk avoidance means eliminating the source of the risk or discontinuing the activity that causes the risk2. This may result in losing opportunities, benefits, or value for the organization.

oDeveloping additional key risk indicators (KRIs) until the preferred action can be completed (option D) may not be effective or efficient if the existing KRIs are already sufficient to monitor and measure the risk. KRIs are metrics or data points that provide early warning signals or information about the level or trend of a risk456. Developing additional KRIs may not reduce therisk or improve the risk treatment plan, but may increase the complexity and cost of the risk management process.

References =

•Key Risk Indicators: Examples & Definitions - SolveXia

•Key Risk Indicators: A Practical Guide | SafetyCulture

•Complete Guide to Key Risk Indicators — RiskOptics

•Risk Response Plan in Project Management: Key Strategies & Tips

•Risk response strategies: mitigation, transfer, avoidance, acceptance - Twproject: project management software,resource management, time tracking, planning, Gantt, kanban

•Risk Response Strategies: A Guide to Navigating Uncertainty - Teamly

•Compensating Controls | Audit and Compliance | Pathlock

 Understanding Risk Analysis:

Risk analysis involves identifying potential risks associated with a new application and assessing their likelihood and impact on the organization.

It provides a detailed understanding of the potential threats, vulnerabilities, and consequences, enabling informed decision-making.

 Steps in Conducting a Risk Analysis:

Identify Risks:Determine what risks could arise from the new application, including security vulnerabilities, compliance issues, and operational disruptions.

Assess Risks:Evaluate the likelihood and impact of each identified risk. This includes both qualitative and quantitative assessments.

Prioritize Risks:Rank the risks based on their assessed impact and likelihood to focus on the most significant threats first.

 Importance of Risk Analysis:

Provides senior management with a comprehensive view of the risks involved, enabling them to make informed decisions about proceeding with the application.

Helps in developing mitigation strategies to address the identified risks.

 Comparing Other Options:

Perform an Audit:Audits are useful for evaluating existing controls but are not the first step in assessing risks for a new application.

Develop Risk Scenarios:This is part of the risk analysis process but comes after identifying and assessing risks.

Perform a Cost-Benefit Analysis:Important for decision-making but follows the initial risk analysis to understand potential impacts.

 References:

The CRISC Review Manual emphasizes the importance of conducting a risk analysis to understand and manage risks associated with new applications (CRISC Review Manual, Chapter 2: IT Risk Assessment, Section 2.2.1 Conducting Risk Analysis)​​.

 Configuration updates are changes made to the settings, parameters, or components of an IT system or network. Configuration updates can affect the functionality, performance, security, and reliability of the system or network. Therefore, configuration updates should follow formal change control, which is a process that ensures that changes are authorized, documented, tested, and implemented in a controlled manner. Formal change control can help prevent errors, conflicts, disruptions, and vulnerabilities that may arise from configuration updates. Configuration updates that do not follow formal change control should be of greatest concern to a risk practitioner when determining the effectiveness of IT controls, as they can introduce newrisks or compromise existing controls. References = Risk and Information Systems Control Study Manual, Chapter 3: Risk Response and Mitigation, Section 3.5: Control Monitoring and Reporting, p. 161-162.

The most concerning issue when reviewing the results of an independent control assessment to determine the effectiveness of a vendor’s control environment is that the controls had recurring noncompliance. This indicates that the vendor’s controls are not operating as intended or designed, and that the vendor is not taking corrective actions to address the control deficiencies. This can increase the risk exposure and liability for the organization that outsources the service or function to the vendor. The report being provideddirectly from the vendor, the risk associated with multiple control gaps being accepted, and the control owners disagreeing with the auditor’s recommendations are other possible issues, but they are not as critical as the recurring noncompliance. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

Comprehensive and Detailed Explanation From Exact Extract:

The business process manager is best suited to own business continuity controls because they have direct responsibility for the continuity of the business process and understand the criticality of maintaining operations during disruptions. While security officers and operations managers have important roles, the business process manager is accountable for ensuring the process continues to meet business objectives and should lead continuity efforts【5:513, 5:514†CRISC_SentenceinNOTE30.pptx】.

The scenario that is most important to communicate to senior management is the accepted risk scenarios with impact exceeding the risk tolerance, as it indicates a significant risk issue or breach that may affect the achievement of the organizational objectives, and may require a review or escalation action. The other options are not the most important scenarios, as they may not indicate a risk issue or breach, but rather a risk monitoring, sharing, or management activity, respectively, that may not affect the organizational objectives directly or significantly. References = CRISC Review Manual, 7th Edition, page 109.

The completion of a project for implementing a new control would most likely require a risk practitioner to update the risk register. The risk register is a document that records the identified risks, their analysis, and their responses. The completion of a project for implementing a new control means that a risk response has been executed and a new control has been established. This may affect the likelihood and/or impact of the related risks, and the residual risk level. Therefore, the risk practitioner should update the risk register to reflect the current status and outcome of the risk response and the new control. The other options are not as likely to require a risk practitioner to update the risk register, as they are related to the reporting, planning, or assessment of the risks or the controls, not the implementation or completion of the risk response or the new control. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.4: IT Risk Response, page 87.

The most helpful way to mitigate the risk associated with an application under development not meeting business objectives is to include key stakeholders in the review of user requirements, because this ensures that the application is designed and developed according to the needs and expectations of the end users and the business owners. Including key stakeholders in the review of user requirements also helps to avoid scope creep, requirement changes, or miscommunication that may affect the quality, functionality, or usability of the application. The other options are not the most helpful ways to mitigate the risk, although they may also be useful in reducing the likelihood or impact of the risk. Identifying threats that may compromise enterprise architecture (EA), including diverse business scenarios in user acceptance testing (UAT), and performing risk assessments during the business case development stage are examples of preventive or detective controls that aim to identify and address the potential issues or problems that may arise during the application development process, but they do not address the alignment of the applicationwith the business objectives. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

Key risk indicators (KRIs) are metrics that provide early warning signals of potential risk events or changes in the risk profile of an organization. They help to monitor the risk exposure and performance of the organization against its risk appetite and tolerance. They also enable timely and proactive risk responses and mitigation actions. Establishing KRIs is the most helpful in preventing risk events from materializing, as they can alert the organization of emerging risks and trigger preventive measures before the risks become significant or materialize. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, p. 114-115

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

The most useful input to the parent company’s risk practitioner when developing risk scenarios for the post-acquisition phase is the risk registers of both companies. The risk register is a document that records the details of the risks, such as their sources, causes, consequences, likelihood, impact, and responses. By reviewing the risk registers of both companies, the risk practitioner can identify the existing and potential risks that may affect the post-acquisition integration, performance, and value. The risk management framework, the IT balancedscorecard, and the most recent internal audit findings are other possible inputs, but they are not as useful as the risk registers. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 11; CRISC Review Manual, 6th Edition, page 144.

The most important input when developing risk scenarios is the business objectives, as they provide the context and scope for the risk identification and analysis process. Risk scenarios are hypothetical situations that describe the possible causes, events, and consequences of a risk. Risk scenarios help to understand and communicate the nature and impact of the risk, and to supportthe risk assessment and response planning. The business objectives are the goals andtargets that the organization wants to achieve through its processes, functions, and projects. The business objectives define the expected outcomes and performance of the organization, and the criteria for measuring and evaluating the success or failure of the organization. The business objectives also reflect the organization’s vision, mission, values, and strategy, and the needs and expectations of the stakeholders. The other options are not the most important inputs when developing risk scenarios, although they may be useful or relevant information. Key performance indicators are metrics that measure and monitor the progress and achievement of the business objectives, but they do not provide the context or scope for the risk scenarios. The organization’s risk framework is the set of principles, policies, and processes that guide and support the risk management activities across the organization, but it does not provide the context or scope for the risk scenarios. Risk appetite is the level of risk that the organization is willing to accept or avoid in pursuit of its business objectives, but it does not provide the context or scope for the risk scenarios. References = Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Identification, page 58.

The best way to mitigate the risk associated with infrastructure updates is to implement a change control process. A change control process is a set of procedures that ensures that any changes to the infrastructure are planned, approved, tested, implemented, and documented in a consistent and controlled manner. A change control process helps to reduce the risk of errors, conflicts, disruptions, or security breaches that could result from infrastructure updates. A change controlprocess also helps to monitor and evaluate the impact and effectiveness of the changes, and to ensure that they align with the enterprise’s objectives and requirements. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.3.1, page 1391

According to the CRISC Review Manual, performing the assessment as it would normally be done is the best approach when a risk practitioner has been asked by a business unit manager for special consideration during a risk assessment of a system, because it ensures that the risk practitioner maintains their objectivity, integrity, and professionalism. The risk practitioner should not compromise the quality or accuracy of the risk assessment, regardless of any external pressure or influence. The risk practitioner should follow the established risk assessment methodology and standards, and report the risk results and recommendations based on the facts and evidence. The other options are not the best approaches, because they may affect the credibility or reliability of the risk assessment. Conducting an abbreviated version of the assessment may result in incomplete or insufficient risk information, which may lead to poor riskdecisions or actions. Reporting the business unit manager for a possible ethics violation may escalate the situation or create a conflict of interest, which may hinder the risk assessment process or outcome. Recommending an internal auditor perform the review may transfer the responsibility or accountability of the risk practitioner, which may undermine their role or authority. References = CRISC Review Manual, 7th Edition, Chapter 2, Section 2.2.1, page 74.

Comprehensive and Detailed Explanation From Exact Extract:

Senior management’s primary consideration in selecting risk response strategies is alignment with the organization’s risk appetite, ensuring that responses are consistent with the levels of risk the organization is willing to accept. While BIA results, KRIs, and investment portfolios inform decisions, risk appetite provides the guiding framework for prioritization and decision-making

 Emerging risk is a risk that is new or evolving, and has the potential to significantly affect the enterprise’s objectives, performance, or reputation. Emerging risk can arise from changes in the internal or external environment, such as technological innovations, regulatory developments, or social trends. The best way to support communication of emerging risk is to include it on the next enterprise risk committee agenda. The enterprise risk committee is a group of senior executives who oversee the enterprise-wide risk management program, and provide guidance and direction to the risk owners and practitioners. By including the emerging risk on the agenda, the risk practitioner can ensure that the enterprise risk committee is aware of the risk, its causes, impacts, and likelihood, and can decide on the appropriate risk response strategy and actions. The other options are not the best way to support communication of emerging risk, as they involve different aspects of the risk management process:

Update residual risk levels to reflect the expected risk impact means that the risk practitioner adjusts the risk levels after considering the existing or planned risk responses. This may not befeasible or accurate for emerging risk, as the risk responses may not be defined or implemented yet, or may not be effective for the new or evolving risk.

Adjust inherent risk levels upward means that the risk practitioner increases the risk levels before considering any risk responses. This may not reflect the true nature or magnitude of the emerging risk, as the inherent risk levels are based on the assumptions and estimates of the risk practitioner, and may not account for the uncertainties or complexities of the emerging risk.

Include it in the risk register for ongoing monitoring means that the risk practitioner records and tracks the emerging risk, its causes, impacts, likelihood, responses, and owners. This is an important step in the risk management process, but it does not necessarily support communication ofthe emerging risk, as the risk register may not be accessible or visible to all the relevant stakeholders, or may not be updated or reviewed frequently enough to capture the changes in the emerging risk. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.2.2.2, pp. 21-22.

Involving stakeholders ensures all perspectives are considered, leading to more accurate risk identification, assessment, and prioritization.

Automated scanning tools continuously monitor the network, detecting unauthorized devices quickly and reliably.

Aconsistent approach to reporting risk impact and likelihoodis essential for integrating IT risk into the broader enterprise risk management (ERM) framework. It allows for proper aggregation and alignment, ensuring IT risks are understood in context with overall enterprise risk.

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A risk dashboard provides a visual, real-time overview of risk levels, trends, and key metrics, making it easier for executive management to understand and act upon. It integrates data from various sources, making it comprehensive.

 The primary purpose of vulnerability assessments is to detect weaknesses that could lead to system compromise. A vulnerability assessment is a systematic review of security weaknesses in an information system. It evaluates if the system is susceptible to any known vulnerabilities, assigns severity levels to those vulnerabilities, and recommends remediation or mitigation, if and whenever needed1. By identifying and prioritizing the vulnerabilities, a vulnerability assessment helps to prevent or reduce the risk of cyberattacks that could exploit the vulnerabilities and compromise the system. The other options are not the primary purpose, but they may be secondary or tertiary outcomes or benefits of a vulnerability assessment. Providing clear evidence that the system is sufficiently secure is a result of a successful vulnerability assessment and remediation process, but it is not the main objective. Determining the impact of potential threats is a part of the risk assessment process, which complements the vulnerability assessment process, but it is not the same as detecting the vulnerabilities. Testing intrusion detection systems (IDS) and response procedures is a part of the penetration testing process, which simulates a real-world attack on the system to evaluate its security posture, but it is not the same as scanning the system for vulnerabilities. References = What is Vulnerability Assessment | VA Tools and Best Practices - Imperva

 The control owner is the person who has the authority to approve an exception to a control. A control is a policy, procedure, or technical measure that is implemented to prevent or mitigate a risk. A control owner is responsible for the design, implementation, operation, and maintenance of the control, as well as for monitoring and reporting its performance and effectiveness. A control owner is also accountable for the approval of any changes or exceptions to the control, based on the risk assessment and business justification. An information security manager, a risk owner, and a risk manager are not the best choices, as they do not have the same level of authority, responsibility, and knowledge as the control owner in relation to the control. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 35.

Prioritizing threats and controls helps tofocus resources and mitigationon high-risk elements that directly impact project objectives. This enhances decision-making and project alignment with business goals.

The best way to mitigate the security risk associated with the inappropriate use of enterprise applications on the BYOD devices is to implement BYOD mobile device management (MDM) controls. MDM controls are software tools or services that allow the organization to remotely manage, monitor, and secure the BYOD devices and the enterprise applications and data on them. MDM controls can help to enforce security policies, restrict unauthorized access, encrypt sensitive data, wipe data in case of loss or theft, and update or patch applications. The other options are not as effective as implementing MDM controls, as they are related to the review, awareness, or recovery of the BYOD devices and applications, not the prevention or protection of the security risk. References = Risk and Information Systems Control Study Manual, Chapter 3: IT Risk Response, Section 3.3: IT Risk Response Implementation, page 145.

The primary basis for prioritizing risk responses is the impact of the risk. The impact of the risk is the consequence or effect of the risk on the organization’s objectives or operations, such as financial loss, reputational damage, operational disruption, or legal liability. The impact of therisk is one of the key dimensions of risk analysis, along with the likelihood of the risk. The impact of the risk helps to determine the severity and priority of the risk, and to select the most appropriate and effective risk response. The impact of the risk also helps to evaluate the cost-benefit and trade-off of the risk response, and to measure the residual risk and the risk performance. The other options are not the primary basis for prioritizing risk responses, although they may be considered or influenced by the impact of the risk. The replacement cost of the business asset, the cost of risk mitigation controls, and the classification of the business asset are all factors that could affect the value or importance of the business asset, but they do not necessarily reflect the impact of the risk on the business asset or the organization. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.1, page 4-25.

 Reduced ability to evaluate key risk indicators (KRIs) will have the greatest impact on the ability to monitor risk when an information system for a key business operation is moved from an in-house application to a Software as a Service (SaaS) vendor, as it may limit the visibility and control over the risk exposure and performance of the system. KRIs are metrics that measure the level of risk exposure and the effectiveness of risk response strategies, and they should be aligned with the enterprise’s risk appetite and objectives. When the system is moved to a SaaS vendor, the enterprise may lose access to the data and processes that are used to calculate and report the KRIs, or the KRIs may become irrelevant or inconsistent with the vendor’s environment and standards. This may impair the ability to monitor risk and to take timely and appropriate actions to manage risk. Reduced access to internal audit reports, dependency on the vendor’s key performance indicators (KPIs), and dependency on service level agreements (SLAs) are not the greatest impacts on the ability to monitor risk, as they do not affect the measurement and reporting of the risk status and performance, but rather the assurance and evaluation of the system quality and reliability. References = CRISC Certified in Risk andInformation Systems Control – Question221; ISACACertified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 221.

Being the first to market is a competitive advantage that can help an organization gain market share, customer loyalty, and brand recognition. However, this advantage can be lost if the projectis delayed and the competitors catch up or surpass the organization. Therefore, the project delivery time is of greatest concern to senior management, as it directly affects the strategic objective of the project. The other options are less critical, as they can be managed or mitigated by the project team. More time for testing can improve the quality and reliability of the product, a new project manager can bring fresh ideas and perspectives, and the cost overrun can be justified by the expected benefits and revenues of the product. References = Project Initiation: The First Step to Project Management [2023] • Asana, 12 Steps to Initiate and Plan a Successful Project

The management’s primary consideration when approving risk response action plans should be the changes in residual risk after implementing the plans. Residual risk is the level of risk that remains after the implementation of risk responses1. It indicates the degree of exposure or uncertainty that the organization still faces, and the potential impact or consequences of the risk events. The management should evaluate the effectiveness and adequacy of the risk responses, and decide whether the residual risk is acceptable or not2. The management should also compare the residual risk with the risk appetite, which is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives3. The management should ensure that the residual risk is aligned with the risk appetite, and that the risk responses are consistent and proportional to the risk level4.

The other options are not the primary consideration when approving risk response action plans, because:

Ability of the action plans to address multiple risk scenarios is a desirable but not essential criterion for approving risk response action plans. Risk scenarios are hypothetical situations that describe how a risk event could occur and what the consequences could be5. They can help to understand and communicate the nature and impact of the risks, and to design and evaluate the risk responses6. However, not all risk scenarios are equally likely or relevant, and some risk scenarios may be too complex or improbable to address. Therefore, the ability of the action plansto address multiple risk scenarios is not the primary consideration, but rather a secondary or supplementary one.

Ease of implementing the risk treatment solution is a practical but not critical criterion for approving risk response action plans. Risk treatment is the process of selecting and applying appropriate measures to modify the risk7. It can involve different strategies, such as avoid, reduce, transfer, or accept the risk8. The ease of implementing the risk treatment solution depends on various factors, such as the availability of resources, the feasibility of the solution, or the cooperation of the stakeholders. However, the ease of implementation is not the primary consideration, but rather a supporting or facilitating one.

Prioritization for implementing the action plans is a useful but not vital criterion for approving risk response action plans. Prioritization is the process of ranking the action plans according to their importance, urgency, or impact. It can help to allocate the resources, schedule the activities, and monitor the progress of the action plans. However, prioritization is not the primary consideration, but rather a subsequent or follow-up one.

References =

Residual Risk - CIO Wiki

What is Residual Risk? - Definition from Techopedia

Risk Appetite - CIO Wiki

Risk Appetite: What It Is and Why It Matters - Gartner

Risk Scenarios Toolkit - ISACA

Risk Scenarios Starter Pack - ISACA

Risk Treatment - CIO Wiki

Risk Treatment Plan - CIO Wiki

[Prioritization - CIO Wiki]

Key performance indicators (KPIs) are quantifiable measures of progress toward an intended result, such as a strategic objective or a desired outcome12.

The most important factor when developing KPIs is the alignment to risk responses, which are the actions taken to address the risks that may affect the achievement of the intended result12.

Alignment to risk responses means that the KPIs should reflect the effectiveness and efficiency of the risk responses, and provide feedback and guidance for improving the risk responses12.

Alignment to risk responses also means that the KPIs should be consistent and compatible with the risk responses, and support the risk management process and objectives12.

The other options are not the most important factor, but rather possible aspects or features of KPIs that may vary depending on the context and purpose of the KPIs. For example:

Alignment to management reports is an aspect of KPIs that relates to the communication and presentation of the KPIs to the relevant stakeholders, such as senior management,board members, or external parties12. However, this aspect does not determine the quality or validity of the KPIs, or the alignment to the intended result12.

Alerts when risk thresholds are reached is a feature of KPIs that relates to the monitoring and control of the KPIs, and the triggering of actions or decisions when the KPIs exceed or fall below a certain level or range12. However, this feature does not define the content or scope of the KPIs, or the alignment to the intended result12.

Identification of trends is a feature of KPIs that relates to the analysis and interpretation of the KPIs, and the identification of patterns or changes in the KPIs over time or across different dimensions12. However, this feature does not specify the criteria or methodology of the KPIs, or the alignment to the intended result12. References =

1: What is a Key Performance Indicator (KPI)? Guide & Examples - Qlik3

2: What is a Key Performance Indicator (KPI)? - KPI.org4

Legal and regulatory requirements are paramount when determining data retention periods. Compliance with laws such as GDPR, HIPAA, or industry-specific regulations ensures that data is retained appropriately and disposed of when no longer necessary, thereby mitigating legal risks.

Conducting social engineering testing is the best way to assess the effectiveness of the security awareness training, as it helps to measure and evaluate the actual behavior and response of the employees to simulated real-world attacks that exploit human vulnerabilities. Social engineering testing is a type of security testing that involves performing authorized and ethical hacking activities on the employees to manipulate them into revealing sensitive information, such as credentials, or performing malicious actions, suchas clicking on a phishing link or opening a malicious attachment. Social engineering testing can help to assess the effectiveness of the security awareness training by providing the following benefits:

It tests the employees’ knowledge and skills in recognizing and resisting social engineering attacks, such as phishing, vishing, baiting, or impersonation.

It identifies and measures the strengths and weaknesses of the employees’ security awareness and behavior, and the impact and severity of their actions on the security posture and risk exposure of the organization.

It provides feedback and learning opportunities for the employees to improve their security awareness and behavior, and to reinforce the key concepts and practices taught in the training.

It communicates and reports the results and findings of the testing to the management and the stakeholders, and supports the development and implementation of corrective or preventive actions.

The other options are not the best ways to assess the effectiveness of the security awareness training. Auditing security awareness training materials is a good practice to ensure that the training content is accurate, relevant, and up-to-date, but it does not measure or evaluate the employees’ security awareness and behavior. Administering an end-of-training quiz is a useful method to test the employees’ comprehension and retention of the training content, but it does not reflect or simulate the employees’ security awareness and behavior in real-world situations. Performing a vulnerability assessment is an important step to identify and analyze the potential vulnerabilities in the systems and software, but it does not assess or address the human vulnerabilities or the employees’ security awareness and behavior. References = 3 ways to assess the effectiveness of security awareness training …, IT Risk Resources | ISACA, Measuring the Effectiveness of Security Awareness Training - Hut Six

The first step to ensure continuity of operations when performing a risk assessment of a new service to support a new business process is to identify the conditions that may cause disruptions to the service or the process. This is because identifying the potential sources, causes, and scenarios of disruptions helps to determine the impact and likelihood of the risks, and to select the appropriate risk responses and recovery strategies. The other options are not the first steps, although they may also be part of the risk assessment process. Reviewing incident response procedures, evaluating the probability of risk events, and defining metrics for restoring availability are examples of subsequent steps that depend on the identification of the conditions that may cause disruptions. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

Risk scenarios: Narratives that describe potential risk events, their causes, consequences, and likelihood1.

Internet of Things (IoT): A network of interconnected devices, software, sensors, and other things that communicate and exchange data without human intervention2.

IoT threat landscape: The range and types of threats and attacks that target IoT devices, systems, and networks3.

The most helpful thing to review when identifying risk scenarios associated with the adoption of IoT technology in an organization is the IoT threat landscape. The IoT threat landscape provides a comprehensive and current overview of the potential sources, methods, and impacts of cyberattacks on IoT devices, systems, and networks. Reviewing the IoT threat landscape can help an organization to:

Identify the most relevant and prevalent threats and vulnerabilities that affect IoT technology, such as weak passwords, insecure interfaces, insufficient data protection, poor device management, or lack of encryption4.

Assess the likelihood and impact of different types of attacks, such as malware infections, denial-of-service attacks, data breaches, unauthorized access, or sabotage4.

Prioritize the most critical and urgent risks that need to be addressed and mitigated.

Develop realistic and plausible risk scenarios that reflect the actual IoT threat environment and the organization’s specific context and objectives.

The other options are not as helpful as the IoT threat landscape when identifying risk scenarios associated with the adoption of IoT technology in an organization, because they do not provide a comprehensive and current view of the potential threats and attacks that target IoT technology. The business case for the use of IoT, which is the justification and rationale for adopting IoT technology based on the expected benefits, costs, and risks, may help to understand the value and purpose of IoT technology for the organization, but it does not provide detailed information on the specific threats and vulnerabilities that affect IoT technology. Policy development for IoT, which is the process of creating and implementing rules and guidelines for the governance, management, and security of IoT technology, may help to establish the standards and expectations for IoT technology within the organization, but it does not provide an overview of the external threats and attacks that target IoT technology. The network that IoT devices can access, which is the infrastructure and system that enables the connectivity and communicationof IoT devices, may help to identify the potential entry points and attack vectors for IoT threats, but it does not provide a complete picture of the types and impacts of IoT threats.

References = Risk Scenarios Toolkit, What is the Internet of Things (IoT)? With Examples | Coursera, Top IoT security issues and challenges (2022) – Thales, 8 Internet of Things Threats and Security Risks - SecurityScorecard

The percent of patches implemented within established timeframe is the best metric to demonstrate the effectiveness of an organization’s patch management process, as it measures how well the organization meets its patching objectives and reduces its exposure to vulnerabilities. This metric reflects the timeliness, completeness, and quality of the patching process, and can be compared against the organization’s patch management policy and standards. A high percent of patches implemented within established timeframe indicates that the organization has a mature and efficient patch management process that minimizes the risk of security breaches or operational disruptions due to unpatched systems.

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

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

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

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

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

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

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

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