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| Section | Weight | Objectives |
|---|---|---|
| IT Risk Assessment | 20% | - Risk Analysis and Evaluation
|
| Risk Response and Reporting | 32% | - Risk Treatment Options
|
| Governance | 26% | - Risk Strategy Alignment
|
| Monitoring and Control | 22% | - Risk Monitoring
|
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NEW QUESTION # 1297
A risk practitioner has been asked to advise management on developing a log collection and correlation strategy. Which of the following should be the MOST important consideration when developing this strategy?
Answer: C
Explanation:
Section: Volume D
NEW QUESTION # 1298
Which of the following is MOST helpful in aligning IT risk with business objectives?
Answer: B
NEW QUESTION # 1299
Which of the following provides the MOST useful information when developing a risk profile for
management approval?
Answer: A
Explanation:
A risk profile is a summary of the key risks that an organization faces, along with the corresponding risk
responses, risk owners, and risk indicators1. A risk profile is a useful tool for communicating and reporting
the risk status and performance to the management and other stakeholders2. When developing a risk profile
for management approval, the most useful information to include is the residual risk and the risk appetite,
because:
Residual risk is the level of risk that remains after the implementation of risk responses3. It indicates the
degree of exposure or uncertainty that the organization still faces, and the potential impact or consequences of
the risk events. Residual risk helps the management to evaluate the effectiveness and adequacy of the risk
responses, and to decide whether to accept, reduce, transfer, or avoid the risk4.
Risk appetite is the amount and type of risk that the organization is willing to accept or pursue in order to
achieve its objectives5. It reflects the organization's risk culture, strategy, and priorities, and provides a basis
for setting risk thresholds and targets. Risk appetite helps the management to align the risk profile with the
organizational goals and values, and to ensure that the risk responses are consistent and proportional to the
risk level6.
The other options are not the most useful information when developing a risk profile for management
approval, because:
Strength of detective and preventative controls is a measure of how well the controls can identify or prevent
the occurrence or impact of the risk events7. It is a part of the risk response information, but it does not
provide a comprehensive or holistic view of the risk profile. It does not show the residual risk or the risk
appetite, which are more relevant and important for the management approval.
Effectiveness and efficiency of controls is a measure of how well the controls achieve their intended
objectives and how well they use the available resources8. It is a part of the risk performance information, but
it does not provide a complete or balanced view of the risk profile. It does not show the residual risk or the
risk appetite, which are more significant and meaningful for the management approval.
Inherent risk and risk tolerance are related but different concepts from residual risk and risk appetite. Inherent
risk is the level of risk that exists before the implementation of risk responses3. Risk tolerance is the
acceptable variation or deviation from the risk appetite or the risk objectives5. They are useful for the risk
assessment and analysis, but they do not provide the current or desired state of the risk profile. They do not
show the residual risk or the risk appetite, which are more critical and valuable for the management approval.
References =
Risk Profile - CIO Wiki
Risk Profile: Definition, Example, and How to Create One
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
Preventive and Detective Controls - CIO Wiki
Control Effectiveness and Efficiency - CIO Wiki
NEW QUESTION # 1300
What is the process for selecting and implementing measures to impact risk called?
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The process for selecting and implementing measures for impacting risk in the environment is called risk treatment.
Incorrect Answers:
C: The process of analyzing and evaluating risk is called risk assessment.
D: Risk management is the coordinated activities for directing and controlling the treatment of risk in the organization.
NEW QUESTION # 1301
Effective risk communication BEST benefits an organization by:
Answer: C
Explanation:
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.
NEW QUESTION # 1302
......
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