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| Section | Weight | Objectives |
|---|---|---|
| IT Risk Assessment | 22% | - Risk identification
|
| Technology and Security | 20% | - Information systems security
|
| Governance | 26% | - Risk management strategy and policies
|
| Risk Response and Reporting | 32% | - Risk response strategies
|
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NEW QUESTION # 301
Which of the following BEST assists in justifying an investment in automated controls?
Answer: A
Explanation:
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
NEW QUESTION # 302
Which of the following is the BEST way to incorporate continuous monitoring in IT risk policies?
Answer: C
Explanation:
The BEST answer is B because continuous monitoring must be tied to defined thresholds, risk appetite
/tolerance, and business objectives. A policy should state what is monitored, what thresholds trigger escalation, and how those thresholds support organizational objectives. ISACA's CRISC exam outline includes "risk and control metrics," "risk and control monitoring techniques," "monitoring and reporting of emerging risks," and the supporting task to assist stakeholders with "risk appetite and tolerance thresholds and the impact on business objectives." The uploaded CRISC notes also support this: continuous monitoring detects changes in the enterprise risk environment, risk appetite should align with business objectives, and thresholds are important when developing monitoring metrics.
A is incorrect because standardizing mitigation may help consistency, but it does not define monitoring thresholds or alignment to objectives. C is governance-focused but does not directly incorporate continuous monitoring into policy. D is incorrect because a GRC tool may support monitoring, but tools do not replace policy definition.
NEW QUESTION # 303
Which of the following decision tree nodes have probability attached to their branches?
Answer: A
Explanation:
Section: Volume B
Explanation:
Event nodes represents the possible uncertain outcomes of a risky decision, with at least two nodes to illustrate the positive and negative range of events. Probabilities are always attached to the branches of event nodes.
Incorrect Answers:
A: Root node is the starting node in the decision tree, and it has no branches.
C: End node represents the outcomes of risk and decisions and probability is not attached to it.
D: It represents the choice available to the decision maker, usually between a risky choice and its non-risky counterpart. As it represents only the choices available to the decision makers, hence probability is not attached to it.
NEW QUESTION # 304
A risk practitioner observed Vial a high number of pokey exceptions were approved by senior management.
Which of the following is the risk practitioner's BEST course of action to determine root cause?
Answer: C
NEW QUESTION # 305
The MOST effective approach to prioritize risk scenarios is by:
Answer: C
Explanation:
Section: Volume D
Explanation/Reference:
NEW QUESTION # 306
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