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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Risk Response and Reporting | 32% | - Risk response strategies
|
| Topic 2: Technology and Security | 20% | - Emerging technologies and risk
|
| Topic 3: Governance | 26% | - Organizational risk governance framework
|
| Topic 4: IT Risk Assessment | 22% | - Risk identification
|
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NEW QUESTION # 1465
Risks to an organization's image are referred to as what kind of risk?
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Strategic risks are those risks which have potential outcome of not fulfilling on strategic objectives of the organization as planned. Since the strategic objective will shape and impact the entire organization, the risk of not meeting that objective can impose a great threat on the organization.
Strategic risks can be broken down into external and internal risks:
External risks are those circumstances from outside the enterprise which will have a potentially
damaging or helpful impact on the enterprise. These risks include sudden change of economy, industry, or regulatory conditions. Some of the external risks are predictable while others are not. For instance, a recession may be predictable and the enterprise may be able to hedge against the dangers economically; but the total market failure may not as predictable and can be much more devastating.
Internal risks usually focus on the image or reputation of the enterprise. some of the risks that are
involved in this are public communication, trust, and strategic agreement from stakeholders and customers.
NEW QUESTION # 1466
Which of the following BEST facilitates the identification of appropriate key performance indicators (KPIs) for a risk management program?
Answer: B
Explanation:
The best way to facilitate the identification of appropriate key performance indicators (KPIs) for a risk management program is to evaluate KPIs in accordance with risk appetite. KPIs are metrics that measure the performance and effectiveness of the risk management program, and help monitor and report on the achievement of the risk objectives and outcomes. Risk appetite is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives. Evaluating KPIs in accordance with risk appetite helps to identify the appropriate KPIs, because it helps to align the KPIs with the organization's mission, vision, values, and strategy, and to ensure that the KPIs reflect the organization's risk tolerance and threshold. Evaluating KPIs in accordance with risk appetite also helps to communicate and coordinate the KPIs with the organization's stakeholders, such as the board, management, and business units, and to facilitate the risk decision-making and reporting processes. The other options are not as effective as evaluating KPIs in accordance with risk appetite, although they may be part of or derived from the KPI identification process. Reviewing control objectives, aligning with industry best practices, and consulting risk owners are all activities that can help to define or refine the KPIs, but they are not the best way to facilitate the identification of appropriate KPIs. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.5.1, page 4-38.
NEW QUESTION # 1467
Which of the following is the BEST way to mitigate the risk associated with fraudulent use of an enterprise's brand on Internet sites?
Answer: A
Explanation:
Section: Volume D
NEW QUESTION # 1468
Which of the following should be the risk practitioner s FIRST course of action when an organization has decided to expand into new product areas?
Answer: D
NEW QUESTION # 1469
Which of the following BEST indicates whether security awareness training is effective?
Answer: A
Explanation:
Security awareness training is a process of educating and informing the users about the security policies,
procedures, and best practices of the organization, and the potential threats and risks that may affect the
confidentiality, integrity, and availability of the information and systems.
The best indicator of whether security awareness training is effective is user behavior after training. This
means that the users demonstrate and apply the knowledge and skills that they have learned from the training,
such as following the security rules and guidelines, reporting any security incidents or issues, avoiding any
risky or malicious actions, etc.
User behavior after training helps to measure the actual impact and outcome of the training, compare them
with the expected or desired objectives and standards, identify any gaps or issues that may affect the training
effectiveness or efficiency, and take appropriate actions to address them.
The other options are not the best indicators of whether security awareness training is effective. They are
either subjective or not essential for security awareness training.
The references for this answer are:
Risk IT Framework, page 30
Information Technology & Security, page 24
Risk Scenarios Starter Pack, page 22
NEW QUESTION # 1470
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