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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Risk Response and Reporting | 32% | - Risk response strategies
|
| Topic 2: IT Risk Assessment | 22% | - Risk identification
|
| Topic 3: Governance | 26% | - Control framework design and implementation
|
| Topic 4: Technology and Security | 20% | - Information systems security
|
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NEW QUESTION # 982
Which of the following would be MOST helpful to an information security management team when allocating resources to mitigate exposures?
Answer: D
Explanation:
Section: Volume D
NEW QUESTION # 983
When of the following standard operating procedure (SOP) statements BEST illustrates appropriate risk register maintenance?
Answer: A
NEW QUESTION # 984
After several security incidents resulting in significant financial losses, IT management has decided to outsource the security function to a third party that provides 24/7 security operation services. Which risk response option has management implemented?
Answer: D
Explanation:
Detailed Explanation:Risk transfer involves shifting the responsibility for managing specific risks to a third party. By outsourcing the security function, the organization transfers the associated risk to a vendor specializing in security management.
NEW QUESTION # 985
Which of the following BEST enables an organization to effectively mitigate internal conflicts of interest associated with vendor negotiations?
Answer: B
Explanation:
The correct answer is B because the best way to mitigate internal conflicts of interest in vendor negotiations is to strengthen ethical behavior through awareness, training, and reinforcement. Conflicts of interest are primarily people and conduct issues, so the most effective preventive approach is ensuring employees understand ethical expectations and act accordingly.
The other options are less effective for this specific issue:
* A. Performing a vendor risk assessment evaluates vendor-related risk, but does not directly address employees' internal conflicts of interest.
* C. Aligning governance policies with corporate objectives is important broadly, but it is less direct than ethics-focused prevention.
* D. Implementing compliance reporting may help detect issues, but training and ethical reinforcement are more effective preventive measures.
Exact Extracts supporting the answer:
* "The best proactive approach for practicing professional ethics within an enterprise is to provide ethics awareness training."
* "The most effective way to support adherence to an enterprise ' s code of ethics is by ensuring periodic training evaluation and attestation of employees."
* "Upon identifying a contractor as both a software solutions provider and the architect for a digital transformation program the first recommended action is to identify and register a potential conflict of interest."
* "Developing and practicing ethical behavior within an enterprise contributes the most to building the risk culture." These extracts support that conflicts of interest are best mitigated through ethical awareness and conduct controls. Therefore, the best answer is training employees to act ethically .
NEW QUESTION # 986
Which of the following should be the risk practitioner s PRIMARY focus when determining whether controls are adequate to mitigate risk?
Answer: C
Explanation:
The risk practitioner's primary focus when determining whether controls are adequate to mitigate risk should be the level of residual risk, because this indicates the amount and type of risk that remains after applying the controls, and whether it is acceptable or not. Residual risk is the risk that is left over after the risk response actions have been taken, such as implementing or improving controls. Controls are the measures or actions that are designed and performed to reduce the likelihood and/or impact of a risk event, or to exploit the opportunities that a risk event may create. The adequacy of controls to mitigate risk depends on how well they address the root causes or sources of the risk, and how effectively and efficiently they reduce the risk exposure and value. The level of residual risk reflects the adequacy of controls to mitigate risk, as it shows the gap between the inherent risk and the actual risk, and whether it is within the organization's risk appetite and tolerance. The risk practitioner should focus on the level of residual risk when determining whether controls are adequate to mitigate risk, as it helps to evaluate and compare the benefits and costs of the controls, and to decide on the best risk response strategy, such as accepting, avoiding, transferring, or further reducing the risk.
The other options are less important or relevant to focus on when determining whether controls are adequate to mitigate risk. Sensitivity analysis is a technique that measures how the risk value changes when one or more input variables are changed, such as the probability, impact, or control effectiveness. Sensitivity analysis can help to identify and prioritize the most influential or critical variables that affect the risk value, and to test the robustness or reliability of the risk assessment. However, sensitivity analysis does not directly indicate the adequacy of controls to mitigate risk, as it does not measure the level of residual risk or the risk acceptance criteria. Cost-benefit analysis is a technique that compares the expected benefits and costs of a control or a risk response action, and determines whether it is worthwhile or not. Cost-benefit analysis can help to justify and optimize the investment or resource allocation for the control or the risk response action, and to ensure that it is aligned with the organization's objectives and value. However, cost-benefit analysis does not directly indicate the adequacy of controls to mitigate risk, as it does not measure the level of residual risk or the risk acceptance criteria. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite can help to define and communicate the organization's risk preferences and boundaries, and to guide the risk decision-making and behavior. However, risk appetite does not directly indicate the adequacy of controls to mitigate risk, as it does not measure the level of residual risk or the actual risk performance. References = Risk IT Framework, ISACA, 2022, p. 131
NEW QUESTION # 987
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