CRISC TEST PRACTICE - CRISC TEST SAMPLE ONLINE

CRISC Test Practice - CRISC Test Sample Online

CRISC Test Practice - CRISC Test Sample Online

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Risk and Control Monitoring & Reporting: 22%

  • Account for the performance, trends, or changes to the overall control environment and risk profile to the appropriate stakeholders for decision making.
  • Constantly supervise and report on IT risks and controls to the appropriate stakeholders to sustain continuous effectiveness and efficiency of the strategy on IT risk management and ensure that it is in alignment with the business objectives;
  • Monitor and evaluate KRI to establish trends or changes in IT risk profile to help the relevant stakeholders;
  • Assist in the identification of KPIs and metrics to allow for the evaluation of control performance;

ISACA Certified in Risk and Information Systems Control Sample Questions (Q1049-Q1054):

NEW QUESTION # 1049
An identified high probability risk scenario involving a critical, proprietary business function has an annualized cost of control higher than the annual loss expectancy. Which of the following is the BEST risk response?

  • A. Accept
  • B. Avoid
  • C. Transfer
  • D. Mitigate

Answer: A

Explanation:
The best risk response for an identified high probability risk scenario involving a critical, proprietary business function with an annualized cost of control higher than the annual loss expectancy is to accept the risk.
Accepting the risk means acknowledging the risk but choosing not to take any specific action to address it.
This strategy is suitable when the cost of implementing controls exceeds the potential loss, as in this scenario.
The organization recognizes the risk, but the cost-benefit analysis suggests that the potential loss is acceptable given the higher cost of control. The other options are not the best risk responses, as they may not be feasible, practical, or cost-effective in this scenario. Mitigating the risk means reducing the risk by implementing controls or measures to minimize its potential impact, but this would increase the cost of control, which is already higher than the annual loss expectancy. Transferring the risk means shifting the risk to another party, typically through insurance or contracts, but this may not be possible or advisable for a critical, proprietary business function, and it may also increase the overall cost burden. Avoiding the risk means eliminating the risk entirely by not engaging in the activity that poses the risk, but this may disrupt essential business operations and potentially result in other adverse consequences. References = CRISC Exam: Best Risk Response for High Probability Risk Scenario; Risk Response Plan in Project Management: Key Strategies & Tips; Chapter 19: Summarizing Risk Management Concepts


NEW QUESTION # 1050
A global organization is planning to collect customer behavior data through social media advertising. Which of the following is the MOST important business risk to be considered?

  • A. Data sampling may be impacted by various industry restrictions.
  • B. Regulatory requirements may differ in each country.
  • C. The data analysis may be ineffective in achieving objectives.
  • D. Business advertising will need to be tailored by country.

Answer: B

Explanation:
Customer behavior data is the information that reflects how customers interact with a brand, product, or service, such as their preferences, needs, motivations, and feedback1. Collecting customer behavior data through social media advertising can help an organization to understand its target market, improve its customer experience, and optimize its marketing strategies2.
However, collecting customer behavior data through social media advertising also poses significant business risks, especially for a global organization that operates in different countries. Among the four options given, the most important business risk to be considered is the regulatory requirements that may differ in each country. This means that the organization should:
* Be aware of the different laws and regulations that govern the collection, processing, storage, and transfer of personal data in each country, such as the GDPR in the EU, the CCPA in California, or the PDPA in Singapore3
* Ensure that the organization complies with the relevant data protection and privacy rules and standards in each country, such as obtaining consent, providing notice, ensuring security, and respecting rights4
* Avoid or mitigate the potential legal, financial, reputational, or operational consequences of violating the data protection and privacy laws and regulations in each country, such as fines, lawsuits, sanctions, or loss of trust5 References = What is Customer Behavior Data?, How to Collect Customer Behavior Data for Marketing, Data Protection Laws Around the World, Data Protection and Privacy: The Age of Intelligent Machines, The Risks of Non-Compliance with Data Protection Laws


NEW QUESTION # 1051
An organization has recently hired a large number of part-time employees. During the annual audit, it was discovered that many user IDs and passwords were documented in procedure manuals for use by the part-time employees. Which of the following BEST describes this situation?

  • A. Policy violation
  • B. Risk
  • C. Threat
  • D. Vulnerability

Answer: D

Explanation:
Documenting user IDs and passwords in procedure manuals is a vulnerability that exposes the organization to unauthorized access, data breaches, and other security risks. A vulnerability is a weakness or flaw in a system, process, or control that can be exploited by a threat. A threat is a potential cause of an unwanted incident that may harm the system or organization. A risk is the combination of the likelihood and impact of a threat exploiting a vulnerability. A policy violation is an act of non-compliance with a rule or standard that is established by the organization. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 67.


NEW QUESTION # 1052
Which of the following is the BEST way to ensure data is properly sanitized while in cloud storage?

  • A. Deleting the data from the file system
  • B. Formatting the cloud storage at the block level
  • C. Degaussing the cloud storage media
  • D. Cryptographically scrambling the data

Answer: D

Explanation:
The best way to ensure data is properly sanitized while in cloud storage is to cryptographically scramble the data. Cryptographic scrambling is the process of transforming data into an unreadable form using a secret key or algorithm. Cryptographic scrambling protects the data from unauthorized access, modification, or deletion, even if the cloud storage provider or a third party gains access to the data. Cryptographic scrambling also ensures that the data can be restored to its original form using the same key or algorithm, if needed. The other options are not as effective as cryptographic scrambling, because they either do not completely remove the data, or they make it impossible to recover the data. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.1, page 3-21.


NEW QUESTION # 1053
A teaming agreement is an example of what type of risk response?

  • A. Mitigation
  • B. Transfer
  • C. Share
  • D. Acceptance

Answer: C

Explanation:
Explanation/Reference:
Explanation:
Teaming agreements are often comes under sharing risk response, as they involves joint ventures to realize an opportunity that an organization would not be able to seize otherwise.
Sharing response is where two or more entities share a positive risk. Teaming agreements are good example of sharing the reward that comes from the risk of the opportunity.
Incorrect Answers:
A: Acceptance is a risk response that is appropriate for positive or negative risk events. It does not pursue the risk, but documents the event and allows the risk to happen. Often acceptance is used for low probability and low impact risk events.
B: Risk mitigation attempts to reduce the probability of a risk event and its impacts to an acceptable level.
Risk mitigation can utilize various forms of control carefully integrated together.
C: Transference is a negative risk response where the project manager hires a third party to own the risk event.


NEW QUESTION # 1054
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