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Isaca CRISC Certified in Risk and Information Systems Control Exam Dumps and Practice Test Questions Set 4 Q61-80
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Question 61:
Which step should a risk practitioner take first when conducting a post-incident review?
A) Document lessons learned and update procedures
B) Determine the root cause of the incident
C) Notify senior management about the incident
D) Implement corrective controls immediately
Answer: B) Determine the root cause of the incident
Explanation:
The choice involving determining the root cause is essential because understanding why the incident occurred provides the foundation for meaningful corrective actions. Without identifying the underlying cause, any measures implemented may be superficial or misdirected, leaving the organization vulnerable to recurrence. Root cause analysis evaluates processes, control gaps, and systemic factors, ensuring that remediation addresses actual weaknesses rather than symptoms.
The option describing documentation of lessons learned and updating procedures is critical for organizational learning but is premature if the root cause is unknown. Lessons learned rely on accurate understanding of contributing factors; documenting before cause identification risks embedding incorrect conclusions.
The choice regarding notifying senior management is important for governance and accountability but does not solve the problem. Leadership should be informed after initial analysis to enable informed decision-making regarding strategic, operational, and financial responses.
The selection about implementing corrective controls immediately may be tempting but is risky without understanding the cause. Premature corrective actions can be inefficient, misaligned, or insufficient, and may inadvertently disrupt operations.
The correct answer emphasizes root cause determination because it informs all subsequent steps in post-incident review, including corrective action, reporting, and continuous improvement. This ensures that lessons learned and procedural updates are accurate and effective.
Question 62:
Which risk response is most appropriate when a high-impact risk cannot be fully mitigated due to technological limitations?
A) Accept the residual risk and monitor closely
B) Ignore the risk until technology improves
C) Transfer the risk to another department
D) Document the risk and terminate the process
Answer: A) Accept the residual risk and monitor closely
Explanation:
The choice focusing on acceptance and close monitoring is suitable when technological constraints prevent full mitigation. Acceptance does not mean neglect; it implies recognition of residual exposure and proactive oversight. Monitoring ensures early detection of changes in risk conditions and allows timely response if the situation worsens.
The option of ignoring the risk is inappropriate. Leaving a known high-impact risk unmanaged could lead to severe operational, financial, or reputational consequences. Ignoring the risk undermines governance and violates risk management principles.
The selection transferring the risk to another department may not be feasible because the originating business unit retains ultimate accountability. Transferring operational responsibility does not eliminate exposure and may create confusion or misalignment with accountability structures.
The choice of documenting the risk and terminating the process is often impractical. Termination may be costly or operationally disruptive, particularly for critical business activities. Termination should be considered only after all feasible mitigation options have been explored.
The correct answer emphasizes acceptance with monitoring because it balances realistic constraints with proactive oversight. This approach ensures that the organization remains aware of residual exposure while allocating resources effectively to manage critical threats.
Question 63:
When assessing third-party risk, which activity should be prioritized first?
A) Evaluating the vendor’s financial stability
B) Reviewing historical incident reports
C) Identifying regulatory and contractual obligations
D) Conducting on-site inspections
Answer: C) Identifying regulatory and contractual obligations
Explanation:
The choice emphasizing regulatory and contractual obligations is crucial because these define the legal and operational boundaries for engaging the vendor. Identifying requirements upfront ensures that any engagement complies with laws, industry standards, and contractual expectations. Early understanding of obligations guides risk assessment, control selection, and monitoring plans.
The option evaluating financial stability is important but secondary. Financial assessments provide insight into a vendor’s long-term viability, but without first ensuring compliance with obligations, the engagement may be illegal or expose the organization to immediate liability.
The selection reviewing historical incident reports provides valuable context regarding past performance. However, historical incidents alone cannot determine whether a vendor is suitable under current regulatory and contractual conditions.
The choice conducting on-site inspections may reveal operational risks but is often resource-intensive. Inspections are most effective after understanding obligations and identifying potential compliance gaps.
The correct answer prioritizes regulatory and contractual review because legal and contractual alignment is a prerequisite for assessing operational suitability, ensuring compliance, and managing risk effectively.
Question 64:
Which activity best ensures that risk data collected across departments is consistent and comparable?
A) Conducting ad-hoc risk workshops
B) Implementing a standardized risk framework
C) Assigning a dedicated risk liaison to each department
D) Relying on department-specific risk scoring
Answer: B) Implementing a standardized risk framework
Explanation:
The choice involving a standardized risk framework provides consistent definitions, scoring, and reporting structures across all departments. Standardization enables accurate aggregation, comparison, and prioritization of risks at the enterprise level. Without a common framework, risk data may vary significantly between departments, undermining decision-making.
The option conducting ad-hoc workshops may facilitate awareness and discussion but does not establish consistency. Workshops provide qualitative insights but cannot standardize metrics and reporting.
The selection assigning dedicated risk liaisons can support communication and guidance but is insufficient alone to ensure consistency if a framework is not defined. Liaisons may interpret risks differently without standardized guidelines.
The choice of relying on department-specific risk scoring promotes variability and inconsistencies. Individual scoring approaches make aggregation and comparison unreliable and may misinform leadership.
The correct answer is a standardized framework because it ensures comparability, facilitates aggregation, and supports informed enterprise risk decisions.
Question 65:
Which factor is most important when prioritizing mitigation for operational risks?
A) Likelihood and potential impact on critical processes
B) Ease of implementing controls
C) Cost of mitigation activities
D) Departmental preferences
Answer: A) Likelihood and potential impact on critical processes
Explanation:
The choice emphasizing likelihood and impact is fundamental because risk prioritization must be based on potential harm to the organization. High-likelihood, high-impact risks affecting critical processes require immediate attention. This approach ensures that resources are allocated to risks that threaten operational continuity and business objectives.
The option concerning ease of implementation may influence practical feasibility but does not define strategic priority. Low-effort mitigations may not address the most significant risks.
The selection regarding cost of mitigation reflects budgetary considerations but cannot drive prioritization alone. Expensive risks may be critical enough to justify investment, regardless of cost.
The choice reflecting departmental preferences introduces subjectivity and may misalign risk treatment with organizational priorities. Decisions must be guided by risk assessment, not individual opinions.
The correct answer focuses on likelihood and impact because it ensures that risk mitigation addresses the most consequential threats, supporting business continuity and strategic objectives.
Question 66:
Which approach best supports proactive identification of emerging risks?
A) Conducting annual risk assessments
B) Monitoring industry trends and external threat intelligence
C) Performing internal audit reviews
D) Reviewing past incident reports
Answer: B) Monitoring industry trends and external threat intelligence
Explanation:
The option conducting annual risk assessments involves reviewing risks on a scheduled basis, typically once per year. While these assessments can provide valuable insights into existing risks and help ensure that controls remain adequate, they are inherently periodic and backward-looking in nature. They capture risks that are already known or anticipated based on historical data but may not identify fast-evolving or emerging threats that occur between assessment cycles. Annual reviews may therefore leave gaps in risk awareness in dynamic industries where new technologies, regulations, or competitive developments create rapid changes.
Performing internal audit reviews primarily focuses on evaluating compliance with policies, adherence to internal procedures, and the operational effectiveness of existing controls. Internal audits are valuable for understanding where processes or controls are failing and for mitigating known risks. However, they generally do not emphasize horizon scanning for novel or emerging risks outside the current organizational framework. While audits may indirectly highlight vulnerabilities, they are not designed to detect external trends or anticipate future threats proactively.
Reviewing past incident reports is another important practice, especially for learning from failures and identifying weaknesses in processes or controls. This approach is inherently reactive and retrospective, providing lessons learned from historical events. While understanding past incidents is essential for risk mitigation and for preventing recurrence, this strategy does not provide foresight into new risks that have not yet manifested. Organizations relying solely on past incidents risk being blindsided by novel threats or emerging trends.
Monitoring industry trends and external threat intelligence focuses on proactively scanning the external environment for indicators of potential risks before they materialize. This includes tracking regulatory changes, technological innovations, competitor strategies, cybersecurity threats, geopolitical developments, and other environmental factors that could impact the organization. By continuously analyzing these signals, organizations can anticipate emerging risks, adjust strategies, and implement preventive measures in a timely manner. This approach enables a forward-looking perspective, allowing management to act early rather than react after incidents occur. It supports proactive risk management, enhances organizational resilience, and aligns with the strategic objective of mitigating threats before they escalate. For these reasons, monitoring external intelligence is the most effective approach for identifying emerging risks proactively.
Question 67:
Which activity is most important when validating the effectiveness of a newly implemented control?
A) Review control design documentation
B) Conduct independent testing and evidence evaluation
C) Obtain verbal confirmation from control owners
D) Verify user satisfaction with processes
Answer: B) Conduct independent testing and evidence evaluation
Explanation:
Reviewing control design documentation focuses on understanding how a control is intended to operate. This step is important to confirm that the control has been designed to meet specific objectives, aligns with policies, and incorporates relevant risk considerations. However, design documentation only demonstrates intended functionality and does not confirm actual operational effectiveness. A control may be well-designed on paper but fail in practice due to improper implementation, human error, or technical limitations.
Obtaining verbal confirmation from control owners involves soliciting input from the individuals responsible for executing or monitoring the control. While control owners provide insight into the control’s operation, their feedback is subjective and may be influenced by unconscious bias or organizational pressures. Verbal confirmation alone cannot provide objective evidence that the control consistently achieves its intended outcome. Overreliance on this approach may lead to inaccurate assessments of control effectiveness.
Verifying user satisfaction with processes assesses whether employees perceive the control positively or feel it supports their workflow efficiently. While important for user adoption and operational efficiency, this metric does not measure the actual functionality or compliance of the control. User perceptions may not reflect control failures or weaknesses and therefore cannot serve as the primary means of validation.
Conducting independent testing and evidence evaluation provides objective verification that the control functions as intended. Independent assessment typically involves testing the control under real conditions, reviewing logs or documentation, and evaluating evidence of performance over time. This approach ensures credibility, reduces bias, and allows management to rely on factual data when making risk-based decisions. It provides clear assurance that the control mitigates the targeted risk, making it the most important activity in validating effectiveness. Independent testing combines both operational confirmation and evidence-based assurance, providing a robust foundation for governance and compliance.
Question 68:
Which factor is most important when determining residual risk after implementing controls?
A) Risk appetite and tolerance levels
B) Number of controls deployed
C) Cost of implementing controls
D) Ease of monitoring controls
Answer: A) Risk appetite and tolerance levels
Explanation:
The number of controls deployed refers to the quantity of controls implemented to mitigate identified risks. While deploying multiple controls may increase coverage, quantity alone does not guarantee that risks are adequately addressed. Ineffective controls or redundant controls may consume resources without reducing residual risk meaningfully. Measuring residual risk based solely on control quantity overlooks the importance of control effectiveness and organizational objectives.
The cost of implementing controls addresses financial considerations and budget constraints. While it is important to consider resource allocation when planning risk treatment strategies, cost alone does not determine whether the remaining risk is acceptable. A high-cost control may still leave residual risk beyond the organization’s tolerance, and a low-cost control may be sufficient depending on risk appetite. Therefore, cost is a secondary factor when evaluating residual risk.
Ease of monitoring controls focuses on operational convenience, efficiency, or the complexity of overseeing risk mitigation efforts. While easier monitoring supports ongoing management and compliance, it does not define whether residual risk aligns with organizational objectives. A control that is simple to monitor but ineffective in reducing risk would not adequately address residual risk considerations.
Risk appetite and tolerance levels define the organization’s willingness to accept risk in pursuit of objectives. After controls are implemented, residual risk must be evaluated against these thresholds to determine if it remains acceptable. Residual risk exceeding tolerance requires additional treatment, while risk within appetite may be considered manageable. Evaluating residual risk in this context ensures alignment with governance frameworks, strategic priorities, and regulatory expectations. It provides a clear benchmark for decision-making, enabling organizations to prioritize additional controls or accept risk as appropriate. This alignment with risk appetite makes it the most critical factor in determining residual risk.
Question 69:
Which step should be performed first when integrating risk management into organizational decision-making?
A) Identify decision-makers and their risk responsibilities
B) Develop risk reporting dashboards
C) Conduct enterprise-wide risk workshops
D) Draft risk management policies
Answer: A) Identify decision-makers and their risk responsibilities
Explanation:
Developing risk reporting dashboards focuses on presenting risk information in a structured and visual format to support decision-making. Dashboards are valuable tools, but their effectiveness depends on understanding who needs the information and how it should be presented. Without first identifying decision-makers and clarifying their responsibilities, dashboards may be misaligned with organizational needs, underutilized, or fail to influence decisions.
Conducting enterprise-wide risk workshops supports awareness, collaboration, and identification of risks across the organization. Workshops are effective for engaging stakeholders and fostering a risk-aware culture, but they require prior knowledge of decision-making structures to ensure the right participants are included. If roles and responsibilities are unclear, workshops may not target key individuals who influence risk decisions.
Drafting risk management policies establishes guidelines, procedures, and governance frameworks for managing risk. Policies are necessary for consistency and compliance, but they should reflect the organization’s structure, roles, and responsibilities. Without first identifying decision-makers, policies may not accurately assign ownership or accountability, limiting their practical impact.
Identifying decision-makers and clarifying their risk responsibilities establishes the foundation for integrating risk management into organizational processes. It ensures accountability, enables proper communication and escalation channels, and allows subsequent risk management activities to be tailored to those responsible for key decisions. This step ensures alignment with governance and provides the structure needed for dashboards, workshops, and policies to be meaningful and actionable.
Question 70:
Which action is most effective in promoting risk-aware culture in an organization?
A) Providing targeted training and awareness programs
B) Publishing risk management policies
C) Conducting annual risk assessments
D) Issuing quarterly risk reports
Answer: A) Providing targeted training and awareness programs
Explanation:
Publishing risk management policies provides written guidance on risk management expectations, responsibilities, and procedures. While necessary for establishing formal governance, policies alone do not ensure that employees internalize risk concepts or consistently apply them in daily operations. Without engagement or comprehension, policies may remain procedural documents rather than tools for shaping behavior.
Conducting annual risk assessments identifies organizational risks, evaluates controls, and informs decision-making. These assessments are critical for understanding the risk landscape but are periodic and focused on detection rather than behavioral change. Annual assessments may not influence employees’ day-to-day attitudes or decision-making, limiting their impact on culture.
Issuing quarterly risk reports informs management and stakeholders about key risks, trends, and mitigation status. Reporting enhances visibility but is often top-down and may not reach operational staff effectively. While reports support oversight, they do not provide the interactive engagement needed to instill awareness or influence employees’ risk-related decisions.
Providing targeted training and awareness programs directly shapes the organization’s risk culture by educating employees about risk identification, reporting, mitigation, and accountability. Training reinforces the importance of risk management, encourages proactive behavior, and builds understanding of how risk impacts objectives. Awareness programs create continuous engagement, enabling employees to recognize emerging risks, understand controls, and contribute to a risk-aware culture. By influencing knowledge, behavior, and attitudes, targeted training is the most effective way to embed risk awareness throughout the organization.
Question 71:
Which activity is most important for maintaining an up-to-date enterprise risk register?
A) Periodically reviewing and validating entries with process owners
B) Archiving historical risks annually
C) Updating entries based on audit recommendations only
D) Maintaining a fixed template without change
Answer: A) Periodically reviewing and validating entries with process owners
Explanation:
The option emphasizing periodic review and validation with process owners is foundational for keeping a risk register accurate and relevant. Process owners are the individuals closest to the business processes and controls, making them uniquely positioned to identify changes in operational environments, emerging risks, and variations in control effectiveness. By engaging process owners regularly, a risk practitioner can ensure that the register reflects the current state of the organization’s risk landscape rather than relying on outdated assumptions. This approach also encourages ownership and accountability across business units, fostering a culture of risk awareness.
Archiving historical risks annually is an important practice for maintaining records and learning from past incidents, but it does not ensure that active risks are accurately captured or assessed. While historical data provides context and may inform trend analysis, it is a reactive activity rather than a proactive maintenance step. Without regular validation, the risk register could contain outdated or irrelevant entries, potentially misleading management when making decisions about prioritization and mitigation.
Updating entries solely based on audit recommendations also provides only a partial view of enterprise risk. Audits tend to focus on compliance and control effectiveness within defined scopes and timeframes. While their findings are valuable, they may not capture all emerging operational risks, external threats, or changes in business priorities. Relying exclusively on audit findings risks creating blind spots in the risk register, leaving certain risks unidentified or unmonitored until they manifest as incidents.
Maintaining a fixed template without change presents a structural limitation to risk management. Risk environments are dynamic, with processes, technologies, and regulatory requirements continuously evolving. A static template may prevent the inclusion of new categories of risk, emerging threats, or novel control approaches, reducing the register’s adaptability and overall utility. It can also discourage process owners from engaging meaningfully in risk identification, as the rigid structure may not align with their operational realities.
The correct answer is periodic review and validation with process owners because it ensures both the accuracy and relevance of the enterprise risk register. By actively engaging those accountable for processes, organizations can capture changes in risk exposure promptly, maintain alignment with business objectives, and make informed decisions about mitigation and resource allocation. This approach balances historical insight with current operational knowledge and supports continuous improvement of the risk management program, making it the most effective method for keeping a risk register up-to-date.
Question 72:
Which factor is most important when determining ownership of a newly identified risk?
A) The business unit accountable for the risk outcome
B) The department with technical expertise
C) The team with budget authority
D) The individual reporting to senior management
Answer: A) The business unit accountable for the risk outcome
Explanation:
Assigning risk ownership based on accountability for the outcome is essential because risk owners must have the authority and responsibility to implement effective risk management measures. The accountable business unit is directly responsible for the processes and outcomes affected by the risk, making it the most logical owner. By assigning ownership to the unit responsible for results, organizations ensure that decisions are operationally feasible, controls are implemented effectively, and risk mitigation is directly tied to the people who can influence outcomes. This alignment with operational responsibility enhances governance and provides clarity in decision-making.
The department with technical expertise may play an important advisory role, providing insight into mitigation strategies, system vulnerabilities, and technical feasibility. However, expertise alone does not confer accountability. Without ultimate responsibility, such a department may lack the authority to implement or enforce necessary controls, reducing the effectiveness of risk management efforts. While technical input is critical, it must complement, not replace, accountable ownership.
Similarly, the team with budget authority can influence resource allocation but may not be responsible for day-to-day operations affected by the risk. Budget authority allows teams to fund mitigation activities but does not guarantee alignment with operational priorities. Risk management requires not only resources but also oversight, control, and active management, which resides with the accountable business unit.
The individual reporting to senior management may have visibility or influence but may not directly manage the processes impacted by the risk. Assigning ownership to someone removed from the operational context may result in slow response times, misalignment with business objectives, and less effective mitigation. While reporting channels are important for escalation and oversight, they are not a substitute for ownership.
The correct choice is the business unit accountable for the risk outcome because ownership must combine responsibility, authority, and operational control. This ensures that risk management actions are practical, effective, and aligned with organizational objectives. Ownership by the accountable unit enhances accountability, streamlines decision-making, and strengthens overall risk governance. By integrating authority with responsibility, organizations create a clear, actionable framework for mitigating newly identified risks and maintaining robust oversight.
Question 73:
Which action should a risk practitioner take first when a significant regulatory change is announced?
A) Assess potential impacts on business operations
B) Immediately update policies and procedures
C) Notify the board of directors
D) Train staff on compliance requirements
Answer: A) Assess potential impacts on business operations
Explanation:
The first step when a significant regulatory change occurs is to assess its potential impact on business operations. Understanding how the change affects processes, controls, technology, and reporting requirements is crucial to developing an effective response. This assessment provides a foundation for prioritizing mitigation efforts, updating policies, and planning communication strategies. Without a clear understanding of the operational implications, subsequent steps could be misaligned or ineffective, potentially exposing the organization to noncompliance or operational disruption.
Immediately updating policies and procedures without an impact assessment can be premature and potentially counterproductive. Policies must be aligned with both regulatory requirements and actual operational capabilities. Updating them without analyzing the effects of the regulation may result in overly broad or irrelevant controls, inefficiencies, or confusion among staff. This reactive approach risks creating gaps or redundancies in compliance efforts.
Notifying the board of directors is an important governance step but should follow a preliminary impact assessment. Providing incomplete or speculative information could mislead decision-makers, delay appropriate responses, and reduce the board’s confidence in risk management practices. The board relies on accurate, contextually informed briefings to guide oversight and strategic decision-making.
Training staff on compliance requirements is ineffective until the impact is clearly understood. Without assessing how processes or responsibilities are affected, training may focus on irrelevant areas, leaving critical operational or compliance risks unaddressed. Training should follow policy updates that have been informed by a thorough assessment, ensuring that staff receive practical, actionable guidance aligned with organizational obligations.
The correct approach is to assess potential impacts first. This allows risk practitioners to develop an informed, structured response, ensuring that policies, training, and communications are relevant, effective, and aligned with regulatory requirements. Impact assessment ensures that the organization responds proactively, minimizes operational disruption, and maintains compliance while supporting informed decision-making across the enterprise.
Question 74:
Which step should a risk practitioner perform first when a high-priority risk event occurs?
A) Activate the incident response plan
B) Conduct a post-incident review
C) Document the event in the risk register
D) Notify senior management after resolution
Answer: A) Activate the incident response plan
Explanation:
The immediate activation of the incident response plan is the highest priority during a high-priority risk event. The primary goal at this stage is to contain the risk, mitigate its impact, and protect organizational assets. Incident response plans are designed to provide structured, predefined steps for managing operational threats in real time. By following these procedures, the organization can quickly address the most critical elements of the incident, minimize damage, and maintain continuity of operations.
Conducting a post-incident review is an important step but occurs only after the immediate threat is managed. Post-incident analysis focuses on understanding the causes, evaluating the response, and identifying opportunities for process improvement. While essential for learning and future prevention, it does not address immediate risks or reduce ongoing exposure during the event.
Documenting the event in the risk register is necessary for accountability, tracking, and reporting. However, documenting without first managing the risk leaves the organization vulnerable. Accurate records are best created in parallel with, or after, the mitigation of immediate threats to ensure clarity and completeness.
Notifying senior management after resolution provides necessary reporting and strategic oversight, but it does not directly influence the real-time management of the incident. Immediate notification without action may raise awareness but will not reduce operational harm or prevent escalation.
The correct first step is to activate the incident response plan because it directly addresses the risk event’s impact in real time. This approach ensures structured, timely action to protect assets, maintain operations, and set the stage for subsequent review, documentation, and reporting. Effective incident response minimizes harm, supports recovery, and reinforces organizational resilience.
Question 75:
Which method best supports continuous monitoring of enterprise risk?
A) Implementing automated key risk indicators (KRIs)
B) Conducting quarterly workshops
C) Reviewing annual audit reports
D) Updating risk registers annually
Answer: A) Implementing automated key risk indicators (KRIs)
Explanation:
Automated key risk indicators (KRIs) provide a continuous, real-time method for monitoring enterprise risk. KRIs track metrics and thresholds linked to critical processes, allowing organizations to identify deviations or potential risk events as they occur. Automation enhances efficiency, reduces the reliance on manual reporting, and enables timely escalation to management when predefined thresholds are breached. This method ensures that risk visibility is proactive, allowing interventions before issues escalate.
Quarterly workshops are valuable for discussion, knowledge sharing, and risk awareness, but they are periodic rather than continuous. While they support collaboration and alignment, they cannot detect or respond to emerging risks in real time. Their value lies more in engagement and education than in ongoing monitoring.
Reviewing annual audit reports provides insights into historical risk performance and control effectiveness. While this practice is important for trend analysis and compliance verification, it is inherently retrospective. Audits do not offer continuous monitoring and therefore cannot provide timely signals of emerging risk events.
Updating risk registers annually is too infrequent to support effective, ongoing monitoring. While risk registers are crucial for documentation and planning, their value is maximized when updated regularly in response to operational changes. Annual updates alone are insufficient for a dynamic risk environment where threats can evolve rapidly.
Automated KRIs are the most effective tool for continuous risk monitoring because they provide immediate, actionable insights, support early detection, and enable proactive management. This approach ensures that the organization can respond swiftly to changes in risk exposure, maintain operational resilience, and strengthen overall governance.
Question 76:
Which factor is most critical when performing risk assessments on legacy systems?
A) System dependency and integration with other critical processes
B) Age of hardware and software
C) Vendor support contract length
D) User satisfaction with the system
Answer: A) System dependency and integration with other critical processes
Explanation:
Option A, system dependency and integration with other critical processes, focuses on understanding how legacy systems interact with broader organizational functions. Legacy systems often serve as the backbone for multiple workflows, and their failure can trigger cascading effects across business processes. Identifying these dependencies helps risk practitioners understand which processes are most exposed, quantify potential impact, and prioritize mitigation strategies accordingly. Without this perspective, the assessment may overlook systemic vulnerabilities that could threaten operational continuity.
Option B, age of hardware and software, addresses maintenance and potential obsolescence. Older systems may be more prone to technical failures or incompatibility issues. While this is a valid consideration, age alone does not provide sufficient insight into operational risk. A system may be old but still stable and non-critical, or newer systems may be highly integrated and critical, which would make their failure far more impactful. Assessing age without evaluating integration may misrepresent the system’s true risk to the organization.
Option C, vendor support contract length, considers whether the system still has vendor backing for updates, patches, or technical assistance. While vendor support affects the ability to maintain and resolve issues, it does not directly measure the operational impact or the importance of the system in supporting key processes. A lack of vendor support may increase remediation difficulty, but the core risk assessment must first understand what is at stake operationally.
Option D, user satisfaction with the system, reflects perceptions of usability or convenience. While user feedback can highlight pain points and inefficiencies, it is not a primary measure of risk in terms of business continuity or organizational impact. A system could have low user satisfaction yet be critical for essential processes, or conversely, a well-liked system may be low-risk if it does not underpin vital operations.
The correct choice is system dependency and integration because risk assessments must focus on the systems whose failure would have the greatest operational consequences. Understanding dependencies allows for a comprehensive evaluation of both likelihood and impact, enabling organizations to allocate resources effectively and implement mitigation strategies where failure would be most damaging. Legacy systems often operate in environments with minimal documentation or outdated processes, making dependency mapping essential to capture hidden risks and prevent cascading failures. Prioritizing this factor ensures that assessments are both strategic and actionable, rather than focusing solely on technical age, vendor support, or user satisfaction, which provide limited operational insight.
Question 77:
Which activity should a risk practitioner perform first when evaluating risk in a newly established project?
A) Identify key project stakeholders
B) Develop risk reporting templates
C) Conduct detailed control testing
D) Train project staff on risk procedures
Answer: A) Identify key project stakeholders
Explanation:
Option A, identifying key project stakeholders, is foundational because stakeholders define responsibilities, influence decisions, and provide insight into project objectives. Effective risk management relies on knowing who is accountable for decisions, who can accept or mitigate risk, and whose input is critical for aligning risk management activities with organizational priorities. Without this knowledge, other activities, such as reporting, control testing, and staff training, may not target the right areas or gain necessary buy-in.
Option B, developing risk reporting templates, is an administrative step that organizes information flow. While structured reporting ensures clarity and consistency, templates are only meaningful once stakeholder needs and expectations are understood. Designing them too early risks creating reports that are misaligned or irrelevant to decision-makers, reducing the effectiveness of risk communication.
Option C, conducting detailed control testing, is a technical step that examines whether controls function as intended. This step is premature if the critical risks, processes, and decision-makers have not been identified. Testing without context can waste resources and overlook priority areas because the practitioner lacks insight into what risks or controls are most significant.
Option D, training project staff on risk procedures, builds awareness and capability. However, without first understanding stakeholder responsibilities, reporting lines, and critical risks, training may be misdirected. Staff may focus on low-priority tasks or overlook key risk areas, limiting the practical impact of education efforts.
The correct answer is identifying key stakeholders because it establishes the governance framework for risk management in the project. Stakeholders help define critical risks, approve mitigation plans, and guide reporting needs. This step ensures all subsequent activities—template development, control testing, and training—are targeted, relevant, and aligned with both project objectives and enterprise risk management expectations. Prioritizing stakeholders sets the foundation for effective risk oversight and facilitates informed decision-making throughout the project lifecycle.
Question 78:
Which factor is most important when assessing technology-related operational risk?
A) Likelihood and impact on critical business operations
B) Cost of technology implementation
C) Vendor reputation
D) User convenience
Answer: A) Likelihood and impact on critical business operations
Explanation:
Option A, likelihood and impact on critical business operations, directly addresses operational exposure. It evaluates both the probability of an event and the potential consequences, enabling risk practitioners to prioritize risks with the greatest threat to continuity and strategic objectives. This dual focus ensures that resources are directed to mitigate high-impact threats that are likely to materialize, safeguarding essential operations.
Option B, cost of technology implementation, addresses financial considerations. While important for budgeting and feasibility, cost alone does not quantify operational risk. A highly expensive mitigation may be justified for a minor risk, or a low-cost solution may be insufficient for a critical threat. Operational prioritization should be guided by risk magnitude rather than cost.
Option C, vendor reputation, informs due diligence and trustworthiness. A well-regarded vendor reduces the likelihood of operational failures or service interruptions, but reputation is an indirect measure of risk. It does not provide a precise assessment of exposure to critical processes or quantify potential losses.
Option D, user convenience, reflects usability or efficiency. Convenience does not correlate with operational impact or likelihood of disruption. A system could be highly convenient yet non-critical, or critical systems may be cumbersome but essential for business continuity.
The correct answer is likelihood and impact because operational risk management requires prioritizing interventions where consequences and probabilities intersect. By focusing on risks that threaten critical operations, organizations can allocate resources effectively, implement controls strategically, and ensure continuity. Secondary considerations such as cost, vendor reputation, and user convenience influence implementation or acceptance but cannot replace an analysis centered on operational impact.
Question 79:
Which activity should a risk practitioner perform first when integrating cybersecurity risk into enterprise risk management?
A) Identify critical assets and systems
B) Conduct penetration testing
C) Implement security awareness programs
D) Review historical incident reports
Answer: A) Identify critical assets and systems
Explanation:
Option A, identifying critical assets and systems, is foundational because it establishes the scope and priority for cybersecurity risk management. Understanding which assets are vital to operations enables practitioners to focus mitigation efforts on areas that would cause the most significant disruption if compromised. This step ensures that subsequent activities, such as testing and awareness programs, are appropriately targeted and resources are efficiently allocated.
Option B, conducting penetration testing, evaluates system vulnerabilities. While essential, testing without knowing which assets are critical may waste resources on low-priority systems and fail to protect the most important assets. Effective testing is guided by the identification of high-value systems to maximize risk reduction.
Option C, implementing security awareness programs, enhances human factors and reduces social engineering risk. However, the programs must be informed by which systems are critical and the types of threats that could impact them. Otherwise, the training may be too generic and less effective at mitigating enterprise-level risks.
Option D, reviewing historical incident reports, provides context on prior vulnerabilities and threats. Historical data is useful for trend analysis but does not replace the need to identify current critical assets, which determines where risk management efforts should be concentrated.
The correct answer is identifying critical assets because it forms the basis for all subsequent cybersecurity risk management activities. Asset prioritization ensures alignment between threat assessment, control implementation, awareness programs, and incident response. Without this first step, resources may be misallocated, and critical risks could remain unaddressed, undermining the integration of cybersecurity into enterprise risk management.
Question 80:
Which approach best ensures that risk responses remain effective over time?
A) Continuous monitoring and periodic review of controls
B) Initial implementation and one-time validation
C) Annual audit without ongoing monitoring
D) Ad-hoc assessments only when incidents occur
Answer: A) Continuous monitoring and periodic review of controls
Explanation:
Option A, continuous monitoring and periodic review, provides a proactive framework to ensure risk responses remain relevant. Continuous monitoring detects emerging threats and control weaknesses in real time, while periodic reviews allow for adjustments to align with changing business processes, regulatory requirements, or technology. Together, these activities enable a dynamic risk management process that sustains effectiveness over time and minimizes exposure.
Option B, initial implementation with one-time validation, establishes baseline controls but does not account for evolving risks. Threat landscapes, technologies, and organizational priorities change, rendering static controls insufficient. Without ongoing evaluation, previously effective measures may fail to address new vulnerabilities.
Option C, annual audit without ongoing monitoring, offers periodic assurance but lacks responsiveness. Gaps may go undetected between audits, leading to unmitigated risk. Audits alone are retrospective and insufficient to maintain proactive risk management.
Option D, ad-hoc assessments in response to incidents, is reactive and delays mitigation until after a problem arises. This approach increases exposure and undermines the objective of continuous protection, leaving the organization vulnerable to preventable events.
The correct answer is continuous monitoring and periodic review because it balances real-time detection with structured reassessment, ensuring that controls evolve alongside organizational and external changes. This approach strengthens resilience, supports compliance, and maintains the effectiveness of risk mitigation strategies over the long term, unlike static, reactive, or limited audit-only methods.
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