Isaca Updated CRISC Exam Questions and Answers by dania

According to the ISACA CRISC Review Manual, an enterprise risk management (ERM) process is a holistic approach to identifying, analyzing, responding to, and monitoring all types of risk that affect the achievement of the enterprise’s objectives. The ERM process should consider all types of risk, including strategic, operational, financial, compliance, and reputational risks. Among these, strategic risks are the most important, as they have the potential to affect the enterprise’s mission, vision, and goals. Therefore, risk with strategic impact should be included in the ERM process. References = ISACA CRISC Review Manual, 7th Edition, Chapter 1, Section 1.2.1, page 17.

A maturity model is a framework that describes the stages or levels of development and improvement of a certain domain, such as a process, a function, or an organization. A maturity model is most useful to an organization when it provides a reference for progress, meaning that it helps the organization to assess its current state, identify its strengths and weaknesses, set its goals and objectives, and measure its performance and improvement over time. A maturity model can also help the organization to compare itself with best practices and standards, but benchmarking against other organizations is not its primary purpose. A maturity model can also help the organization to manage its risks, but defining a qualitative measure of risk or providing risk metrics is not its main function. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.3.2.1, p. 118-119

Developing a risk treatment plan is the best way to facilitate the mitigation of identified gaps between current and desired risk environment states. A risk treatment plan is a document that outlines the actions and resources needed to implement the chosen risk response strategy for each risk scenario. A risk treatment plan should include the following elements:

Risk scenario description and risk ID

Risk owner and other stakeholders

Risk response strategy and objectives

Risk response actions and tasks

Resources, costs, and benefits

Roles and responsibilities

Timeline and milestones

Performance indicators and monitoring mechanisms

Contingency plans and triggers

A risk treatment plan helps to close the gaps between the current and desired risk environment states by providing a clear and comprehensive roadmap for risk mitigation. It also helps to ensure that the risk response actions are aligned with the organizational risk appetite, objectives, and priorities. A risk treatment plan also facilitates the communication, coordination, and collaboration among the risk owners and other stakeholders involved in the risk mitigation process.

The other options are not the best ways to facilitate the mitigation of identified gaps between current and desired risk environment states. Validating organizational risk appetite is an important step in establishing the risk criteria and thresholds for the risk assessment process, but it does not directly address the gaps between the current and desired risk environment states. Reviewing results of prior risk assessments can provide useful insights and lessons learned for the current risk assessment process, but it does not necessarily lead to the development and implementation of effective risk response actions. Including the current and desired states in the risk register can help to document and monitor the risk scenarios and their status, but it does not provide the details and guidance for risk mitigation. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4: Risk Response, Section 4.2: Risk Treatment, p. 189-191.

 A risk treatment plan is a document that describes the actions and resources required to implement the chosen risk response for a specific risk scenario. A risk response can be to accept, avoid, transfer, or mitigate the risk. The effectiveness of a risk treatment plan can be measured by how well it reduces the risk exposure and achieves the desired outcomes. The best evidence that a selected risk treatment plan is effective is to evaluate the residual risk level, which is the remaining risk after the risk treatment plan has been implemented. The residual risk level should be within the organization’s risk appetite and tolerance, and should reflect the actual risk reduction and value creation of the risk treatment plan. Evaluating the residual risk level can also help to identify any gaps or issues that need to be addressed, and to monitor and report on the risk performance and improvement. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.2, p. 108-109