Isaca Updated CRISC Exam Questions and Answers by julian

The risk practitioner should update the risk scenarios in the risk register to reflect the new international regulations and their potential impact on the organization. The risk register is a tool that records and tracks the identified risks, their likelihood, impact, mitigation strategies, and status. Updating the risk register will help the risk practitioner to prioritize and manage the risks effectively, and communicate them to the relevant stakeholders.

References

•ISACA CRISC Review Manual, 7th Edition, Domain 1: IT Risk Identification, Section 1.2.2: Risk Register

•Risk Register - ISACA

•How to Create a Risk Register: A Step-by-Step Guide | The Blueprint

A risk action plan is a document that outlines the actions to be taken to mitigate or avoid a risk. A risk action plan should be revised when the risk associated with a new technology is found to be increasing, as this indicates that the current plan is not effective or sufficient. Revising the risk action plan can help identify the root causes of the risk increase, evaluate the effectiveness of current controls, and implement additional or alternative controls as needed. Re-evaluating current controls, escalating the risk to senior management, and implementing additional controls are possible steps in the revision process, but they are not the first course of action. The first course of action should be to update the risk action plan to reflect the current risk situation and the appropriate risk response.

Cross-business representation is most important to the effectiveness of a senior oversight committee for risk monitoring. Here’s a detailed explanation:

Importance of Cross-business Representation:

Comprehensive Risk Perspective: Having representatives from different business units ensures that the committee has a comprehensive view of risks across the entire organization. This diverse representation helps in identifying and assessing risks that may impact various parts of the business differently.

Informed Decision-Making: Members from different business areas can provide unique insights and expertise, leading to more informed and balanced decision-making processes.

Improved Communication: Cross-business representation facilitates better communication and collaboration across the organization, ensuring that risk management practices are understood and implemented consistently.

Comparison with Other Options:

Key Risk Indicators (KRIs): While important for monitoring specific risks, KRIs alone do not ensure the effectiveness of the oversight committee without a diverse representation to interpret and act on these indicators.

Risk Governance Charter: A risk governance charter outlines the roles, responsibilities, and processes for risk management, but its effectiveness depends on the active participation of diverse business representatives.

Organizational Risk Appetite: Understanding the organizational risk appetite is crucial, but without cross-business representation, the risk appetite may not be appropriately reflected or acted upon across all business areas.

Best Practices:

Diverse Membership: Ensure that the oversight committee includes members from all key business units and functions to provide a holistic view of organizational risks.

Regular Meetings: Schedule regular meetings to review and discuss risk management activities, KRIs, and emerging risks with input from all representatives.

Clear Communication: Establish clear communication channels between the oversight committee and business units to ensure that risk management practices are effectively implemented and monitored.

CRISC Review Manual: Emphasizes the importance of cross-functional representation in risk governance to ensure comprehensive risk management.

ISACA Risk Management Framework: Highlights the need for diverse perspectives in risk oversight committees to enhance the effectiveness of risk monitoring and decision-making.

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