Isaca Updated CRISC Exam Questions and Answers by nella

The risk practitioner’s BEST course of action is to validate the transfer of risk and update the register to reflect the change, because outsourcing the backup and recovery procedures to a third-party cloud provider does not eliminate the risk, but rather transfers it to the service provider. The risk practitioner should verify that the service provider has adequate controls and capabilities to handle the backup and recovery procedures, and that the contractual agreement specifies the roles and responsibilities of both parties. The risk practitioner should also update the risk register to reflect the new risk owner and the residual risk level. The other options are not the best course of action, because:

Option A: Accepting the risk and documenting contingency plans for data disruption is not the best course of action, because it implies that the risk practitioner is still responsible for the risk, even though it has been transferred to the service provider. Contingency plans are also reactive measures, rather than proactive ones.

Option B: Removing the associated risk scenario from the risk register due to avoidance is not the best course of action, because it implies that the risk has been eliminated, which is not the case. The risk still exists, but it has been transferred to the service provider. The risk register should reflect the current risk status and ownership.

Option C: Mitigating the risk with compensating controls enforced by the third-party cloud provider is not the best course of action, because it implies that the risk practitioner is still involved in the risk management process, even though the risk has been transferred to the service provider. The risk practitioner should rely on the service provider’s controls and capabilities, and monitor their performance and compliance. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 196.

A risk owner is the individual who is accountable for the management of a specific risk. A risk owner can decide to accept a high-impact risk if the control that mitigates the risk is adversely affecting the process efficiency. However, before updating the risk register, which is a document that records and tracks the identified risks and their responses, it is most important for the risk practitioner to obtain approval from senior management. Senior management is the group of executives who have the authority and responsibility for the strategic direction and performance of the organization. Obtaining approval from senior management can help ensure that the risk acceptance decision is aligned with the organization’s risk appetite and policies, and that the potential consequences of the high-impact risk are understood and accepted by the top-level decision makers. Obtaining approval from senior management can also help communicate and justify the risk acceptance decision to other stakeholders, such as regulators, auditors, customers, etc., and avoid any conflicts or misunderstandings that may arise from the risk acceptance decision. References = Why Assigning a Risk Owner is Important and How to Do It Right, Risk Ownership: A brief guide, Creating a Risk Register: All You Need to Know.

A risk management program is a set of processes, policies, and tools that enable an enterprise to identify, analyze, evaluate, treat, monitor, and communicate its risks. The maturity level of a risk management program indicates how well the program is integrated, standardized, and aligned with the enterprise’s objectives, culture, and values. The best indication that an organization’s risk management program has not reached the desired maturity level is large fluctuations in risk ratings between assessments. Risk ratings are the measures of the impact and likelihood of the risks, and they should be consistent and comparable across the enterprise and over time. Large fluctuations in risk ratings between assessments suggest that the risk management program is not stable, reliable, or effective, and that the risk identification and analysis methods are not robust, accurate, or transparent. The other options are not as indicative of the maturity level of the risk management program, as they involve different aspects or outcomes of the risk management program:

Significant increases in risk mitigation budgets means that the enterprise is spending more resources on implementing risk responses, such as controls, policies, or procedures. This may indicate that the enterprise is facing more or higher risks, or that the risk responses are more costly or complex, but it does not necessarily reflect the maturity level of the risk management program, as it may also depend on the enterprise’s risk appetite, tolerance, and strategy.

A steady increase in the time to recover from incidents means that the enterprise is taking longer to restore its normal operations after a disruption or a loss. This may indicate that the enterprise is not prepared or resilient enough to deal with the incidents, or that the incidents are more frequent or severe, but it does not necessarily reflect the maturity level of the risk management program, as it may also depend on the nature and source of the incidents, or the availability and effectiveness of the recovery plans.

A large number of control exceptions means that the enterprise is deviating from the established controls, policies, or procedures, either intentionally or unintentionally. This may indicate that the enterprise is not complying with the risk management program, or that the controls are not adequate or appropriate for the enterprise’s needs, but it does not necessarily reflect the maturity level of the risk management program, as it may also depend on the reasons and justifications for the exceptions, or the approval and monitoring processes for the exceptions. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section 1.1.3.1, pp. 14-15.

Unauthorized data disclosure: The exposure of sensitive or confidential information to unauthorized parties, either intentionally or unintentionally1.

Proactive approach: An approach that anticipates and prevents potential problems or threats before they occur, rather than reacting to them after they happen2.

Incident response plan: A set of policies, procedures, and tools that guide an organization’s actions in the event of a data breach or security incident3.

A proactive approach to minimizing the potential impact of unauthorized data disclosure is to have an incident response plan. An incident response plan helps an organization to:

Detect and contain the incident as quickly as possible

Analyze the scope, cause, and impact of the incident

Eradicate the threat and restore normal operations

Communicate with internal and external stakeholders

Learn from the incident and improve security measures

An incident response plan enables an organization to reduce the damage and disruption caused by unauthorized data disclosure, as well as to comply with relevant laws and regulations that require timely notification and remediation of data breaches3.

The other options are not as effective as an incident response plan in minimizing the potential impact of unauthorized data disclosure, because they do not address the root cause or the response of the incident. Key risk indicators (KRIs), which are metrics that measure the level of risk exposure or the likelihood of a risk event, may help to monitor and manage the risk of unauthorized data disclosure, but they do not prevent or respond to the incident. Data backups, which are copies of data stored in a separate location or medium, may help to recover the data that was lost or corrupted due to unauthorized data disclosure, but they do not protect the data that was exposed or stolen. Cyber insurance, which is a type of insurance that covers the financial losses and liabilities arising from cyberattacks or data breaches, may help to mitigate some of the costs and risks associated with unauthorized data disclosure, but it does not prevent or resolve the incident.

References = What is Unauthorized Data Disclosure? | Egnyte, Proactive vs. Reactive: What’s the Difference?, Incident Response Planning: Best Practices for Businesses