Isaca Updated CRISC Exam Questions and Answers by cobie

The three lines of defense model is a framework that describes the roles and responsibilities of different stakeholders in the risk management and internal control processes of an organization. The three lines of defense are:

The first line of defense: the operational management and staff who are responsible for identifying, assessing, and responding to the risks, as well as implementing and maintaining the controls within their areas of activity.

The second line of defense: the risk management, compliance, and security functions who are responsible for establishing the risk policies and standards, providing guidance and support, monitoring and reporting on the risk performance and compliance, and facilitating the risk management and internal control processes across the organization.

The third line of defense: the internal audit function who is responsible for providing independent and objective assurance on the effectiveness and efficiency of the risk management and internal control processes, as well as recommending improvements and best practices. The stakeholders who are typically included as part of a line of defense within the three lines of defense model are the legal team, who belong to the second line of defense. The legal team is responsible for ensuring that the organization complies with the relevant laws and regulations, aswell as for advising and assisting the organization on the legal aspects and implications of the risk management and internal control processes. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.4.1, p. 32-33

 Building Key Risk Indicators (KRIs):

KRIs are metrics used to provide an early signal of increasing risk exposure in various areas of an organization.

 Importance of Representative Data Sets:

To ensure KRIs are accurate and meaningful, it is critical that the data used is representative of the entire population or relevant subset of activities being monitored.

Representative data ensures that the KRIs reflect the true state of risk and are not biased or incomplete.

 Impact on KRIs:

Using representative data sets improves the reliability and validity of KRIs, enabling better risk detection and management.

It ensures that the KRIs provide a realistic view of potential risk trends and patterns.

 Comparing Other Data Sources:

Business Process Owners:While they provide valuable insights, data from them alone may not be representative.

Industry Benchmark Data:Useful for comparisons but not specific to the organization’s unique context.

Data Automation Systems:Helpful for efficiency but must ensure the data is representative.

 References:

The CRISC Review Manual emphasizes the importance of using representative data to build effective KRIs (CRISC Review Manual, Chapter 3: Risk Response and Mitigation, Section 3.11 Data Collection Aggregation Analysis and Validation) ​​.

Residual risk is the level of risk that remains after applying controls or other risk treatments. A critical patch is a type of control that aims to reduce the risk of a known vulnerability being exploited by attackers. If the patch implementation fails, the control is ineffective and the risk is not reduced. Therefore, the residual risk is increased, as the organization is still exposed to the potential negative consequences of the vulnerability.

Identifying risk scenarios allows organizations to anticipate how threats can materialize, what assets may be affected, and the potential impact. According to CRISC, scenario development is a core component of proactive risk assessment because it enables organizations to evaluate likelihood, impact, and existing controls before incidents occur. It also supports risk quantification and prioritization. Post-incident investigations relate to after-the-fact analysis, whereas scenario analysis occurs beforehand. Identifying incidents is a monitoring activity, not a scenario-building function. Awareness is a secondary outcome, not the primary purpose.