Isaca Updated CRISC Exam Questions and Answers by harlow

 The interdependency of information systems means that the failure or disruption of one system can affect the performance or availability of other systems. Therefore, it is important to aggregate the results from multiple risk assessments on interdependent information systems to understand the overall impact to the organization. By aggregating the results, the risk manager can identify the potential cascading effects, the cumulative consequences, and the worst-case scenarios of interdependent risks. This can help theorganization to prioritize the risks, allocate the resources, and implement the risk response strategies accordingly. The other options are not as important as the overall impact to the organization, because they do not capture the full extent of the interdependency of information systems. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.4.3, page 99.

 The PRIMARY objective of the board of directors periodically reviewing the risk profile is to help ensure that the risk strategy is appropriate, because the risk strategy defines the enterprise’s risk appetite, tolerance, and objectives, and guides the risk management process and activities. The board of directors should review the risk profile to ensure that it reflects the current internal and external environment, and that it aligns with the enterprise’s strategy and goals. The other options are not the primary objective, because:

Option B: KRIs and KPIs are aligned is a desirable outcome of the risk strategy, but not the primary objective of the board of directors reviewing the risk profile. KRIs and KPIs are indicators that measure and monitor the risk exposure and performance of the enterprise, respectively, and they should be consistent with the risk strategy and objectives.

Option C: Performance of controls is adequate is a result of the risk response, but not the primary objective of the board of directors reviewing the risk profile. Performance of controls is the degree to which the controls are effective and efficient in mitigating the risks, and it should be evaluated and reported by the risk management function and the internal audit function.

Option D: The risk monitoring process has been established is a prerequisite for the risk profile, but not the primary objective of the board of directors reviewing the risk profile. The risk monitoring process is the process of tracking and reporting the risk status and performance, and it should be implemented and executed by the risk management function and the business process owners. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 119.

A compliance-based CSA focuses on ensuring that the business unit follows the policies and procedures established by the enterprise, regardless of the actual risk level or impact of the controls.

A risk-based CSA focuses on identifying and evaluating the risks that may affect the business unit’s objectives, and designing and implementing controls that are appropriate to mitigate those risks.

A compliance-based CSA may not capture all the high-risk issues that exist in a business unit, especially if they are not aligned with the enterprise’s standards or expectations.

A risk-based CSA may identify more high-risk issues than a compliance-based CSA, because it considers both internal and external factors that may affect the business unit’s performance or security.

Therefore, a difference in results between a previous control self-assessment (CSA) and an audit indicates that either one of them was not risk-based, but rather compliance-based.

The references for this answer are:

Risk IT Framework, page 9

Information Technology & Security, page 3

Risk Scenarios Starter Pack, page 1

According to the Risk Management Essentials, a risk profile is established to enhance senior management’s analysis and decision making related to priority setting and resource allocation. A risk profile is a description of a set of risks that an organization faces, and it helps to make the risks visible and understandable. By having a documented risk profile, an organization can identify the nature and level of the threats, assess the likelihood and impact of the risks, evaluate the effectiveness of the controls, and determine the risk appetite and tolerance. This information can help the organization to make well-informed decisions on how to manage the risks and achieve its objectives. References = Risk Management Essentials, Risk Profile: Definition, Importance for Individuals & Companies