Isaca Updated CRISC Exam Questions and Answers by harlow

KRIs provide predictive metrics to monitor changes in risk levels, enabling timely interventions to maintain risks within the organization's appetite. This aligns with the Risk Monitoring and Reporting framework, which emphasizes proactive identification of risk thresholds.

Risk appetite determined by senior management reflects the enterprise's willingness to accept certain levels of risk, including noncompliance. This decision underscores the strategic trade-offs made in risk management, a key element in Governance and Risk Policy Alignment.

 Inaccurate risk ratings would most likely cause management to unknowingly accept excessive risk, as they may not reflect the true level of risk exposure and impact, and may lead to inappropriate risk responses or decisions. Satisfactory audit results, risk tolerance being set too low, and lack of preventive controls are not the most likely causes, as they may indicate a different risk management issue, such as over-reliance on audit assurance, misalignment of risk tolerance and appetite, or insufficient risk mitigation, respectively. References = CRISC Review Manual, 7th Edition, page 109.

Identifying and assessing the risk scenarios associated with IT strategic initiatives is the best risk management approach for the strategic IT planning process, because it helps to understand and evaluate the potential or actual threats or opportunities that may affect the achievement or implementation of the IT strategic initiatives, and to determine the appropriate risk responses and controls. A risk scenario is a hypothetical situation or event that describes the source, cause, consequence, and impact of a risk. A risk scenario can be positive or negative, depending on whether it represents an opportunity or a threat. An IT strategic initiative is a project or program that supports or enables the IT strategy, which is a plan that defines how IT supports and aligns with the organization’s vision, mission, and strategy. The strategic IT planning process is a process of developing, implementing, and monitoring the IT strategy and its associated IT strategic initiatives. Identifying and assessing the risk scenarios is the best risk management approach, as it helps to anticipate and prepare for the potential or actual outcomes of the IT strategic initiatives, and to optimize the risk-reward balance and the value delivery of IT. Establishing key performance indicators (KPIs) to track IT strategic initiatives, reviewing the IT strategic plan by the chief information security officer (CISO) and enterprise risk management (ERM), and developing the IT strategic plan from the organization-wide risk management plan are all possible risk management approaches for the strategic IT planning process, but they are not the best approach, as they do not directly address the identification and assessment of the risk scenarios associated with IT strategic initiatives. References = Risk and Information Systems Control Study Manual, Chapter 2, Section 2.1.1, page 37