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Topic 1, Exam Pool A

Question: 1

The PRIMARY reason for a risk practitioner to review business processes is to:

A. Benchmark against peer organizations.

B. Identify appropriate controls within business processes.
C. Assess compliance with global standards.
D. Identify risk owners related to business processes.

Answer: D

Explanation:
Detailed
A review of business processes is crucial for identifying risk owners, as risk ownership is tied to
specific processes within the organization. Risk owners are accountable for managing and mitigating
risks within their respective areas. This ensures that risks are effectively addressed where they arise
and aligns mitigation efforts with business objectives. Properly identifying risk owners supports
better governance, accountability, and alignment with the organization's risk management strategy.

Question: 2

A risk practitioner is MOST likely to use a SWOT analysis to assist with which risk process?

A. Risk assessment
B. Risk reporting
C. Risk mitigation
D. Risk identification

Answer: D

Explanation:

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Detailed
SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is used in the risk identification
phase to comprehensively analyze the organization's internal and external environments. By
understanding strengths and weaknesses, internal risks can be identified, while opportunities and
threats help to identify external risks. This method provides a foundation for proactive risk
management.

Question: 3

During which phase of the system development life cycle (SDLC) should information security
requirements for the implementation of a new IT system be defined?

A. Monitoring
B. Development
C. Implementation
D. Initiation

Answer: D

Explanation:
Detailed
Information security requirements should be defined during the Initiation phase of the SDLC. This
ensures that security is integrated into the design from the beginning, minimizing vulnerabilities and
aligning security measures with business requirements. Early identification of security needs reduces
rework and costs associated with later stages.

Question: 4

Real-time monitoring of security cameras implemented within a retail store is an example of which
type of control?

A. Preventive
B. Deterrent
C. Compensating
D. Detective

Answer: D

Explanation:
Detailed
Real-time monitoring is a detective control, as it is designed to identify and report suspicious or
unauthorized activities as they occur. Detective controls provide feedback to mitigate ongoing risks
and serve as an integral part of incident response plans.

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Question: 5

Which of the following is the MOST important consideration for prioritizing risk treatment plans
when faced with budget limitations?

A. Inherent risk and likelihood

B. Management action plans associated with audit findings
C. Residual risk relative to appetite and tolerance
D. Key risk indicator (KRI) trends

Answer: C

Explanation:
Detailed
When prioritizing risk treatment plans under budget constraints, the focus should be on residual risk
relative to appetite and tolerance. This ensures that resources are allocated to risks that exceed the
organization’s risk appetite, aligning treatment efforts with strategic objectives and minimizing
critical exposure.

Question: 6

Which of the following is MOST important to identify when developing generic risk scenarios?

A. The organization’s vision and mission

B. Resources required for risk mitigation
C. Impact to business objectives
D. Risk-related trends within the industry

Answer: C

Explanation:
Detailed
The impact to business objectives is paramount when developing risk scenarios, as the primary
purpose of risk management is to protect and support business objectives. Understanding the impact
helps tailor scenarios to potential risks that could disrupt key operations or strategic goals.

Question: 7

When an organization's business continuity plan (BCP) states that it cannot afford to lose more than
three hours of a critical application's data, the three hours is considered the application’s:

A. Maximum tolerable outage (MTO).

B. Recovery point objective (RPO).
C. Mean time to restore (MTTR).
D. Recovery time objective (RTO).

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Answer: B

Explanation:
Detailed
The Recovery Point Objective (RPO) specifies the maximum tolerable period in which data might be
lost due to an incident. In this case, the organization is indicating that it cannot afford to lose more
than three hours of data, defining its RPO.

Question: 8

Which of the following is MOST important for effective communication of a risk profile to relevant
stakeholders?

A. Emphasizing risk in the risk profile that is related to critical business activities
B. Customizing the presentation of the risk profile to the intended audience
C. Including details of risk with high deviation from the risk appetite
D. Providing information on the efficiency of controls for risk mitigation

Answer: B

Explanation:
Detailed
Customizing the risk profile presentation ensures that stakeholders receive information in a format
and context relevant to their roles. Tailored communication improves understanding, aligns risk
discussions with decision-making needs, and ensures the stakeholders are equipped to act on the
information effectively.

Question: 9

Which of the following situations reflects residual risk?

A. Risk that is present before risk acceptance has been finalized

B. Risk that is removed after a risk acceptance has been finalized
C. Risk that is present before mitigation controls have been applied
D. Risk that remains after mitigation controls have been applied

Answer: D

Explanation:
Detailed
Residual risk refers to the risk that remains after mitigation measures have been applied. It
represents the exposure that an organization decides to accept, transfer, or further address, aligning
with its risk appetite and tolerance.

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Question: 10

What is the BEST approach for determining the inherent risk of a scenario when the actual likelihood
of the risk is unknown?

A. Use the severity rating to calculate risk.

B. Classify the risk scenario as low-probability.
C. Use the highest likelihood identified by risk management.
D. Rely on range-based estimates provided by subject-matter experts.

Answer: D

Explanation:
Detailed
When likelihood is unknown, range-based estimates from subject-matter experts provide informed
and realistic insights into potential risk exposure. This approach helps approximate the inherent risk
based on experience and expertise, supporting effective decision-making.

Question: 11

An organization's senior management is considering whether to acquire cyber insurance. Which of

the following is the BEST way for the risk practitioner to enable management’s decision?

A. Perform a cost-benefit analysis.

B. Conduct a SWOT analysis.
C. Provide data on the number of risk events from the last year.
D. Report on recent losses experienced by industry peers.

Answer: A

Explanation:
Detailed
A cost-benefit analysis evaluates the financial implications of acquiring cyber insurance versus the
potential loss exposure. This approach enables informed decision-making by comparing the
insurance cost with the potential savings from covered risks.

Question: 12

After several security incidents resulting in significant financial losses, IT management has decided to
outsource the security function to a third party that provides 24/7 security operation services. Which
risk response option has management implemented?

A. Risk mitigation
B. Risk avoidance
C. Risk acceptance

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D. Risk transfer

Answer: D

Explanation:
Detailed
Risk transfer involves shifting the responsibility for managing specific risks to a third party. By
outsourcing the security function, the organization transfers the associated risk to a vendor
specializing in security management.

Question: 13

Which of the following is the MOST important benefit of implementing a data classification program?

A. Reduction in data complexity

B. Reduction in processing times
C. Identification of appropriate ownership
D. Identification of appropriate controls

Answer: D

Explanation:
Detailed
A data classification program helps identify appropriate controls by categorizing data based on
sensitivity and criticality. This ensures that data protection measures are aligned with its value and
risk level, improving overall security posture.

Question: 14

Which of the following is the MOST effective way to help ensure future risk levels do not exceed the
organization's risk appetite?

A. Developing contingency plans for key processes

B. Implementing key performance indicators (KPIs)
C. Adding risk triggers to entries in the risk register
D. Establishing a series of key risk indicators (KRIs)

Answer: D

Explanation:
Detailed
Key Risk Indicators (KRIs) are metrics used to monitor changes in risk exposure, enabling proactive
adjustments to keep risks within appetite. They provide early warnings of potential breaches in risk
thresholds.

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Question: 15

Which of the following controls would BEST reduce the risk of account compromise?

A. Enforce password changes.

B. Enforce multi-factor authentication (MFA).
C. Enforce role-based authentication.
D. Enforce password encryption.

Answer: B

Explanation:
Detailed
Multi-factor authentication (MFA) significantly reduces the risk of account compromise by requiring
multiple forms of verification, such as a password and a one-time code, enhancing security beyond
single-factor authentication methods.

Question: 16

Which of the following should be a risk practitioner's NEXT step upon learning the impact of an
organization's noncompliance with a specific legal regulation?

A. Identify risk response options.

B. Implement compensating controls.
C. Invoke the incident response plan.
D. Document the penalties for noncompliance.

Answer: A

Explanation:
Detailed
The next step is to identify risk response options to address the noncompliance and mitigate its
impact. This may include corrective actions, implementing controls, or negotiating terms to reduce
exposure.

Question: 17

Which of the following is a specific concern related to machine learning algorithms?

A. Low software quality

B. Lack of access controls
C. Data breaches
D. Data bias

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Answer: D

Explanation:
Detailed
Data bias in machine learning algorithms can lead to inaccurate predictions or decisions, as biases in
training data are amplified in the output. Addressing bias is essential for ethical and reliable
algorithm performance.

Question: 18

Which of the following BEST enables effective risk-based decision making?

A. Performing threat modeling to understand the threat landscape

B. Minimizing the number of risk scenarios for risk assessment
C. Aggregating risk scenarios across a key business unit
D. Ensuring the risk register is updated to reflect changes in risk factors

Answer: D

Explanation:
Detailed
An updated risk register ensures that decision-makers have accurate, timely information about
current risks, enabling informed, risk-based decisions that align with organizational priorities and
changes in the environment.

Question: 19

When a high number of approved exceptions are observed during a review of a control procedure, an
organization should FIRST initiate a review of the:

A. Relevant policies.
B. Threat landscape.
C. Awareness program.
D. Risk heat map.

Answer: A

Explanation:
Detailed
A high number of exceptions often indicate misalignment between policies and business needs.
Reviewing policies helps determine if they are overly restrictive or need adjustments to reduce
exceptions while maintaining security.

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Question: 20

Which of the following is MOST helpful when determining whether a system security control is
effective?

A. Control standard operating procedures

B. Latest security assessment
C. Current security threat report
D. Updated risk register

Answer: B

Explanation:
Detailed
The latest security assessment provides a detailed evaluation of the control’s performance and
identifies gaps or weaknesses. This is critical for determining the effectiveness of a system security
control in mitigating threats.

Question: 21

Which of the following attributes of a key risk indicator (KRI) is MOST important?

A. Repeatable
B. Automated
C. Quantitative
D. Qualitative

Answer: A

Explanation:
A key risk indicator (KRI) is a metric that helps organizations monitor and assess potential risks that
may impact their operations, objectives, or performance. A good KRI should have certain
characteristics that make it effective for risk management. One of these characteristics is
repeatability, which means that the KRI can be measured consistently over time and across different
situations. A repeatable KRI ensures that the risk data is reliable, comparable, and meaningful, and
that the risk trends and patterns can be identified and analyzed. A repeatable KRI also supports the
decision-making process by providing timely and accurate information on the risk level and status.
Therefore, repeatability is the most important attribute of a KRI. Reference: = Risk IT Framework,
ISACA, 2022, p. 441

Question: 22

A systems interruption has been traced to a personal USB device plugged into the corporate network
by an IT employee who bypassed internal control procedures. Of the following, who should be
accountable?

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A. Business continuity manager (BCM)

B. Human resources manager (HRM)
C. Chief risk officer (CRO)
D. Chief information officer (CIO)

Answer: D

Explanation:
A systems interruption caused by a personal USB device plugged into the corporate network by an IT
employee who bypassed internal control procedures is a serious breach of information security and
IT risk management. The person who should be accountable for this incident is the chief information
officer (CIO), who is responsible for overseeing the IT function and ensuring compliance with IT
policies and standards. The CIO should also ensure that appropriate corrective and preventive
actions are taken to prevent such incidents from recurring and to mitigate the impact of the systems
interruption on the business operations and objectives. The CIO should also report the incident to
the senior management and the board of directors, and communicate with the relevant stakeholders
about the incident and the actions taken. Reference: = Risk IT Framework, ISACA, 2022, p. 181

Question: 23

A risk practitioner is summarizing the results of a high-profile risk assessment sponsored by senior
management. The BEST way to support risk-based decisions by senior management would be to:

A. map findings to objectives.

B. provide quantified detailed analysis
C. recommend risk tolerance thresholds.
D. quantify key risk indicators (KRls).

Answer: A

Explanation:
The best way to support risk-based decisions by senior management would be to map findings to
objectives, because this would help them understand how the identified risks affect the achievement
of the organization’s goals and priorities. Mapping findings to objectives would also help senior
management evaluate the trade-offs between different risk responses and allocate resources
accordingly. By linking risks to objectives, the risk practitioner can communicate the value and
impact of risk management in a clear and relevant way. Reference: = Risk IT Framework, ISACA, 2022,
p. 17

Question: 24

A rule-based data loss prevention {DLP) tool has recently been implemented to reduce the risk of
sensitive data leakage. Which of the following is MOST likely to change as a result of this
implementation?

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A. Risk likelihood
B. Risk velocity
C. Risk appetite
D. Risk impact

Answer: A

Explanation:
A rule-based data loss prevention (DLP) tool is a software solution that identifies and helps prevent
unsafe or inappropriate sharing, transfer, or use of sensitive data. It can help an organization monitor
and protect sensitive information across on-premises systems, cloud-based locations, and endpoint
devices. It can also help an organization comply with regulations such as the Health Insurance
Portability and Accountability Act (HIPAA) and General Data Protection Regulation (GDPR). A rule-
based DLP tool works by comparing content to the organization’s DLP policy, which defines how the
organization labels, shares, and protects data without exposing it to unauthorized users. The tool can
then apply protective actions such as encryption, access restrictions, and alerts. As a result of
implementing a rule-based DLP tool, the most likely change is the reduction of risk likelihood, which
is the probability of a risk event occurring. By detecting and preventing data breaches, exfiltration, or
unwanted destruction of sensitive data, a rule-based DLP tool can lower the chance of such incidents
happening and thus decrease the risk likelihood. The other options are less likely to change as a
result of implementing a rule-based DLP tool. Risk velocity is the speed at which a risk event impacts
an organization, which depends on factors such as the nature of the threat, the response time, and
the recovery process. Risk appetite is the amount and type of risk that an organization is willing to
accept in pursuit of its objectives, which depends on factors such as the organization’s culture,
strategy, and stakeholder expectations. Risk impact is the potential loss or damage that a risk event
can cause to an organization, which depends on factors such as the severity of the incident, the
extent of the exposure, and the resilience of the organization. While a rule-based DLP tool may have
some influence on these factors, it is not the primary driver of change for them. Reference: = Risk IT
Framework, ISACA, 2022, p. 13

Question: 25

Which of the following is MOST critical when designing controls?

A. Involvement of internal audit

B. Involvement of process owner
C. Quantitative impact of the risk
D. Identification of key risk indicators

Answer: B

Explanation:
The most critical factor when designing controls is the involvement of the process owner, who is the
person responsible for the performance and outcomes of a business process. The process owner has
the best knowledge and understanding of the process objectives, activities, inputs, outputs,
resources, and risks. The process owner can provide valuable input and feedback on the design of

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controls that are relevant, effective, efficient, and aligned with the process goals. The process owner
can also ensure that the controls are implemented, monitored, and improved as needed. The
involvement of the process owner can also increase the acceptance and ownership of the controls by
the process participants and stakeholders. The other options are less critical when designing
controls. The involvement of internal audit can provide assurance and advice on the adequacy and
effectiveness of the controls, but internal audit is not responsible for the design or implementation
of the controls. The quantitative impact of the risk can help to prioritize and justify the controls, but
it is not sufficient to determine the appropriate type and level of controls. The identification of key
risk indicators can help to monitor and measure the risk and the performance of the controls, but it is
not the main driver of the control design. Reference: = Risk IT Framework, ISACA, 2022, p. 181

Question: 26

Which of the following is the MOST useful indicator to measure the efficiency of an identity and
access management process?

A. Number of tickets for provisioning new accounts

B. Average time to provision user accounts
C. Password reset volume per month
D. Average account lockout time

Answer: B

Explanation:
The average time to provision user accounts is the most useful indicator to measure the efficiency of
an identity and access management (IAM) process, because it reflects how quickly and smoothly the
process can grant access to the appropriate users. The average time to provision user accounts can
be calculated by dividing the total time spent on provisioning user accounts by the number of user
accounts provisioned in a given period. A lower average time indicates a more efficient IAM process,
as it means that users can access the resources they need without unnecessary delays or errors. A
higher average time may indicate problems or bottlenecks in the IAM process, such as manual steps,
complex workflows, lack of automation, or insufficient resources. The average time to provision user
accounts can also be compared across different applications, systems, or business units to identify
areas for improvement or best practices. The other options are less useful indicators to measure the
efficiency of an IAM process. The number of tickets for provisioning new accounts shows the demand
for the IAM process, but not how well the process meets the demand. The password reset volume
per month shows the frequency of password-related issues, but not how effectively the IAM process
handles them. The average account lockout time shows the impact of account lockouts on user
productivity, but not how efficiently the IAM process prevents or resolves them. Reference: = Top
Identity and Access Management Metrics

Question: 27

The analysis of which of the following will BEST help validate whether suspicious network activity is
malicious?

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A. Logs and system events

B. Intrusion detection system (IDS) rules
C. Vulnerability assessment reports
D. Penetration test reports

Answer: A

Explanation:
The analysis of logs and system events will best help validate whether suspicious network activity is
malicious, because they provide detailed and timely information about the source, destination,
content, and context of the network traffic. Logs and system events can be collected from various
sources, such as firewalls, routers, switches, servers, applications, and endpoints, and can be
correlated and analyzed using tools such as security information and event management (SIEM)
systems. By analyzing logs and system events, an organization can identify anomalies, patterns,
trends, and indicators of compromise (IOCs) that may signal malicious network activity, such as
unauthorized access, data exfiltration, malware infection, denial-of-service attack, or lateral
movement. Logs and system events can also help determine the scope, impact, and root cause of the
malicious network activity, and support the incident response and remediation process. Reference: =
Risk IT Framework, ISACA, 2022, p. 221

Question: 28

Which of the following is the MOST important requirement for monitoring key risk indicators (KRls)
using log analysis?

A. Obtaining logs m an easily readable format

B. Providing accurate logs m a timely manner
C. Collecting logs from the entire set of IT systems
D. implementing an automated log analysis tool

Answer: B

Explanation:
The most important requirement for monitoring key risk indicators (KRIs) using log analysis is
providing accurate logs in a timely manner, because this ensures that the risk data is reliable,
relevant, and up-to-date. Logs are records of events or activities that occur in IT systems, such as
network traffic, user actions, system errors, or security incidents. Log analysis is the process of
reviewing and interpreting logs to identify and assess risks, such as performance issues, operational
failures, compliance violations, or cyberattacks. By providing accurate logs in a timely manner, an
organization can monitor the current status and trends of its KRIs, which are metrics that measure
the level and impact of risks. Accurate logs mean that the logs are complete, consistent, and free of
errors or anomalies that may distort the risk data. Timely logs mean that the logs are available as
soon as possible after the events or activities occur, and that they are updated frequently to reflect
the latest changes. Providing accurate logs in a timely manner can help an organization to detect and
respond to risks promptly, and to support risk-based decision making and reporting. Reference: =

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Risk IT Framework, ISACA, 2022, p. 22

Question: 29

Which of the following is the MOST important outcome of reviewing the risk management process?

A. Assuring the risk profile supports the IT objectives

B. Improving the competencies of employees who performed the review
C. Determining what changes should be made to IS policies to reduce risk
D. Determining that procedures used in risk assessment are appropriate

Answer: A

Explanation:
The most important outcome of reviewing the risk management process is assuring that the risk
profile supports the IT objectives, because this ensures that the organization is managing its IT-
related risks in alignment with its business goals and priorities. The risk profile is a summary of the
key risks that the organization faces, their likelihood, impact, and response strategies. The IT
objectives are the specific and measurable outcomes that the organization expects to achieve from
its IT investments and activities. By reviewing the risk management process, the organization can
evaluate whether the risk profile is accurate, complete, and up-to-date, and whether the risk
responses are effective, efficient, and consistent with the IT objectives. The review can also identify
any gaps, issues, or opportunities for improvement in the risk management process, and provide
recommendations for enhancing the process and its outcomes. The review can also help to
communicate and report the value and performance of the risk management process to the senior
management, the board of directors, and other stakeholders. Reference: = Risk IT Framework, ISACA,
2022, p. 17

Question: 30

Which of the following should be the PRIMARY objective of promoting a risk-aware culture within an
organization?

A. Better understanding of the risk appetite

B. Improving audit results
C. Enabling risk-based decision making
D. Increasing process control efficiencies

Answer: C

Explanation:
The primary objective of promoting a risk-aware culture within an organization is enabling risk-based
decision making, because this helps the organization to achieve its goals and objectives while
managing its risks effectively and efficiently. A risk-aware culture is one where everyone understands
the organization’s approach to risk, takes personal responsibility to manage risk in everything they

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do, and encourages others to follow their example. A risk-aware culture also fosters communication,
collaboration, and learning about risk across the organization. By promoting a risk-aware culture, the
organization can empower its employees to make informed and balanced decisions that consider
both the potential benefits and the potential risks of their actions. This can enhance the
organization’s performance, resilience, and competitiveness in a dynamic and uncertain
environment. Reference: = Risk IT Framework, ISACA, 2022, p. 17

Question: 31

Which of the following is the BEST method to identify unnecessary controls?

A. Evaluating the impact of removing existing controls

B. Evaluating existing controls against audit requirements
C. Reviewing system functionalities associated with business processes
D. Monitoring existing key risk indicators (KRIs)

Answer: C

Explanation:
The best method to identify unnecessary controls is reviewing system functionalities associated with
business processes, because this can help to determine whether the controls are relevant, effective,
and efficient for the current business needs and objectives. System functionalities are the capabilities
and features of IT systems that support the execution and performance of business processes.
Business processes are the set of interrelated activities that transform inputs into outputs to deliver
value to customers or stakeholders. By reviewing system functionalities associated with business
processes, an organization can assess whether the controls are aligned with the process
requirements, expectations, and outcomes, and whether they add value or create waste. The review
can also identify any gaps, overlaps, redundancies, or conflicts among the controls, and any changes
or improvements that are needed to optimize the controls. The other options are less effective
methods to identify unnecessary controls. Evaluating the impact of removing existing controls can
help to measure the benefits and costs of the controls, but it does not address the root causes or
sources of the unnecessary controls. Evaluating existing controls against audit requirements can help
to ensure compliance and assurance, but it does not consider the business context or purpose of the
controls. Monitoring existing key risk indicators (KRIs) can help to measure the level and impact of
risks, but it does not evaluate the suitability or adequacy of the controls. Reference: = Surveying Staff
to Identify Unnecessary Internal Controls - Methodology and Results

Question: 32

What is the BEST information to present to business control owners when justifying costs related to
controls?

A. Loss event frequency and magnitude

B. The previous year's budget and actuals
C. Industry benchmarks and standards
D. Return on IT security-related investments

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Answer: D

Explanation:
The best information to present to business control owners when justifying costs related to controls
is the return on IT security-related investments, because this shows the value and benefits of the
controls in relation to their costs. Return on IT security-related investments is a metric that measures
the effectiveness and efficiency of IT security controls by comparing the amount of money saved or
gained from preventing or mitigating IT-related risks with the amount of money spent on
implementing and maintaining the controls. By presenting this information, business control owners
can see how the controls contribute to the achievement of the business objectives, such as reducing
losses, increasing revenues, enhancing customer satisfaction, or improving compliance. This
information can also help business control owners to prioritize and allocate resources for the most
critical and beneficial controls, and to optimize the balance between risk and return. Reference: =
Cost Control: How Businesses Use It to Increase Profits

Question: 33

A review of an organization s controls has determined its data loss prevention {DLP) system is
currently failing to detect outgoing emails containing credit card dat
a. Which of the following would be MOST impacted?
A. Key risk indicators (KRls)
B. Inherent risk
C. Residual risk
D. Risk appetite

Answer: C

Explanation:
Residual risk is the risk that remains after applying controls to mitigate the inherent risk. Inherent
risk is the risk that exists before considering the controls. Key risk indicators (KRIs) are metrics that
measure the level and impact of risks. Risk appetite is the amount and type of risk that an
organization is willing to accept in pursuit of its objectives. The failure of the data loss prevention
(DLP) system to detect outgoing emails containing credit card data would most impact the residual
risk, because it would increase the likelihood and impact of data leakage, data loss, and data
exfiltration incidents. These incidents could cause financial, reputational, legal, and regulatory
damages to the organization. The failure of the DLP system would also affect the KRIs, as they would
show a higher level of risk exposure and a lower level of control effectiveness. However, the KRIs are
not the risk itself, but rather the indicators of the risk. The failure of the DLP system would not
directly impact the inherent risk or the risk appetite, as they are independent of the controls. The
inherent risk would remain the same, as it is based on the nature and value of the data and the
threats and vulnerabilities that exist. The risk appetite would also remain the same, as it is based on
the organization’s culture, strategy, and stakeholder expectations. Therefore, the most impacted
factor would be the residual risk, as it reflects the actual risk level that the organization faces after
applying the controls. Reference: = Risk IT Framework, ISACA, 2022, p. 131

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Question: 34

A data processing center operates in a jurisdiction where new regulations have significantly
increased penalties for data breaches. Which of the following elements of the risk register is MOST
important to update to reflect this change?

A. Risk impact
B. Risk trend
C. Risk appetite
D. Risk likelihood

Answer: A

Explanation:
Risk impact is the potential loss or damage that a risk event can cause to an organization. Risk
impact can be expressed in qualitative or quantitative terms, such as financial, reputational,
operational, or legal. A risk register is a tool that records and tracks the key information about the
identified risks, such as their description, likelihood, impact, response, and status. A risk register
helps an organization to monitor and manage its risks effectively and efficiently. When there is a
change in the external or internal environment that affects the organization’s risks, such as new
regulations, the risk register should be updated to reflect this change. The most important element
of the risk register to update in this case is the risk impact, because the new regulations have
significantly increased the penalties for data breaches, which means that the potential loss or
damage that a data breach can cause to the organization has also increased. By updating the risk
impact, the organization can reassess the severity and priority of the data breach risk, and adjust its
risk response accordingly. The other elements of the risk register are less important to update in this
case. The risk trend shows the direction and rate of change of the risk over time, which may or may
not be affected by the new regulations. The risk appetite is the amount and type of risk that the
organization is willing to accept in pursuit of its objectives, which is unlikely to change due to the
new regulations. The risk likelihood is the probability of a risk event occurring, which is also
independent of the new regulations. Reference: = Risk IT Framework, ISACA, 2022, p. 131

Question: 35

Which of the following is the MOST important benefit of key risk indicators (KRIs)'

A. Assisting in continually optimizing risk governance

B. Enabling the documentation and analysis of trends
C. Ensuring compliance with regulatory requirements
D. Providing an early warning to take proactive actions

Answer: D

Explanation:

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The most important benefit of key risk indicators (KRIs) is providing an early warning to take
proactive actions, because this helps organizations to prevent or mitigate potential risks that may
impact their operations, objectives, or performance. KRIs are specific metrics that measure the level
and impact of risks, and provide timely signals that something may be going wrong or needs urgent
attention. By monitoring and analyzing KRIs, organizations can identify and assess emerging or
existing risks, and initiate appropriate risk responses before the risks escalate into significant issues.
This can enhance the organization’s resilience, competitiveness, and value creation. The other
options are less important benefits of KRIs. Assisting in continually optimizing risk governance is a
benefit of KRIs, but it is not the most important one. Risk governance is the framework and process
that defines how an organization manages its risks, including the roles, responsibilities, policies, and
standards. KRIs can help to evaluate and improve the effectiveness and efficiency of risk governance,
but they are not the only factor that influences it. Enabling the documentation and analysis of trends
is a benefit of KRIs, but it is not the most important one. Documenting and analyzing trends can help
organizations to understand the patterns, causes, and consequences of risks, and to learn from their
experiences. However, this benefit is more relevant for historical or retrospective analysis, rather
than for proactive action. Ensuring compliance with regulatory requirements is a benefit of KRIs, but
it is not the most important one. Compliance is the adherence to the laws, regulations, and standards
that apply to an organization’s activities and operations. KRIs can help to monitor and demonstrate
compliance, but they are not the only tool or objective for doing so. Reference: = Why Key Risk
Indicators Are Important for Risk Management 1

Question: 36

IT risk assessments can BEST be used by management:

A. for compliance with laws and regulations

B. as a basis for cost-benefit analysis.
C. as input for decision-making
D. to measure organizational success.

Answer: C

Explanation:
IT risk assessments can best be used by management as input for decision-making, because they
provide valuable information about the current and potential risks facing the organization’s IT
systems, networks, and data, and their impact on the organization’s objectives and performance. IT
risk assessments can help management to identify and prioritize the most critical and relevant risks,
and to evaluate and select the most appropriate and effective risk responses. IT risk assessments can
also help management to allocate and optimize the resources and budget for IT risk management,
and to communicate and report the risk status and performance to the senior management, the
board of directors, and other stakeholders. IT risk assessments can support management in making
informed and balanced decisions that consider both the opportunities and the threats of IT-related
activities and investments. Reference: = Complete Guide to IT Risk Management 1

Question: 37

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A risk practitioner has identified that the organization's secondary data center does not provide
redundancy for a critical application. Who should have the authority to accept the associated risk?

A. Business continuity director

B. Disaster recovery manager
C. Business application owner
D. Data center manager

Answer: C

Explanation:
The business application owner should have the authority to accept the associated risk, because
they are responsible for the performance and outcomes of the critical application, and they
understand the business requirements, expectations, and impact of the application. The business
application owner can also evaluate the trade-offs between the potential benefits and costs of the
application, and the potential risks and consequences of a disruption or failure of the application.
The business application owner can also communicate and justify their risk acceptance decision to
the senior management and other stakeholders, and ensure that the risk is monitored and reviewed
regularly. The other options are less appropriate to have the authority to accept the associated risk.
The business continuity director is responsible for overseeing the planning and execution of the
business continuity strategy, which includes ensuring the availability and resilience of the critical
business processes and applications. However, they are not the owner of the application, and they
may not have the full knowledge or authority to accept the risk on behalf of the business. The
disaster recovery manager is responsible for managing the recovery and restoration of the IT systems
and applications in the event of a disaster or disruption. However, they are not the owner of the
application, and they may not have the full knowledge or authority to accept the risk on behalf of the
business. The data center manager is responsible for managing the operation and maintenance of
the data center infrastructure, which includes providing the physical and environmental security,
power, cooling, and network connectivity for the IT systems and applications. However, they are not
the owner of the application, and they may not have the full knowledge or authority to accept the
risk on behalf of the business. Reference: = Risk IT Framework, ISACA, 2022, p. 181

Question: 38

Which of the following will BEST quantify the risk associated with malicious users in an organization?

A. Business impact analysis

B. Risk analysis
C. Threat risk assessment
D. Vulnerability assessment

Answer: C

Explanation:
A threat risk assessment will best quantify the risk associated with malicious users in an organization,

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because it focuses on identifying and evaluating the potential sources of harm or damage to the
organization’s assets, such as data, systems, or networks. A malicious user is a person who
intentionally and unauthorizedly accesses, modifies, destroys, or steals the organization’s
information or resources, for personal gain, revenge, espionage, or sabotage. A threat risk
assessment can help the organization to estimate the likelihood and impact of malicious user attacks,
based on factors such as the user’s motivation, capability, opportunity, and access level. A threat risk
assessment can also help the organization to determine the appropriate risk response strategies,
such as prevention, detection, mitigation, or transfer, to reduce the risk exposure and impact of
malicious user attacks. Reference: = Risk IT Framework, ISACA, 2022, p. 141

Question: 39

Which of the following is the MOST important element of a successful risk awareness training
program?

A. Customizing content for the audience

B. Providing incentives to participants
C. Mapping to a recognized standard
D. Providing metrics for measurement

Answer: A

Explanation:
The most important element of a successful risk awareness training program is customizing content
for the audience, because this ensures that the training is relevant, engaging, and effective for the
learners. Customizing content for the audience means tailoring the training materials and methods
to suit the specific needs, preferences, and characteristics of the target group, such as their roles,
responsibilities, knowledge, skills, attitudes, and learning styles. Customizing content for the
audience can help to achieve the following benefits:
Increase the motivation and interest of the learners, as they can see the value and applicability of the
training to their work and goals.
Enhance the comprehension and retention of the learners, as they can relate the training content to
their prior knowledge and experience, and use examples and scenarios that are familiar and realistic
to them.
Improve the transfer and application of the learners, as they can practice and apply the training
content to their actual work situations and challenges, and receive feedback and support that are
relevant and useful to them. Reference: = Implementing risk management training and awareness
(part 1) 1

Question: 40

Whether the results of risk analyses should be presented in quantitative or qualitative terms should
be based PRIMARILY on the:

A. requirements of management.
B. specific risk analysis framework being used.

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C. organizational risk tolerance

D. results of the risk assessment.

Answer: A

Explanation:
The results of risk analyses should be presented in quantitative or qualitative terms based primarily
on the requirements of management, because they are the intended audience and users of the risk
information, and they have the authority and responsibility to make risk-based decisions. The
requirements of management may vary depending on the purpose, scope, and context of the risk
analysis, and the level of detail, accuracy, and reliability that they need. Quantitative risk analysis
uses numerical data and mathematical models to estimate the probability and impact of risks, and to
express the risk exposure and value in monetary or other measurable units. Qualitative risk analysis
uses descriptive data and subjective judgments to assess the likelihood and severity of risks, and to
rank the risks according to their relative importance or priority. Both methods have their advantages
and disadvantages, and they can be used separately or together, depending on the situation and the
availability of data and resources. However, the primary factor that determines the choice of the
method is the requirements of management, as they are the ones who will use the risk information
to support their objectives, strategies, and actions. Reference: = Risk IT Framework, ISACA, 2022,
p. 141

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