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CRISC Interactive EBook - Well CRISC Prep

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ISACA Certified in Risk and Information Systems Control Sample Questions (Q1501-Q1506):

NEW QUESTION # 1501
You are the project manager for your company and a new change request has been approved for your project. This change request, however, has introduced several new risks to the project. You have communicated these risk events and the project stakeholders understand the possible effects these risks could have on your project. You elect to create a mitigation response for the identified risk events. Where will you record the mitigation response?

A. Explanation:
The Identified risks and potential responses are documented in the risk register. A risk register is an inventory of risks and exposure associated with those risks. Risks are commonlyfound in project management practices, and provide information to identify, analyze, and manage risks. Typically a risk register contains: A description of the risk The impact should this event actually occur The probability of its occurrence Risk Score (the multiplication of Probability and Impact) A summary of the planned response should the event occur A summary of the mitigation (the actions taken in advance to reduce the probability and/or impact of the event) Ranking of risks by Risk Score so as to highlight the highest priority risks to all involved.
B. Risk register
C. Risk management plan
D. Risk log
E. Project management plan

Answer: B

Explanation:
is incorrect. The risk management plan is an input to the risk response planning, but it is not the best choice for thisquestionoption B is incorrect. This is not a valid choice for thequestionoption C is incorrect. The project management plan is the parent of the risk management plan, but the best choice is the risk register.

NEW QUESTION # 1502
Which of the following would be MOST helpful to a risk practitioner when ensuring that mitigated risk remains within acceptable limits?

A. Building an organizational risk profile after updating the risk register
B. Implementing a process for ongoing monitoring of control effectiveness
C. Ensuring risk owners participate in a periodic control testing process
D. Designing a process for risk owners to periodically review identified risk

Answer: B

Explanation:
The most helpful activity for a risk practitioner when ensuring that mitigated risk remains within acceptable limits is to implement a process for ongoing monitoring of control effectiveness. This would enable the risk practitioner to track the performance of the controls, identify any deviations or gaps, and take corrective actions as needed. Ongoing monitoring of control effectiveness would also provide assurance that the risk responses are working as intended, and that the residual risk is aligned with the risk appetite and tolerance of the enterprise. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 4, Section 4.3.1, page 188.

NEW QUESTION # 1503
Which of the following is the BEST way to identify changes in the risk profile of an organization?

A. Monitor key risk indicators (KRIs).
B. Monitor key performance indicators (KPIs).
C. Interview the risk owner.
D. Conduct a gap analysis

Answer: A

Explanation:
The best way to identify changes in the risk profile of an organization is to monitor key risk indicators (KRIs), which are metrics that provide information on the level of exposure to a given operational risk1. KRIs can help to monitor the changes in risk levels over time, identify emerging risks, and trigger risk response actions when the risk exceeds the acceptable thresholds2. KRIs can also help to align the risk management strategy with the business objectives and context. The other options are not the best ways to identify changes in the risk profile of an organization, as they do not provide the same level of insight and guidance as KRIs. Monitoring key performance indicators (KPIs) may show the results or outcomes of the business processes, but not the risks or uncertainties that affect them. Interviewing the risk owner may provide some subjective or qualitative information on the risk perception or attitude, but not the objective or quantitative data on the risk exposure or impact. Conducting a gap analysis may show the difference between the current and desired state of the organization, but not the causes or sources of the risk. References = Key Risk Indicators; Key Risk Indicators:
A Practical Guide

NEW QUESTION # 1504
During a risk assessment of a financial institution, a risk practitioner discovers that tellers can initiate and approve transactions of significant value. This team is also responsible for ensuring transactions are recorded and balances are reconciled by the end of the day. Which of the following is the risk practitioner's BEST recommendation to mitigate the associated risk?

A. Require a second level of approval.
B. Implement separation of duties.
C. Require a code of ethics.
D. Implement continuous monitoring.

Answer: B

NEW QUESTION # 1505
Which of the following is MOST important for developing effective key risk indicators (KRIs)?

A. Engaging sponsorship by senior management
B. Including input from risk and business unit management
C. Developing in collaboration with internal audit
D. Utilizing data and resources internal to the organization

Answer: B

NEW QUESTION # 1506
......

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Paul Ward Paul Ward

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