CRISC: Certified in Risk and Information Systems Control

Which of the following is the MOST important reason to maintain key risk indicators (KRIs)?

In order to avoid risk
Complex metrics require fine-tuning
Risk reports need to be timely
Threats and vulnerabilities change over time

Correct answer: D

Explanation:

Threats and vulnerabilities change over time and KRI maintenance ensures that KRIs continue to effectively capture these changes.The risk environment is highly dynamic as the enterprise's internal and external environments are constantly changing. Therefore, the set of KRIs needs to be changed over time, so that they can capture the changes in threat and vulnerability.

Threats and vulnerabilities change over time and KRI maintenance ensures that KRIs continue to effectively capture these changes.

The risk environment is highly dynamic as the enterprise's internal and external environments are constantly changing. Therefore, the set of KRIs needs to be changed over time, so that they can capture the changes in threat and vulnerability.

You are the project manager of a HGT project that has recently finished the final compilation process. The project customer has signed off on the project completion and you have to do few administrative closure activities. In the project, there were several large risks that could have wrecked the project but you and your project team found some new methods to resolve the risks without affecting the project costs or project completion date. What should you do with the risk responses that you have identified during the project's monitoring and controlling process?

Include the responses in the project management plan.
Include the risk responses in the risk management plan.
Include the risk responses in the organization's lessons learned database.
Nothing. The risk responses are included in the project's risk register already.

Correct answer: C

Explanation:

The risk responses that do not exist up till then, should be included in the organization's lessons learned database so other project managers can use these responses in their project if relevant.

You are the project manager of GHT project. You have identified a risk event on your project that could save $100,000 in project costs if it occurs. Which of the following statements BEST describes this risk event?

This risk event should be mitigated to take advantage of the savings.
This is a risk event that should be accepted because the rewards outweigh the threat to theproject.
This risk event should be avoided to take full advantage of the potential savings.
This risk event is an opportunity to the project and should be exploited.

Correct answer: D

Explanation:

This risk event has the potential to save money on project costs, so it is an opportunity, and the appropriate strategy to use in this case is the exploit strategy. The exploit response is one of the strategies to negate risks or threats appear in a project. This strategy may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized.Exploiting a risk event provides opportunities for positive impact on a project. Assigning more talented resources to the project to reduce the time to completion is an example of exploit response.

This risk event has the potential to save money on project costs, so it is an opportunity, and the appropriate strategy to use in this case is the exploit strategy. The exploit response is one of the strategies to negate risks or threats appear in a project. This strategy may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized.

Exploiting a risk event provides opportunities for positive impact on a project. Assigning more talented resources to the project to reduce the time to completion is an example of exploit response.

You are the project manager of a large construction project. This project will last for 18 months and will cost $750,000 to complete. You are working with your project team, experts, and stakeholders to identify risks within the project before the project work begins. Management wants to know why you have scheduled so many risk identification meetings throughout the project rather than just initially during the project planning. What is the best reason for the duplicate risk identification sessions?

The iterative meetings allow all stakeholders to participate in the risk identification processesthroughout the project phases.
The iterative meetings allow the project manager to discuss the risk events which have passed theproject and which did not happen.
The iterative meetings allow the project manager and the risk identification participants to identifynewly discovered risk events throughout the project.
The iterative meetings allow the project manager to communicate pending risks events duringproject execution.

Correct answer: C

Explanation:

Risk identification is an iterative process because new risks may evolve or become known as theproject progresses through its life cycle.

Risk identification is an iterative process because new risks may evolve or become known as the

project progresses through its life cycle.

You are the risk official in Bluewell Inc. You are supposed to prioritize several risks. A risk has a rating for occurrence, severity, and detection as 4, 5, and 6, respectively. What Risk Priority Number (RPN) you would give to it?

120
100
15
30

Correct answer: A

Explanation:

Steps involving in calculating risk priority number are as follows:RPN = Severity * Occurrence * DetectionHence,RPN = 4 * 5 * 6= 120

Steps involving in calculating risk priority number are as follows:

RPN = Severity * Occurrence * Detection

Hence,

RPN = 4 * 5 * 6

= 120

Which of the following is the MOST important use of KRIs?

Providing a backward-looking view on risk events that have occurred
Providing an early warning signal
Providing an indication of the enterprise's risk appetite and tolerance
Enabling the documentation and analysis of trends

Correct answer: B

Explanation:

Key Risk Indicators are the prime monitoring indicators of the enterprise. KRIs are highly relevant and possess a high probability of predicting or indicating important risk. KRIs help in avoiding excessively large number of risk indicators to manage and report that a large enterprise may have.As KRIs are the indicators of risk, hence its most important function is to effectively give an early warning signal that a high risk is emerging to enable management to take proactive action before the risk actually becomes a loss.

Key Risk Indicators are the prime monitoring indicators of the enterprise. KRIs are highly relevant and possess a high probability of predicting or indicating important risk. KRIs help in avoiding excessively large number of risk indicators to manage and report that a large enterprise may have.

As KRIs are the indicators of risk, hence its most important function is to effectively give an early warning signal that a high risk is emerging to enable management to take proactive action before the risk actually becomes a loss.

Which of the following role carriers will decide the Key Risk Indicator of the enterprise?

Each correct answer represents a part of the solution. (Choose two.)

Business leaders
Senior management
Human resource
Chief financial officer

Correct answer: AB

Explanation:

An enterprise may have hundreds of risk indicators such as logs, alarms and reports. The CRISC will usually need to work with senior management and business leaders to determine which risk indicators will be monitored on a regular basis and be recognized as KRIs.

What are the requirements for creating risk scenarios? Each correct answer represents a part of the solution. (Choose three.)

Determination of cause and effect
Determination of the value of business process at risk
Potential threats and vulnerabilities that could cause loss
Determination of the value of an asset

Correct answer: BCD

Explanation:

Creating a scenario requires determination of the value of an asset or a business process at risk and the potential threats and vulnerabilities that could cause loss. The risk scenario should be assessed for relevance and realism, and then entered into the risk register if found to be relevant.In practice following steps are involved in risk scenario development:

Creating a scenario requires determination of the value of an asset or a business process at risk and the potential threats and vulnerabilities that could cause loss. The risk scenario should be assessed for relevance and realism, and then entered into the risk register if found to be relevant.

In practice following steps are involved in risk scenario development:

You work as the project manager for Bluewell Inc. Your project has several risks that will affect several stakeholder requirements. Which project management plan will define who will be available to share information on the project risks?

Resource Management Plan
Risk Management Plan
Stakeholder management strategy
Communications Management Plan

Correct answer: D

Explanation:

The Communications Management Plan defines, in regard to risk management, who will be available to share information on risks and responses throughout the project.The Communications Management Plan aims to define the communication necessities for the project and how the information will be circulated. The Communications Management Plan sets the communication structure for the project. This structure provides guidance for communication throughout the project's life and is updated as communication needs change. The Communication Managements Plan identifies and defines the roles of persons concerned with the project. It includes a matrix known as the communication matrix to map the communication requirements of the project.

The Communications Management Plan defines, in regard to risk management, who will be available to share information on risks and responses throughout the project.

The Communications Management Plan aims to define the communication necessities for the project and how the information will be circulated. The Communications Management Plan sets the communication structure for the project. This structure provides guidance for communication throughout the project's life and is updated as communication needs change. The Communication Managements Plan identifies and defines the roles of persons concerned with the project. It includes a matrix known as the communication matrix to map the communication requirements of the project.

Which of the following controls is an example of non-technical controls?

Access control
Physical security
Intrusion detection system
Encryption

Correct answer: B

Explanation:

Physical security is an example of non-technical control. It comes under the family of operational controls.

Vendor:	ISACA
Exam Code:	CRISC
Exam Name:	Certified in Risk and Information Systems Control
Date:	Jul 17, 2024
File Size:	943 KB

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