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ISACA IT Risk Fundamentals Certificate Exam Sample Questions (Q101-Q106):
NEW QUESTION # 101
Which of the following is the MAIN reason to include previously overlooked risk in a risk report?
Answer: C
Explanation:
Including previously overlooked risks in a risk report ensures the dashboard's completeness and comprehensiveness. Here's an explanation:
* Comprehensive Risk Management:To achieve comprehensive risk management, it's essential to consider all potential risks, including those previously overlooked. This ensures that the risk dashboard reflects the true risk landscape of the organization.
* Assurance of Completeness:Adding overlooked risks provides assurance to stakeholders that the risk management process is thorough and that no significant risks are ignored. This completeness is crucial for maintaining confidence in the organization's risk management efforts.
* References:Professional standards, such as ISA 315, emphasize the importance of a complete and accurate understanding of all risks to ensure the effectiveness of the risk management process. Ensuring that all risks are considered, including previously overlooked ones, aligns with these standards and best practices.
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NEW QUESTION # 102
Key risk indicators (KRIs) are used for which of the following purposes when developing a project plan?
Answer: B
Explanation:
Key Risk Indicators (KRIs) are early warning metrics that help organizations identify and monitor potential risks before they escalate into significant issues. When developing a project plan, KRIs are most effectively used for performing a gap analysis, as they help compare the current risk posture with the desired risk management objectives.
Why KRIs Are Used for Gap Analysis?
* Identifying Weaknesses in Risk Management:
* KRIs highlight areas where existing risk controls are insufficient or where new threats may emerge.
* They provide quantitative and qualitative data to measure whether risk mitigation strategies are working effectively.
* Improving Risk Response Planning:
* KRIs help assess deviations from expected risk thresholds, allowing organizations to adjust risk responses accordingly.
* By comparing current conditions with benchmarks, organizations can identify gaps in security, compliance, and resilience measures.
* Enhancing Decision-Making in Project Planning:
* A well-executed gap analysis using KRIs ensures that project plans include appropriate risk management strategies from the start.
* This minimizes unexpected disruptions, cost overruns, and compliance issues during project execution.
Why Not the Other Options?
* Option A (Determining resource allocation):
* KRIs provide risk insights, but they do not directly allocate resources. Resource allocation depends on project budgets and priorities rather than just KRIs.
* Option B (Assigning risk owners):
* KRIs help identify risks, but the responsibility for managing risks is typically assigned based on organizational risk management frameworks and governance policies, not KRIs alone.
Conclusion:
KRIs are best used for gap analysis because they help compare actual risk exposure against defined risk management goals, allowing organizations to identify vulnerabilities and improve their risk mitigation strategies.
# Reference: Principles of Incident Response & Disaster Recovery - Module 1: Risk Management Framework
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NEW QUESTION # 103
For risk reporting to adequately reflect current risk management capabilities, the risk report should be based on the enterprise:
Answer: C
Explanation:
* Understanding Risk Reporting:
* For risk reporting to accurately reflect current risk management capabilities, it should be based on the organization's current risk profile, which provides a comprehensive view of all identified risks, their severity, and their impact on the organization.
* Components of Risk Reporting:
* Risk Management Framework(A) provides the overall approach and guidelines for managing risk but does not reflect the current state of risks.
* Risk Appetite(C) defines the level of risk the organization is willing to accept but does not detail the current risks being managed.
* Current Risk Profile:
* The risk profile offers a detailed snapshot of the current risks, including emerging risks, changes in existing risks, and the effectiveness of the controls in place to manage these risks.
* This aligns with guidelines from frameworks such as ISO 31000 and COSO ERM, which stress the importance of a dynamic and current view of the risk landscape for effective risk reporting.
* Conclusion:
* Therefore, to reflect current risk management capabilities, the risk report should be based on the enterprise'srisk profile.
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NEW QUESTION # 104
Which of the following is important to ensure when validating the results of a frequency analysis?
Answer: C
Explanation:
When validating the results of a frequency analysis, it is important to ensure that estimates used during the analysis were based on reliable and historical data. Here's why:
* Estimates Used During the Analysis Were Based on Reliable and Historical Data: This ensures that the analysis is grounded in reality and reflects actual historical trends and patterns. Reliable data enhances the accuracy and credibility of the analysis, making the results more trustworthy and actionable.
* The Analysis Was Conducted by an Independent Third Party: While this can add an element of impartiality, it is not as critical as the accuracy and reliability of the data used. The focus should be on the quality and relevance of the data.
* The Analysis Method Has Been Fully Documented and Explained: Documentation is important for
* transparency and reproducibility, but it does not directly impact the accuracy of the frequency estimates.
The reliability of the data is paramount.
Therefore, ensuring that estimates are based on reliable and historical data is the most important factor in validating a frequency analysis.
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NEW QUESTION # 105
Which of the following provides the BEST input when developing specific, measurable, realistic, and time- bound (SMART) metrics?
Answer: B
Explanation:
When developing SMART (Specific, Measurable, Achievable, Realistic, and Time-bound) metrics, the best input comes from associated business functions or services. This is because SMART metrics must be directly aligned with the organization's operational needs and goals to ensure they are both meaningful and actionable.
Why Are Business Functions the Best Input?
* Direct Alignment with Organizational Goals:
* Business functions define critical operations, making them the most relevant source for setting practical and measurable performance indicators.
* Metrics derived from actual business activities ensure that performance tracking is realistic and achievable.
* Improved Risk and Performance Monitoring:
* Using business functions as input ensures that metrics measure real-world impacts, such as system availability, service uptime, and operational efficiency.
* This helps in tracking key performance indicators (KPIs) and aligning them with risk management.
* Ensuring Actionable and Time-Bound Goals:
* Since business functions drive daily operations, they provide the most realistic timelines and benchmarks for evaluating success.
* Metrics based on actual service levels ensure that goals are practical and time-sensitive.
Why Not the Other Options?
* Option B (Industry best practices):
* While best practices provide general guidelines, they do not always align with an organization' s specific needs.
* Best practices often need customization to be effectively integrated into SMART metrics.
* Option C (Enterprise risk management strategy):
* ERM strategies provide a high-level risk framework, but they do not offer detailed, operational-level input required for SMART metrics.
* Business functions translate strategy into practical, measurable performance indicators.
Conclusion:
The best input for developing SMART metrics comes from associated business functions or services because they ensure that metrics are relevant, measurable, and aligned with actual business performance.
# Reference: Principles of Incident Response & Disaster Recovery - Module 2: Business Impact Analysis and Performance Metrics
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NEW QUESTION # 106
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