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NEW QUESTION # 345
Which of the following aspects are included in the Internal Environment Framework of COSO ERM?
Each correct answer represents a complete solution. Choose three.
- A. Enterprise's risk appetite
- B. Enterprise's working environment
- C. Enterprise's integrity and ethical values
- D. Enterprise's human resource standards
Answer: A,C,D
Explanation:
The internal environment for risk management is the foundational level of the COSO ERM framework, which describes the philosophical basics of managing risks within the implementing enterprise. The different aspects of the internal environment include theenterprise's: Philosophy on risk management Risk appetite Attitudes of Board of Directors Integrity and ethical values Commitment to competence Organizational structure Authority and responsibility Human resource standards
NEW QUESTION # 346
Which of the following is the MOST common concern associated with outsourcing to a service provider?
- A. Unauthorized data usage
- B. Lack of technical expertise
- C. Denial of service attacks
- D. Combining incompatible duties
Answer: D
NEW QUESTION # 347
Which of the following is the BEST way for a risk practitioner to help management prioritize risk response?
- A. Implement an organization-specific risk taxonomy.
- B. Explain risk details to management.
- C. Align business objectives to the risk profile.
- D. Assess risk against business objectives
Answer: D
NEW QUESTION # 348
Which of the following is NOT true for effective risk communication?
- A. Any communication on risk must be relevant
- B. For each risk, critical moments exist between its origination and its potential business consequence
- C. Risk information must be known and understood by all stakeholders.
- D. Use of technical terms of risk
Answer: D
Explanation:
Section: Volume D
Explanation:
For effective communication, information communicated should not inundate the recipients. All ground rules of good communication apply to communication on risk. This includes the avoidance of jargon and technical terms regarding risk because the intended audiences are generally not deeply technologically skilled. Hence use of technical terms is avoided for effective communication Incorrect Answers:
A, C, D: These all are true for effective risk communication. For effective risk communication the risk information should be clear, concise, useful and timely. Risk information must be known and understood by all the stakeholders. Information or communication should not overwhelm the recipients. This includes the avoidance of technical terms regarding risk because the intended audiences are generally not much technologically skilled.
Any communication on risk must be relevant. Technical information that is too detailed or is sent to inappropriate parties will hinder, rather than enable, a clear view of risk. For each risk, critical moments exist between its origination and its potential business consequence.
Information should also be aimed at the correct target audience and available on need-to-know basis. Hence for effective risk communication risk information should be:
* Clear
* Concise
* Useful
* Timely given
* Aimed at the correct audience
* Available on need-to-know basis
NEW QUESTION # 349
The MAIN purpose of selecting a risk response is to.
- A. ensure organizational awareness of the risk level
- B. mitigate the residual risk to be within tolerance
- C. ensure compliance with local regulatory requirements
- D. demonstrate the effectiveness of risk management practices.
Answer: A
NEW QUESTION # 350
Which of the following is the GREATEST benefit of updating the risk register to include outcomes from a risk assessment?
- A. It validates the organization's risk appetite.
- B. It helps to mitigate internal and external risk factors.
- C. It maintains evidence of compliance with risk policy.
- D. It facilitates timely risk-based decisions.
Answer: D
Explanation:
Section: Volume D
NEW QUESTION # 351
Which of the following would provide the BEST guidance when selecting an appropriate risk treatment plan?
- A. Risk mitigation budget
- B. Cost-benefit analysis
- C. Business impact analysis
- D. Return on investment
Answer: B
Explanation:
Section: Volume D
NEW QUESTION # 352
When testing the security of an IT system, il is MOST important to ensure that;
- A. agreement is obtained from stakeholders.
- B. tests are conducted after business hours.
- C. external experts execute the test.
- D. operators are unaware of the test.
Answer: A
NEW QUESTION # 353
The PRIMARY benefit associated with key risk indicators (KRls) is that they:
- A. benchmark the organization's risk profile.
- B. identify trends in the organization's vulnerabilities.
- C. enable ongoing monitoring of emerging risk.
- D. help an organization identify emerging threats.
Answer: C
NEW QUESTION # 354
A risk owner should be the person accountable for:
- A. implementing actions.
- B. the business process.
- C. managing controls.
- D. the risk management process
Answer: A
NEW QUESTION # 355
An organization has implemented a system capable of comprehensive employee monitoring. Which of the following should direct how the system is used?
- A. Employee code of conduct
- B. Organizational policy
- C. Industry best practices
- D. Organizational strategy
Answer: B
NEW QUESTION # 356
Which of the following is MOST important to ensure when reviewing an organization's risk register?
- A. Residual risk is less than inherent risk.
- B. Vulnerabilities have separate entries.
- C. Risk ownership is recorded.
- D. Control ownership is recorded.
Answer: C
NEW QUESTION # 357
Which of the following steps ensure effective communication of the risk analysis results to relevant stakeholders? Each correct answer represents a complete solution. Choose three.
- A. Communicate the negative impacts of the events only, it needs more consideration
- B. Communicate the risk-return context clearly
- C. Provide decision makers with an understanding of worst-case and most probable scenarios,due diligence exposures and significant reputation, legal or regulatory considerations
- D. The results should be reported in terms and formats that are useful to support business decisions
Answer: B,C,D
Explanation:
Section: Volume B
Explanation:
The result of risk analysis process is being communicated to relevant stakeholders. The steps that are involved in communication are:
* The results should be reported in terms and formats that are useful to support business decisions.
* Coordinate additional risk analysis activity as required by decision makers, like report rejection and scope adjustment
* Communicate the risk-return context clearly, which include probabilities of loss and/or gain, ranges, and confidence levels (if possible) that enable management to balance risk-return.
* Identify the negative impacts of events that drive response decisions as well as positive impacts of events that represent opportunities which should channel back into the strategy and objective setting process.
* Provide decision makers with an understanding of worst-case and most probable scenarios, due diligence exposures and significant reputation, legal or regulatory considerations.
Incorrect Answers:
C: Communicate the negative impacts of events that drive response decisions as well as positive impacts of events that represent opportunities which should channel back into the strategy and objective setting process, for effective communication. Only negative impacts are not considered alone.
NEW QUESTION # 358
In addition to the risk register, what should a risk practitioner review to develop an understanding of the organization's risk profile?
- A. The asset profile
- B. Key risk indicators (KRls)
- C. Business objectives
- D. The control catalog
Answer: C
NEW QUESTION # 359
A large organization needs to report risk at all levels for a new centralized virtualization project to reduce cost and improve performance. Which of the following would MOST effectively represent the overall risk of the project to senior management?
- A. Risk heat map
- B. Centralized risk register
- C. Key risk indicators (KRIs)
- D. Aggregated key performance indicators (KPls)
Answer: A
NEW QUESTION # 360
Which of the following is the MOST important objective of an enterprise risk management (ERM) program?
- A. To provide a bottom-up view of the most significant risk scenarios
- B. To optimize costs of managing risk scenarios in the organization
- C. To create a comprehensive view of critical risk to the organization
- D. To create a complete repository of risk to the organization
Answer: C
NEW QUESTION # 361
Which of the following is the BEST key performance indicator (KPI) to measure the effectiveness of a vulnerability management process?
- A. Number of vulnerabilities identified during the period
- B. Number of vulnerabilities re-opened during the period
- C. Percentage of vulnerabilities remediated within the agreed service level
- D. Percentage of vulnerabilities escalated to senior management
Answer: C
Explanation:
Section: Volume D
NEW QUESTION # 362
The BEST control to mitigate the risk associated with project scope creep is to:
- A. apply change management procedures
- B. ensure extensive user involvement
- C. consult with senior management on a regular basis
- D. deploy CASE tools in software development
Answer: A
Explanation:
Section: Volume D
NEW QUESTION # 363
The PRIMARY reason, a risk practitioner would be interested in an internal audit report is to:
- A. plan awareness programs for business managers
- B. maintain a risk register based on noncompliances
- C. assist in the development of a risk profile
- D. evaluate maturity of the risk management process
Answer: D
Explanation:
Section: Volume D
NEW QUESTION # 364
Which of the following should be the risk practitioner's FIRST course of action when an organization plans to adopt a cloud computing strategy?
- A. Request a budget for implementation
- B. Create a cloud computing policy.
- C. Perform a controls assessment.
- D. Conduct a threat analysis.
Answer: D
NEW QUESTION # 365
Walter is the project manager of a large construction project. He'll be working with several vendors on the project. Vendors will be providing materials and labor for several parts of the project. Some of the works in the project are very dangerous so Walter has implemented safety requirements for all of the vendors and his own project team. Stakeholders for the project have added new requirements, which have caused new risks in the project. A vendor has identified a new risk that could affect the project if it comes into fruition.
Walter agrees with the vendor and has updated the risk register and created potential risk responses to mitigate the risk. What should Walter also update in this scenario considering the risk event?
- A. Project management plan
- B. Project contractual relationship with the vendor
- C. Project communications plan
- D. Project scope statement
Answer: A
Explanation:
Explanation/Reference:
Explanation:
When new risks are identified as part of the scope additions, Walter should update the risk register and the project management plan to reflect the responses to the risk event.
Incorrect Answers:
B: The project communications management plan may be updated if there's a communication need but the related to the risk event, not the communication of the risks.
C: The contractual relationship won't change with the vendor as far as project risks are concerned.
D: The project scope statement is changed as part of the scope approval that has already happened.
NEW QUESTION # 366
While considering entity-based risks, which dimension of the COSO ERM framework is being referred?
- A. Organizational levels
- B. Risk components
- C. Strategic objectives
- D. Risk objectives
Answer: A
Explanation:
Section: Volume C
Explanation:
The organizational levels of the COSO ERM framework describe the subsidiary, business unit, division, and entity-levels of aspects of risk solutions.
Incorrect Answers:
B: Risk components includes Internal Environment, Objectives settings, Event identification, Risk assessment, Risk response, Control activities, Information and communication, and monitoring.
C: Strategic objectives includes strategic, operational, reporting, and compliance risks; and not entity-based risks.
D: This is not a valid answer.
NEW QUESTION # 367
Which of the following BEST indicates the effectiveness of anti-malware software?
- A. Number of successful attacks by malicious software
- B. Number of staff hours lost due to malware attacks
- C. Number of patches made to anti-malware software
- D. Number of downtime hours in business critical servers
Answer: C
NEW QUESTION # 368
What should be the PRIMARY objective for a risk practitioner performing a post-implementation review of an IT risk mitigation project?
- A. Validating the risk mitigation project has been completed
- B. Confirming that the project budget was not exceeded
- C. Documenting project lessons learned
- D. Verifying that the risk level has been lowered
Answer: D
NEW QUESTION # 369
Which of the following test is BEST to map for confirming the effectiveness of the system access management process?
- A. the vendor database to user accounts.
- B. user accounts to access requests.
- C. access requests to user accounts.
- D. user accounts to human resources (HR) records.
- E. Explanation:
Tying user accounts to access requests confirms that all existing accounts have been approved. Hence, the effectiveness of the system access management process can be accounted.
Answer: B
Explanation:
is incorrect. Tying access requests to user accounts confirms that all access requests have been processed; however, the test does not consider user accounts that have been established without the supporting access request. Answer:A is incorrect. Tying user accounts to human resources (HR) records confirms whether user accounts are uniquely tied to employees, not accounts for the effectiveness of the system access management process. Answer:C is incorrect. Tying vendor records to user accounts may confirm valid accounts on an ecommerce application, but it does not consider user accounts that have been established without the supporting access request.
NEW QUESTION # 370
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