Section: Volume D

Explanation/Reference:
Explanation:
Mitigation is the strategy that provides for the definition and implementation of controls to address the risk described. Here in this scenario, you are trying to reduce the risk of operation failure by guiding administrator to take daily backup, hence it is risk mitigation.
Risk mitigation attempts to reduce the probability of a risk event and its impacts to an acceptable level.
Risk mitigation can utilize various forms of control carefully integrated together. The main control types are:
Managerial(e.g.,policies)

Technical (e.g., tools such as firewalls and intrusion detection systems)

Operational (e.g., procedures, separation of duties)

Preparedness activities

Incorrect Answers:
A: The scenario does not describe risk avoidance. Avoidance is a strategy that provides for not implementing certain activities or processes that would incur risk.
B: The scenario does not describe the sharing of risk. Transference is the strategy that provides for sharing risk with partners or taking insurance coverage.
C: The scenario does not describe risk acceptance, Acceptance is a strategy that provides for formal acknowledgment of the existence of a risk and the monitoring of that risk.

C, and D are incorrect. These options are not relevant to the change of sensitivity of the monitoring tools.

The most important foundational element of an effective three lines of defense model for an organization is clearly defined roles and responsibilities. The three lines of defense model is a framework that outlines the roles and responsibilities of different functions or groups within the organization in relation to risk management and internal control1. The three lines of defense are:
* The first line of defense, which consists of the operational management and staff who own and manage the risks associated with their activities and processes. They are responsible for identifying, assessing, and mitigating the risks, as well as designing, implementing, and operating the controls.
* The second line of defense, which consists of the specialized functions or units that provide oversight, guidance, and support to the first line of defense in managing the risks and controls. They are responsible for developing and maintaining the risk management framework, policies, and standards, as well as monitoring and reporting on the risk and control performance.
* The third line of defense, which consists of the internal audit function that provides independent and objective assurance on the effectiveness and efficiency of the risk management and internal control system. They are responsible for evaluating and testing the design and operation of the risks and controls, as well as reporting and recommending improvements to the senior management and the board.
Clearly defined roles and responsibilities are essential for ensuring that the three lines of defense model works effectively and efficiently. They help to avoid confusion, duplication, or gaps in the risk management and internal control activities, as well as to ensure accountability, coordination, and communication among the different functions or groups. They also help to establish the appropriate level of independence, authority, and competence for each line of defense, as well as to align the risk management and internal control objectives and strategies with the organization's goals and values2.
The other options are not the most important foundational element of an effective three lines of defense model for an organization, as they are either less relevant or less specific than clearly defined roles and responsibilities. A robust risk aggregation tool set is a set of methods or techniques that enable the organization to collect, consolidate, and analyze the risk data and information from different sources, levels, or perspectives. A robust risk aggregation tool set can help to enhance the risk identification, assessment, and reporting processes, as well as to support the risk decision making and prioritization.
However, a robust risk aggregation tool set is not the most important foundational element of an effective three lines of defense model for an organization, as it does not address the roles and responsibilities of the different functions or groups in relation to risk management and internal control.
A well-established risk management committee is a group of senior executives or managers who are responsible for overseeing and directing the risk management activities and performance of the organization. A well-established risk management committee can help to ensure the alignment and integration of the risk management objectives and strategies with the organization's goals and values, as well as to provide guidance and support to the different functions or groups involved in risk management and internal control. However, a well-established risk management committee is not the most important foundational element of an effective three lines of defense model for an organization, as it does not cover the roles and responsibilities of the operational management and staff, the specialized functions or units, or the internal audit function. Well-documented and communicated escalation
* procedures are the steps or actions that are taken to report and resolve any issues or incidents that may affect the risk management and internal control activities or performance of the organization.
Well-documented and communicated escalation procedures can help to ensure the timely and appropriate response and resolution of the issues or incidents, as well as to inform and involve the relevant stakeholders and authorities. However, well-documented and communicated escalation procedures are not the most important foundational element of an effective three lines of defense model for an organization, as they do not define the roles and responsibilities of the different functions or groups in relation to risk management and internal control. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 3, Section 3.1.1, Page 85.

B, and D are incorrect. Data owners are not responsible for intrusion detection,
platform security or antivirus controls.
These are the responsibilities of data custodians.