Authentication is a control that verifies the identity of a user or a system that tries to access a computer system or network. Authentication can be based on something the user or system knows (such as a password or a PIN), something the user or system has (such as a token or a smart card), or something the user or system is (such as a fingerprint or a retina scan). Authentication is a crucial control for preventing unauthorized or malicious access to a system or network, as well as for ensuring the accountability and traceability of the actions performed by the user or system. If the authentication control is compromised, it means that the user or system can bypass or break the verification process and gain access to the system or network without being identified or authorized. This can expose the system or network to various threats, such as data theft, data corruption, data leakage, or denial of service. Therefore, the authentication control has most likely been compromised if a system administrator identifies unusual activity indicating an intruder within a firewall. A firewall is a device or a software that monitors and filters the incoming and outgoing network traffic based on predefined rules and policies. A firewall can help to protect the system or network from external or internal attacks by blocking or allowing the traffic based on the source, destination, protocol, or content. However, a firewall cannot prevent an intruder from accessing the system or network if the intruder has already authenticated or impersonated a legitimate user or system. The other options are not the most likely controls to be compromised if a system administrator identifies unusual activity indicating an intruder within a firewall, although they may be affected or related. Data validation is a control that checks the accuracy, completeness, and quality of the data that is entered, processed, or stored by a system or a network. Data validation can help to prevent or detect data errors, anomalies, or inconsistencies that may affect the performance, functionality, or reliability of the system or network. However, data validation does not prevent or detect unauthorized or malicious access to the system or network, as it only focuses on the data, not the user or system. Identification is a control that assigns a unique identifier to a user or a system that tries to access a computer system or network. Identification can be based on a username, an email address, a phone number, or a certificate. Identification is a necessary but not sufficient control for preventing unauthorized or malicious access to a system or network, as it only declares who or what the user or system is, but does not prove it. Identification needs to be combined with authentication to verify the identity of the user or system.
Data integrity is a control that ensures that the data is accurate, consistent, and complete throughout its lifecycle. Data integrity can be achieved by implementing various controls, such as encryption, hashing, checksum, digital signature, or backup. Data integrity can help to protect the data from unauthorized or accidental modification, deletion, or corruption that may affect the value, meaning, or usability of the data. However, data integrity does not prevent or detect unauthorized or malicious access to the system or network, as it only protects the data, not the user or system. References = CRISC Review Manual, pages 164-
1651; CRISC Review Questions, Answers & Explanations Manual, page 952; What is Authentication? - Definition from Techopedia3; What is a Firewall? - Definition from Techopedia4

Continuous data backup controls are the best recommendation to further reduce the impact of ransomware attacks, as they enable the organization to restore the data that has been encrypted or deleted by the ransomware without paying the ransom or losing the data. Continuous data backup controls ensure that the data is regularly and automatically backed up to a secure and separate location, and that the backup data is tested and verified for integrity and availability. Two-factor authentication, encryption for data at rest, and encryption for data in motion are not the best recommendations to further reduce the impact of ransomware attacks, as they do not address the recovery of the data that has been compromised by the ransomware. These controls may help to prevent or mitigate ransomware attacks, but not to reduce their impact. References
= CRISC by Isaca Actual Free Exam Q&As, question 207; CRISC: Certified in Risk & Information Systems Control Sample Questions, question 207.

The primary reason to report the information about the new risk scenarios identified after the implementation of Internet of Things (IoT) devices to risk owners is to confirm the impact to the risk profile. The risk profile is a summary of the level and nature of the risks that the organization faces or may face in the future. The risk profile reflects the risk appetite, tolerance, and capacity of the organization, and guides the risk management decisions and actions. The implementation of IoT devices may introduce new risks or increase the likelihood or impact of existing risks, such as data privacy, security, or interoperability issues. Therefore, the information about the new risk scenarios should be reported to the risk owners, who have the authority and responsibility for managing the risks and their responses, to confirm the impact to the risk profile and to determine the appropriate risk treatment plans. The other options are not as primary as confirming the impact to the risk profile, as they are related to the reevaluation, mitigation, or recommendation of the IoT devices, not the confirmation or assessment of the risk profile. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.2: IT Risk Register, page 19.

The effective implementation of a risk treatment plan is best indicated by managing residual risk within the organization's appetite and tolerance levels. Residual risk is the remaining risk after controls have been applied, and ensuring it is within acceptable levels demonstrates that the risk treatment plan is effective.
* Managing Residual Risk within Appetite and Tolerance (Answer B):
* Definition: Residual risk is the risk remaining after risk treatment measures have been implemented.
* Significance: Managing residual risk within the set appetite and tolerance levels shows that the implemented controls are effective and aligned with the organization's risk management objectives.
* Outcome: It ensures that the organization's risk exposure is kept within acceptable boundaries, thereby protecting its assets and operations.
* Comparison with Other Options:
* A. Inherent risk is managed within an acceptable level:
* Definition: Inherent risk is the risk before any controls are applied.
* Limitation: The focus should be on residual risk post-treatment.
* C. Risk treatments are aligned with industry peers:
* Purpose: While benchmarking is useful, it does not directly indicate the effectiveness of risk treatment.
* D. Key controls are identified and documented:
* Purpose: Identifying and documenting controls is necessary, but effectiveness is shown by managing residual risk.
References:
* ISACA CRISC Review Manual, Chapter 3, "Risk Response and Reporting", which highlights the importance of managing residual risk within the organization's appetite and tolerance.

According to the CRISC EXAM TOPIC 2 LONG Flashcards, the first thing that a risk practitioner should do when an organization decides to use a cloud service is to review the vendor selection process and vetting criteria. This is because the vendor selection process and vetting criteria are essential steps to ensure that the cloud service provider meets the organization's requirements and expectations, and that the risks associated with the cloud service are identified and managed. By reviewing the vendor selection process and vetting criteria, the risk practitioner can evaluate the quality, reliability, security, and compliance of the cloud service provider, and determine if the cloud service is suitable and beneficial for the organization. The risk practitioner can also identify any gaps or weaknesses in the vendor selection process and vetting criteria, and recommend improvements or alternatives accordingly. References = CRISC EXAM TOPIC 2 LONG Flashcards