CRISC Exam Question 116
Which of the following would MOST likely drive the need to review and update key performance indicators (KPIs) for critical IT assets?
Correct Answer: B
Key performance indicators (KPIs) are metrics used to measure and evaluate the achievement of the organization's objectives and strategies1. KPIs for critical IT assets are KPIs that focus on the performance and value of the IT assets that are essential for the organization's operations and functions2. KPIs for critical IT assets may include metrics such as availability, reliability, utilization, cost, and security of the IT assets3.
The need to review and update KPIs for critical IT assets may be driven by various factors, such as changes in the business environment, customer expectations, or regulatory requirements. However, the most likely factor that would drive the need to review and update KPIs for critical IT assets is the outcomes of periodic risk assessments. A risk assessment is a process that involves identifying, analyzing, and evaluating the risks and their potential impacts on the organization's objectives and performance4. A periodic risk assessment is a risk assessment that is performed at regular intervals, such as monthly, quarterly, or annually, to capture the changes and updates in the risk environment and the risk profile5. The outcomes of periodic risk assessments would most likely drive the need to review and update KPIs for critical IT assets, as they would provide insights into the current and emerging risks that may affect the performance and value of the critical IT assets, as well as the effectiveness and efficiency of the existing and planned controls and responses. By reviewing and updating the KPIs for critical IT assets based on the outcomes of periodic risk assessments, the organization can ensure that the KPIs are relevant, realistic, and aligned with the organization's risk appetite and tolerance, and that they provide accurate and timely information for decision making and reporting. The outsourcing of related IT processes, changes in service level objectives, and findings from continuous monitoring are not the most likely factors that would drive the need to review and update KPIs for critical IT assets, as they do not provide the same level of information and impact as the outcomes of periodic risk assessments. The outsourcing of related IT processes is a decision that involves transferring some or all of the IT processes that support or enable the critical IT assets to an external service provider. The outsourcing of related IT processes may affect the performance and value of the critical IT assets, but it does not necessarily require a review and update of the KPIs for critical IT assets, as the KPIs may still be valid and applicable for the outsourced IT processes. Changes in service level objectives are changes in the expected or agreed level of quality or performance of the IT services that support or enable the critical IT assets. Changes in service level objectives may affect the performance and value of the critical IT assets, but they do not necessarily require a review and update of the KPIs for critical IT assets, as the KPIs may still be consistent and compatible with the changed service level objectives. Findings from continuous monitoring are the results or outcomes of the ongoing observation and measurement of the performance and compliance of the IT processes and systems that support or enable the critical IT assets. Findings from continuous monitoring may affect the performance and value of the critical IT assets, but they do not necessarily require a review and update of the KPIs for critical IT assets, as the KPIs may still be relevant and reliable for the continuously monitored IT processes and systems. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.
The need to review and update KPIs for critical IT assets may be driven by various factors, such as changes in the business environment, customer expectations, or regulatory requirements. However, the most likely factor that would drive the need to review and update KPIs for critical IT assets is the outcomes of periodic risk assessments. A risk assessment is a process that involves identifying, analyzing, and evaluating the risks and their potential impacts on the organization's objectives and performance4. A periodic risk assessment is a risk assessment that is performed at regular intervals, such as monthly, quarterly, or annually, to capture the changes and updates in the risk environment and the risk profile5. The outcomes of periodic risk assessments would most likely drive the need to review and update KPIs for critical IT assets, as they would provide insights into the current and emerging risks that may affect the performance and value of the critical IT assets, as well as the effectiveness and efficiency of the existing and planned controls and responses. By reviewing and updating the KPIs for critical IT assets based on the outcomes of periodic risk assessments, the organization can ensure that the KPIs are relevant, realistic, and aligned with the organization's risk appetite and tolerance, and that they provide accurate and timely information for decision making and reporting. The outsourcing of related IT processes, changes in service level objectives, and findings from continuous monitoring are not the most likely factors that would drive the need to review and update KPIs for critical IT assets, as they do not provide the same level of information and impact as the outcomes of periodic risk assessments. The outsourcing of related IT processes is a decision that involves transferring some or all of the IT processes that support or enable the critical IT assets to an external service provider. The outsourcing of related IT processes may affect the performance and value of the critical IT assets, but it does not necessarily require a review and update of the KPIs for critical IT assets, as the KPIs may still be valid and applicable for the outsourced IT processes. Changes in service level objectives are changes in the expected or agreed level of quality or performance of the IT services that support or enable the critical IT assets. Changes in service level objectives may affect the performance and value of the critical IT assets, but they do not necessarily require a review and update of the KPIs for critical IT assets, as the KPIs may still be consistent and compatible with the changed service level objectives. Findings from continuous monitoring are the results or outcomes of the ongoing observation and measurement of the performance and compliance of the IT processes and systems that support or enable the critical IT assets. Findings from continuous monitoring may affect the performance and value of the critical IT assets, but they do not necessarily require a review and update of the KPIs for critical IT assets, as the KPIs may still be relevant and reliable for the continuously monitored IT processes and systems. References = Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.
CRISC Exam Question 117
Which of the following BEST assists in justifying an investment in automated controls?
Correct Answer: A
A cost-benefit analysis is the best method to assist in justifying an investment in automated controls, as it helps to compare and evaluate the costs and benefits of the investment and to determine its feasibility and profitability. A cost-benefit analysis is a process of identifying, measuring, and comparing the expected costs and benefits of a project or a decision, such as investing in automated controls. A cost-benefit analysis can help to justify an investment in automated controls by providing the following benefits:
* It enables a data-driven and evidence-based approach to decision making, rather than relying on subjective or qualitative judgments.
* It facilitates a consistent and standardized way of assessing and communicating the value and impact of the investment across the organization and to the external stakeholders.
* It supports the alignment of the investment with the organizational strategy and objectives, and helps to evaluate the achievement of the desired outcomes.
* It helps to identify and prioritize the opportunities and challenges of the investment, and to develop and implement appropriate strategies and actions to address them.
* It provides feedback and learning opportunities for the investment and its outcomes, and helps to foster a culture of continuous improvement and innovation.
The other options are not the best methods to assist in justifying an investment in automated controls.
Alignment of investment with risk appetite is an important aspect of risk management, but it does not directly address the costs and benefits of the investment. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Alignment of investment with risk appetite helps to ensure that the investment is consistent with the organizational risk tolerance and preferences, and does not expose the organization to excessive or unacceptable risk. Elimination of compensating controls is a possible benefit of investing in automated controls, but it is not a method to justify the investment. Compensating controls are alternative or additional controls that are implemented to mitigate the risk when the primary or preferred controls are not feasible or effective. Elimination of compensating controls can help to reduce the complexity and costs of the control environment, and to improve the efficiency and reliability of the controls.
Reduction in personnel costs is a possible benefit of investing in automated controls, but it is not a method to justify the investment. Personnel costs are the expenses related to the staff and employees involved in the processes or functions that are automated. Reduction in personnel costs can help to increase the profitability and productivity of the organization, and to allocate the resources more effectively and efficiently. References
= Cost Benefit Analysis: An Expert Guide | Smartsheet, IT Risk Resources | ISACA, Automation - Efficiency, Cost-Savings, Robotics | Britannica
* It enables a data-driven and evidence-based approach to decision making, rather than relying on subjective or qualitative judgments.
* It facilitates a consistent and standardized way of assessing and communicating the value and impact of the investment across the organization and to the external stakeholders.
* It supports the alignment of the investment with the organizational strategy and objectives, and helps to evaluate the achievement of the desired outcomes.
* It helps to identify and prioritize the opportunities and challenges of the investment, and to develop and implement appropriate strategies and actions to address them.
* It provides feedback and learning opportunities for the investment and its outcomes, and helps to foster a culture of continuous improvement and innovation.
The other options are not the best methods to assist in justifying an investment in automated controls.
Alignment of investment with risk appetite is an important aspect of risk management, but it does not directly address the costs and benefits of the investment. Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Alignment of investment with risk appetite helps to ensure that the investment is consistent with the organizational risk tolerance and preferences, and does not expose the organization to excessive or unacceptable risk. Elimination of compensating controls is a possible benefit of investing in automated controls, but it is not a method to justify the investment. Compensating controls are alternative or additional controls that are implemented to mitigate the risk when the primary or preferred controls are not feasible or effective. Elimination of compensating controls can help to reduce the complexity and costs of the control environment, and to improve the efficiency and reliability of the controls.
Reduction in personnel costs is a possible benefit of investing in automated controls, but it is not a method to justify the investment. Personnel costs are the expenses related to the staff and employees involved in the processes or functions that are automated. Reduction in personnel costs can help to increase the profitability and productivity of the organization, and to allocate the resources more effectively and efficiently. References
= Cost Benefit Analysis: An Expert Guide | Smartsheet, IT Risk Resources | ISACA, Automation - Efficiency, Cost-Savings, Robotics | Britannica
CRISC Exam Question 118
The MAIN purpose of reviewing a control after implementation is to validate that the control:
Correct Answer: A
The main purpose of reviewing a control after implementation is to validate that the control operates as intended, as this can help to ensure that the control is effective and efficient in mitigating the risk, and that it meets the control objectives and requirements. Reviewing a control after implementation can also help to identify and address any issues or gaps that may arise during the control operation, and to monitor and evaluate the performance and impact of the control. Reviewing a control after implementation can also provide feedback and information to the control owners and stakeholders, and enable them to adjust the control design and implementation accordingly. References = Most Asked CRISC Exam Questions and Answers. CRISC: Certified in Risk & Information Systems Control Sample Questions, Question 254. ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, Question 254. CRISC by Isaca Actual Free Exam Q&As, Question 9.
CRISC Exam Question 119
Which of the following is MOST important to the effective monitoring of key risk indicators (KRIS)?
Correct Answer: D
* Key risk indicators (KRIs) are metrics that provide information about the level of exposure to a specific risk or a group of risks.
* The most important factor to the effective monitoring of KRIs is determining threshold levels. This means that the acceptable or unacceptable values or ranges of the KRIs are defined and agreed upon by the relevant stakeholders.
* Determining threshold levels helps to evaluate the actual performance and impact of the risks, compare them with the risk appetite and tolerance of the organization, identify any deviations or breaches that may require attention or action, and report them to the appropriate parties for decision making or improvement actions.
* The other options are not the most important factors to the effective monitoring of KRIs. They are either secondary or not essential for KRIs.
The references for this answer are:
* Risk IT Framework, page 15
* Information Technology & Security, page 9
* Risk Scenarios Starter Pack, page 7
* The most important factor to the effective monitoring of KRIs is determining threshold levels. This means that the acceptable or unacceptable values or ranges of the KRIs are defined and agreed upon by the relevant stakeholders.
* Determining threshold levels helps to evaluate the actual performance and impact of the risks, compare them with the risk appetite and tolerance of the organization, identify any deviations or breaches that may require attention or action, and report them to the appropriate parties for decision making or improvement actions.
* The other options are not the most important factors to the effective monitoring of KRIs. They are either secondary or not essential for KRIs.
The references for this answer are:
* Risk IT Framework, page 15
* Information Technology & Security, page 9
* Risk Scenarios Starter Pack, page 7
CRISC Exam Question 120
What is the BEST recommendation to reduce the risk associated with potential system compromise when a vendor stops releasing security patches and updates for a business-critical legacy system?
Correct Answer: A
The best recommendation to reduce the risk associated with potential system compromise when a vendor stops releasing security patches and updates for a business-critical legacy system is to segment the system on its own network. Network segmentation is the process of dividing a network into smaller subnetworks or segments, based on different criteria, such as function, location, or security level. Network segmentation helps to isolate the system from the rest of the network, and limit the exposure and access to the system. Network segmentation also helps to improve the performance and security of the network, by reducing the network traffic and congestion, and enhancing the monitoring and control capabilities. The other options are not as effective as segmenting the system on its own network, although they may provide some additional protection or recovery options. Ensuring regular backups take place, virtualizing the system in the cloud, and installing antivirus software on the system are all measures that can help to reduce the risk of data loss or system damage, but they do not address the root cause of the risk, which is the lack of security patches and updates for the system. References = Risk and Information Systems Control Study Manual, Chapter 3, Section 3.2.1, page 3-11.
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