The data privacy manager is the best person to an application system used to process employee personal data, because they are responsible for ensuring that the organization complies with the applicable data protection laws and regulations, and that the personal data of employees are collected, stored, processed, and disposed of in a secure and ethical manner. The data privacy manager is also responsible for establishing and maintaining the data privacy policies, procedures, and controls, and for conducting data privacy impact assessments and audits. The compliance manager, the system administrator, and the human resources (HR) manager are all involved in the of the application system, but they are not the best person to it, as they do not have the primary accountability and expertise for data privacy. References = Risk and Information Systems Control Study Manual, Chapter 4, Section 4.3.2, page 158

IT and business misalignment is the risk that the IT objectives, plans, and activities are not aligned with the business goals, needs, and expectations. This can result in wasted resources, missed opportunities, poor performance, and customer dissatisfaction. One of the best ways to mitigate this risk is to involve the business process owner in IT strategy. The business process owner is the person who has the authority and responsibility for a specific business process and its outcomes. By involving the business process owner in IT strategy, the organization can ensure that the IT initiatives and solutions are relevant, effective, and beneficial for the business process and its stakeholders. The business process owner can also provide valuable input, feedback, and support for the IT strategy and its implementation. The other options are not the best ways to mitigate the risk associated with IT and business misalignment, although they may be helpful and complementary. Establishing business key performance indicators (KPIs) is a technique to measure and monitor the achievement of business objectives and outcomes. However, KPIs do not necessarily ensure that the IT strategy is aligned with the business strategy or that the IT activities support the business activities.
Introducing an established framework for IT architecture is a method to design and implement the IT infrastructure, systems, and services in a consistent and coherent manner. However, an IT architecture framework does not guarantee that the IT architecture is aligned with the business architecture or that the IT capabilities meet the business requirements. Establishing key risk indicators (KRIs) is a tool to monitor and communicate the level of exposure to a given risk or the potential impact of a risk. However, KRIs do not directly address the risk of IT and business misalignment or the actions needed to align them. References = CRISC Review Manual, pages 22-231; CRISC Review Questions, Answers & Explanations Manual, page 76

Organizational objectives should be the primary input to determine risk tolerance, as they define the desired outcomes and performance of the organization, and guide the selection of the acceptable level of risk that the organization is willing to take to achieve those objectives. Regulatory requirements, annual loss expectancy (ALE), and risk management costs are not the primary inputs, as they are more related to the external or internal constraints or factors that affect the risk tolerance, rather than the drivers or determinants of the risk tolerance. References = CRISC Review Manual, 7th Edition, page 109.

*A risk owner is the person or entity that has the authority and responsibility to manage a specific risk1. The risk owner is accountable for the implementation and effectiveness of the risk response strategy and the risk treatment plan2.
*Identifying the risk owner is the first step when a new risk scenario has been identified, because the risk owner is the key stakeholder who will be involved in the subsequent steps of the risk management process, such as risk analysis, risk evaluation, risk treatment, and risk monitoring2.
*Identifying the risk owner also helps to clarify the roles and responsibilities of different parties involved in the risk management process, such as the risk manager, the risk analyst, the risk committee, and the risk auditor3. This can improve the communication, coordination, and collaboration among the risk management team and ensure that the risk is managed effectively and efficiently.
*Estimating the residual risk (option A) is not the first step when a new risk scenario has been identified, because the residual risk is the risk that remains after the risk treatment plan has been implemented2.
Therefore, estimating the residual risk requires prior steps such as risk analysis, risk evaluation, and risk treatment.
*Establishing key risk indicators (KRIs) (option B) is not the first step when a new risk scenario has been identified, because KRIs are metrics or data points that provide early warning signals or information about the level or trend of a risk4. Therefore, establishing KRIs requires prior steps such as risk identification, risk analysis, and risk evaluation.
*Designing control improvements (option C) is not the first step when a new risk scenario has been identified, because control improvements are part of the risk treatment plan, which is the set of actions and resources needed to implement the chosen risk response strategy2. Therefore, designing control improvements requires prior steps such as risk analysis, risk evaluation, and risk response selection.
References =
*Risk Owner - Institute of Internal Auditors
*Risk Treatment Plan - ISACA
*Risk Management Roles and Responsibilities - 360factors
*Key Risk Indicators: A Practical Guide | SafetyCulture

Using an entry in the risk register to track the aggregate risk associated with server failure provides a comprehensive view of the impact should the servers simultaneously fail, as it considers the combined effect of the server failure on the enterprise's objectives and operations. The risk register is a document that records and tracks the identified risks, their likelihood, impact, and mitigation strategies. By aggregating the risk associated with server failure, the risk register can help to estimate the worst-case scenario and to prioritize the risk response accordingly. It provides a cost-benefit analysis on control options available for implementation, it provides a view on where controls should be applied to maximize the uptime of servers, and it provides historical information about the impact of individual servers malfunctioning are not the primary benefits of using an entry in the risk register to track the aggregate risk associated with server failure, but rather the possible outcomes or actions of using the risk register. References = CRISC Certified in Risk and Information Systems Control - Question220; ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 220.