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ISACA IT Risk Fundamentals Certificate Exam Sample Questions (Q66-Q71):

NEW QUESTION # 66
An enterprise has moved its data center from a flood-prone area where it had experienced significant service disruptions to one that is not a flood zone. Which risk response strategy has the organization selected?

A. Risk mitigation
B. Risk transfer
C. Risk avoidance

Answer: C

Explanation:
By moving its data center from a flood-prone area to one that is not in a flood zone, the organization has chosen a risk avoidance strategy.
* Risk Response Strategies Overview:
* Risk Acceptance:Choosing to accept the risk without taking any action.
* Risk Avoidance:Taking action to completely avoid the risk.
* Risk Mitigation:Implementing measures to reduce the likelihood or impact of the risk.
* Risk Transfer:Shifting the risk to another party (e.g., through insurance).
* Explanation of Risk Avoidance:
* Risk avoidance involves changing plans to circumvent the risk entirely.
* In this case, relocating the data center to an area not prone to flooding eliminates the risk of flood-related disruptions.
* References:
* ISA 315 (Revised 2019), Anlage 6discusses various risk response strategies and emphasizes the importance of taking actions to avoid risks when feasible.

NEW QUESTION # 67
If the residual risk associated with a particular control is within the enterprise risk appetite, the residual risk should be:

A. mitigated through additional controls.
B. accepted and updated in the risk register.
C. transferred and managed by a third party.

Answer: B

Explanation:
Residual risk is the risk that remains after controls have been implemented. If this residual risk is within the enterprise's risk appetite, it can be accepted. This means acknowledging the risk and not taking further action to mitigate it. The risk should be documented and updated in the risk register to maintain a record of accepted risks.
Mitigating through additional controls (B) is unnecessary if the risk is already within appetite. Transferring to a third party (C) is another risk response, but not necessary in this case.

NEW QUESTION # 68
Organizations monitor control statuses to provide assurance that:

A. risk events are being fully mitigated.
B. compliance with established standards is achieved.
C. return on investment (ROI) objectives are met.

Answer: B

Explanation:
Purpose of Monitoring Control Statuses:
* Organizations monitor control statuses to ensure that the controls in place are functioning correctly and achieving their intended outcomes.
Providing Assurance:
* Monitoring control statuses provides assurance that the organization is compliant with established standards, regulations, and internal policies.
* Compliance is a critical aspect of governance and risk management, ensuring that the organization operates within legal and regulatory frameworks.
Comparison of Options:
* Bensuring risk events are fully mitigated is an important aspect but is secondary to the overarching goal of compliance.
* Cmeeting ROI objectives is related to financial performance but does not directly relate to the primary purpose of control monitoring, which is compliance.
Conclusion:
* Thus, the primary reason for monitoring control statuses is to provide assurance thatcompliance with established standards is achieved.

NEW QUESTION # 69
Which of the following risk response strategies involves the implementation of new controls?

A. Avoidance
B. Mitigation
C. Acceptance

Answer: B

Explanation:
Definition and Context:
* Mitigation involves taking steps to reduce the severity, seriousness, or painfulness of something, often by implementing new controls or safeguards. This can include processes, procedures, or physical measures designed to reduce risk.
* Avoidance means completely avoiding the risk by not engaging in the activity that generates the risk.
* Acceptance means acknowledging the risk and choosing not to act, either because the risk is deemed acceptable or because there is no feasible way to mitigate or avoid it.
Application to IT Risk Management:
* In IT risk management, Mitigation often involves implementing new controls such as security patches, firewalls, encryption, user authentication protocols, and regular audits to reduce risk levels.
* This aligns with the principles outlined in various IT control frameworks and standards, such as ISA
315 which emphasizes the importance of controls in managing IT-related risks.
Conclusion:
* Therefore, when considering risk response strategies involving the implementation of new controls, Mitigation is the correct answer as it specifically addresses the action of implementing measures to reduce risk.

NEW QUESTION # 70
Which of the following is MOST important to ensure when developing key risk indicators (KRIs)?

A. The KRIs can be added to the risk dashboard report.
B. Each KRI is linked to a specific risk event.
C. KRIs can be applied to multiple risk events.

Answer: B

Explanation:
The most important factor when developing KRIs is that each KRI is linked to a specific risk event. KRIs are designed to provide early warning signs of a particular risk event occurring. If they are not linked to specific events, they lose their value as indicators.
While KRIs should be reportable on a dashboard (A), that's a secondary consideration. While some KRIs might apply to multiple events (B), the primary focus is on specific links.

NEW QUESTION # 71
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