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ISACA IT Risk Fundamentals Certificate Exam Sample Questions (Q67-Q72):

NEW QUESTION # 67
Of the following, which stakeholder group is MOST often responsible for risk governance?

A. Board of directors
B. Enterprise risk management (ERM)
C. Business units

Answer: A

Explanation:
The board of directors is ultimately accountable for risk governance. While ERM, business units, and IT management all play crucial roles in managing risk, the governance of risk-setting the overall risk appetite, defining roles and responsibilities, and monitoring the effectiveness of risk management-rests with the board. They provide oversight and direction, ensuring that risk management is integrated with the organization's strategic objectives. The board's responsibility stems from their fiduciary duty to the organization and its stakeholders. They are responsible for the overall success and sustainability of the enterprise, which includes effectively managing risks.

NEW QUESTION # 68
Which of the following is of GREATEST concern when aggregating risk information in management reports?

A. Generalizing acceptable risk levels
B. Duplicating details of risk status
C. Obfuscating the reasons behind risk

Answer: C

Explanation:
Importance of Clear Risk Reporting:
* Accurate and transparent risk reporting is crucial for effective risk management. It allows stakeholders to understand the underlying causes of risks and take appropriate actions.
Greatest Concern in Risk Reporting:
* Duplicating details of risk status (A) is less critical as it can be managed through report structuring.
* Generalizing acceptable risk levels (C) is also concerning but does not impact the understanding of the root causes of risks as significantly.
Obfuscating Risk Reasons:
* The greatest concern is obfuscating the reasons behind risks, as this prevents stakeholders from understanding the true nature of the risk and making informed decisions.
* Effective risk management requires clarity about why risks exist and how they are being managed, which aligns with the guidance provided in standards like ISO 31000 and COSO ERM.
Conclusion:
* Therefore, the greatest concern when aggregating risk information in management reports is Obfuscating the reasons behind risk.

NEW QUESTION # 69
A key risk indicator (KRI) is PRIMARILY used for which of the following purposes?

A. Optimizing risk management
B. Facilitating dashboard reporting
C. Predicting risk events

Answer: C

Explanation:
* Primary Use of KRIs:
* KRIs are primarily used to predict risk events by providing measurable data that signals potential issues.
* This predictive capability helps organizations to mitigate risks before they escalate.
* Risk Prediction:
* Effective KRIs allow organizations to foresee potential risks and implement measures to address them proactively.
* This improves the overall risk management process by reducing the likelihood and impact of risk events.
* References:
* ISA 315 (Revised 2019), Anlage 6emphasizes the use of indicators and metrics to monitor and predict risks within an organization's IT and operational environments.

NEW QUESTION # 70
What is the PRIMARY purpose of providing timely and accurate risk information to key stakeholders?

A. To facilitate risk-based decision making
B. To establish risk appetite
C. To develop effective key risk indicators (KRIs)

Answer: A

Explanation:
The primary purpose of providing timely and accurate risk information to stakeholders is to facilitate risk- based decision making. Stakeholders need this information to understand the risks associated with different options and make informed decisions that align with the organization's risk appetite and objectives.
While risk information can inform risk appetite (A), that's not the primary purpose of providing the information. Developing KRIs (C) is part of risk monitoring, not communication.

NEW QUESTION # 71
A business impact analysis (BIA) generates the MOST benefit when:

A. using standardized frequency and impact metrics.
B. measuring existing impact criteria exclusively in financial terms.
C. keeping impact criteria and cost data as generic as possible.

Answer: A

Explanation:
A business impact analysis (BIA) generates the most benefit when using standardized frequency and impact metrics. Here's why:
* Keeping Impact Criteria and Cost Data as Generic as Possible: This approach would not provide the necessary specificity and accuracy needed to understand the unique impacts on the organization.
Generic data lacks the precision required for effective decision-making.
* Measuring Existing Impact Criteria Exclusively in Financial Terms: While financial metrics are important, limiting the analysis to financial terms alone ignores other critical factors such as reputational impact, operational disruption, and compliance issues. A comprehensive BIA should include a variety of impact criteria.
* Using Standardized Frequency and Impact Metrics: Standardization ensures consistency, comparability, and reliability of the data collected. It allows for a systematic evaluation of risks and impacts across different scenarios, facilitating better decision-making and prioritization.
Therefore, using standardized frequency and impact metrics is essential for generating the most benefit from a BIA.

NEW QUESTION # 72
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