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Verified and Updated ISACA IT-Risk-Fundamentals Exam Questions & Answers

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ISACA IT Risk Fundamentals Certificate Exam Sample Questions (Q96-Q101):

NEW QUESTION # 96
A bottom-up approach to developing I&T risk-related risk scenarios:

A. is based on hypothetical situations envisioned by people performing specific I&T functions.
B. is a generic method that allows anyone in the organization to develop risk scenarios.
C. should not be used in conjunction with other approaches to evaluate I&T related events.

Answer: A

Explanation:
A bottom-up approach to risk scenario development starts at the operational level. It involves those closest to the I&T functions-the people actually performing the work-developing scenarios based on their understanding of potential risks and vulnerabilities within their specific areas. These scenarios are then aggregated and analyzed at higher levels.
While anyone in the organization can contribute to risk identification (A), a bottom-up approach specifically relies on the expertise of those performing specific I&T functions (B). It should be used in conjunction with other approaches (C), such as top-down, for a comprehensive view.

NEW QUESTION # 97
An enterprise has performed a risk assessment for the risk associated with the theft of sales team laptops while in transit. The results of the assessment concluded that the cost of mitigating the risk is higher than the potential loss. Which of the following is the BEST risk response strategy?

A. Accept the inherent risk.
B. Limit travel with laptops.
C. Encrypt the sales team laptops.

Answer: A

Explanation:
The enterprise has concluded that the cost of mitigating the risk of theft of sales team laptops while in transit is higher than the potential loss, leading to the decision to accept the risk.
* Risk Response Strategies Overview:
* Risk Acceptance:Choosing to accept the risk and not take any action to mitigate it.
* 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 Acceptance:
* Risk acceptance is appropriate when the cost of mitigating the risk is higher than the potential loss.
* In this case, the cost-benefit analysis shows that it is more practical to accept the risk rather than invest in expensive mitigation measures.
* References:
* ISA 315 (Revised 2019), Anlage 6provides guidance on assessing risks and determining appropriate responses based on the cost and impact of potential risks.

NEW QUESTION # 98
An l&T-related risk assessment enables individuals responsible for risk governance to:

A. assign proper risk ownership.
B. identify potential high-risk areas.
C. define remediation plans for identified risk factors.

Answer: B

Explanation:
An IT-related risk assessment enables individuals responsible for risk governance to identify potential high-risk areas. Here's a detailed explanation:
* Define Remediation Plans for Identified Risk Factors: While risk assessments may lead to the
* development of remediation plans, the primary objective is not to define these plans but to identify where the risks lie.
* Assign Proper Risk Ownership: Assigning risk ownership is an important part of risk management, but it follows the identification of risks. The assessment itself is primarily focused on identifying risks rather than assigning ownership.
* Identify Potential High-Risk Areas: The core purpose of a risk assessment is to identify and evaluate areas where the organization is exposed to significant risks. This identification process is crucial for prioritizing risk management efforts and ensuring that resources are allocated to address the most critical risks first.
Therefore, the primary purpose of an IT-related risk assessment is to identify potential high-risk areas.

NEW QUESTION # 99
Which of the following is the MOST important factor to consider when developing effective risk scenarios?

A. Risk events that affect both financial and strategic objectives
B. Previously materialized risk events impacting competitors
C. Real and relevant potential risk events

Answer: C

Explanation:
The most important factor when developing risk scenarios is that they represent real and relevant potential risk events. The scenarios should be based on credible threats and vulnerabilities that could actually impact the organization. This ensures that the risk assessment is focused on the most important risks.
While considering risks that affect financial and strategic objectives (A) is important, relevance is paramount.
Learning from competitors' experiences (B) can be helpful, but the scenarios must be relevant to your own organization.

NEW QUESTION # 100
Which of the following is the BEST indication of a good risk culture?

A. The enterprise enables discussions of risk and facts within the risk management functions.
B. The enterprise learns from negative outcomes and treats the root cause.
C. The enterprise places a strong emphasis on the positive and negative elements of risk.

Answer: B

Explanation:
A good risk culture in an organization can be identified by several characteristics. Among the options provided:
* Option A: The enterprise learns from negative outcomes and treats the root cause
* This option reflects a proactive and continuous improvement approach to risk management. It indicates that the organization does not just react to incidents but also learns from them and implements measures to address the underlying issues, thereby preventing recurrence. This approach aligns with best practices in risk management and demonstrates a mature risk culture.
* Option B: The enterprise enables discussions of risk and facts within the risk management functions
* While facilitating open discussions about risk is important, it primarily shows that the enterprise supports a communicative environment. However, it does not necessarily indicate that the enterprise takes concrete actions to learn from negative outcomes or address root causes.
* Option C: The enterprise places a strong emphasis on the positive and negative elements of risk
* Emphasizing both positive and negative elements of risk is beneficial as it provides a balanced view. Nonetheless, this focus alone does not provide evidence of actions taken to learn from past mistakes or to rectify the root causes of issues.
Conclusion:Option A is the best indication of a good risk culture because it demonstrates that the organization is committed to learning from past failures and improving its risk management processes by addressing the root causes of problems.

NEW QUESTION # 101
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