13 Questions
What is risk most often associated with?
Adverse impact and deviations from expected results
Which term describes the probability of a risk event?
Likelihood
What is the ISACA's definition of risk?
The likelihood of an event and its impact
What is a vulnerability in the context of enterprise risk?
A weakness in a process that could expose the system to adverse threats
Which type of risk is associated with sudden changes in customer preferences and technological disruptions?
Market risk
What does compliance risk involve?
The probability and consequences of an enterprise failing to comply with laws, regulations, or ethical standards
What is the role of the third line in the three lines of defense in IT risk management?
Offering independent testing and assurance
What is the purpose of policies, standards, and procedures in risk management?
To guide decision-making and align with enterprise objectives
What is the purpose of a procedure as described in the text?
To define tasks and their order to be performed
What is the relationship between risk and control?
There is a direct relationship
What is the primary purpose of a procedure in risk management?
To define specific steps for carrying out processes
What is the purpose of compensating controls in risk management?
To reduce errors and omissions
What are preventive, detective, corrective, and compensating examples of in risk management?
Control types
Study Notes
- The ISACA Risk IT Framework, 2nd Edition, outlines the identification and management of IT-related risks within an enterprise.
- The framework facilitates the minimization of IT risks to acceptable levels, ensuring business processes continue during adverse events.
- Compliance or internal control systems are leveraged to optimize IT-related risk management, recognizing risks beyond technical controls.
- Awareness of technology benefits, partnerships, and potential cyber threats, internal control failures, vendors, suppliers, and partners is heightened.
- Risk awareness, accountability, and responsibility are promoted throughout the enterprise.
- Business context is used to understand the enterprise-wide IT risk exposure in terms of value.
- Effective use of internal and external risk management resources maximizes enterprise objectives.
- Risk management is a strategic necessity involving top executives, managers, risk management professionals, and external stakeholders.
- Functions like business continuity, audit, and information security are crucial in the risk management process.
- Business continuity focuses on preserving critical business functions and enabling the enterprise to withstand adverse events.
- Collaboration between incident management and business continuity teams is vital for identifying potential threats and establishing recovery mechanisms.
- An inadequate business continuity plan could hinder the enterprise's ability to meet recovery goals.
- Audits are formal inspections and verifications to ensure adherence to standards or guidelines, accuracy of records, or the attainment of efficiency and effectiveness targets.
- Objective, skilled, and independent personnel conduct audits, assessing risks, identifying vulnerabilities, documenting findings, and providing recommendations for issue resolution.
- Effective risk management shapes the selection and sustenance of information security controls.
- The three lines of defense in IT risk management consist of the first line managing risk, the second line monitoring controls, and the third line offering independent testing and assurance.
- Controls, consisting of processes, policies, procedures, practices, infrastructure, applications, and organizational structures, serve as a response to risk.
- Policies, standards, and procedures are documents that guide decision-making, align with enterprise objectives, and empower risk management.
- Policies should be communicated, enforced, and complied with to prevent circumvention or increased liability.
- Standards, sanctioned by external bodies or developed internally, mandate compliance requirements and provide authority and perceived excellence.
- Proper adherence to standards ensures better support and maintenance, cost control, and authority for enterprise practices and procedures.
Test your knowledge of information risk management levels with this quiz. Explore the differences between operational and strategic levels, and understand their respective emphasis and decision-making processes.
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