Isaca IT Risk Fundamentals Exam Questions

Legacy systems using older technology often suffer from the inability to patch or apply system updates, representing a significant vulnerability. This lack of updates can leave the system exposed to known security vulnerabilities, making it an attractive target for cyberattacks. Additionally, unsupported systems may not receive critical updates necessary for compliance with current security standards and regulations. While rising maintenance costs and lost opportunities are also concerns, the primary vulnerability lies in the system's inability to be updated, which directly impacts its security posture. This issue is highlighted in various IT security frameworks, including ISO 27001 and NIST SP 800-53.

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.

An absolute prohibition on risk means that an enterprise avoids any and all forms of risk, regardless of potential benefits. This approach can lead to the following issues:

Inefficiency in Resource Allocation: Absolute risk avoidance can cause an enterprise to allocate resources ineffectively. For example, by avoiding all risks, the enterprise may miss out on opportunities that could bring substantial benefits. Resources that could be invested in innovation or improvement are instead tied up in mitigating even the smallest of risks.

Stifling Innovation and Growth: Enterprises that are overly risk-averse may hinder innovation and growth. Taking calculated risks is essential for driving new initiatives, products, or services. Without accepting some level of risk, companies might lag behind competitors who are willing to innovate and take strategic risks.

Poor Risk Management Practices: By trying to avoid all risks, enterprises might develop a risk management strategy that is more about avoidance than mitigation and management. Effective risk management involves identifying, assessing, and mitigating risks, not completely avoiding them. This ensures that the company is prepared for potential challenges and can manage them proactively.

ISA 315 Anlage 5 and Anlage 6 discuss the importance of understanding and managing risks associated with IT environments. They highlight the need for a balanced approach to risk management that includes both manual and automated controls to handle various risk levels (e.g., operational, compliance, strategic).

SAP Reports and Handbooks highlight the necessity of balancing risk with operational efficiency to maintain effective resource allocation and drive business objectives forward.

Step by Step Comprehensive Detailed Explanation with All Reference:

Purpose of KRIs:

KRIs are designed to provide early warnings about potential risk events.

They help organizations to take preventive actions before risks become critical issues.

Early Warning System:

KRIs are critical for proactive risk management, enabling organizations to respond quickly to changes in risk levels.

They complement other risk management tools by focusing on early detection.

ISA 315 (Revised 2019), Anlage 5 discusses the importance of timely and accurate information in managing and mitigating risks effectively.

To manage IT-related risk throughout the enterprise, it is crucial to establish an enterprise risk governance committee. This committee provides oversight and direction for the risk management activities across the organization. It ensures that risks are identified, assessed, and managed in alignment with the organization's risk appetite and strategy. The committee typically includes senior executives and stakeholders who can influence policy and resource allocation. This structure supports a comprehensive approach to risk management, integrating risk considerations into decision-making processes. This requirement is in line with guidance from frameworks such as COBIT and ISO 27001, which emphasize governance structures for effective risk management.