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ISACA IT Risk Fundamentals Certificate Exam Sample Questions (Q63-Q68):

NEW QUESTION # 63
An enterprise has initiated a project to implement a risk-mitigating control. Which of the following would provide senior management with the MOST useful information on the project's status?

A. Risk report
B. Risk heat map
C. Risk register

Answer: A

Explanation:
For senior management, a risk report provides the most useful information on the status of a project to implement a risk-mitigating control. Here's why:
* Comprehensive Overview:A risk report offers a detailed overview of all identified risks, their current status, and the effectiveness of the controls in place. This comprehensive view is crucial for senior management to understand the progress and any remaining challenges.
* Actionable Insights:Risk reports include actionable insights and recommendations, helping management make informed decisions about resource allocation, prioritizing efforts, and implementing further risk mitigation strategies.
* Ongoing Monitoring:Regular risk reports allow for ongoing monitoring of the project's status, ensuring that any deviations from the planned risk mitigation activities are identified and addressed promptly.
* References:According to professional auditing standards like ISA 315, ongoing communication and reporting on risk management activities are vital for effective governance and oversight by senior management.

NEW QUESTION # 64
Which of the following is the MAIN objective of governance?

A. Creating value through investments for the organization
B. Creating controls throughout the entire organization
C. Creating risk awareness at all levels of the organization

Answer: A

Explanation:
Governance is primarily concerned with ensuring that an organization achieves its objectives, operates efficiently, and adds value to its stakeholders. The main objective of governance is to create value through investments for the organization. This encompasses making strategic decisions that align with the organization's goals, ensuring that resources are used effectively, and that the organization's activities are sustainable and provide long-term benefits. While creating controls and risk awareness are essential aspects of governance, they serve the broader goal of value creation through strategic investments. This concept is aligned with principles found in corporate governance frameworks and standards such as ISO/IEC 38500 and COBIT (Control Objectives for Information and Related Technologies).

NEW QUESTION # 65
Organizations monitor control statuses to provide assurance that:

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

Answer: A

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 # 66
Which of the following is a valid source or basis for selecting key risk indicators (KRIs)?

A. Historical enterprise risk metrics
B. External threat reporting services
C. Risk workshop brainstorming

Answer: A

Explanation:
Sources for Selecting KRIs:
* Historical Enterprise Risk Metrics:These provide data-driven insights into past risk events, helping to identify patterns and potential future risks.
* Risk Workshop Brainstorming:While valuable, this approach relies on subjective input and may not be as reliable as historical data.
* External Threat Reporting Services:Useful for understanding external risks, but may not provide comprehensive insights specific to the enterprise.
Importance of Historical Data:
* Using historical risk metrics ensures that KRIs are based on actual risk occurrences and trends within the enterprise.
* This approach allows for more accurate and relevant KRIs that reflect the enterprise's specific risk profile.
References:
* ISA 315 (Revised 2019), Anlage 6highlights the importance of using reliable and relevant data sources for risk management, ensuring that KRIs are effective in predicting and monitoring risks.

NEW QUESTION # 67
To be effective, risk reporting and communication should provide:

A. stakeholders with concise information focused on key points.
B. the same risk information for each decision-making stakeholder.
C. risk reports to each business unit and groups of employees.

Answer: A

Explanation:
Effective Risk Reporting:
* Effective risk reporting should provide relevant, concise, and focused information that addresses the key points necessary for decision-making.
Relevance and Conciseness:
* Providing risk reports to each business unit and groups of employees (A) can lead to information overload and may not be practical or effective.
* The same risk information for each decision-making stakeholder (B) may not be appropriate as different stakeholders have varying levels of responsibility and information needs.
Focused Communication:
* Providing concise information focused on key points ensures that stakeholders receive relevant data without unnecessary details, facilitating better decision-making.
* This approach is supported by best practices in risk management reporting, which emphasize the importance of clarity, relevance, and focus.
Conclusion:
* Therefore, risk reporting and communication should providestakeholders with concise information focused on key points.

NEW QUESTION # 68
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