Latest IT-Risk-Fundamentals Exam Notes, IT-Risk-Fundamentals Testing Center
Latest IT-Risk-Fundamentals Exam Notes, IT-Risk-Fundamentals Testing Center
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You won't need anything else if you prepare for the exam with our ISACA IT-Risk-Fundamentals Exam Questions. Our experts have prepared ISACA IT-Risk-Fundamentals dumps questions that will eliminate your chances of failing the exam. We are conscious of the fact that most of the candidates have a tight schedule which makes it tough to prepare for the ISACA IT-Risk-Fundamentals Exam Preparation.
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>> Latest IT-Risk-Fundamentals Exam Notes <<
2025 ISACA IT-Risk-Fundamentals: First-grade Latest IT Risk Fundamentals Certificate Exam Exam Notes
Three formats of our study material are ISACA IT-Risk-Fundamentals PDF Questions, Desktop Practice Test Software, and a Web-Based Practice Exam. We understand that the learning style of every IT Risk Fundamentals Certificate Exam (IT-Risk-Fundamentals) exam applicant is different. Therefore, we offer three formats of IT-Risk-Fundamentals Practice Test material. Now every IT Risk Fundamentals Certificate Exam (IT-Risk-Fundamentals) exam candidate can prepare as per his style by selecting the suitable format.
ISACA IT Risk Fundamentals Certificate Exam Sample Questions (Q107-Q112):
NEW QUESTION # 107
To establish an enterprise risk appetite, an organization should:
- A. normalize risk taxonomy across the organization.
- B. aggregate risk statements for all lines of business.
- C. establish risk tolerance for each business unit.
Answer: C
Explanation:
To establish an enterprise risk appetite, it is essential for an organization to establish risk tolerance for each business unit. Risk tolerance defines the specific level of risk that each business unit is willing to accept in pursuit of its objectives. This approach ensures that risk management is tailored to the unique context and operational realities of different parts of the organization, enabling a more precise and effective risk management strategy. Normalizing risk taxonomy and aggregating risk statements are important steps in the broader risk management process but establishing risk tolerance is fundamental for defining risk appetite at the unit level. This concept is supported by standards such as ISO 31000 and frameworks like COSO ERM (Enterprise Risk Management).
NEW QUESTION # 108
Key risk indicators (KRIs) are metrics designed to:
- A. alert there is an increased chance of exceeding risk appetite.
- B. measure current risk levels in comparison to past levels.
- C. be a direct measure of risk for each business line.
Answer: A
Explanation:
KRIs are designed to provide early warning signs that a risk event is becoming more likely or that the organization's risk appetite may be exceeded. They are leading indicators that help proactively manage risk.
While KRIs can be used to measure risk within business lines (B), their primary purpose is to alert about potential changes in risk levels, not just provide a static measure. Comparing current to past levels (C) can be part of KRI monitoring, but the focus is on early warning.
NEW QUESTION # 109
Which of the following presents the GREATEST risk for the continued existence of an enterprise?
- A. When its risk appetite and tolerance are reviewed annually
- B. When its actual risk eventually exceeds organizational risk appetite
- C. When its risk appetite and actual risk exceed its risk capacity
Answer: C
Explanation:
Risk appetite is the amount of risk an organization is willing to accept in pursuit of its objectives. Risk tolerance is the acceptable variation around that risk appetite. Risk capacity, however, represents the maximum amount of risk an organization can absorb before it faces critical failure. When actual risk, and even the risk appetite, exceed risk capacity, the organization's very survival is threatened. This scenario implies that potential losses could exceed the resources available to the organization, potentially leading to insolvency or collapse.
While exceeding risk appetite (B) is undesirable and requires action, it doesn't necessarily mean the organization's existence is in immediate danger. Annual reviews (A) are a good practice.
NEW QUESTION # 110
What is the PRIMARY benefit of using generic technology terms in IT risk assessment reports to management?
- A. Ease of promoting risk awareness with key stakeholders
- B. Clarity on the proper interpretation of reported risk
- C. Simplicity in translating risk reports into other languages
Answer: B
Explanation:
Using generic technology terms in IT risk assessment reports to management offers several benefits, primarily clarity in interpreting reported risks. Here's an in-depth explanation:
* Avoiding Technical Jargon:Management teams may not have a technical background. Using generic technology terms ensures that the risk reports are understandable, avoiding technical jargon that might confuse non-technical stakeholders.
* Clear Communication:Clarity in communication is essential for effective risk management. When risks are described using simple, generic terms, it becomes easier for management to grasp the severity and implications of the risks, leading to better-informed decision-making.
* Promoting Risk Awareness:Clear and understandable risk reports enhance risk awareness among key stakeholders. This fosters a culture of risk awareness and encourages proactive risk management across the organization.
* Consistency in Reporting:Generic terms provide a standardized way of reporting risks, ensuring consistency across different reports and departments. This standardization helps in comparing and aggregating risk data more effectively.
* References:ISA 315 highlights the importance of clear communication in the risk assessment process, ensuring that all stakeholders have a common understanding of the identified risks and their potential impacts.
NEW QUESTION # 111
A business continuity plan (BCP) is:
- A. a document of controls that reduce the risk of losing critical processes.
- B. a methodical plan detailing the steps of incident response activities.
- C. a risk-related document that focuses on business impact assessments (BIAs).
Answer: C
Explanation:
Definition and Purpose:
* ABusiness Continuity Plan (BCP)is a document that outlines how a business will continue operating during an unplanned disruption in service. It focuses on the processes and procedures necessary to ensure that critical business functions can continue.
BCP Components:
* The BCP typically includesBusiness Impact Assessments (BIAs), which identify critical functions and the impact of a disruption.
* It also encompasses risk assessments, recovery strategies, and continuity strategies for critical business functions.
Explanation of Options:
* Amethodical plan detailing the steps of incident response activities describes more of anIncident Response Plan (IRP).
* Ba document of controls that reduce the risk of losing critical processes could be part of a BCP but is more characteristic of a risk management plan.
* Caccurately reflects the BCP's focus on identifying and mitigating risks to business functions through BIAs, making it the most comprehensive and accurate description.
Conclusion:
* Therefore,Ccorrectly identifies a BCP as a document that focuses on BIAs to manage risks to critical
* business processes.
NEW QUESTION # 112
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