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  3. CRISC Exam
  4. ISACA.CRISC.v2024-06-22.q384 Dumps
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Question 11

Which of the following is true for Single loss expectancy (SLE), Annual rate of occurrence (ARO), and Annual loss expectancy (ALE)?

Correct Answer: D
Section: Volume C
Explanation:
A quantitative risk assessment quantifies risk in terms of numbers such as dollar values. This involves gathering data and then entering it into standard formulas. The results can help in identifying the priority of risks. These results are also used to determine the effectiveness of controls. Some of the terms associated with quantitative risk assessments are:
* Single loss expectancy (SLE)-It refers to the total loss expected from a single incident. This incident can occur when vulnerability is being exploited by threat. The loss is expressed as a dollar value such as
$1,000. It includes the value of data, software, and hardware. SLE = Asset value * Exposure factor
* Annual rate of occurrence (ARO)-It refers to the number of times expected for an incident to occur in a year. If an incident occurred twice a month in the past year, the ARO is 24. Assuming nothing changes, it is likely that it will occur 24 times next year. Annual loss expectancy (ALE)-It is the expected loss for a year.
ALE is calculated by multiplying SLE with ARO. Because SLE is a given in a dollar value, ALE is also given in a dollar value. For example, if the SLE is $1,000 and the ARO is 24, the ALE is $24,000.
* ALE = SLE * ARO Safeguard value-This is the cost of a control. Controls are used to mitigate risk. For example, antivirus software of an average cost of $50 for each computer. If there are 50 computers, the safeguard value is $2,500. A, B, C: These are wrong formulas and are not used in quantitative risk assessment.
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Question 12

Jenny is the project manager for the NBT projects. She is working with the project team and several subject matter experts to perform the quantitative risk analysis process. During this process she and the project team uncover several risks events that were not previously identified. What should Jenny do with these risk events?

Correct Answer: C
Section: Volume A
Explanation/Reference:
Explanation:
All identified risk events should be entered into the risk register.
A risk register is an inventory of risks and exposure associated with those risks. Risks are commonly found in project management practices, and provide information to identify, analyze, and manage risks. Typically a risk register contains:
* A description of the risk
* The impact should this event actually occur
* The probability of its occurrence
* Risk Score (the multiplication of Probability and Impact)
* A summary of the planned response should the event occur
* A summary of the mitigation (the actions taken in advance to reduce the probability and/or impact of the event)
* Ranking of risks by Risk Score so as to highlight the highest priority risks to all involved.
Incorrect Answers:
A: Before the risk events are analyzed they should be documented in the risk register.
B: The risks should first be documented and analyzed.
D: These risks should first be identified, documented, passed through qualitative risk analysis and then it should be determined if they should pass through the quantitative risk analysis process.
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Question 13

Which of the following should be the PRIMARY consideration when assessing the automation of control monitoring?

Correct Answer: B
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Question 14

Which of the following will BEST support management reporting on risk?

Correct Answer: C
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Question 15

You are the project manager of your enterprise. While performing risk management, you are given a task to identify where your enterprise stands in certain practice and also to suggest the priorities for improvements.
Which of the following models would you use to accomplish this task?

Correct Answer: A
Section: Volume D
Explanation:
Capability maturity models are the models that are used by the enterprise to rate itself in terms of the least mature level (having nonexistent or unstructured processes) to the most mature (having adopted and optimized the use of good practices).
The levels within a capability maturity model are designed to allow an enterprise to identify descriptions of its current and possible future states. In general, the purpose is to:
* Identify, where enterprises are in relation to certain activities or practices.
* Suggest how to set priorities for improvements
Incorrect Answers:
D: There is no such model exists in risk management process.
B: Decision tree analysis is a risk analysis tool that can help the project manager in determining the best risk response. The tool can be used to measure probability, impact, and risk exposure and how the selected risk response can affect the probability and/or impact of the selected risk event. It helps to form a balanced image of the risks and opportunities connected with each possible course of action. This makes them mostly useful for choosing between different strategies, projects, or investment opportunities particularly when the resources are limited. A decision tree is a decision support tool that uses a tree-like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility.
C: Fishbone diagrams or Ishikawa diagrams shows the relationships between the causes and effects of problems.
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