Questions for the CRISC were updated on : Nov 29 ,2024
Topic 1
Which of the following is the MOST important reason to maintain key risk indicators (KRIs)?
D
Explanation:
Threats and vulnerabilities change over time and KRI maintenance ensures that KRIs continue to effectively capture these
changes.
The risk environment is highly dynamic as the enterprise's internal and external environments are constantly changing.
Therefore, the set of KRIs needs to be changed over time, so that they can capture the changes in threat and vulnerability.
Incorrect Answers:
A: Risk avoidance is one possible risk response. Risk responses are based on KRI reporting, but is not the reason for
maintenance of KRIs.
B: While most key risk indicator (KRI) metrics need to be optimized in respect to their sensitivity, the most important objective
of KRI maintenance is to ensure that KRIs continue to effectively capture the changes in threats and vulnerabilities over time.
Hence the most important reason is that because of change of threat and vulnerability overtime.
C: Risk reporting timeliness is a business requirement, but is not a reason for KRI maintenance.
Topic 1
You are the project manager of a HGT project that has recently finished the final compilation process. The project customer
has signed off on the project completion and you have to do few administrative closure activities. In the project, there were
several large risks that could have wrecked the project but you and your project team found some new methods to resolve
the risks without affecting the project costs or project completion date. What should you do with the risk responses that you
have identified during the project's monitoring and controlling process?
C
Explanation:
The risk responses that do not exist up till then, should be included in the organization's lessons learned database so other
project managers can use these responses in their project if relevant.
Incorrect Answers:
A: The responses are not in the project management plan, but in the risk response plan during the project and they'll be
entered into the organization's lessons learned database.
B: The risk responses are included in the risk response plan, but after completing the project, they should be entered into the
organization's lessons learned database.
D: If the new responses that were identified is only included in the project's risk register then it may not be shared with
project managers working on some other project.
Topic 1
You are the project manager of GHT project. You have identified a risk event on your project that could save $100,000 in
project costs if it occurs. Which of the following statements BEST describes this risk
event?
D
Explanation:
This risk event has the potential to save money on project costs, so it is an opportunity, and the appropriate strategy to use
in this case is the exploit strategy. The exploit response is one of the strategies to negate risks or threats appear in a project.
This strategy may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is
realized. Exploiting a risk event provides opportunities for positive impact on a project. Assigning more talented resources to
the project to reduce the time to completion is an example of exploit response.
Incorrect Answers:
A, C: Mitigation and avoidance risk response is used in case of negative risk events, and not in positive risk events. Here in
this scenario, as it is stated that the event could save $100,000, hence it is a positive risk event. Therefore should not be
mitigated or avoided.
B: To accept risk means that no action is taken relative to a particular risk; loss is accepted if it occurs. But as this risk event
bring an opportunity, it should me exploited and not accepted.
Topic 1
You are the project manager of a large construction project. This project will last for 18 months and will cost $750,000 to
complete. You are working with your project team, experts, and stakeholders to identify risks within the project before the
project work begins. Management wants to know why you have scheduled so many risk identification meetings throughout
the project rather than just initially during the project planning. What is the best reason for the duplicate risk identification
sessions?
C
Explanation:
Risk identification is an iterative process because new risks may evolve or become known as the project progresses through
its life cycle.
Incorrect Answers:
A: Stakeholders are encouraged to participate in the risk identification process, but this is not the best choice.
B: Risk identification focuses on discovering new risk events, not the events which did not happen.
D: The primary reason for iterations of risk identification is to identify new risk events.
Topic 1
You are the risk official in Bluewell Inc. You are supposed to prioritize several risks. A risk has a rating for occurrence,
severity, and detection as 4, 5, and 6, respectively. What Risk Priority Number (RPN) you would give to it?
A
Explanation:
Steps involving in calculating risk priority number are as follows:
Identify potential failure effects
Identify potential causes
Establish links between each identified potential cause
Identify potential failure modes
Assess severity, occurrence and detection
Perform score assessments by using a scale of 1 -10 (low to high rating) to score these assessments. Compute the
RPN for a particular failure mode as Severity multiplied by occurrence and detection. RPN = Severity * Occurrence *
Detection
Hence,
RPN = 4 * 5 * 6
= 120
Incorrect Answers:
B, C, D: These are not RPN for given values of severity, occurrence, and detection.
Topic 1
Which of the following is the MOST important use of KRIs?
B
Explanation:
Key Risk Indicators are the prime monitoring indicators of the enterprise. KRIs are highly relevant and possess a high
probability of predicting or indicating important risk. KRIs help in avoiding excessively large number of risk indicators to
manage and report that a large enterprise may have.
As KRIs are the indicators of risk, hence its most important function is to effectively give an early warning signal that a high
risk is emerging to enable management to take proactive action before the risk actually becomes a loss.
Incorrect Answers:
A: This is one of the important functions of KRIs which can help management to improve but is not as important as giving
early warning.
C: KRIs provide an indication of the enterprise's risk appetite and tolerance through metric setting, but this is not as
important as giving early warning.
D: This is not as important as giving early warning.
Topic 1
Which of the following role carriers will decide the Key Risk Indicator of the enterprise? Each correct answer represents a
part of the solution. Choose two.
A B
Explanation:
An enterprise may have hundreds of risk indicators such as logs, alarms and reports. The CRISC will usually need to work
with senior management and business leaders to determine which risk indicators will be monitored on a regular basis and be
recognized as KRIs.
Incorrect Answers:
C, D: Chief financial officer and human resource only overview common risk view, but are not involved in risk based
decisions.
Topic 1
What are the requirements for creating risk scenarios? Each correct answer represents a part of the solution. (Choose
three.)
B C D
Explanation:
Creating a scenario requires determination of the value of an asset or a business process at risk and the potential threats
and vulnerabilities that could cause loss. The risk scenario should be assessed for relevance and realism, and then entered
into the risk register if found to be relevant.
In practice following steps are involved in risk scenario development: First determine manageable set of scenarios, which
include:
- Frequently occurring scenarios in the industry or product area.
- Scenarios representing threat sources that are increasing in count or severity level.
- Scenarios involving legal and regulatory requirements applicable to the business.
After determining manageable risk scenarios, perform a validation against the business objectives of the entity.
Based on this validation, refine the selected scenarios and then detail them to a level in line with the criticality of the entity.
Lower down the number of scenarios to a manageable set. Manageable does not signify a fixed number, but should be in
line with the overall importance and criticality of the unit.
Risk factors kept in a register so that they can be reevaluated in the next iteration and included for detailed analysis if they
have become relevant at that time.
Risk factors kept in a register so that they can be reevaluated in the next iteration and included for detailed analysis if they
have become relevant at that time. Include an unspecified event in the scenarios, that is, address an incident not covered
by other scenarios.
Incorrect Answers:
A: Cause-and-effect analysis is a predictive or diagnostic analytical tool used to explore the root causes or factors that
contribute to positive or negative effects or outcomes. It is used during the process of exposing risk factors.
Topic 1
You work as the project manager for Bluewell Inc. Your project has several risks that will affect several stakeholder
requirements. Which project management plan will define who will be available to share information on the project risks?
D
Explanation:
The Communications Management Plan defines, in regard to risk management, who will be available to share information on
risks and responses throughout the project.
The Communications Management Plan aims to define the communication necessities for the project and how the
information will be circulated. The Communications Management Plan sets the communication structure for the project. This
structure provides guidance for communication throughout the project's life and is updated as communication needs change.
The Communication
Managements Plan identifies and defines the roles of persons concerned with the project. It includes a matrix known as the
communication matrix to map the communication requirements of the project.
Incorrect Answers:
A: The Resource Management Plan does not define risk communications.
B: The Risk Management Plan defines risk identification, analysis, response, and monitoring.
C: The stakeholder management strategy does not address risk communications.
Topic 1
Which of the following controls is an example of non-technical controls?
B
Explanation:
Physical security is an example of non-technical control. It comes under the family of operational controls.
Incorrect Answers:
A, C, D: Intrusion detection system, access control, and encryption are the safeguards that are incorporated into computer
hardware, software or firmware, hence they refer to as technical controls.
Topic 1
You are the project manager of GHT project. Your project team is in the process of identifying project risks on your current
project. The team has the option to use all of the following tools and techniques to diagram some of these potential risks
EXCEPT for which one?
D
Explanation:
Decision tree diagrams are used during the Quantitative risk analysis process and not in risk identification.
Incorrect Answers:
A, B, C: All these options are diagrammatical techniques used in the Identify risks process.
Topic 1
Which of the following BEST describes the utility of a risk?
D
Explanation:
The utility of the risk describes the usefulness of a particular risk to an individual. Moreover, the same risk can be utilized by
two individuals in different ways. Financial outcomes are one of the methods for measuring potential value for taking a risk.
For example, if the individual's economic wealth increases, the potential utility of the risk will decrease.
Incorrect Answers:
A: Determining financial incentive is one of the method to measure the potential value for taking a risk, but it is not the valid
definition for utility of risk.
B: It is not the valid definition.
C: It is not the valid definition.
Topic 1
Which of the following aspect of monitoring tool ensures that the monitoring tool has the ability to keep up with the growth of
an enterprise?
A
Explanation:
Monitoring tools have to be able to keep up with the growth of an enterprise and meet anticipated growth in process,
complexity or transaction volumes; this is ensured by the scalability criteria of the monitoring tool.
Incorrect Answers:
B: For software to be effective, it must be customizable to the specific needs of an enterprise. Hence customizability ensures
that end users can adapt the software.
C: It ensures that monitoring software is able to change at the same speed as technology applications and infrastructure to
be effective over time.
D: The impact on performance has nothing related to the ability of monitoring tool to keep up with the growth of enterprise.
Topic 1
You are the project manager in your enterprise. You have identified risk that is noticeable failure threatening the success of
certain goals of your enterprise. In which of the following levels do this identified risk exists?
A
Explanation:
Moderate risks are noticeable failure threatening the success of certain goals.
Incorrect Answers:
B: High risk is the significant failure impacting in certain goals not being met.
C: Extremely high risk are the risks that has large impact on enterprise and are most likely results in failure with severe
consequences.
D: Low risks are the risk that results in certain unsuccessful goals.
Topic 1
Courtney is the project manager for her organization. She is working with the project team to complete the qualitative risk
analysis for her project. During the analysis Courtney encourages the project team to begin the grouping of identified risks by
common causes. What is the primary advantage to group risks by common causes during qualitative risk analysis?
B
Explanation:
By grouping the risks by categories the project team can develop effective risk responses. Related risk events often have
common causal factors that can be addressed with a single risk response.