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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.

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.

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.

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.

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.

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.

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.

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.

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.

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.