Isaca IT-Risk-Fundamentals Dumps Questions Answers

An alert triggered by exceeding network bandwidth usage is a key risk indicator (KRI). It's an indicator that something unusual is happening on the network that could be a sign of an increased risk, such as a denial-of-service attack or unauthorized activity.

It's not a threat (A) itself, but a potential sign of a threat. It's not a risk event (B) yet, but it could indicate an increased likelihood of a risk event. It's not a lag indicator (C) because it's alerting in real-time, not after the fact.

The board of directors is ultimately accountable for risk governance. While ERM, business units, and IT management all play crucial roles in managing risk, the governance of risk—setting the overall risk appetite, defining roles and responsibilities, and monitoring the effectiveness of risk management—rests with the board. They provide oversight and direction, ensuring that risk management is integrated with the organization's strategic objectives. The board's responsibility stems from their fiduciary duty to the organization and its stakeholders. They are responsible for the overall success and sustainability of the enterprise, which includes effectively managing risks.

The use of risk scenarios to guide senior management through a rapidly changing market environment is considered a key risk management benefit. Here’s why:

Benefit: Using risk scenarios provides a strategic advantage by helping senior management understand potential future events and their impacts. It enables better decision-making and preparedness in navigating uncertainties.

Incentive: While risk scenarios may provide motivation to improve risk management practices, the primary aspect is the benefit they offer in strategic planning and risk mitigation.

Capability: This refers to the ability of the organization to manage risks. Using risk scenarios enhances the risk management capability but is primarily beneficial in understanding and preparing for risks.

Therefore, using risk scenarios is a key benefit as it enhances the ability of senior management to navigate a changing environment.