IT Risk Fundamentals Exam Questions and Answers

QUESTION: 11

Which of the following is the BEST indication of a good risk culture?

The enterprise learns from negative outcomes and treats the root cause.
The enterprise enables discussions of risk and facts within the risk management functions.
The enterprise places a strong emphasis on the positive and negative elements of risk.

Answer(s): A

Explanation:

A good risk culture in an organization can be identified by several characteristics. Among the options provided:
Option A: The enterprise learns from negative outcomes and treats the root cause This option reflects a proactive and continuous improvement approach to risk management. It indicates that the organization does not just react to incidents but also learns from them and implements measures to address the underlying issues, thereby preventing recurrence. This approach aligns with best practices in risk management and demonstrates a mature risk culture. Option B: The enterprise enables discussions of risk and facts within the risk management functions While facilitating open discussions about risk is important, it primarily shows that the enterprise supports a communicative environment. However, it does not necessarily indicate that the enterprise takes concrete actions to learn from negative outcomes or address root causes. Option C: The enterprise places a strong emphasis on the positive and negative elements of risk Emphasizing both positive and negative elements of risk is beneficial as it provides a balanced view. Nonetheless, this focus alone does not provide evidence of actions taken to learn from past mistakes or to rectify the root causes of issues.
Conclusion:
Option A is the best indication of a good risk culture because it demonstrates that the organization is committed to learning from past failures and improving its risk management processes by addressing the root causes of problems.

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QUESTION: 12

In the context of enterprise risk management (ERM), what is the overall role of l&T risk management stakeholders?

Stakeholders set direction and provide support for risk management practices.
Stakeholders are accountable for all risk management activities within an enterprise.
Stakeholders are responsible for protecting enterprise assets to achieve business objectives.

Answer(s): A

Explanation:

In the context of enterprise risk management (ERM), stakeholders play a crucial role in shaping and supporting the risk management framework within the organization. Here is a detailed explanation of the roles and why option A is the correct answer:
Option A: Stakeholders set direction and provide support for risk management practices This option accurately describes the overarching role of stakeholders in ERM. Stakeholders, including senior management and the board of directors, are responsible for establishing the risk management policies and frameworks. They provide the necessary resources, guidance, and oversight to ensure that risk management practices are integrated into the organizational processes. This support is essential for creating a risk-aware culture and for ensuring that risk management objectives align with the business goals.
Option B: Stakeholders are accountable for all risk management activities within an enterprise This statement is overly broad.
While stakeholders are accountable for ensuring that a robust risk management framework is in place, the actual execution of risk management activities is typically the responsibility of designated risk management teams and individual business units. Option C: Stakeholders are responsible for protecting enterprise assets to achieve business objectives
Although stakeholders have a role in protecting enterprise assets, this responsibility is more specific and does not encompass the broader role of setting direction and providing support for the overall risk management framework.
Conclusion:
Option A correctly captures the essential role of stakeholders in ERM, which involves setting the strategic direction for risk management and providing the necessary support to implement and maintain effective risk management practices.

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QUESTION: 13

Which of the following is the PRIMARY outcome of a risk scoping activity?

Identification of major risk factors to be benchmarked against industry competitors
Identification of potential high-impact risk areas throughout the enterprise
Identification of risk scenarios related to emerging technologies

Answer(s): B

Explanation:

Risk scoping is a critical activity in the risk management process aimed at identifying areas within the enterprise that may be exposed to significant risks. The primary outcome of this activity is to identify potential high-impact risk areas throughout the enterprise. This involves assessing various business processes, IT systems, and operational functions to determine where risks may arise and their potential impact on the organization. By focusing on high-impact areas, the organization can prioritize resources and efforts to mitigate these risks effectively. This approach ensures a comprehensive understanding of the risk landscape, which is essential for effective risk management and aligns with best practices outlined in ISO 31000 and COBIT frameworks.

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QUESTION: 14

Publishing l&T risk-related policies and procedures BEST enables an enterprise to:

set the overall expectations for risk management.
hold management accountable for risk loss events.
ensure regulatory compliance and adherence to risk standards.

Answer(s): A

Explanation:

Publishing IT risk-related policies and procedures sets the overall expectations for risk management within an enterprise. These documents provide a clear framework and guidelines for how risk should be managed, communicated, and mitigated across the organization. They outline roles, responsibilities, and processes, ensuring that all employees understand their part in the risk management process. This clarity helps align the organization's efforts towards a common goal and fosters a risk-aware culture.
While holding management accountable and ensuring regulatory compliance are important, the primary role of these policies is to set the tone and expectations for managing risks effectively, as emphasized by standards such as ISO 27001 and COBIT.

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QUESTION: 15

An enterprise's risk policy should be aligned with its:

current risk.
risk capacity.
risk appetite.

Answer(s): C

Explanation:

An enterprise's risk policy should be aligned with its risk appetite, which defines the amount and type of risk the organization is willing to accept in pursuit of its objectives. This alignment ensures that the risk management efforts are consistent with the strategic goals and risk tolerance levels set by the organization's leadership. Risk appetite provides a clear boundary for risk-taking activities and helps in making informed decisions about which risks to accept, mitigate, transfer, or avoid. Aligning the risk policy with the risk appetite ensures that risk management practices are in harmony with the organization's overall strategy and objectives, as recommended by frameworks like COSO ERM and ISO 31000.

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ISACA IT Risk Fundamentals Exam (page: 3) ISACA IT Risk Fundamentals Updated on: 25-Dec-2025

QUESTION: 11

Explanation:

QUESTION: 12

Explanation:

QUESTION: 13

Explanation:

QUESTION: 14

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QUESTION: 15

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ISACA IT Risk Fundamentals Exam (page: 3)
ISACA IT Risk Fundamentals
Updated on: 25-Dec-2025