Get Isaca IT-Risk-Fundamentals Exam Dumps

Answer : A

Purpose of Monitoring Control Statuses:

Organizations monitor control statuses to ensure that the controls in place are functioning correctly and achieving their intended outcomes.

Providing Assurance:

Monitoring control statuses provides assurance that the organization is compliant with established standards, regulations, and internal policies.

Compliance is a critical aspect of governance and risk management, ensuring that the organization operates within legal and regulatory frameworks.

Comparison of Options:

B ensuring risk events are fully mitigated is an important aspect but is secondary to the overarching goal of compliance.

C meeting ROI objectives is related to financial performance but does not directly relate to the primary purpose of control monitoring, which is compliance.

Conclusion:

Thus, the primary reason for monitoring control statuses is to provide assurance that compliance with established standards is achieved.

Answer : B

Control Monitoring Process:

The control monitoring process involves regular review and assessment of controls to ensure they are operating effectively and as intended.

Frequent Control Exceptions:

Frequent exceptions in control processes often indicate that the controls are not aligning well with the business priorities or operational needs.

This misalignment can occur when controls are too rigid, outdated, or not suited to the current business environment, leading to frequent violations or bypassing of controls.

Comparison of Options:

A excessive costs associated with the use of a control might be a concern, but it is not the primary reason for frequent exceptions.

C high risk appetite throughout the enterprise might lead to more accepted risks but does not directly explain frequent control exceptions.

Conclusion:

Therefore, frequent control exceptions are most likely to indicate misalignment with business priorities.

Answer : A

Monitoring and Reviewing IT-Related Risk:

Periodic monitoring and reviewing of IT-related risks are essential to ensure that the organization can adapt to both internal and external changes that might affect risk levels.

Primary Reason:

The primary reason for this ongoing process is to address changes in external (e.g., regulatory changes, market conditions) and internal (e.g., organizational changes, new IT deployments) risk factors.

Risks are dynamic and can evolve due to various factors. Therefore, continuous monitoring helps in identifying new risks and changes in existing risks, ensuring that they are managed appropriately.

Comparison of Options:

B ensuring risk is managed within acceptable limits is a significant outcome of monitoring but is not the primary driver for periodic review.

C facilitating the identification and replacement of legacy IT assets is an operational concern but does not encompass the broader scope of risk management.

Addressing changes in risk factors is a proactive approach that enables an organization to stay ahead of potential issues and maintain an effective risk management posture.

Conclusion:

Thus, the primary reason for an organization to monitor and review IT-related risk periodically is to address changes in external and internal risk factors.

Answer : A

Definition and Importance of KPIs:

Key Performance Indicators (KPIs) are measurable values that demonstrate how effectively an organization is achieving key business objectives. They are critical for assessing performance against targets.

Primary Aspect of KPIs:

The primary aspect of KPIs is their ability to identify underperforming assets or processes that may impact the achievement of operational goals. This aligns with the fundamental purpose of KPIs, which is to measure performance and indicate areas that need improvement.

By identifying underperforming assets, management can take corrective actions to align performance with strategic objectives, ensuring that the organization remains on track to achieve its goals.

Comparison of Options:

B and C are important functions of KPIs, but they are not the primary focus. Monitoring IT asset usage and ROI (B) and infrastructure capacity (C) are specific applications of KPIs but do not encompass the overall critical aspect of identifying performance issues that impact operational goals.

Effective KPIs should provide a comprehensive view that helps in identifying critical performance gaps impacting the organization's objectives.

Conclusion:

Therefore, the most important aspect of KPIs is that they identify underperforming assets that may impact the achievement of operational goals.

Answer : B

Setting KPIs:

A Key Performance Indicator (KPI) should be set at a level that allows for early detection and response to deviations from desired performance levels.

In this case, management wants to be alerted when error rates meet or exceed 4%, even though the acceptable limit is 5%.

Alert Threshold:

Setting the KPI at 4% ensures that management receives timely alerts before reaching the unacceptable error rate of 5%.

This approach enables proactive management and correction of processes to maintain error rates within acceptable limits.

Reference:

ISA 315 (Revised 2019), Anlage 5 discusses the importance of monitoring and setting appropriate thresholds for performance and risk indicators to manage and mitigate risks effectively.