You are the product manager in your enterprise.
You have identified that new technologies, products and services are introduced in your enterprise time-to-time.
What should be done to prevent the efficiency and effectiveness of controls due to these changes?
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A. B. C. D.A.
As new technologies, products and services are introduced, compliance requirements become more complex and strict; business processes and related information flows change over time.
These changes can often affect the efficiency and effectiveness of controls.
Formerly effective controls become inefficient, redundant or obsolete and have to be removed or replaced.
Therefore, the monitoring process has to receive timely feedback from risk assessments and through key risk indicators (KRIs) to ensure an effective control life cycle.
Incorrect Answers: B: Most of the time, the addition of controls results in degradation of the efficiency and profitability of a process without adding an equitable level of corresponding risk mitigation, hence better controls are adopted in place of adding more controls.
C: A BIA is a discovery process meant to uncover the inner workings of any process.
It helps to identify about actual procedures, shortcuts, workarounds and the types of failure that may occur.
It involves determining the purpose of the process, who performs the process and its output.
It also involves determining the value of the process output to the enterprise.
D: Efficiency and effectiveness of controls are not affected by the changes in technology or product, so some measure should be taken.
As a product manager in your enterprise, it is important to ensure that the efficiency and effectiveness of controls are not compromised by the introduction of new technologies, products, and services. Failure to address this issue may lead to increased risk exposure, reduced productivity, and ultimately negative impact on the business.
Option A: Receive timely feedback from risk assessments and through key risk indicators, and update controls
This option suggests that you should receive timely feedback from risk assessments and key risk indicators to identify any potential changes that may affect the existing controls. This feedback should then be used to update controls to ensure that they remain effective in mitigating the identified risks. This approach is effective because it ensures that controls are continuously evaluated and improved to address the changing risk landscape.
Option B: Add more controls
While adding more controls may seem like a straightforward solution, it may not necessarily be effective in preventing the efficiency and effectiveness of controls from being compromised. Adding too many controls may lead to increased complexity, which can negatively impact productivity and increase the risk of errors. Therefore, it is important to evaluate the effectiveness of existing controls before adding new ones.
Option C: Perform Business Impact Analysis (BIA)
Performing a Business Impact Analysis (BIA) can help identify the critical functions and assets within the organization and the impact that any changes may have on them. This approach can help determine the priority of controls and ensure that the most critical functions and assets are protected. While this approach is effective, it should be used in conjunction with other risk management strategies to ensure that controls remain effective.
Option D: Nothing, efficiency and effectiveness of controls are not affected by these changes.
This option is not recommended because changes in technology, products, and services can have a significant impact on the effectiveness of controls. Failure to address these changes can lead to increased risk exposure, reduced productivity, and ultimately negative impact on the business.
In conclusion, the most effective approach to prevent the efficiency and effectiveness of controls due to changes in technology, products, and services is to receive timely feedback from risk assessments and through key risk indicators, and update controls accordingly. This approach ensures that controls are continuously evaluated and improved to address the changing risk landscape.