Reengineering a Business Process: Identifying the Most Significant Risk | CISA Exam

Identifying the Most Significant Risk in Reengineering a Business Process

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Question

Which of the following would an IS auditor consider to be the MOST significant risk associated with a project to reengineer a business process?

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A. B. C. D.

C.

When considering a project to reengineer a business process, an IS auditor would need to assess the risks associated with the project. The MOST significant risk in this context would be the risk that has the highest likelihood and potential impact of negatively affecting the project or the organization as a whole.

Out of the options provided, the most significant risk associated with a project to reengineer a business process is that existing controls may be weakened or removed (Option C). This risk is significant because the reengineering process involves a fundamental change in the way the business process is carried out. As a result, controls that were in place to ensure the integrity, confidentiality, and availability of information may no longer be relevant or effective.

If controls are weakened or removed, the organization is exposed to risks such as data breaches, errors, fraud, and other security incidents. These incidents could potentially result in financial losses, reputational damage, legal and regulatory penalties, and other negative impacts on the organization.

The other options presented are also risks that an IS auditor would consider, but they are not as significant as the risk of weakened or removed controls. Option A (The negative impact of change may not be documented) is a risk because if the impact of change is not documented, it may be difficult to assess whether the project has achieved its objectives. Option B (The project manager is inexperienced in information systems) is a risk because an inexperienced project manager may not have the necessary skills or knowledge to manage the project effectively, leading to delays, budget overruns, and other issues. Option D (Existing baseline processes may not be reported to management) is a risk because if the baseline processes are not reported to management, it may be difficult to assess the effectiveness of the reengineering project. However, none of these risks are as significant as the risk of weakened or removed controls.