Which of the following BEST demonstrates to an IS auditor that an organization has implemented effective risk management processes?
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A. B. C. D.B.
Effective risk management is a crucial aspect of any organization's information security program, and as an IS auditor, you will want to verify that the organization has implemented effective risk management processes. Let's analyze each answer option in detail and see which one would be the best indicator of effective risk management processes:
A. Critical business assets have additional controls: This answer option suggests that the organization has implemented additional controls to protect critical business assets. Although it is a good practice to implement additional controls for critical assets, it does not necessarily mean that the organization has an effective risk management process. Effective risk management involves identifying and assessing risks across the organization, prioritizing them, and implementing appropriate controls to mitigate or manage the risks. Therefore, while this option may be a part of effective risk management, it alone does not provide sufficient evidence that the organization has implemented effective risk management processes.
B. The risk register is reviewed periodically: A risk register is a document that lists all identified risks, their likelihood and impact, and the controls in place to manage those risks. Reviewing the risk register periodically is a good practice and indicates that the organization is actively managing its risks. However, it does not provide evidence that the risk management process is effective. A risk register is only a tool used to manage risks, and its effectiveness depends on how well the organization has identified and assessed the risks and implemented appropriate controls to mitigate or manage them. Therefore, while periodic review of the risk register is a good practice, it alone does not provide sufficient evidence that the organization has implemented effective risk management processes.
C. A business impact analysis (BIA) has been completed: A business impact analysis (BIA) is a critical component of effective risk management. A BIA involves identifying critical business processes and their dependencies, assessing the impact of disruptions to those processes, and determining the recovery time objectives. Completing a BIA indicates that the organization has identified its critical assets and processes, assessed their risks, and determined the recovery time objectives. Therefore, completing a BIA is a good indicator that the organization has implemented effective risk management processes.
D. The inventory of IT assets includes asset classification: Maintaining an inventory of IT assets is an essential part of asset management, but it alone does not provide evidence that the organization has implemented effective risk management processes. Asset classification is a process of categorizing assets based on their criticality, sensitivity, and value to the organization. Although asset classification is a good practice and can be a part of effective risk management, it alone does not provide sufficient evidence that the organization has implemented effective risk management processes.
In conclusion, out of the given answer options, completing a business impact analysis (BIA) is the best indicator that an organization has implemented effective risk management processes. However, it is important to note that effective risk management involves a comprehensive approach that includes identifying, assessing, prioritizing, and mitigating risks across the organization. Therefore, a combination of these practices is necessary to ensure effective risk management.