CA Foundation Business Economics Questions 2023 - Part 32
Fri, 03 Mar 2023
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CRISC—Certified in Risk and Information Systems Control Certification Questions and answer - Part 22
1. Your project has several risks that may cause serious financial impact if they occur. You have studied the risk events and made some potential risk responses for the risk events but management wants you to do more. They'd like you to create some type of a chart that identified the risk probability and impact with a financial amount for each risk event. What is the likely outcome of creating this type of chart?
A) Risk response plan
B) Contingency reserve
C) Risk response
D) Quantitative analysis
2. Which of the following are parts of SWOT Analysis?Each correct answer represents a complete solution. Choose all that apply.(Select 4answers)
A) Weaknesses
B) Tools
C) Threats
D) Opportunities
E) Strengths
3. What is the FIRST phase of IS monitoring and maintenance process?
A) Report result
B) Prioritizing risks
C) Implement monitoring
D) Identifying controls
4. You are the project manager for the NHH project. You are working with your project team to examine the project from four different defined perspectives to increase the breadth of identified risks by including internally generated risks. What risk identification approach are you using in this example?
A) Root cause analysis
B) Influence diagramming techniques
C) SWOT analysis
D) Assumptions analysis
5. You are working in an enterprise. Assuming that your enterprise periodically compares finished goods inventory levels to the perpetual inventories in its ERP system. What kind of information is being provided by the lack of any significant differences between perpetual levels and actual levels?
A) Direct information
B) Indirect information
C) Risk management plan
D) Risk audit information
A) Risk response plan
B) Contingency reserve
C) Risk response
D) Quantitative analysis
2. Which of the following are parts of SWOT Analysis?Each correct answer represents a complete solution. Choose all that apply.(Select 4answers)
A) Weaknesses
B) Tools
C) Threats
D) Opportunities
E) Strengths
3. What is the FIRST phase of IS monitoring and maintenance process?
A) Report result
B) Prioritizing risks
C) Implement monitoring
D) Identifying controls
4. You are the project manager for the NHH project. You are working with your project team to examine the project from four different defined perspectives to increase the breadth of identified risks by including internally generated risks. What risk identification approach are you using in this example?
A) Root cause analysis
B) Influence diagramming techniques
C) SWOT analysis
D) Assumptions analysis
5. You are working in an enterprise. Assuming that your enterprise periodically compares finished goods inventory levels to the perpetual inventories in its ERP system. What kind of information is being provided by the lack of any significant differences between perpetual levels and actual levels?
A) Direct information
B) Indirect information
C) Risk management plan
D) Risk audit information
1. Right Answer: B
Explanation: This chart is a probability-impact matrix in a quantitative analysis process. The probability and financial impact of each risk is learned through research, testing, and subject matter experts. The probability of the event is multiplied by the financial impact to create a risk event value for each risk. The sum of the risk event values will lead to the contingency reserve for the project.Incorrect Answers:A: The risk response plan is based on the risk responses, not the risk probability-impact matrix.C: The risk responses are needed but this chart doesn't help the project manager to create them.D: This chart is created as part of quantitative analysis.
2. Right Answer: A,C,D,E
Explanation: SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data fromFortune 500 companies.Incorrect Answers:B: Tools are not the parts of SWOT analysis.
3. Right Answer: B
Explanation: Following are the phases that are involved in Information system monitoring and maintenance: Prioritize risk: The first phase involves the prioritization of risk which in turn involves following task:- Analyze and prioritize risks to organizational objectives.- Identify the necessary application components and flow of information through the system.- Examine and understand the functionality of the application by reviewing the application system documentation and interviewing appropriate personnel. Identify controls: After prioritizing risk now the controls are identified, and this involves following tasks:- Key controls are identified across the internal control system that addresses the prioritized risk.- Applications control strength is identified.- Impact of the control weaknesses is being evaluated.- Testing strategy is developed by analyzing the accumulated information. Identify information: Now the IS control information should be identified:- Identify information that will persuasively indicate the operating effectiveness of the internal control system.- Observe and test user performing procedures. Implement monitoring: Develop and implement cost-effective procedures to evaluate the persuasive information.Report results: After implementing monitoring process the results are being reported to relevant stakeholders.Incorrect Answers:A, C, D: These all phases occur in IS monitoring and maintenance process after prioritizing risks.
4. Right Answer: C
Explanation: This is an example of SWOT analysis. SWOT analysis examines the strengths, weaknesses, opportunities, and threats within the project and generated from within the organization.SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a part of business policy that helps an individual or a company to make decisions. It includes the strategies to build the strength of a company and use the opportunities to make the company successful. It also includes the strategies to overcome the weaknesses of and threats to the company.Incorrect Answers:A: Root cause analysis examines causal factors for events within the project.B: Influence diagramming techniques examines the relationships between things and events within the project.D: Assumptions analysis does not use four pre-defined perspectives for review.
5. Right Answer: B
Explanation: The lack of any significant differences between perpetual levels and actual levels provides indirect information that its billing controls are operating. It does not provide any direct information.Incorrect Answers:A: It does not provide direct information as there is no information about the propriety of cutoff.C, D: These are not the types of information.
Explanation: This chart is a probability-impact matrix in a quantitative analysis process. The probability and financial impact of each risk is learned through research, testing, and subject matter experts. The probability of the event is multiplied by the financial impact to create a risk event value for each risk. The sum of the risk event values will lead to the contingency reserve for the project.Incorrect Answers:A: The risk response plan is based on the risk responses, not the risk probability-impact matrix.C: The risk responses are needed but this chart doesn't help the project manager to create them.D: This chart is created as part of quantitative analysis.
2. Right Answer: A,C,D,E
Explanation: SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data fromFortune 500 companies.Incorrect Answers:B: Tools are not the parts of SWOT analysis.
3. Right Answer: B
Explanation: Following are the phases that are involved in Information system monitoring and maintenance: Prioritize risk: The first phase involves the prioritization of risk which in turn involves following task:- Analyze and prioritize risks to organizational objectives.- Identify the necessary application components and flow of information through the system.- Examine and understand the functionality of the application by reviewing the application system documentation and interviewing appropriate personnel. Identify controls: After prioritizing risk now the controls are identified, and this involves following tasks:- Key controls are identified across the internal control system that addresses the prioritized risk.- Applications control strength is identified.- Impact of the control weaknesses is being evaluated.- Testing strategy is developed by analyzing the accumulated information. Identify information: Now the IS control information should be identified:- Identify information that will persuasively indicate the operating effectiveness of the internal control system.- Observe and test user performing procedures. Implement monitoring: Develop and implement cost-effective procedures to evaluate the persuasive information.Report results: After implementing monitoring process the results are being reported to relevant stakeholders.Incorrect Answers:A, C, D: These all phases occur in IS monitoring and maintenance process after prioritizing risks.
4. Right Answer: C
Explanation: This is an example of SWOT analysis. SWOT analysis examines the strengths, weaknesses, opportunities, and threats within the project and generated from within the organization.SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a part of business policy that helps an individual or a company to make decisions. It includes the strategies to build the strength of a company and use the opportunities to make the company successful. It also includes the strategies to overcome the weaknesses of and threats to the company.Incorrect Answers:A: Root cause analysis examines causal factors for events within the project.B: Influence diagramming techniques examines the relationships between things and events within the project.D: Assumptions analysis does not use four pre-defined perspectives for review.
5. Right Answer: B
Explanation: The lack of any significant differences between perpetual levels and actual levels provides indirect information that its billing controls are operating. It does not provide any direct information.Incorrect Answers:A: It does not provide direct information as there is no information about the propriety of cutoff.C, D: These are not the types of information.
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