CRISC Dumps PDF – CRISC Question Answers | Real Exam Dumps
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Question: 1 
 
Assessing the probability and consequences of identified risks to the project objectives, assigning a risk 
score to each risk, and creating a list of prioritized risks describes which of the following processes?  
  
A. Identify Risks  
B. Qualitative Risk Analysis  
C. Quantitative Risk Analysis  
D. Plan Risk Management  
  
Answer: B  
  
Explanation:  
The purpose of qualitative risk analysis is to determine what impact the identified risk events will have 
on the project and the probability they'll occur. It also puts risks in priority order according to their 
effects on the project objectives and assigns a risk score for the project.  
Answer, C is incorrect. This process does not involve assessing the probability and consequences of 
identified risks.  
Quantitative analysis is the use of numerical and statistical techniques rather than the analysis of verbal 
material for analyzing risks. Some of the quantitative methods of risk analysis are: 
Internal loss method  
External data analysis  
Business process modeling (BPM) and simulation  
Statistical process control (SPC) 
Answer, A is incorrect. It involves listing of all the possible risks so as to cure them before it can occur. In 
risk identification both threats and opportunities are considered, as both carry some level of risk with 
them. 
Answer, D is incorrect. Risk Management is used to identify, assess, and control risks. It includes 
analyzing the value of assets to the business, identifying threats to those assets, and evaluating how 
vulnerable each asset is to those threats.  
Assessing the probability and consequences of identified risks is only the part of risk management.  
  
Question: 2 
 
Which of the following characteristics of baseline represents specification that is used to identify 
approved requirements in baseline modeling?  
  
A. Functional  
B. Allocated  
C. Product  
D. Developmental  
  
Answer: B  
  
 
Explanation:  
  
In baseline modeling, the baseline can characterize the functional, allocated, developmental, and 
product aspects of a solution. The allocated characteristic focus on the specifications which met the 
requirements approved by management.  
Answer, A, C, and D are incorrect. These characteristics do not represents specification that is used to 
identify approved requirements in baseline modeling. 
  
Question: 3 
 
Which of the following variables are associated with quantitative assessment of risks? 
Each correct answer represents a complete solution. Choose three.  
  
A. Impact  
B. Probability  
C. Cost  
D. Frequency  
  
Answer: D, B, A  
  
Explanation:  
The measurable data used by this assessment include frequency, probability, impact, and effectiveness 
of countermeasures. 
Risk assessment is a process of analyzing the identified risk, both quantitatively and qualitatively. 
Quantitative risk assessment requires calculations of two components of risk, the magnitude of the 
potential loss, and the probability that the loss will occur. While qualitatively risk assessment checks the 
severity of risk. The assessment attempts to determine the likelihood of the risk being realized and the 
impact of the risk on the operation. This provides several conclusions : 
Probability-establishing the likelihood of occurrence and reoccurrence of specific risks, independently 
and combined.  
Interdependencies-the relationship between different types of risk. For instance, one risk may have 
greater potential of occurring if another risk has occurred. Or probability or impact of a situation may 
increase with combined risk. 
  
Question: 4 
 
Which of the following laws applies to organizations handling health care information?  
  
A. SOX  
B. GLBA  
C. HIPAA  
D. FISMA  
  
Answer: C  
 
  
Explanation:  
HIPAA handles health care information of an organization. 
The Health Insurance Portability and Accountability Act (HIPAA) were introduced in 1996. It ensures that 
health information data is protected. Before HIPAA, personal medical information was often available to 
anyone. Security to protect the data was lax, and the data was often misused. 
If your organization handles health information, HIPAA applies. HIPAA defines health information as any 
data that is created or received by health care providers, health plans, public health authorities, 
employers, life insurers, schools or universities, and health care clearinghouses.  
HIPAA defines any data that is related to the health of an individual, including past/present/future 
health, physical/mental health, and past/present/future payments for health care. 
Creating a HIPAA compliance plan involves following phases: 
Assessment: An assessment helps in identifying whether organization is covered by HIPAA. If it is, then 
further requirement is to identify what data is needed to protect. 
Risk analysis: A risk analysis helps to identify the risks. In this phase, analyzing method of handling data 
of organization is done. 
Plan creation: After identifying the risks, plan is created. This plan includes methods to reduce the risk. 
Plan implementation: In this plan is being implemented. 
Continuous monitoring: Security in depth requires continuous monitoring. Monitor regulations for 
changes. Monitor risks for changes.  
Monitor the plan to ensure it is still used. 
Assessment: Regular reviews are conducted to ensure that the organization remains in compliance. 
Answer, A is incorrect. SOX designed to hold executives and board members personally responsible for 
financial data.  
Answer, B is incorrect. GLBA is not used for handling health care information. 
Answer, D is incorrect. FISMA ensures protection of data of federal agencies.  
  
Question: 5 
 
You are the project manager of GRT project. You discovered that by bringing on more qualified 
resources or by providing even better quality than originally planned, could result in reducing the 
amount of time required to complete the project. If your organization seizes this opportunity it would be 
an example of what risk response?  
  
A. Share  
B. Enhance  
C. Exploit  
D. Accept  
  
Answer: C  
  
Explanation:  
Exploit response is one of the strategies to negate risks or threats that appear in a project. This strategy 
may be selected for risks with positive impacts where the organization wishes to ensure that the 
opportunity is realized. Exploiting a risk event provides opportunities for positive impact on a project. 
 
Assigning more talented resources to the project to reduce the time to completion is an example of 
exploit response. 
Answer, A is incorrect. - The share strategy is similar as transfer because in this a portion of the risk is 
shared with an external organization or another internal entity. 
Answer, B is incorrect. The enhance strategy closely watches the probability or impact of the risk event 
to assure that the organization realizes the benefits. The primary point of this strategy is to attempt to 
increase the probability and/or impact of positive risks. 
Answer, D is incorrect. Risk acceptance means that no action is taken relative to a particular risk; loss is 
accepted if it occurs.  
  
Question: 6 
 
You are the project manager of the NHQ project in Bluewell Inc. The project has an asset valued at 
$200,000 and is subjected to an exposure factor of 45 percent. If the annual rate of occurrence of loss in 
this project is once a month, then what will be the Annual Loss Expectancy (ALE) of the project?  
  
A. $ 2,160,000  
B. $ 95,000  
C. $ 90,000  
D. $ 108,000  
  
Answer: D  
  
Explanation:  
The ALE of this project will be $ 108,000. 
Single Loss Expectancy is a term related to Quantitative Risk Assessment. It can be defined as the 
monetary value expected from the occurrence of a risk on an asset. It is mathematically expressed as 
follows: 
SLE = Asset value * Exposure factor 
Therefore, 
SLE = 200,000 * 0.45 
= $ 90,000 
As the loss is occurring once every month, therefore ARO is 12. Now ALE can be calculated as follows: 
ALE = SLE * ARO 
= 90,000 * 12 
= $ 108,000  
  
Question: 7 
 
Which of the following is NOT true for Key Risk Indicators?  
  
A. The complete set of KRIs should also balance indicators for risk, root causes and business  
impact.  
B. They help avoid having to manage and report on an excessively large number of risk indicators  
 
C. They are monitored annually  
D. They are selected as the prime monitoring indicators for the enterprise  
  
Answer: C  
  
Explanation:  
They are monitored on regular basis as they indicate high probability and high impact risks. As risks 
change over time, hence KRIs should also be monitored regularly for its effectiveness on these changing 
risks. 
Answer. D, B, and A are incorrect. These all are true for KRIs. Key Risk Indicators are the prime 
monitoring indicators of the enterprise. KRIs are highly relevant and possess a high probability of 
predicting or indicating important risk. KRIs help in avoiding excessively large number of risk indicators 
to manage and report that a large enterprise may have.  
The complete set of KRIs should also balance indicators for risk, root causes and business impact, so as 
to indicate the risk and its impact completely. 
  
Question: 8 
 
You work as a project manager for SoftTech Inc. You are working with the project stakeholders to begin 
the qualitative risk analysis process.  
Which of the following inputs will be needed for the qualitative risk analysis process in your project? 
Each correct answer represents a complete solution. Choose all that apply.  
  
A. Cost management plan  
B. Organizational process assets  
C. Project scope statement  
D. Risk register  
  
Answer: D, B, C  
  
Explanation:  
The primary goal of qualitative risk analysis is to determine proportion of effect and theoretical 
response. The inputs to the Qualitative Risk Analysis process are: 
Organizational process assets  
Project Scope Statement  
Risk Management Plan 
Risk Register 
Answer, A is incorrect. The cost management plan is the input to the perform quantitative risk analysis 
process. 
  
Question: 9 
 
 
You have identified several risks in your project. You have opted for risk mitigation in order to respond 
to identified risk. Which of the following ensures that risk mitigation method that you have chosen is 
effective?  
  
A. Reduction in the frequency of a threat  
B. Minimization of inherent risk  
C. Reduction in the impact of a threat  
D. Minimization of residual risk  
  
Answer: B  
  
Explanation:  
The inherent risk of a process is a given and cannot be affected by risk reduction or risk mitigation 
efforts. Hence it should be reduced as far as possible. 
Answer, D is incorrect. The objective of risk reduction is to reduce the residual risk to levels below the 
enterprise's risk tolerance level. 
Answer, A is incorrect. Risk reduction efforts can focus on either avoiding the frequency of the risk or 
reducing the impact of a risk.  
Answer, C is incorrect. Risk reduction efforts can focus on either avoiding the frequency of the risk or 
reducing the impact of a risk.  
  
Question: 10 
 
Which of the following methods involves the use of predictive or diagnostic analytical tool for exposing 
risk factors?  
  
A. Fault tree analysis  
B. Scenario analysis  
C. Sensitivity analysis  
D. Cause and effect analysis  
  
Answer: D  
  
Explanation:  
Cause-and-effect analysis involves the use of predictive or diagnostic analytical tool for exploring the 
root causes or factors that contribute to positive or negative effects or outcomes. These tools also help 
in identifying potential risk.  
Answer, C is incorrect. Sensitivity analysis is the quantitative risk analysis technique that: 
Assist in determination of risk factors that have the most potential impact  
Examines the extent to which the uncertainty of each element affects the object under consideration 
when all other uncertain elements are held at their baseline values 
Answer, A is incorrect. Fault tree analysis (FIA) is a technique that provides a systematic description of 
the combination of possible occurrences in a system, which can result in an undesirable outcome. It 
combines hardware failures and human failures.  
 
Answer, B is incorrect. This analysis is not a method for exposing risk factors. It is used for analyzing 
scenarios.