Isaca CRISC Certified in Risk and Information Systems Control Exam Dumps and Practice Test Questions Set 3 Q31 — 45
Visit here for our full Isaca CRISC exam dumps and practice test questions.
Question 31:
An organization experiences frequent security incidents affecting critical business processes. Which metric best indicates the effectiveness of incident response procedures?
A) Number of incidents detected
B) Mean time to recover (MTTR) from security incidents
C) IT budget percentage
D) Number of security tools purchased
Answer: B
Explanation:
Mean time to recover (MTTR) from security incidents best indicates the effectiveness of incident response procedures by measuring how quickly the organization restores normal operations after security events. This metric directly reflects the capability to contain, eradicate, and recover from incidents, which minimizes business impact and demonstrates response process maturity.
MTTR calculation measures the time elapsed from incident detection until full restoration of affected services and systems. Lower MTTR values indicate more efficient incident response processes including rapid detection capabilities, well-defined escalation procedures, skilled response teams, effective containment strategies, and tested recovery procedures. Organizations track MTTR across different incident types to identify response capability gaps.
Response effectiveness encompasses multiple factors contributing to MTTR. Preparation activities including documented playbooks, trained response teams, and pre-positioned tools reduce investigation time. Detection capabilities using automated monitoring and alerting enable faster incident identification. Containment procedures limit damage scope reducing recovery complexity. Recovery capabilities through tested backups and failover systems accelerate restoration. Each factor influences overall MTTR.
Continuous improvement uses MTTR trends to drive process enhancements. Increasing MTTR indicates declining response capability requiring investigation into root causes such as insufficient staffing, inadequate tools, or outdated procedures. Decreasing MTTR demonstrates successful improvements through better automation, enhanced training, or process optimization. Regular MTTR review ensures response capabilities keep pace with evolving threats.
Option A is incorrect because detection quantity does not measure response effectiveness or recovery speed. Option C is wrong because budget allocation is an input metric rather than measuring incident response outcomes. Option D is incorrect because tool purchases do not directly indicate the effectiveness of response procedures or recovery capabilities.
Question 32:
A risk practitioner identifies control deficiencies during assessment. Which action should be taken FIRST?
A) Implement new controls immediately
B) Document deficiencies and assess their risk impact
C) Fire responsible personnel
D) Ignore minor deficiencies
Answer: B
Explanation:
Documenting deficiencies and assessing their risk impact should be taken first when control deficiencies are identified because understanding the significance and potential consequences of deficiencies enables informed decision-making about appropriate responses. This assessment prioritizes remediation efforts based on risk exposure rather than reacting without proper analysis.
Documentation requirements capture comprehensive deficiency information including which controls are deficient, how they deviate from intended design or operation, what root causes contributed to the deficiencies, what compensating controls exist that partially mitigate risks, and what evidence supports the deficiency findings. Thorough documentation provides the foundation for risk assessment and remediation planning.
Risk impact assessment evaluates how deficiencies affect the organization including likelihood that the control weakness could be exploited, potential impact if exploitation occurs, whether the deficiency affects compliance with regulations or policies, and current threat landscape relevance. This assessment quantifies risk exposure enabling comparison against risk appetite and tolerance for prioritization.
Response prioritization follows risk assessment by ranking deficiencies based on residual risk exposure. Critical deficiencies creating unacceptable risk require immediate remediation. High-risk deficiencies need prompt attention with defined remediation timelines. Medium and low-risk deficiencies can be addressed through normal control improvement cycles. This risk-based approach allocates limited remediation resources effectively.
Option A is incorrect because implementing controls without assessing risk impact might address low-priority issues while critical deficiencies remain unaddressed. Option C is wrong because personnel actions should follow proper investigation and might not address systemic issues causing deficiencies. Option D is incorrect because ignoring deficiencies without risk assessment could leave significant exposures unaddressed.
Question 33:
An organization implements a new cloud service. Which risk response strategy is being used when purchasing cyber insurance?
A) Risk avoidance
B) Risk mitigation
C) Risk transfer
D) Risk acceptance
Answer: C
Explanation:
Risk transfer is the strategy being used when purchasing cyber insurance because insurance shifts the financial consequences of potential incidents to the insurance carrier while the organization retains the underlying risk. This approach reduces financial impact without eliminating the risk of cloud service security incidents.
Insurance as risk transfer provides financial protection against various cloud-related risks including data breaches requiring notification and credit monitoring, business interruption from service outages, liability from compromised customer data, regulatory fines and penalties, forensic investigation costs, and legal defense expenses. Insurance payouts offset these costs reducing financial impact on the organization.
Insurance limitations mean that risk transfer is incomplete because insurance typically does not cover reputational damage that may exceed financial losses, customer trust erosion affecting future revenue, operational disruption during incident response, opportunity costs from diverted resources, or indirect impacts like market share loss. Organizations must combine insurance with other risk treatment strategies for comprehensive protection.
Risk treatment combination uses multiple strategies simultaneously. For cloud services, organizations might transfer financial risk through insurance while mitigating technical risk through encryption and access controls, avoiding certain high-risk cloud use cases, and accepting residual risk that remains after other treatments. This layered approach provides defense in depth against cloud-related threats.
Option A is incorrect because avoidance would mean not using cloud services at all. Option B is wrong because mitigation reduces likelihood or impact through controls rather than transferring consequences. Option D is incorrect because acceptance means bearing risk without additional treatment rather than transferring financial impact.
Question 34:
A risk practitioner develops key risk indicators for operational risks. Which characteristic is most important for an effective KRI?
A) Complex calculation methodology
B) Predictive capability providing early warning of increasing risk
C) Historical data only
D) Subjective interpretation
Answer: B
Explanation:
Predictive capability providing early warning of increasing risk is the most important characteristic for effective KRIs because the primary purpose of risk indicators is to signal changes in risk exposure before risk events occur, enabling proactive response. Leading indicators that predict future risk states provide more value than lagging indicators that only confirm risk events after they happen.
Predictive KRIs measure factors that influence risk likelihood or impact including control performance metrics indicating weakening controls, threat environment indicators showing evolving attack patterns, vulnerability trends revealing growing exposure, compliance drift suggesting weakening adherence to policies, and resource constraints signaling capacity issues. These forward-looking measures enable preventive action.
Early warning systems use predictive KRIs with defined thresholds that trigger escalation when exceeded. Thresholds distinguish normal variation from concerning trends requiring attention. Multi-level thresholds create graduated responses where minor threshold breaches prompt monitoring while major breaches trigger immediate action. Threshold calibration balances sensitivity to detect real issues against specificity to avoid false alarms.
Response mechanisms link KRI threshold breaches to predefined actions ensuring timely response. Actions might include additional monitoring to confirm trends, investigation to determine root causes, implementation of compensating controls, escalation to management for resource allocation decisions, or formal risk acceptance if treating the risk is infeasible. Documented response procedures ensure consistent handling.
Option A is incorrect because complexity obscures KRI meaning and hinders adoption rather than improving effectiveness. Option C is wrong because relying solely on historical data creates lagging indicators missing the predictive value needed for early warning. Option D is incorrect because subjective interpretation introduces inconsistency and reduces reliability compared to objective measurement.
Question 35:
An organization outsources IT operations to a third-party vendor. Which ongoing activity is most critical for managing third-party risk?
A) Initial due diligence only
B) Continuous monitoring of vendor security posture and performance
C) One-time contract signing
D) Annual executive lunch meeting
Answer: B
Explanation:
Continuous monitoring of vendor security posture and performance is most critical for managing third-party risk because vendor capabilities, controls, and risk profiles change over time. Ongoing monitoring detects changes that might increase risk exposure such as control deterioration, financial instability, security incidents, or non-compliance with contractual obligations.
Monitoring mechanisms include multiple verification methods such as periodic security assessments through questionnaires or audits, review of SOC 2 or ISO 27001 reports providing independent control validation, security incident notifications requiring vendors to disclose breaches, performance metrics tracking against SLAs, and financial health reviews identifying stability concerns. Multiple information sources provide comprehensive risk visibility.
Risk indicators specific to third-party relationships include increasing incident frequency suggesting deteriorating security, missed SLA targets indicating operational problems, staff turnover in key vendor roles affecting capability, regulatory violations revealing compliance issues, negative news or social media indicating reputational problems, and delayed audit report delivery suggesting avoidance. These signals prompt deeper investigation.
Escalation procedures address identified issues through risk committee review for significant findings, engagement with vendor management to discuss concerns, contract enforcement including penalties for non-compliance, implementation of compensating controls if vendor controls weaken, and exit planning if risks become unacceptable. Defined procedures ensure appropriate response to monitoring findings.
Option A is incorrect because initial due diligence only captures point-in-time status without detecting subsequent changes in vendor risk profile. Option C is wrong because contract signing alone does not provide ongoing risk management. Option D is incorrect because social meetings do not constitute rigorous risk monitoring or management activities.
Question 36:
A risk assessment identifies that a critical system lacks adequate backup procedures. What type of risk is this?
A) Strategic risk
B) Operational risk
C) Market risk
D) Credit risk
Answer: B
Explanation:
Operational risk is the type of risk represented by inadequate backup procedures for critical systems because operational risks arise from failed internal processes, systems, or procedures that could disrupt business operations. Backup inadequacy specifically relates to operational continuity and disaster recovery capabilities.
Operational risk categories relevant to backup inadequacy include process risk from undocumented or insufficient backup procedures, technology risk from backup system failures or limitations, people risk from inadequately trained staff unable to perform or verify backups, and external event risk where disasters could cause data loss without proper backups. Each category contributes to overall operational risk.
Business impact from backup inadequacy includes potential permanent data loss if primary systems fail, extended recovery time objectives when restoration from backups is slow or impossible, compliance violations if regulations mandate specific backup and retention requirements, reputational damage from inability to recover customer data, and financial losses from business interruption or data recreation costs. These impacts affect operational continuity.
Risk treatment for backup inadequacy involves implementing appropriate backup solutions with defined frequency and retention, testing backup restoration regularly to verify integrity, documenting procedures ensuring consistent execution, training staff on backup operations, monitoring backup completion and storage, and establishing offsite or cloud backup storage for disaster protection. Comprehensive treatment addresses multiple failure scenarios.
Option A is incorrect because strategic risk involves high-level business decisions and competitive positioning rather than operational procedures. Option C is wrong because market risk relates to market conditions and price fluctuations. Option D is incorrect because credit risk involves counterparty default rather than operational system failures.
Question 37:
An organization implements a risk management framework. Which component defines the organization’s willingness to take on risk to achieve objectives?
A) Risk capacity
B) Risk appetite
C) Risk assessment
D) Risk register
Answer: B
Explanation:
Risk appetite defines the organization’s willingness to take on risk to achieve objectives by establishing the amount and type of risk the organization is prepared to pursue, retain, or accept. This strategic declaration guides risk-taking decisions across the organization ensuring alignment with stakeholder expectations and strategic goals.
Risk appetite statements provide qualitative or quantitative expressions of acceptable risk including overall risk appetite describing general philosophy toward risk-taking, category-specific appetites defining tolerance for different risk types like financial, operational, or reputational risk, and quantitative metrics establishing measurable boundaries such as maximum acceptable loss amounts or risk occurrence frequencies. These statements create clear boundaries.
Appetite communication cascades throughout the organization translating enterprise-level appetite into business unit and functional tolerances. Senior management defines overall appetite reflecting board and stakeholder expectations. Business units develop specific risk tolerances within appetite boundaries. Operating units implement controls and processes ensuring activities stay within tolerance. This hierarchy ensures consistency.
Decision-making uses risk appetite to evaluate opportunities and threats. Initiatives offering returns within risk appetite receive consideration while those exceeding appetite are rejected or modified. Risk appetite informs resource allocation prioritizing investments that optimize risk-return tradeoffs. During risk response selection, appetite determines whether risks should be avoided, mitigated, transferred, or accepted. These decisions align risk-taking with strategic objectives.
Option A is incorrect because capacity represents maximum risk the organization can bear rather than willingness to accept risk. Option C is wrong because assessment identifies and evaluates risks without defining acceptance levels. Option D is incorrect because the register documents identified risks rather than establishing risk-taking philosophy.
Question 38:
A risk practitioner needs to communicate risk assessment results to business management. Which presentation format is most effective?
A) Technical vulnerability scan output
B) Business impact summary with risk prioritization and recommended actions
C) Raw security logs
D) Network diagrams only
Answer: B
Explanation:
Business impact summary with risk prioritization and recommended actions is most effective for communicating risk assessment results to business management because it translates technical findings into business context that executives understand and can act upon. This approach focuses on business consequences and decision requirements rather than technical details.
Effective communication structure includes executive summary providing high-level findings in one page, risk prioritization ranking risks by business impact enabling focus on critical issues, business impact description explaining how risks affect operations and objectives in business terms, financial quantification estimating potential losses when feasible, recommended actions presenting clear response options with costs and benefits, and decision requirements identifying where management approval or guidance is needed.
Visualization techniques enhance comprehension including risk heat maps showing likelihood and impact in intuitive color-coded matrices, trend charts illustrating risk posture changes over time, comparison graphs benchmarking against industry peers or prior periods, and summary dashboards highlighting key metrics and critical issues. Visual representations communicate complex information quickly.
Audience adaptation tailors content and detail level to recipient needs. Executive presentations emphasize strategic implications and major decisions. Senior management receives more operational detail about significant risks and mitigation plans. Technical teams get detailed findings supporting implementation. Customization ensures each audience receives appropriate information for their responsibilities.
Option A is incorrect because technical scan output overwhelms business audiences with incomprehensible technical data. Option C is wrong because raw logs provide no context or business impact understanding. Option D is incorrect because network diagrams show infrastructure without explaining business risk or required decisions.
Question 39:
An organization experiences a data breach affecting customer information. Which action should be prioritized FIRST?
A) Update resume for job search
B) Contain the breach to prevent further data loss
C) Prepare press releases before investigation
D) Delete all evidence
Answer: B
Explanation:
Containing the breach to prevent further data loss should be prioritized first because limiting the scope and duration of unauthorized access minimizes total impact. Effective containment stops ongoing data exfiltration, prevents lateral movement to additional systems, and protects information not yet compromised while preserving evidence for investigation.
Containment strategies vary by incident type and include network isolation disconnecting affected systems from networks to prevent attacker access and lateral movement, credential revocation forcing attackers to reauthenticate, system shutdown as last resort when isolation is insufficient, application of emergency patches closing exploited vulnerabilities, and blocking attacker infrastructure preventing command-and-control communications. Speed is critical to minimize exposure.
Containment decisions balance immediate damage limitation against evidence preservation and operational continuity. Aggressive containment like system shutdown stops breaches quickly but may destroy volatile evidence and disrupt business operations. Surgical containment through selective isolation preserves more evidence and maintains more services but requires more time and skill. Organizations pre-plan containment approaches for different scenarios.
Post-containment activities follow once the breach is stabilized including detailed investigation to understand attack vectors and data compromised, eradication removing attacker presence and persistence mechanisms, recovery restoring systems to trusted states, notification informing affected individuals and regulators as required, and lessons learned improving defenses against future breaches. Containment enables effective execution of these subsequent phases.
Option A is incorrect because personal career planning is inappropriate during active incidents requiring immediate response. Option C is wrong because public communication should follow investigation establishing facts rather than premature announcements. Option D is incorrect because evidence destruction obstructs investigation and may violate legal obligations to preserve incident data.
Question 40:
A risk practitioner evaluates control design effectiveness. Which question should be asked?
A) How much did the control cost?
B) Is the control designed to adequately address the identified risk?
C) What color is the control documentation?
D) Who drafted the control description?
Answer: B
Explanation:
Is the control designed to adequately address the identified risk is the essential question for evaluating control design effectiveness because it directly assesses whether the control, if operating as intended, would sufficiently reduce risk to acceptable levels. This assessment precedes operational effectiveness testing and determines whether the control is worth implementing.
Design effectiveness evaluation considers multiple factors including whether the control addresses root causes rather than symptoms, whether the control type (preventive, detective, corrective) matches the risk treatment strategy, whether control strength is proportionate to risk severity, whether the control operates at the appropriate point in business processes to be effective, and whether the control is feasible to implement and maintain given available resources and capabilities.
Control design principles guide effectiveness assessment including defense in depth using multiple controls for critical risks, segregation of duties preventing single individuals from controlling entire processes, least privilege limiting access to only what is necessary, fail-safe defaults denying access unless explicitly permitted, and complete mediation checking authority for every access. Controls incorporating these principles demonstrate sound design.
Design documentation supports evaluation by clearly describing control objectives stating what risk the control addresses, control activities specifying what actions are performed, roles and responsibilities identifying who performs and reviews controls, frequency defining how often controls execute, and evidence describing what artifacts demonstrate control operation. Clear documentation enables objective design assessment.
Option A is incorrect because cost is a separate consideration from whether the control effectively addresses risk. Option C is wrong because documentation format is irrelevant to control effectiveness. Option D is incorrect because authorship does not determine whether the control adequately addresses risks.
Question 41:
An organization implements change management processes. Which risk does effective change management primarily address?
A) Market share fluctuation
B) Unauthorized or poorly tested changes causing operational disruption
C) Weather-related risks
D) Employee lunch preferences
Answer: B
Explanation:
Unauthorized or poorly tested changes causing operational disruption is the primary risk that effective change management addresses by ensuring that modifications to systems, processes, or infrastructure are properly reviewed, tested, approved, and documented before implementation. This prevents changes from introducing vulnerabilities, causing outages, or creating unforeseen problems.
Change management processes include multiple control activities such as change request documentation requiring business justification and technical details, impact assessment evaluating risks and affected systems, testing in non-production environments verifying changes work correctly, approval workflows ensuring appropriate authorities review changes, scheduling coordination minimizing disruption during implementation, rollback planning providing recovery if changes fail, and post-implementation review confirming changes achieved objectives without problems.
Change-related risks without proper management include system outages from incompatible changes, security vulnerabilities introduced through misconfigurations, data corruption from flawed changes, compliance violations when changes affect regulated processes, and productivity losses when changes disrupt business operations. Change management controls prevent or detect these problems before they cause significant damage.
Emergency change procedures balance risk management with business urgency allowing expedited processing for critical changes while maintaining essential controls. Emergency changes skip some approval steps but retain requirements for documentation, risk assessment, testing where feasible, and post-implementation review. Emergency procedures prevent change management from blocking critical business needs while still providing accountability.
Option A is incorrect because market share relates to competitive business performance rather than operational change management. Option C is wrong because weather risks require business continuity planning rather than change management controls. Option D is incorrect because personal preferences are not operational risks requiring formal management processes.
Question 42:
A risk practitioner calculates expected loss for a specific risk scenario. Which formula is correct?
A) Expected Loss = Probability × Impact
B) Expected Loss = Threats + Vulnerabilities
C) Expected Loss = Assets — Liabilities
D) Expected Loss = Revenue / Expenses
Answer: A
Explanation:
Expected Loss = Probability × Impact is the correct formula for calculating expected loss by multiplying the likelihood that a risk event will occur by the financial or business impact if it does occur. This calculation produces the average loss expected over time, supporting risk prioritization and cost-benefit analysis for risk treatment investments.
Probability estimation requires assessing how often the risk event is expected to occur based on historical data showing past occurrence frequency, threat intelligence indicating current attacker activity, vulnerability assessments revealing exploitable weaknesses, and control effectiveness evaluations determining how well existing safeguards prevent incidents. Probability is typically expressed as annual occurrence rate or percentage likelihood.
Impact quantification estimates consequences if the risk materializes including direct financial losses from theft, damage, or fines, indirect costs from business disruption or recovery efforts, reputational damage affecting customer trust and future revenue, regulatory penalties for compliance violations, and legal costs from lawsuits or investigations. Impact estimation considers both immediate and long-term consequences.
Expected loss application informs multiple risk management decisions including risk prioritization by ranking risks according to expected loss values, cost-benefit analysis comparing expected loss against control implementation costs to determine whether controls are economically justified, budget allocation using expected loss to determine appropriate spending on risk management, and risk acceptance decisions where expected losses below certain thresholds may be accepted without further treatment.
Option B is incorrect because threats and vulnerabilities are qualitative factors rather than a mathematical calculation of expected loss. Option C is wrong because assets minus liabilities calculates net worth rather than expected loss. Option D is incorrect because revenue divided by expenses relates to financial ratios rather than risk quantification.
Question 43:
An organization develops a risk response plan. Which factor should be considered when selecting risk treatment options?
A) Office furniture budget
B) Cost-benefit analysis comparing treatment costs to risk reduction
C) Cafeteria menu options
D) Parking space allocation
Answer: B
Explanation:
Cost-benefit analysis comparing treatment costs to risk reduction should be considered when selecting risk treatment options because it determines whether proposed controls provide value by reducing risk more than they cost to implement and operate. This economic analysis ensures efficient resource allocation prioritizing treatments that provide the best risk reduction per dollar invested.
Cost-benefit analysis methodology includes identifying treatment options for each significant risk, estimating implementation costs including technology purchases, consulting fees, and initial setup effort, calculating ongoing operational costs covering maintenance, monitoring, and personnel, quantifying risk reduction expected from the treatment expressed as decrease in probability or impact, and comparing total costs against risk reduction value to determine return on investment.
Qualitative factors supplement financial analysis including compliance requirements that may mandate specific controls regardless of cost-benefit results, strategic importance where some assets justify extra protection, risk tolerance determining how much residual risk is acceptable, implementation feasibility considering technical and organizational constraints, and time to implement affecting when risk reduction benefits begin. These factors inform treatment selection alongside economics.
Treatment prioritization considers multiple criteria simultaneously. High-impact risks receive priority for treatment even with modest cost-benefit ratios. Quick wins implementing low-cost treatments providing significant risk reduction are prioritized for rapid results. Long-term strategic treatments addressing multiple risks may justify higher costs through comprehensive benefits. This multi-criteria approach optimizes overall risk management.
Option A is incorrect because furniture budgets are unrelated to risk treatment selection. Option C is wrong because food service planning does not factor into risk management decisions. Option D is incorrect because facility management like parking is separate from risk treatment analysis.
Question 44:
A risk practitioner identifies conflicting risk assessment results from different methods. Which approach resolves this discrepancy?
A) Ignore all results
B) Facilitate discussion among assessors to understand differences and reach consensus
C) Accept only the lowest risk rating
D) Flip a coin to decide
Answer: B
Explanation:
Facilitating discussion among assessors to understand differences and reach consensus resolves conflicting risk assessment results by exploring the reasons for discrepancies, examining different assumptions or perspectives, and developing a shared understanding of the risk. This collaborative approach produces more reliable assessments than simply selecting one result or ignoring the conflict.
Conflict sources in risk assessment include different methodologies applied by various assessors, varying scope definitions causing different risks to be evaluated, inconsistent rating scales or criteria leading to different severity judgments, different information sources providing contrasting views of likelihood or impact, and different perspectives based on assessor roles with technical staff and business managers viewing risks differently. Understanding these sources helps resolve conflicts.
Discussion facilitation techniques include structured workshops bringing assessors together to compare findings, assumption testing validating the basis for different assessments, evidence review examining supporting information for conflicting conclusions, scenario analysis exploring what-if situations to test different viewpoints, and calibration sessions aligning rating criteria across assessors. These techniques systematically address discrepancies.
Consensus building works toward alignment while respecting legitimate differences. Some conflicts reflect genuine uncertainty about risk parameters suggesting ranges rather than single values may be appropriate. Other conflicts arise from correctable misunderstandings that discussion resolves. Final consensus assessments incorporate diverse perspectives producing more robust risk understanding than any single assessment.
Option A is incorrect because ignoring results wastes assessment effort and leaves risks unaddressed. Option C is wrong because accepting the lowest rating may understate risk creating unacceptable exposure. Option D is incorrect because random selection provides no rational basis for risk assessment decisions.
Question 45:
An organization implements information security controls. Which metric indicates the efficiency of the security control environment?
A) Total number of controls implemented
B) Ratio of control costs to risk reduction achieved
C) Number of security policies written
D) Length of security documentation
Answer: B
Explanation:
Ratio of control costs to risk reduction achieved indicates the efficiency of the security control environment by measuring how much risk reduction is obtained per dollar spent on controls. This efficiency metric identifies whether the organization is getting good value from security investments or whether resources could be reallocated for better results.
Efficiency measurement requires tracking both costs and benefits. Control costs include initial implementation expenses for technology, consulting, and configuration, ongoing operational costs for maintenance, monitoring, and support, personnel costs for staff operating controls, and opportunity costs from productivity impacts or constrained operations. Risk reduction benefits quantify how much expected loss decreases due to control implementation through reduced incident likelihood, limited incident impact, or both.
Efficiency optimization identifies opportunities for improvement including eliminating redundant controls that provide overlapping protection, consolidating controls reducing operational overhead, automating manual controls improving consistency while reducing costs, and replacing expensive controls with more cost-effective alternatives providing similar risk reduction. Regular efficiency analysis ensures resources are used optimally.
Efficiency versus effectiveness tradeoffs sometimes exist where highly effective controls have low efficiency due to high costs, while efficient controls may provide modest effectiveness. Organizations balance these factors based on risk appetite and resource constraints. Critical risks may justify expensive but effective controls, while lower-priority risks should use efficient controls maximizing risk reduction within budget constraints.
Option A is incorrect because control quantity alone does not indicate efficiency or whether investments provide value. Option C is wrong because policy documentation measures process compliance rather than risk reduction efficiency. Option D is incorrect because document length does not correlate with control effectiveness or efficiency.