Data classification is the process of assigning labels or categories to data based on its sensitivity, value, and criticality to the organization. Data classification is the first consideration when analyzing the risk associated with the web application hosted by a cloud service, as it determines the level of protection and controls required for the data. Data classification can help the organization to comply with legal, regulatory, and contractual obligations, such as GDPR, CCPA, and PCI DSS, and to prevent data breaches, leaks, or losses.
Data classification can also help the organization to evaluate the suitability and trustworthiness of the cloud service provider, and to negotiate the terms and conditions of the service level agreement (SLA).
References:
*ISACA, Cloud Computing: Business Benefits With Security, Governance and Assurance Perspectives, 2009, p. 141
*ISACA, Data Classification: What It Is, Why You Should Care and How to Perform It2

Explanation/Reference:
Explanation:
The basic purpose of Information System control in an organization is to ensure that the business objectives are achieved and undesired risk events are detected and corrected. Some of the IS control objectives are given below:
Safeguarding assets

Assuring integrity of sensitive and critical application system environments

Assuring integrity of general operating system

Ensuring effective and efficient operations

Fulfilling user requirements, organizational policies and procedures, and applicable laws and

regulations
Changing management

Developing business continuity and disaster recovery plans

Developing incident response and handling plans

Hence the most important objective is to ensure that business objectives are achieved and undesired risk events are detected and corrected.
Incorrect Answers:
B, C, D: These are also the objectives of the information system control but are not the best answer.

According to the CRISC Review Manual, the greatest risk associated with the misclassification of data is unauthorized access, because it can result in the loss of confidentiality, integrity, and availability of the data.
Data classification is the process of assigning categories to data based on its sensitivity and value to the organization. Data classification helps to determine the appropriate level of protection and handling for the data. If the data is misclassified, it may not receive the adequate level of security controls, and it may be accessed by unauthorized or inappropriate users. The other options are not the greatest risks associated with the misclassification of data, as they are less likely or less severe than unauthorized access. Inadequate resource allocation is the risk of not allocating sufficient resources to protect the data, which may affect its availability and performance. Data disruption is the risk of losing or corrupting the data, which may affect its integrity and availability. Inadequate retention schedules is the risk of not retaining the data for the required period of time, which may affect its compliance and usability. References = CRISC Review Manual, 7th Edition, Chapter 4, Section 4.1.1, page 161.

A risk awareness program is a set of activities and communication methods that aim to increase the understanding and knowledge of risk among the stakeholders of an organization. The primary objective of a risk awareness program is to enhance the organizational risk culture, which is the shared values, beliefs, and attitudes that influence how risk is perceived and managed in the organization. A risk awareness program can help to promote a risk-aware culture by:
*Educating stakeholders on the concepts and benefits of risk management
*Aligning risk management with the organization's vision, mission, and objectives
*Encouraging stakeholder participation and collaboration in risk management processes
*Fostering a positive attitude towards risk taking and learning from failures
*Reinforcing risk management roles and responsibilities
*Recognizing and rewarding good risk management practices
References: The answer is based on the following sources:
*CRISC Review Manual, 7th Edition, Chapter 2: IT Risk Assessment, page 781
*Developing Collective Risk Leadership Through CRISC2

B, and C 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.