An exception to the information security policy is a permission to continue operating a system, service, or product that cannot comply with the established information security standards and requirements1. A risk owner is a person or entity that has the authority and accountability for a risk and its management2. A risk practitioner is a person or entity that has the knowledge and skills to perform risk management activities3. A high number of exceptions to the information security policy indicates that there are many systems, services, or products that do not meet the expected level of security and pose potential risks to the organization. The risk practitioner's greatest concern should be that the aggregate risk, which is the total amount of risk that the organization faces from all sources, is approaching the tolerance threshold, which is the limit beyond which the organization does not want to tolerate the risk4. If the aggregate risk is approaching the tolerance threshold, it means that the organization is exposed to a high level of risk that may exceed its risk appetite, which is the amount of risk that the organization is willing to accept to achieve its objectives5. This may result in negative consequences for the organization, such as breaches, losses, damages, or reputational harm.
Therefore, the risk practitioner should monitor and report the aggregate risk level and the tolerance threshold, and advise the risk owners and the management on the appropriate risk responses and actions to reduce the aggregate risk to an acceptable level. Security policies are being reviewed infrequently, controls are not operating efficiently, and vulnerabilities are not being mitigated are not the risk practitioner's greatest concern, as they are not directly related to the aggregate risk level and the tolerance threshold. Security policies are being reviewed infrequently is a condition that indicates that the organization's security policies are not updated or revised regularly to reflect the changes and updates in the security environment and the security requirements6. This may affect the relevance and effectiveness of the security policies, but it does not necessarily increase the aggregate risk level or the tolerance threshold. Controls are not operating efficiently is a condition that indicates that the organization's controls, which are the measures or actions taken to manage or mitigate the risks, are not performing well or optimally7. This may affect the quality and performance of the controls, but it does not necessarily increase the aggregate risk level or the tolerance threshold. Vulnerabilities are not being mitigated is a condition that indicates that the organization's vulnerabilities, which are the weaknesses or gaps that may be exploited by the threats, are not being addressed or reduced8. This may increase the likelihood or impact of the risks, but it does not necessarily increase the aggregate risk level or the tolerance threshold. References = 1: IT/Information Security Exception Request Process2: [Risk Ownership - Risk Management] 3: [Risk Practitioner - ISACA] 4: Risk Threshold: Definition, Meaning & Example - PM Study Circle5: Risk Appetite vs Risk Tolerance vs Risk Threshold - projectcubicle6: [Security Policy Review and Update - SANS Institute] 7: [Control Effectiveness and Efficiency - ISACA] 8: [Vulnerability Management - ISACA] : [Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, Section 1.1: IT Risk Concepts, pp. 17-19.] : [Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.1: Risk Identification, pp. 57-59.] : [Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.1: Control Design, pp. 233-235.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.2: Control Implementation, pp. 243-245.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.3: Control Monitoring and Maintenance, pp. 251-253.]

Differences in regulatory requirements are the most important factor for a multinational organization to consider when developing its security policies and standards. This is because different countries or regions may have different laws, regulations, or standards that govern the protection of information and data, such as the General Data Protection Regulation (GDPR) in the European Union, the Health Insurance Portability and Accountability Act (HIPAA) in the United States, or the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada. A multinational organization must comply with the applicable regulatory requirements in each jurisdiction where it operates, or it may face legal, financial, or reputational risks. Therefore, the organization should develop its security policies and standards in a way that meets or exceeds the minimum regulatory requirements, and also aligns with its business objectives and risk appetite.
According to the CRISC Review Manual 2022, one of the key elements of IT governance is to ensure compliance with external laws and regulations1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, differences in regulatory requirements is the correct answer to this question2.
Regional competitors' policies and standards, ability to monitor and enforce compliance, and industry-standard templates are not the most important factors for a multinational organization to consider when developing its security policies and standards. These factors may be useful or relevant, but they are not as critical or mandatory as the differences in regulatory requirements. Regional competitors' policies and standards may provide some insights or benchmarks, but they may not reflect the organization's specific needs or risks. Ability to monitor and enforce compliance is an important aspect of implementing and maintaining security policies and standards, but it does not determine the content or scope of the policies and standards.
Industry-standard templates may offer some guidance or best practices, but they may not cover all the regulatory requirements or the organization's unique circumstances.

is incorrect. Checklist analysis uses historical information and information from similar projects within the organization's experience. Answer: A is incorrect. The Delphi technique uses rounds of anonymous surveys to generate a consensus on the identified risks. Answer: B is incorrect. Expert judgment is not the best answer for this; projects experts generally do the risk identification, in addition to the project team.