The most important thing for an organization to have in place when developing a risk management framework is a strategic approach to risk including an established risk appetite, as this provides the direction, scope, and objectives of the risk management process, and defines the level of risk that the organization is willing to accept or avoid in pursuit of its goals. A strategic approach to risk aligns the risk management framework with the organization's vision, mission, values, and strategy, and ensures that the risk management activities support the achievement of the desired outcomes. An established risk appetite sets the boundaries and criteria for risk decision making, and guides the selection and implementation of risk responses. The other options are not the most important things for an organization to have in place when developing a risk management framework, although they may be useful or necessary components of it. A risk-based internal audit plan is a tool that helps to evaluate and improve the effectiveness of the risk management framework, but it does not define or drive the risk management process. A control function within the risk management team is a role that helps to implement and monitor the risk controls, but it does not determine or influence the risk strategy or appetite. An organization-wide risk awareness training program is a method that helps to enhance the risk culture and competence of the organization, but it does not establish or communicate the risk approach or appetite. References = Risk and Information Systems Control Study Manual, Chapter 1: IT Risk Identification, page 23.

is incorrect. It ensures that monitoring software is able to change at the same speed as technology applications and infrastructure to be effective over time. Answer: B is incorrect. For software to be effective, it must be customizable to the specific needs of an enterprise. Hence customizability ensures that end users can adapt the software. Answer: D is incorrect. The impact on performance has nothing related to the ability of monitoring tool to keep up with the growth of enterprise.

Section: Volume D

Section: Volume D

Explanation/Reference:
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.
Incorrect Answers:
A: This analysis is not a method for exposing risk factors. It is used for analyzing scenarios.
B: 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
C: 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.