IT risk scenarios are hypothetical situations that describe the sources, causes, and consequences of IT-related risks, and the potential impacts on the organization’s objectives, performance, and value creation12.
A corporate risk register is a document that records and tracks the significant risks that the organization faces, and the responses and actions that are taken to address them34.
The greatest benefit of incorporating IT risk scenarios into the corporate risk register is that exposure is integrated into the organization’s risk profile, which is a comprehensive and integrated representation of the risks that may affect the organization’s objectives, performance, and value creation56.
Exposure is integrated into the organization’s risk profile means that the organization has a complete and consistent view of the IT risk landscape, and the potential impacts andinterdependencies of IT risks on other types of risks, such as financial, operational, strategic, or reputational risks56.
Exposure is integrated into the organization’s risk profile also means that the organization can make informed and balanced decisions on the risk responses and actions, and allocate the appropriate resources and priorities to the IT risk management and control processes56.
The other options are not the greatest benefit, but rather possible outcomes or consequences of incorporating IT risk scenarios into the corporate risk register. For example:
Corporate incident escalation protocols are established is an outcome of incorporating IT risk scenarios into the corporate risk register that indicates the organization has defined and implemented the procedures and mechanisms for reporting and resolving IT-related incidents,and for escalating them to the appropriate authorities or levels when necessary78. However, this outcome does not measure or reflect the exposure or the risk profile of the organization, which may depend on other factors such as the frequency, severity, or complexity of the incidents78.
Risk appetite cascades to business unit management is a consequence of incorporating IT risk scenarios into the corporate risk register that indicates the organization has communicated and aligned the risk appetite, which is the amount and type of risk that the organization is willing to accept or pursue, to the business unit management, who are responsible for executing the risk strategy and objectives at the operational level . However, this consequence does not indicate or imply the exposure or the risk profile of the organization, which may vary depending on the context, environment, or stakeholder expectations .
The organization-wide control budget is expanded is an outcome of incorporating IT risk scenarios into the corporate risk register that indicates the organization has increased the amount of resources and funds that are allocated to the control processes, which are the procedures and activities that aim to ensure the effectiveness and efficiency of the organization’s operations, the reliability of its information, and the compliance with its policies and regulations . However, this outcome does not affect or determine the exposure or the risk profile of the organization, which is independent of the control budget . References =
1: IT Risk Scenarios - Morland-Austin3
2: Risk Scenarios Toolkit, ISACA, 2019
3: Risk Register Template and Examples | Prioritize and Manage Risk1
4: Risk Register Examples for Cybersecurity Leaders4
5: Risk IT Framework, ISACA, 2009
6: IT Risk Management Framework, University of Toronto, 2017
7: Security Incident Reporting and Response, University of Toronto, 2017
8: Security Incident Reporting and Response, ISACA, 2019
Risk Appetite: Linking Strategy, Risk and Performance, ISACA, 2012
Risk Appetite and Tolerance, ISACA Journal, Volume 4, 2013
The Control Process | Principles of Management2
Control Management: What it is + Why It’s Essential | Adobe Workfront5
