
Explanation:
The correct answer is D.
'System-based data validation.' This type of control is an example of automated controls. Automated controls, such as system-based data validation checks in data collection tools, are designed to ensure the accuracy and reliability of data. These controls are typically embedded in the systems and processes of an organization and operate automatically, without the need for human intervention. They are designed to prevent errors and fraud, ensure compliance with regulations, and enhance the overall effectiveness and efficiency of operations. Automated controls like system-based data validation are generally considered to be well-designed controls as they are effective, efficient, and reliable. They do not waste resources and do not create unrealistic expectations or vulnerabilities. Therefore, 'System-based data validation' is least likely to represent a type of poorly designed control.
Choice A is incorrect. "Optimistic control" refers to a type of control that assumes the best-case scenario and does not adequately prepare for potential risks or adverse events. This type of control can be poorly designed as it may not provide sufficient protection against risks.
Choice B is incorrect. "More of the same" refers to a situation where an organization continues to implement the same controls, even when they have proven ineffective in mitigating risk. This approach can lead to resource wastage and does not address underlying vulnerabilities, making it a representation of poor design.
Choice C is incorrect. "Collective controls" refer to controls that are implemented across an entire organization or system, without considering specific risk profiles or needs of different departments or units. While collective controls can be effective in some cases, they may also
Ultimate access to all questions.
No comments yet.
Q.5079 An FRM candidate is preparing for May exam. In one of the open discussion forums, the candidate states that a control should be effectively designed so as to be applied effectively and hence be able to mitigate risk effectively. Ineffectively designed controls waste resources and may give unrealistic expectations resulting in vulnerabilities. He goes ahead to state the types of weakly designed controls. Which of the following is a least likely a type of a weakly designed control highlighted by the candidate?
A
"Optimistic control."
B
"More of the same."
C
"Collective controls."
D
"System-based data validation."