Module 4: Policies and Standards

If governance is unclear, start at the top of the hierarchy — not at the firewall.

Why this module is high-yield

CRISC loves hierarchy.

When policies and standards show up in a question, the exam is usually testing whether you understand:

• Authority
• Structure
• Governance maturity
• Proper sequencing of actions

If you mix up policy, standards, and procedures, you'll miss easy points.

The hierarchy you must know

Keep this clean in your head:

Policy

• Executive-level statement of intent
• Broad direction
• Mandatory
• Approved by senior leadership

Standard

• Specific mandatory requirements
• Supports policy
• Enforces consistency

Procedure

• Step-by-step instructions
• Operational
• May vary by team or system

CRISC assumes mature organizations follow this hierarchy.

If the scenario violates it, that's usually the issue.

What the exam is really testing

When policies appear, CRISC is testing whether:

• Governance direction exists
• Controls align with policy
• Standards enforce policy consistently
• Changes are formally approved
• Gaps are addressed at the correct level

If a new initiative lacks policy support, the issue is governance — not technology.

The mindset shift

Technical instinct:

“Just implement the control.”

CRISC instinct:

“Is there policy authority for this control?”

If a new technology is deployed without policy guidance, the answer is rarely “add controls.”

It's usually:

Establish or update policy first.

Governance precedes enforcement.

Common question pattern

You may see:

• A new cloud service implemented without updated policy
• Inconsistent security controls across departments
• Teams interpreting risk differently
• A regulatory requirement not reflected in internal documentation

The question may ask:

• What should be done FIRST?
• What is the MOST appropriate action?

If governance documentation is missing or outdated, the correct answer is often:

Update or establish formal policy.

Not conduct an audit.
Not deploy tools.
Not escalate externally.

Trap answers

Watch for these when policy is the issue:

• Immediately deploy compensating technical controls
• Increase monitoring without policy alignment
• Escalate to regulators before internal correction
• Conduct a technical review without governance context

These skip the structural fix.

CRISC prefers fixing the governance layer first.

Policy vs standard confusion (exam favorite)

The exam may try to confuse you with wording.

Example:

A department creates its own detailed security requirements that conflict with enterprise guidance.

The issue is likely:

• Lack of centralized standards
• Weak enforcement of policy
• Poor governance consistency

The solution is not “train staff better” — it's usually:

Strengthen or enforce enterprise standards aligned with policy.

Standards ensure uniform implementation of policy intent.

Example scenario (walk through it)

Scenario:
An organization adopts a new SaaS platform. The security team discovers there is no formal policy covering third-party data handling. Different departments are implementing inconsistent controls.

Question: What is the MOST appropriate action?

Tempting answer:
“Conduct a security assessment of the SaaS platform.”

CRISC thinking:

• Is there governance guidance?
• Is policy defined?
• Are standards aligned?
• Is inconsistency due to structural gaps?

The root issue is absence of policy.

The best answer is likely:

Develop and approve a formal policy addressing third-party data governance.

Because without policy authority, enforcement lacks foundation.

Governance maturity signal

Strong governance shows:

• Policies approved by executive leadership
• Standards derived from policy
• Procedures aligned with standards
• Clear documentation hierarchy
• Periodic review and updates

Weak governance shows:

• Ad-hoc controls
• Department-specific rule creation
• Outdated policies
• Informal risk handling

CRISC wants you to recognize the difference.

The sequencing rule

If a scenario involves new regulation, new technology, or strategic change:

Ask yourself:

1. Does policy reflect this change?
2. Are standards aligned with policy?
3. Are procedures consistent with standards?

If the top layer is broken, fix that first.

Quick knowledge check

1) A new regulatory requirement affects data retention practices, but organizational policies have not been updated. What is the MOST appropriate action?

A. Implement technical data retention controls immediately
B. Conduct a compliance audit
C. Update organizational policy to reflect regulatory requirements
D. Escalate to external regulators

2) Departments are implementing inconsistent security configurations for the same type of system. What governance weakness is MOST likely present?

A. Inadequate vulnerability scanning
B. Weak enterprise standards enforcement
C. Lack of encryption technology
D. Insufficient incident response capability

3) A technical team deploys a new control that is not referenced in any formal governance documentation. What is the primary risk?

A. Increased implementation cost
B. Reduced technical efficiency
C. Lack of executive authorization and governance alignment
D. Excessive risk appetite

Final takeaway

When policies and standards appear in a CRISC question:

• Start at the top of the hierarchy
• Fix governance before controls
• Ensure alignment between policy, standards, and procedures
• Think structure, not speed

CRISC rewards candidates who understand that authority flows downward — not upward from technical teams.