Question 74 of 1,000
Security Policies and ProcedureshardMultiple ChoiceObjective-mapped

200-201 Security Policies and Procedures Practice Question

This 200-201 practice question tests your understanding of security policies and procedures. Compare every option against the stated constraints before choosing — the best answer satisfies all requirements, not just the most obvious one. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.

During a risk assessment, a company identifies that the annualized loss expectancy (ALE) for a specific threat is $50,000. The cost to implement a mitigation control is $30,000 with an annual maintenance cost of $5,000. According to risk management principles, what is the most appropriate risk treatment option?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Mitigate the risk by implementing the control

If the cost of mitigation ($30,000 + $5,000 = $35,000) is less than the ALE ($50,000), it is cost-effective to mitigate the risk.

Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Accept the risk because the mitigation cost is higher than the ALE

    Why it's wrong here

    Mitigation cost ($35,000) is actually lower than ALE ($50,000), so acceptance is not the best choice.

  • Avoid the risk by discontinuing the activity

    Why it's wrong here

    Avoidance may not be necessary if mitigation is feasible and cost-effective.

  • Transfer the risk by purchasing cyber insurance

    Why it's wrong here

    Transfer might be considered, but mitigation is more cost-effective in this scenario.

  • Mitigate the risk by implementing the control

    Why this is correct

    Since the mitigation cost is less than the ALE, it is cost-effective to mitigate.

    Related concept

    Read the scenario before looking for a memorised answer.

Common exam traps

Common exam trap: answer the scenario, not the keyword

Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.

Trap categories for this question

  • Scenario analysis trap

    Transfer might be considered, but mitigation is more cost-effective in this scenario.

Detailed technical explanation

How to think about this question

This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.

KKey Concepts to Remember

  • Read the scenario before looking for a memorised answer.
  • Find the constraint that changes the correct option.
  • Eliminate answers that are true in general but not in this case.
  • Use explanations to understand the rule behind the answer.

TExam Day Tips

  • Underline the problem statement mentally.
  • Watch for words such as best, first, most likely and least administrative effort.
  • Review why wrong options are wrong, not only why the correct option is correct.

Key takeaway

Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Real-world example

How this comes up in practice

A practitioner preparing for the 200-201 exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.

What to study next

Got this wrong? Here's your next step.

Identify which 200-201 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.

Related practice questions

Related 200-201 practice-question pages

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FAQ

Questions learners often ask

What does this 200-201 question test?

Security Policies and Procedures — This question tests Security Policies and Procedures — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: Mitigate the risk by implementing the control — If the cost of mitigation ($30,000 + $5,000 = $35,000) is less than the ALE ($50,000), it is cost-effective to mitigate the risk.

What should I do if I get this 200-201 question wrong?

Identify which 200-201 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

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Last reviewed: Jul 4, 2026

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This 200-201 practice question is part of Courseiva's free Cisco certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the 200-201 exam.