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CAS-004 Practice Question: A company's risk register shows a…

A company's risk register shows a high-likelihood, high-impact risk related to ransomware. The cost to mitigate fully is $2M, while the expected annual loss is $500K. Which risk response is most appropriate?

⚠ Common exam trap

CompTIA often tests the cost-benefit analysis principle in risk response decisions, where candidates mistakenly choose 'mitigate' because they focus on the high likelihood and impact without comparing the cost of mitigation to the expected loss.

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

Accept the risk and implement monitoring controls

The cost to fully mitigate the ransomware risk is $2M, which far exceeds the expected annual loss of $500K. This makes full mitigation economically unjustifiable under a cost-benefit analysis. Accepting the risk with monitoring controls allows the organization to detect ransomware early and respond, without spending more on prevention than the potential loss itself.

Answer analysis

Option-by-option breakdown

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

  • Avoid the risk by discontinuing use of IT systems

    Why it's wrong here

    Impractical

  • Mitigate the risk by implementing full endpoint protection

    Why it's wrong here

    Cost exceeds benefit

  • Accept the risk and implement monitoring controls

    Why this is correct

    Cost-benefit analysis supports acceptance

  • Transfer the risk via cyber insurance

    Why it's wrong here

    Possible but not most appropriate given context

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This CAS-005 practice question is part of Courseiva's free CompTIA 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 CAS-005 exam.