Quick Answer
The answer is to accept the risk and implement monitoring controls. This is the correct choice because a risk response cost benefit analysis reveals that the $2 million mitigation cost far exceeds the $500K expected annual loss, making full prevention economically unjustifiable under standard risk management frameworks. On the CompTIA SecurityX CAS-004 exam, this scenario tests your ability to apply quantitative cost-benefit logic to choose between accept and mitigate responses, a common trap where candidates instinctively pick mitigation without comparing the dollar figures. Remember the memory tip: “If mitigation costs more than four years of expected loss, accept and monitor.”
This CAS-004 practice question tests your understanding of governance, risk and compliance. 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.
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?
Avoid the risk by discontinuing use of IT systems
Why wrong: Impractical
Mitigate the risk by implementing full endpoint protection
Why wrong: Cost exceeds benefit
Accept the risk and implement monitoring controls
Cost-benefit analysis supports acceptance
Transfer the risk via cyber insurance
Why wrong: Possible but not most appropriate given context
Answer choices
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.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
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
Related concept
Read the scenario before looking for a memorised answer.
Transfer the risk via cyber insurance
Why it's wrong here
Possible but not most appropriate given context
Common exam traps
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.
Detailed technical explanation
In risk management, the annualized loss expectancy (ALE) is calculated as single loss expectancy (SLE) × annualized rate of occurrence (ARO). Here, the ALE is $500K, while the mitigation cost ($2M) represents a one-time expense that would need to be amortized over multiple years to compare fairly; even over 4 years, the total expected loss ($2M) equals the mitigation cost, but the organization may prefer to accept the risk and use monitoring (e.g., SIEM with behavioral analytics, EDR with rollback capabilities) to reduce the impact of a successful attack rather than prevent it entirely. Real-world ransomware attacks often exploit unpatched vulnerabilities or phishing, so monitoring controls like endpoint detection and response (EDR) can detect encryption activity early and trigger automated isolation or recovery, reducing the effective loss below the full $500K.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A practitioner preparing for the CAS-004 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
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FAQ
Governance, Risk and Compliance — This question tests Governance, Risk and Compliance — Read the scenario before looking for a memorised answer..
The correct answer is: 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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 30, 2026
This CAS-004 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-004 exam.
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