Quick Answer
The answer is that storing recovery keys on the local drive creates the most significant risk because those keys can be used to bypass encryption entirely. When full disk encryption recovery keys are stored locally, an attacker with physical access can boot an alternative operating system or mount the drive to read the key file, then use it to unlock the encrypted volume, rendering the encryption useless. On the CISA exam, this scenario tests your understanding that encryption is only as strong as the security of its key management; a common trap is assuming encryption alone is sufficient, when in fact poor recovery key storage is a critical control failure. Remember the memory tip: "Keys on disk, encryption is a risk"—if the key is stored with the lock, the lock is pointless.
This CISA practice question tests your understanding of protection of information assets. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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 security policy requires that all laptops have full disk encryption. During an audit, it is discovered that several laptops have encryption enabled but the recovery keys are stored on the local drive. What is the MOST significant risk?
Performance degradation due to encryption overhead.
Why wrong: Performance impact is minimal and not the main risk.
Unauthorized access to encrypted data.
Why wrong: Encryption is working, but local keys allow bypass.
Recovery keys can be used to bypass encryption.
Local storage of keys allows attackers to decrypt data easily.
Data corruption during encryption process.
Why wrong: Encryption rarely causes corruption.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Recovery keys can be used to bypass encryption.
Storing recovery keys on the local drive defeats the purpose of full disk encryption (FDE). If an attacker gains physical access to the laptop, they can simply boot an alternate OS or mount the drive and read the recovery key file, then use it to unlock the encrypted volume. This bypasses the encryption entirely, making the data vulnerable to unauthorized access despite encryption being enabled.
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.
Performance degradation due to encryption overhead.
Why it's wrong here
Performance impact is minimal and not the main risk.
Unauthorized access to encrypted data.
Why it's wrong here
Encryption is working, but local keys allow bypass.
Recovery keys can be used to bypass encryption.
Why this is correct
Local storage of keys allows attackers to decrypt data easily.
Related concept
Read the scenario before looking for a memorised answer.
Data corruption during encryption process.
Why it's wrong here
Encryption rarely causes corruption.
Common exam traps
The trap here is that candidates confuse 'encryption enabled' with 'data protected' and pick Option B (unauthorized access) without recognizing that the recovery key on the local drive is the direct mechanism that enables that access, making Option C the root cause and most significant risk.
Detailed technical explanation
Full disk encryption (e.g., BitLocker, FileVault 2, LUKS) relies on a separate recovery key to decrypt the volume if the user's password or TPM fails. When this key is stored on the same drive (e.g., in a plaintext file or metadata partition), an attacker with physical access can extract it using tools like libguestfs or a live USB, then use `dislocker` or `cryptsetup` to mount the volume. In a real-world scenario, a lost or stolen laptop with the recovery key on the local drive is effectively unencrypted, as the key can be read without authentication.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Protection of Information Assets — This question tests Protection of Information Assets — Read the scenario before looking for a memorised answer..
The correct answer is: Recovery keys can be used to bypass encryption. — Storing recovery keys on the local drive defeats the purpose of full disk encryption (FDE). If an attacker gains physical access to the laptop, they can simply boot an alternate OS or mount the drive and read the recovery key file, then use it to unlock the encrypted volume. This bypasses the encryption entirely, making the data vulnerable to unauthorized access despite encryption being enabled.
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 11, 2026
This CISA practice question is part of Courseiva's free ISACA 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 CISA exam.
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