CISM Information Security Risk Management Practice Question
This CISM practice question tests your understanding of information security risk management. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 financial institution is implementing a new online banking platform. The risk assessment identified that the authentication module has a high likelihood of exploitation due to weak password policies. The risk owner has decided to implement multi-factor authentication (MFA) to reduce the risk. This is an example of which risk response strategy?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Risk mitigation
Implementing multi-factor authentication (MFA) reduces the likelihood or impact of a security risk by adding additional authentication factors (e.g., something you know, something you have, something you are) beyond a weak password. This directly aligns with risk mitigation, which seeks to decrease the residual risk to an acceptable level through controls. The decision does not eliminate the risk entirely (avoidance), accept it without action, or transfer it to a third party.
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.
✗
Risk avoidance
Why it's wrong here
Risk avoidance would involve not implementing the platform or eliminating the risk entirely, which is not the case here.
✓
Risk mitigation
Why this is correct
MFA reduces the likelihood or impact of the risk, which is the definition of risk mitigation.
Related concept
Read the scenario before looking for a memorised answer.
✗
Risk acceptance
Why it's wrong here
Risk acceptance would mean acknowledging the risk and not taking any action, which contradicts the implementation of MFA.
✗
Risk transfer
Why it's wrong here
Risk transfer would involve shifting the risk to a third party, such as through insurance, not implementing a control.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse 'risk mitigation' with 'risk avoidance' because both involve implementing controls, but avoidance means eliminating the activity or technology entirely, whereas mitigation reduces but does not eliminate the risk.
Detailed technical explanation
How to think about this question
MFA typically combines two or more independent credentials: a knowledge factor (e.g., password), a possession factor (e.g., a one-time password from a hardware token or TOTP per RFC 6238), and an inherence factor (e.g., biometrics). In practice, even if a password is weak or stolen, MFA prevents unauthorized access because the attacker would also need the second factor, which is often time-limited or device-bound. Real-world implementations like FIDO2/WebAuthn use public-key cryptography to further resist phishing and replay attacks.
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.
TExam Day Tips
→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 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
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Information Security Risk Management — This question tests Information Security Risk Management — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Risk mitigation — Implementing multi-factor authentication (MFA) reduces the likelihood or impact of a security risk by adding additional authentication factors (e.g., something you know, something you have, something you are) beyond a weak password. This directly aligns with risk mitigation, which seeks to decrease the residual risk to an acceptable level through controls. The decision does not eliminate the risk entirely (avoidance), accept it without action, or transfer it to a third party.
What should I do if I get this CISM question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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