CISM Information Security Risk Management Practice Question
A financial services company is updating its risk treatment plan for a high-risk legacy system that processes customer data. The risk owner has recommended acceptance of the risk. Which TWO conditions must be met for the risk acceptance to be valid according to ISACA CISM (Certified Information Security Manager) best practices?
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
✓
The risk acceptance must be formally documented and signed off by the risk owner.
Risk acceptance requires formal documentation and approval by the risk owner (business owner). Periodic review is also necessary to ensure the risk remains acceptable. The board does not approve all accepted risks; only those exceeding certain thresholds. Controls should be documented but are not required if risk is accepted.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
The risk acceptance must be formally documented and signed off by the risk owner.
Why this is correct
Formal documentation and risk owner sign-off are key requirements for risk acceptance.
- ✓
The risk acceptance must be subject to periodic review to ensure it remains acceptable.
Why this is correct
Periodic review is essential to reassess the risk as conditions change.
- ✗
The risk acceptance must include a detailed plan to reduce the risk level within one year.
Why it's wrong here
A plan to reduce risk is part of risk treatment, not acceptance.
- ✗
The risk acceptance must be approved by the board of directors.
Why it's wrong here
Board approval is typically required for risks exceeding appetite, not all accepted risks.
- ✗
The risk owner must agree to implement compensating controls within a defined timeline.
Why it's wrong here
Compensating controls are not mandatory for acceptance; the risk is simply accepted as is.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CISM 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 CISM exam.