CISM Information Security Risk Management Practice Question
A global insurer completes an annual enterprise risk assessment and reports its top information security risk as a residual risk score of 16 (5x3 on a 5x5 matrix) after applying a data loss prevention solution and security awareness training. The board has stated that any residual risk above 12 must be escalated for a formal risk treatment decision. The CISO is asked to present options at the next risk committee meeting. Which of the following is the MOST appropriate action for the CISO to take FIRST?
⚠ Common exam trap
The trap here is assuming that because controls already reduced the risk from its inherent level, the residual risk can be accepted without escalation, ignoring the board's explicit threshold.
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
✓
Present the residual risk to the risk committee with documented treatment options, including additional controls, risk transfer, or risk avoidance, and their associated costs and impacts.
Because the residual risk exceeds the board-defined threshold of 12, the CISO must escalate it to the risk committee for a formal treatment decision. The most appropriate first action is to present the risk along with viable treatment options, costs, and business impacts so the committee can make an informed choice. This respects governance, ensures accountability, and provides the decision-makers with the information they need.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Escalate the residual risk to the risk committee with a recommendation to accept the risk because the existing controls already reduce it below the original inherent score.
Why it's wrong here
Accepting the risk is a valid treatment option, but it cannot be the first step here because the board has already defined a threshold that this residual score exceeds. The CISO must present the risk for a formal treatment decision rather than recommend acceptance unilaterally. Recommending acceptance would circumvent the governance process the board established and could leave the organization exposed beyond its stated tolerance.
- ✗
Initiate a new risk assessment to recalculate the inherent risk score, because the residual score may be inaccurate due to control effectiveness assumptions.
Why it's wrong here
Recalculating the inherent score does not address the board's requirement to escalate residual risk above 12. The residual score already reflects control effectiveness; redoing the assessment delays the required escalation and does not change the need for a treatment decision. This action would consume resources without resolving the governance obligation triggered by the threshold breach.
- ✗
Implement additional technical controls immediately to reduce the residual risk below 12, then inform the risk committee of the change at the next quarterly meeting.
Why it's wrong here
Implementing controls without committee approval bypasses the risk governance process and may not align with business priorities or budget authority. The board explicitly requires escalation for a treatment decision, so unilateral action undermines oversight. While reducing risk is desirable, the CISO must first present options and obtain a decision, not act independently and report afterward.
- ✓
Present the residual risk to the risk committee with documented treatment options, including additional controls, risk transfer, or risk avoidance, and their associated costs and impacts.
Why this is correct
The board policy requires escalation of residual risk above 12 for a formal treatment decision. The CISO's role is to provide the risk committee with sufficient information to choose among treatment options. Presenting the risk with options, costs, and impacts enables informed decision-making and complies with the established governance threshold, making this the most appropriate first action.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official ISACA exam blueprint
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.