CISM Information Security Risk Management Practice Question
This CISM practice question tests your understanding of information security risk management. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 multinational corporation is assessing the risk of data breaches from third-party vendors. The CISM is tasked with selecting a risk treatment strategy. The organization has a low risk appetite for data breaches. Which strategy should be prioritized?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Avoid the risk by not engaging vendors that cannot meet security requirements.
Given the organization's low risk appetite for data breaches, the most appropriate strategy is to avoid the risk entirely by not engaging vendors that cannot meet security requirements. This aligns with the principle that when risk exceeds the acceptable threshold, avoidance is the prioritized treatment. Avoidance eliminates the risk source, whereas other strategies like mitigation or transfer still retain some residual risk that may be unacceptable.
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.
✗
Mitigate the risk by conducting regular vendor audits.
Why it's wrong here
Mitigation reduces but does not eliminate risk; may still exceed appetite.
✓
Avoid the risk by not engaging vendors that cannot meet security requirements.
Why this is correct
Avoidance eliminates the risk entirely, fitting low appetite.
Related concept
Read the scenario before looking for a memorised answer.
✗
Transfer the risk by requiring vendors to have cyber insurance.
Why it's wrong here
Insurance addresses financial impact but not the risk of breach itself.
✗
Accept the risk because third-party risks are unavoidable.
Why it's wrong here
Acceptance is not appropriate when risk appetite is low.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often default to mitigation (audits) as the standard response, failing to recognize that when risk appetite is explicitly low, avoidance is the mandated first-line strategy per ISACA's risk treatment hierarchy.
Detailed technical explanation
How to think about this question
Risk avoidance is a deliberate decision to not engage in or withdraw from a risk-prone activity, effectively setting the risk to zero. In third-party risk management, this often involves contractual clauses that mandate specific security controls (e.g., ISO 27001 certification, SOC 2 Type II reports) and terminating relationships with vendors that fail to meet these baseline requirements. Real-world examples include financial institutions refusing to partner with cloud providers lacking FedRAMP authorization when handling sensitive data.
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: Avoid the risk by not engaging vendors that cannot meet security requirements. — Given the organization's low risk appetite for data breaches, the most appropriate strategy is to avoid the risk entirely by not engaging vendors that cannot meet security requirements. This aligns with the principle that when risk exceeds the acceptable threshold, avoidance is the prioritized treatment. Avoidance eliminates the risk source, whereas other strategies like mitigation or transfer still retain some residual risk that may be unacceptable.
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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