CISM Information Security Risk Management Practice Question
After a data breach, the risk manager discovers that the risk assessment for the affected system had not been updated for two years. The organization's risk management policy requires annual reviews. Which of the following is the MOST significant consequence of this noncompliance?
⚠ Common exam trap
The trap here is that candidates often focus on tangible, immediate consequences like fines or audit findings, but CISM emphasizes that the most significant impact of noncompliance is the erosion of the risk management process itself—specifically, the inability to make informed decisions based on an accurate risk profile.
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
✓
Inaccurate risk profile leading to uninformed decisions
C is correct because the primary purpose of a risk assessment is to provide an accurate, current risk profile that informs security decisions and resource allocation. When the assessment is two years out of date, the organization lacks visibility into new threats, vulnerabilities, and changes in the threat landscape, leading to uninformed decisions that can result in security gaps and increased exposure. This directly undermines the risk management process, making it the most significant consequence of noncompliance with the annual review policy.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Increased audit findings
Why it's wrong here
While audit findings may increase, the primary impact is on risk awareness.
- ✗
Regulatory fines for noncompliance
Why it's wrong here
Fines are possible but not the most significant impact on risk posture.
- ✓
Inaccurate risk profile leading to uninformed decisions
Why this is correct
An outdated risk assessment misrepresents current risks, impairing decision-making.
- ✗
Higher insurance premiums
Why it's wrong here
Premiums may rise but that is a financial consequence, not the most significant.
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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.