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 When the assessment is two years out of date, the organization lacks visibility into new threats, vulnerabilities, and changes in the threat landscape, leading to uninformed decisions that can result in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
Audit findings are a documentation symptom; the substantive consequence is that risk decisions relied on stale threat and control data, leaving exposure unmanaged. It is tempting because auditors routinely cite overdue reviews, but findings describe the lapse rather than the resulting unmitigated risk.
- ✗
Regulatory fines for noncompliance
Why it's wrong here
Fines arise only where a specific legal or regulatory mandate was breached; the stem cites an internal policy, so no automatic penalty follows. It is tempting because noncompliance often carries sanctions, but internal policy breaches produce governance and risk exposure, not regulatory fines.
- ✓
Inaccurate risk profile leading to uninformed decisions
Why this is correct
Stale assessments no longer reflect current threats, vulnerabilities or asset values, so the recorded risk profile diverges from reality. This noncompliance with the annual review requirement directly satisfies the stem's consequence: decisions are made on outdated data, misdirecting controls and remediation funding.
- ✗
Higher insurance premiums
Why it's wrong here
Insurance premiums respond to claims history and underwriting, not to a missed policy review; the breach itself, not the stale assessment, drives repricing. It is tempting because insurers do reward demonstrable risk governance, so an annual review would support favourable terms — but that is a secondary commercial effect, not the direct consequence of noncompliance.
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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.