CISM Information Security Risk Management Practice Question
After implementing controls, the residual risk is calculated to be at a level that slightly exceeds the risk appetite. The business owner argues that the cost of further mitigation outweighs the benefit. What is the most appropriate action for the risk manager?
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
✓
Document the risk and escalate to senior management for acceptance
The risk manager should document the risk and escalate to senior management for formal acceptance. Acceptance requires approval at an appropriate level. Simply accepting without documentation is not proper. Implementing controls regardless of cost ignores cost-benefit. Transferring via insurance does not address residual risk that already exceeds appetite.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Transfer the risk through insurance
Why it's wrong here
Insurance does not eliminate the residual risk; it only transfers financial impact.
- ✗
Accept the residual risk as a business decision
Why it's wrong here
Acceptance without formal documentation and management approval is not appropriate.
- ✓
Document the risk and escalate to senior management for acceptance
Why this is correct
Formal escalation ensures informed decision-making and proper risk acceptance.
- ✗
Implement additional controls regardless of cost
Why it's wrong here
This ignores cost-benefit analysis and may not be justified.
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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.