CISM Information Security Risk Management Practice Question
This CISM practice question tests your understanding of information security risk management. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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.
An organization has a risk appetite that allows for a maximum residual risk level of 'medium' for all operational risks. A new project introduces a risk with inherent risk level 'high' and control effectiveness rated as 'partially effective'. The risk owner proposes to accept the risk. As the CISM, what is the best course of action?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "best"
Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Insist on additional controls to reduce residual risk to at least 'medium'.
The organization's risk appetite mandates that residual risk must be at 'medium' or lower. With an inherent risk of 'high' and controls rated 'partially effective', the residual risk remains above the acceptable threshold. Therefore, the best course is to insist on additional controls to bring residual risk down to at least 'medium', ensuring compliance with the risk appetite.
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.
✗
Accept the risk since the risk owner has agreed.
Why it's wrong here
Acceptance is only valid if residual risk is within appetite, which it is not.
✗
Transfer the risk to an insurance company.
Why it's wrong here
Transfer may not eliminate the risk entirely and may not bring residual risk to acceptable level.
✓
Insist on additional controls to reduce residual risk to at least 'medium'.
Why this is correct
This ensures residual risk aligns with appetite, which is the correct risk management approach.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Recommend revising the risk appetite to accommodate this risk.
Why it's wrong here
Risk appetite should be strategic, not modified for individual risks without board approval.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think the risk owner's acceptance is sufficient, but CISM emphasizes that risk acceptance must be within the risk appetite; otherwise, it is a violation of governance.
Detailed technical explanation
How to think about this question
Residual risk is calculated as inherent risk minus the effect of controls. With inherent risk 'high' and controls 'partially effective', the residual risk is typically assessed as 'medium-high' or 'high' depending on the control strength. In practice, the risk owner must implement compensating controls (e.g., additional authentication layers, network segmentation, or monitoring) to reduce the likelihood or impact until the residual risk aligns with the defined appetite. This aligns with ISO 31000 and COBIT 5 principles, where risk treatment decisions must respect the established risk criteria.
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 practitioner preparing for the CISM exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
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: Insist on additional controls to reduce residual risk to at least 'medium'. — The organization's risk appetite mandates that residual risk must be at 'medium' or lower. With an inherent risk of 'high' and controls rated 'partially effective', the residual risk remains above the acceptable threshold. Therefore, the best course is to insist on additional controls to bring residual risk down to at least 'medium', ensuring compliance with the risk appetite.
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.
Are there clue words in this question I should notice?
Yes — watch for: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
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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