ISO 31000 Risk Treatment Decision Based on Risk Appetite
An organization uses the ISO 31000 risk management framework. During the risk evaluation phase, it determines that a certain risk has a low likelihood but very high impact. The organization's risk appetite is moderate. Which of the following is the MOST appropriate risk treatment decision?
Quick Answer
The answer is to mitigate the risk by implementing controls to reduce impact. This is correct because the ISO 31000 risk treatment decision must align with the organization’s risk appetite, which in this case is moderate. Even though the likelihood is low, the very high impact exceeds a moderate appetite, so simply accepting or transferring the risk would leave the organization exposed to a potentially catastrophic event. On the Certified Information Security Manager CISM exam, this scenario tests your ability to apply the risk evaluation phase of ISO 31000, where the residual risk after treatment must fall within the stated appetite. A common trap is to choose acceptance for low-likelihood risks, but the CISM framework emphasizes that impact severity overrides probability when appetite is moderate. Remember the memory tip: “High impact, moderate appetite—mitigate, don’t accept the fright.”
⚠ Common exam trap
The trap here is that candidates mistakenly equate low likelihood with low overall risk, leading them to choose acceptance (Option A), but CISM tests that risk appetite must be explicitly considered—a very high impact can still exceed appetite even if likelihood is low.
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
✓
Mitigate the risk by implementing controls to reduce impact
ISO 31000's risk evaluation phase requires aligning treatment decisions with the organization's risk appetite. With a moderate risk appetite, a low-likelihood but very-high-impact risk cannot simply be accepted (as it exceeds appetite), nor is avoidance necessary since the likelihood is low. Mitigation through controls that reduce the impact is the most balanced approach, bringing the residual risk within the moderate appetite threshold.
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 due to low likelihood
Why it's wrong here
Low likelihood does not automatically make the risk acceptable if impact is very high.
- ✗
Avoid the risk by discontinuing the activity that generates it
Why it's wrong here
Avoidance may not be feasible and is usually a last resort.
- ✗
Transfer the risk through insurance
Why it's wrong here
Insurance transfers financial impact but not operational or reputational impact.
- ✓
Mitigate the risk by implementing controls to reduce impact
Why this is correct
Mitigation reduces the impact to an acceptable level, aligning with moderate risk appetite.
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Same concept, more angles
2 more ways this is tested on CISM
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which TWO of the following are valid risk treatment options according to ISO 31000? (Choose two.)
medium- ✓ A.Risk avoidance
- B.Risk measurement
- C.Risk identification
- D.Risk communication
- ✓ E.Risk retention
Why A: Risk avoidance is a valid risk treatment option per ISO 31000, where the organization decides to eliminate the risk by not engaging in or discontinuing the activity that gives rise to the risk. For example, in information security, this could mean choosing not to deploy a vulnerable legacy system or terminating a high-risk third-party integration. It directly reduces exposure to zero for that specific risk scenario.
Variation 2. Which THREE of the following are valid risk treatment options according to ISO 31000? (Select exactly three.)
medium- A.Risk elimination
- ✓ B.Risk transfer (sharing)
- ✓ C.Risk avoidance
- ✓ D.Risk mitigation (reduction)
- E.Risk deferral
Why B: ISO 31000 defines risk transfer (sharing) as a valid risk treatment option, where the risk is shifted to another party, such as through insurance or outsourcing. This is a standard approach in information security risk management to reduce the financial impact of a risk event.
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.