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.”
CISM Information Security Risk Management Practice Question
This CISM practice question tests your understanding of information security risk management. Compare every option against the stated constraints before choosing — the best answer satisfies all requirements, not just the most obvious one. 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 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?
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
Option A is correct because even low likelihood risks with high impact may need mitigation to align with moderate risk appetite. Option B is wrong because acceptance is only appropriate if risk is within appetite. Option C is wrong because avoidance is extreme unless no other controls exist. Option D is wrong because transfer may not fully address the impact.
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 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.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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 CISM exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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: Mitigate the risk by implementing controls to reduce impact — Option A is correct because even low likelihood risks with high impact may need mitigation to align with moderate risk appetite. Option B is wrong because acceptance is only appropriate if risk is within appetite. Option C is wrong because avoidance is extreme unless no other controls exist. Option D is wrong because transfer may not fully address the impact.
What should I do if I get this CISM question wrong?
Identify which CISM exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
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: Options B and C are correct: risk avoidance and risk retention (acceptance) are treatment options. Option A is incorrect because risk measurement is not treatment. Option D is incorrect because risk identification is part of assessment. Option E is incorrect because risk communication is ongoing.
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: Option B is correct because 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.
Last reviewed: Jun 24, 2026
Question Discussion
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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.
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