Quick Answer
The correct answer is to escalate the risk to senior management for formal acceptance and implement additional compensating controls. When residual risk treatment exceeds appetite after all feasible controls are deployed, CISM best practices dictate that the information security manager cannot simply ignore the gap; instead, the risk must be formally escalated to senior management, who hold the authority to accept it on behalf of the organization. Additionally, implementing compensating controls provides a secondary layer of defense to reduce the residual risk to an acceptable level, even when primary controls are exhausted. On the CISM exam, this scenario tests your understanding of the risk treatment hierarchy and the distinction between risk acceptance (a management decision) and risk mitigation (an operational action). A common trap is choosing only one action, but the question requires two: escalation for governance and compensating controls for practical reduction. Memory tip: think “Escalate and Compensate” — when risk exceeds appetite, you must both raise the flag and add a safety net.
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 high residual risk after implementing all feasible controls. According to CISM best practices, which of the following should the information security manager do? (Select TWO.)
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.
Document the risk in the risk register and accept it
Why wrong: Documentation alone is not sufficient; escalation is needed for high residual risk.
Immediately perform a new risk assessment
Why wrong: A new assessment may be done later, but the immediate action is to escalate and consider additional controls.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Escalate to senior management for risk acceptance
When residual risk remains high after all feasible controls are implemented, the information security manager should escalate the risk to senior management for formal risk acceptance (Option A). This aligns with CISM best practices, as senior management holds the authority to accept risks that exceed the organization's risk appetite. Additionally, implementing compensating controls (Option C) can further reduce residual risk to an acceptable level, even if primary controls are already in place.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Document the risk in the risk register and accept it
Why it's wrong here
Documentation alone is not sufficient; escalation is needed for high residual risk.
Immediately perform a new risk assessment
Why it's wrong here
A new assessment may be done later, but the immediate action is to escalate and consider additional controls.
Option-by-option analysis
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The CISM exam frequently reuses these exact scenarios with slightly different constraints.
Why this is wrong here
Documentation alone is not sufficient; escalation is needed for high residual risk.
Why this is wrong here
A new assessment may be done later, but the immediate action is to escalate and consider additional controls.
Analysis generated from the official CISMblueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
Common exam traps
The trap here is that candidates confuse 'documenting and accepting' (Option B) as sufficient, overlooking the CISM requirement that risk acceptance must be formally escalated to and approved by senior management, not just recorded by the security manager.
Detailed technical explanation
Residual risk is calculated as inherent risk minus the effect of controls, and when it exceeds the risk appetite threshold, formal risk acceptance requires documented acknowledgment from senior management, often including a risk acceptance form with expiry dates and review cycles. In practice, compensating controls might include additional monitoring, enhanced logging, or redundant security layers (e.g., deploying a Web Application Firewall alongside existing network controls) to lower residual risk without replacing primary controls. This process is governed by frameworks like ISO 27005 and NIST SP 800-39, which mandate that risk acceptance decisions be recorded and periodically re-evaluated.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Information Security Risk Management — study guide chapter
Learn the concepts, then practise the questions
Information Security Risk Management practice questions
Targeted practice on this topic area only
All CISM questions
500 questions across all exam domains
Certified Information Security Manager CISM study guide
Full concept coverage aligned to exam objectives
CISM practice test guide
How to use practice tests most effectively before exam day
Related practice questions
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
Practise CISM questions linked to Information Security Program.
Practise CISM questions linked to Information Security Risk Management.
Practise CISM questions linked to Information Security Governance.
Practise CISM questions linked to Incident Management.
Practise CISM questions linked to CISM fundamentals.
Practise CISM questions linked to CISM scenario.
Practise CISM questions linked to CISM troubleshooting.
Practice this exam
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
FAQ
Information Security Risk Management — This question tests Information Security Risk Management — Read the scenario before looking for a memorised answer..
The correct answer is: Escalate to senior management for risk acceptance — When residual risk remains high after all feasible controls are implemented, the information security manager should escalate the risk to senior management for formal risk acceptance (Option A). This aligns with CISM best practices, as senior management holds the authority to accept risks that exceed the organization's risk appetite. Additionally, implementing compensating controls (Option C) can further reduce residual risk to an acceptable level, even if primary controls are already in place.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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.
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 →
Same concept, more angles
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. After implementing controls, an organization reassesses a risk and finds that the residual risk level exceeds the established risk tolerance. What is the most appropriate next step?
mediumWhy C: Option C is correct because the organization must decide to either accept (with authorization) or further treat the risk. Option A is wrong because ignoring is not acceptable. Option B is wrong because lowering tolerance without justification is not appropriate. Option D is wrong because re-assessment alone does not resolve the issue.
Variation 2. 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?
hardWhy C: 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.
Variation 3. A company has a risk appetite that is 'low' for operational risks. A risk assessment recently identified that a high-speed trading platform has a residual risk rating of 'high' after controls are applied. The cost to further reduce the risk is $1 million, which exceeds the expected benefit. What is the most appropriate action for the risk owner?
hardWhy A: Option D is correct because risk acceptance requires explicit approval from senior management when residual risk exceeds appetite. Option A is wrong because risk appetite should not be changed without board approval, and the cost-benefit indicates acceptance is more practical. Option B is wrong because implementing controls that are not cost-effective is not prudent. Option C is wrong because risk transfer may not be available or cost-effective.
Last reviewed: Jun 11, 2026
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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.