CISM High risk with costly mitigation Practice Question
An information security manager has identified a risk with a high likelihood and high impact. The cost of mitigating the risk exceeds the potential loss. What is the MOST appropriate risk treatment strategy?
⚠ Common exam trap
Candidates may choose 'mitigate' without considering cost-benefit analysis; CISM emphasizes aligning treatment with business value.
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
✓
Risk acceptance
When mitigation cost exceeds potential loss, risk acceptance is appropriate if the risk is within the organization's risk appetite. Alternatively, risk transfer (e.g., insurance) could be considered, but acceptance is often the primary choice when the cost-benefit is negative.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Risk mitigation
Why it's wrong here
Mitigation cost exceeds potential loss, making it inefficient.
- ✗
Risk transfer
Why it's wrong here
Transfer (e.g., insurance) may still be expensive; acceptance is more direct when cost of transfer also high.
- ✗
Risk avoidance
Why it's wrong here
Avoidance would mean discontinuing the activity, which may not be feasible or cost-effective.
Option-by-option analysis
Why each answer is right or wrong
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.
✓Risk acceptanceCorrect answer▾
✗Risk mitigationWrong answer — click to see why▾
Why this is wrong here
Mitigation cost exceeds potential loss, making it inefficient.
✗Risk transferWrong answer — click to see why▾
Why this is wrong here
Transfer (e.g., insurance) may still be expensive; acceptance is more direct when cost of transfer also high.
✗Risk avoidanceWrong answer — click to see why▾
Why this is wrong here
Avoidance would mean discontinuing the activity, which may not be feasible or cost-effective.
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?”
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About these practice questions
One of 871 original CISM practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
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.