The answer is identifying assets and threats, estimating likelihood and impact using scales, and prioritizing based on risk ratings. These are the core steps in a qualitative risk assessment because this approach relies on subjective rating scales—such as high, medium, or low—rather than hard monetary values to evaluate risk. On the Certified Information Security Manager CISM exam, this concept tests your ability to distinguish qualitative methods from quantitative ones, where the latter involves assigning monetary values and calculating Annualized Loss Expectancy (ALE). A common trap is confusing the two: if you see dollar amounts or formulas like SLE × ARO, it is quantitative, not qualitative. Remember the mnemonic “A-L-P” for qualitative: Assess assets and threats, Likelihood and impact scales, then Prioritize by risk rating.
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.
Which THREE of the following are typical steps in a qualitative risk assessment?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Estimate likelihood and impact using rating scales
Qualitative assessment uses rating scales instead of monetary values. Identifying assets and threats, estimating likelihood and impact using scales, and prioritizing based on risk ratings are steps. Assigning monetary values and calculating ALE are quantitative steps.
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.
✓
Estimate likelihood and impact using rating scales
Why this is correct
Rating scales (e.g., 1-5) are qualitative.
Related concept
Read the scenario before looking for a memorised answer.
✓
Prioritize risks based on risk ratings
Why this is correct
Prioritization using risk matrix is typical in qualitative assessment.
Related concept
Read the scenario before looking for a memorised answer.
✓
Identify assets and threats
Why this is correct
Asset and threat identification is foundational in any assessment.
Related concept
Read the scenario before looking for a memorised answer.
✗
Calculate annualized loss expectancy (ALE)
Why it's wrong here
ALE is a quantitative calculation.
✗
Assign monetary values to impact
Why it's wrong here
Monetary values are used in quantitative assessment.
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: Estimate likelihood and impact using rating scales — Qualitative assessment uses rating scales instead of monetary values. Identifying assets and threats, estimating likelihood and impact using scales, and prioritizing based on risk ratings are steps. Assigning monetary values and calculating ALE are quantitative steps.
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.
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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.
Question Discussion
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