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CISM Practice Question: Refer to the exhibit
Exhibit
Refer to the exhibit. ``` Risk Register Excerpt: Risk ID: R001 Risk Description: Unauthorized disclosure of sensitive customer data due to weak encryption. Inherent Risk: High Control Effectiveness: Partially effective Residual Risk: High Risk Owner: CISO Risk Treatment: Accept ```
Refer to the exhibit. An information security manager reviews the risk register and sees that Risk ID R001 has a residual risk of High with a treatment of Accept. Which of the following best explains why this situation may indicate a governance failure?
⚠ Common exam trap
The trap here is that candidates focus on the control effectiveness rating or the risk owner's role, rather than recognizing that the core governance failure is accepting a high residual risk that likely exceeds the board-approved risk appetite.
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
✓
Accepting a high residual risk likely exceeds the board-approved risk appetite.
Accepting a high residual risk means the organization has decided to tolerate a level of risk that likely exceeds the board-approved risk appetite. This is a governance failure because the board sets the risk appetite, and management must ensure that all accepted risks fall within that threshold. If the residual risk is high and the treatment is 'Accept,' it indicates a disconnect between the risk acceptance process and the governance framework.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The risk register should not contain risks with residual risk above low.
Why it's wrong here
Risks can be accepted if aligned with risk appetite.
- ✗
The control effectiveness rating of 'Partially effective' is too vague.
Why it's wrong here
While improvement is needed, this is not the governance failure.
- ✓
Accepting a high residual risk likely exceeds the board-approved risk appetite.
Why this is correct
Governance requires that risk acceptance decisions are within the risk appetite approved by the board.
- ✗
The risk owner should be a business unit head, not the CISO.
Why it's wrong here
The CISO can be a risk owner for certain risks.
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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.