CRISC IT Risk Assessment Practice Question
A company identifies a high inherent risk in its online payment system. After implementing a Web Application Firewall (WAF) and conducting quarterly penetration tests, the residual risk is assessed as medium. Which of the following best explains the relationship between inherent risk, controls, and residual risk?
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
✓
Residual risk is the inherent risk adjusted for the effectiveness of controls in reducing likelihood and impact.
Residual risk is the risk remaining after controls are applied. It is calculated by adjusting inherent risk for control effectiveness (design adequacy and operating effectiveness).
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Residual risk is the inherent risk adjusted for the effectiveness of controls in reducing likelihood and impact.
Why this is correct
Correct. Control effectiveness reduces inherent risk to residual risk.
- ✗
Inherent risk is the risk after controls are applied, while residual risk is the risk before controls.
Why it's wrong here
The definitions are reversed; inherent risk is before controls, residual after.
- ✗
Residual risk equals inherent risk minus the total cost of controls implemented.
Why it's wrong here
Residual risk is not calculated by subtracting control costs; it's a risk level adjustment.
- ✗
Inherent risk and residual risk are independent; residual risk is determined solely by threat intelligence.
Why it's wrong here
They are dependent; residual risk is derived from inherent risk and controls.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CRISC 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 CRISC exam.