- A
$350,000
Why wrong: Incorrect; this may be the reduction in ALE without subtracting control cost.
- B
$250,000
Correct calculation: ALE reduction of $400,000 minus control cost of $150,000 equals $250,000 net benefit.
- C
$400,000
Why wrong: This is the ALE reduction, not net benefit.
- D
$50,000
Why wrong: Incorrect; this may be the residual ALE minus control cost or other miscalculation.
Question 520 of 1,000
CRISC Risk Response and Reporting Practice Question
This CRISC practice question tests your understanding of risk response and reporting. 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.
A company is evaluating the cost-benefit of a new control that reduces the annualized loss expectancy (ALE) from $500,000 to $100,000. The control has an annual cost of $150,000. What is the net benefit of implementing this control?
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
✓
$250,000
The net benefit of implementing a control is calculated as the reduction in Annualized Loss Expectancy (ALE) minus the annual cost of the control. The ALE reduction is $500,000 - $100,000 = $400,000. Subtracting the annual control cost of $150,000 yields a net benefit of $250,000, making option B correct.
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.
- ✗
$350,000
Why it's wrong here
Incorrect; this may be the reduction in ALE without subtracting control cost.
- ✓
$250,000
Why this is correct
Correct calculation: ALE reduction of $400,000 minus control cost of $150,000 equals $250,000 net benefit.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
$400,000
Why it's wrong here
This is the ALE reduction, not net benefit.
- ✗
$50,000
Why it's wrong here
Incorrect; this may be the residual ALE minus control cost or other miscalculation.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often forget to subtract the annual control cost from the ALE reduction, mistakenly selecting the gross reduction ($400,000) as the net benefit, or they incorrectly subtract the residual ALE instead of the control cost.
Detailed technical explanation
How to think about this question
In risk management, the net benefit formula is (ALE_old - ALE_new) - annual_control_cost, which directly supports cost-benefit justification for control investment. This calculation is part of the broader Risk Response and Reporting domain, where quantitative analysis using ALE, SLE, and ARO helps prioritize controls. A real-world scenario might involve a firewall upgrade that reduces expected breach losses from $500K to $100K but costs $150K annually in licensing and maintenance; the net benefit of $250K justifies the expenditure.
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.
TExam Day Tips
- 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 CRISC 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 exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
- →
Risk Response and Reporting — study guide chapter
Learn the concepts, then practise the questions
- →
Risk Response and Reporting practice questions
Targeted practice on this topic area only
- →
All CRISC questions
1,000 questions across all exam domains
- →
Certified in Risk and Information Systems Control CRISC study guide
Full concept coverage aligned to exam objectives
- →
CRISC practice test guide
How to use practice tests most effectively before exam day
Related practice questions
Related CRISC practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
IT Risk Identification practice questions
Practise CRISC questions linked to IT Risk Identification.
IT Risk Assessment practice questions
Practise CRISC questions linked to IT Risk Assessment.
Risk Response and Reporting practice questions
Practise CRISC questions linked to Risk Response and Reporting.
Information Technology and Security practice questions
Practise CRISC questions linked to Information Technology and Security.
Risk Response and Mitigation practice questions
Practise CRISC questions linked to Risk Response and Mitigation.
Risk and Control Monitoring and Reporting practice questions
Practise CRISC questions linked to Risk and Control Monitoring and Reporting.
CRISC fundamentals practice questions
Practise CRISC questions linked to CRISC fundamentals.
CRISC scenario practice questions
Practise CRISC questions linked to CRISC scenario.
CRISC troubleshooting practice questions
Practise CRISC questions linked to CRISC troubleshooting.
Practice this exam
Start a free CRISC practice session
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
FAQ
Questions learners often ask
What does this CRISC question test?
Risk Response and Reporting — This question tests Risk Response and Reporting — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: $250,000 — The net benefit of implementing a control is calculated as the reduction in Annualized Loss Expectancy (ALE) minus the annual cost of the control. The ALE reduction is $500,000 - $100,000 = $400,000. Subtracting the annual control cost of $150,000 yields a net benefit of $250,000, making option B correct.
What should I do if I get this CRISC question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
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 →
Last reviewed: Jul 4, 2026
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.
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.