hardMultiple ChoiceObjective-mapped
CRISC Practice Question: A large financial institution has implemented a…
A large financial institution has implemented a risk monitoring framework that includes KRIs for operational risk. Recently, a critical KRI related to trade settlement errors has been showing an upward trend, but it remains within the approved threshold. The risk manager is concerned because the trend indicates potential control degradation. The control owner argues that since the KRI is still within threshold, no action is needed. The risk manager wants to determine the best course of action to address the trend before it breaches the threshold. The organization's risk policy requires proactive monitoring. What should the risk manager do?
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
✓
Conduct a detailed analysis to understand the root cause and consider adjusting the threshold or implementing control enhancements.
Proactive monitoring requires understanding the root cause of the trend before taking action. Option A is correct because it involves conducting a detailed analysis first, then considering threshold adjustments or control enhancements based on findings. This aligns with the organization's risk policy. Option B implements controls without understanding the cause, which may be premature. Option C reports to the audit committee without analysis, which is not the first step. Option D updates the threshold without addressing the underlying issue, masking the problem.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Conduct a detailed analysis to understand the root cause and consider adjusting the threshold or implementing control enhancements.
Why this is correct
Root cause analysis enables informed decision-making aligned with proactive monitoring.
- ✗
Implement additional controls immediately.
Why it's wrong here
Adding controls without root cause analysis may be inefficient.
- ✗
Report the trend to the audit committee.
Why it's wrong here
Reporting without analysis is premature and may not provide actionable insights.
- ✗
Update the threshold to reflect the new normal.
Why it's wrong here
Updating the threshold without analysis could hide control degradation.
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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.