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CRISC Practice Question: A manufacturing company uses IoT sensors on the…

A manufacturing company uses IoT sensors on the factory floor to monitor equipment performance. The sensors transmit data to a central server via Wi-Fi. During a risk identification workshop, the operations manager reveals that some sensors are operating on outdated firmware with known vulnerabilities. The IT director proposes replacing all sensors at a high cost. The risk team notes that a breach could cause production downtime but the sensors only collect non-sensitive operational data. The company has a low tolerance for downtime. What should the risk team identify as the most critical risk?

⚠ Common exam trap

The trap here is that candidates focus on data sensitivity (reputation or legal liability) instead of operational impact, failing to recognize that for a manufacturing company with low downtime tolerance, production disruption is the most critical risk even if the data is non-sensitive.

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

Operational disruption from a potential cyber attack exploiting sensor vulnerabilities.

The most critical risk is operational disruption from a cyber attack exploiting the known vulnerabilities in the outdated IoT sensor firmware. Since the company has a low tolerance for downtime, any breach that causes production stoppage directly impacts business continuity, outweighing the non-sensitive nature of the data collected. The sensors' Wi-Fi connectivity provides an attack surface for lateral movement or denial-of-service, making exploitation a high-probability, high-impact event.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Operational disruption from a potential cyber attack exploiting sensor vulnerabilities.

    Why this is correct

    Downtime is a key impact for the company.

  • Legal liability from non-compliance with safety standards.

    Why it's wrong here

    No safety standard issue mentioned.

  • Reputational damage from a data leak.

    Why it's wrong here

    Data is non-sensitive, so leak unlikely to harm reputation.

  • Financial loss from replacing sensors.

    Why it's wrong here

    This is a cost, not the risk itself.

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JA

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.