Quick Answer
The answer is to base the estimate on the organization's annual global turnover. This is correct because the General Data Protection Regulation (GDPR) explicitly defines the maximum fine as the greater of €20 million or 4% of the undertaking’s total worldwide annual turnover from the preceding financial year, making turnover the direct regulatory multiplier for quantification. On the Certified in Risk and Information Systems Control (CRISC) exam, this tests your ability to apply legal frameworks to risk quantification, often appearing in scenario-based questions where candidates must distinguish between revenue-based estimates and other metrics like net profit or data subject count. A common trap is choosing a flat €20 million figure, which ignores the turnover-based tier for larger organizations. Memory tip: think “4% of global turnover” as the ceiling—turnover drives the cap, not profit or local revenue.
This CRISC practice question tests your understanding of it risk assessment. 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 multinational corporation is assessing the risk of non-compliance with GDPR. Which of the following is the BEST approach to quantify the potential fine?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "best"
Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Base the estimate on the organization's annual global turnover
GDPR fines are up to 4% of annual turnover.
Estimate based on the cost of cyber insurance premiums
Why wrong: Insurance is not a fine.
Calculate the cost of data breach using the Ponemon Institute model
Why wrong: This includes many costs beyond fines.
Use industry benchmarks for data breach costs
Why wrong: Benchmarks may not reflect regulatory fines.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Base the estimate on the organization's annual global turnover
Under GDPR, the maximum fine for non-compliance is the greater of €20 million or 4% of the organization's annual global turnover. Therefore, basing the estimate on annual global turnover directly aligns with the regulatory formula used by supervisory authorities, making it the most accurate and defensible quantification approach for potential fines.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Base the estimate on the organization's annual global turnover
Why this is correct
GDPR fines are up to 4% of annual turnover.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
Estimate based on the cost of cyber insurance premiums
Why it's wrong here
Insurance is not a fine.
Calculate the cost of data breach using the Ponemon Institute model
Why it's wrong here
This includes many costs beyond fines.
Use industry benchmarks for data breach costs
Why it's wrong here
Benchmarks may not reflect regulatory fines.
Common exam traps
ISACA often tests the distinction between regulatory fines (which follow a fixed statutory formula) and broader breach costs (which include operational, reputational, and legal expenses), leading candidates to mistakenly select a comprehensive cost model like Ponemon instead of the turnover-based regulatory calculation.
Detailed technical explanation
GDPR Article 83(4)-(6) establishes a two-tier fine structure: up to 2% of annual global turnover for certain violations (e.g., record-keeping) and up to 4% for core data processing violations (e.g., consent, data subject rights). The 'annual global turnover' refers to the total worldwide revenue of the preceding financial year, as defined in the GDPR's recitals, ensuring the fine is proportionate to the organization's size and economic capacity.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
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FAQ
IT Risk Assessment — This question tests IT Risk Assessment — Read the scenario before looking for a memorised answer..
The correct answer is: Base the estimate on the organization's annual global turnover — Under GDPR, the maximum fine for non-compliance is the greater of €20 million or 4% of the organization's annual global turnover. Therefore, basing the estimate on annual global turnover directly aligns with the regulatory formula used by supervisory authorities, making it the most accurate and defensible quantification approach for potential fines.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Yes — watch for: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 30, 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.
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