CRISC Risk Response and Mitigation Practice Question
A risk assessment reveals that the cost of implementing a control ($500k) exceeds the annualized loss expectancy (ALE) of $300k. The risk is currently within the organization's risk appetite. What is the appropriate risk response?
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
✓
Accept the risk
When the cost of the control ($500k) exceeds the annualized loss expectancy (ALE) of $300k and the risk is within the organization's risk appetite, it is more cost-effective to accept the risk rather than implement a costly control.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Accept the risk
Why this is correct
Acceptance is justified when mitigation is not cost-effective.
- ✗
Implement the control
Why it's wrong here
Control cost exceeds expected loss.
- ✗
Avoid the risk
Why it's wrong here
Avoidance is too drastic for a low-impact risk.
- ✗
Transfer the risk
Why it's wrong here
Transfer may also cost more than the loss.
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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.