- A
Elimination of the business process
Why wrong: That would be avoidance.
- B
Transfer of risk via insurance
Why wrong: That is risk transfer.
- C
Implementation of compensating controls
Why wrong: Compensating controls are for mitigation.
- D
Formal sign-off by the risk owner
Acceptance requires documented acceptance by the risk owner.
Question 365 of 1,000
CRISC IT Risk Assessment Practice Question
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 risk manager decides to accept a risk because the cost of controls exceeds the potential loss. Which of the following is required for this risk treatment option?
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
✓
Formal sign-off by the risk owner
When a risk manager decides to accept a risk because the cost of controls exceeds the potential loss, the risk treatment option is risk acceptance. This requires formal acknowledgment and sign-off by the risk owner, who is accountable for the risk and must document the decision, typically in a risk register, to ensure governance and auditability.
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.
- ✗
Elimination of the business process
Why it's wrong here
That would be avoidance.
- ✗
Transfer of risk via insurance
Why it's wrong here
That is risk transfer.
- ✗
Implementation of compensating controls
Why it's wrong here
Compensating controls are for mitigation.
- ✓
Formal sign-off by the risk owner
Why this is correct
Acceptance requires documented acceptance by the risk owner.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse risk acceptance with risk mitigation or transfer, assuming that any decision involving cost analysis must lead to controls or insurance, but the question explicitly states the cost of controls exceeds the potential loss, making formal acceptance the correct treatment option.
Detailed technical explanation
How to think about this question
Risk acceptance is formally documented in the risk register with the risk owner's sign-off, often including a residual risk acceptance threshold defined by the organization's risk appetite. In practice, this is common for low-likelihood, low-impact risks where the annualized loss expectancy (ALE) is less than the cost of controls, as per ISO 31000 and COBIT 5 frameworks. The risk owner must also monitor the risk over time, as changes in threat landscape or business context may invalidate the acceptance decision.
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.
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FAQ
Questions learners often ask
What does this CRISC question test?
IT Risk Assessment — This question tests IT Risk Assessment — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Formal sign-off by the risk owner — When a risk manager decides to accept a risk because the cost of controls exceeds the potential loss, the risk treatment option is risk acceptance. This requires formal acknowledgment and sign-off by the risk owner, who is accountable for the risk and must document the decision, typically in a risk register, to ensure governance and auditability.
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.
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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.
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