CRISC IT Risk Assessment Practice Question
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?
⚠ Common exam trap
Many exam-takers 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.
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.
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.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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