CRISC Risk Response and Reporting Practice Question
A risk manager is evaluating the cost-effectiveness of a proposed control. The control costs $50,000 annually to implement and maintain. The current annual loss expectancy (ALE) for the risk is $200,000, and the control is expected to reduce the ALE by 70%. What is the net benefit (or loss) of implementing the control?
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
✓
Net benefit of $90,000
The ALE reduction is $200,000 * 70% = $140,000. The annual cost of control is $50,000. Net benefit = $140,000 - $50,000 = $90,000.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Net benefit of $90,000
Why this is correct
The reduction in ALE exceeds the control cost by $90,000.
- ✗
Net loss of $10,000
Why it's wrong here
Incorrect calculation.
- ✗
Net benefit of $140,000
Why it's wrong here
This ignores the cost of the control.
- ✗
Net loss of $50,000
Why it's wrong here
This would be the case if there were no reduction in ALE.
Go deeper
Related to this question
About these practice questions
Courseiva writes every CRISC question from scratch — 983 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
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.