- A
Cost of controls
Why wrong: Cost is considered in cost-benefit analysis, not in residual risk calculation.
- B
Control design adequacy
Design adequacy determines if controls can address the risk.
- C
Risk appetite
Why wrong: Risk appetite is used to evaluate acceptability, not to calculate residual risk.
- D
Inherent risk level
Residual risk starts from inherent risk.
- E
Control operating effectiveness
Operating effectiveness measures how well controls work in practice.
Question 673 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 practitioner is calculating the residual risk for a critical asset. Which THREE factors should be considered?
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
✓
Control design adequacy
Residual risk is the risk remaining after controls are applied. To calculate it, you must know the inherent risk level (the risk before controls) and then assess how effectively controls reduce that risk. Control design adequacy and operating effectiveness determine how much the inherent risk is mitigated, directly impacting the residual risk calculation.
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.
- ✗
Cost of controls
Why it's wrong here
Cost is considered in cost-benefit analysis, not in residual risk calculation.
- ✓
Control design adequacy
Why this is correct
Design adequacy determines if controls can address the risk.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Risk appetite
Why it's wrong here
Risk appetite is used to evaluate acceptability, not to calculate residual risk.
- ✓
Inherent risk level
Why this is correct
Residual risk starts from inherent risk.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Control operating effectiveness
Why this is correct
Operating effectiveness measures how well controls work in practice.
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 confusing factors that influence the decision to accept residual risk (like risk appetite and cost of controls) with the direct inputs required to calculate the residual risk level itself.
Detailed technical explanation
How to think about this question
Residual risk is calculated as Inherent Risk minus the risk reduction provided by controls, where risk reduction is a function of control design adequacy and control operating effectiveness. For example, if inherent risk is scored as 25 (on a scale of 1-25) and controls are 80% effective, residual risk is 5. This aligns with the ISACA CRISC framework, which defines residual risk as the risk remaining after management has implemented risk responses.
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: Control design adequacy — Residual risk is the risk remaining after controls are applied. To calculate it, you must know the inherent risk level (the risk before controls) and then assess how effectively controls reduce that risk. Control design adequacy and operating effectiveness determine how much the inherent risk is mitigated, directly impacting the residual risk calculation.
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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