CRISC IT Risk Identification Practice Question
A risk practitioner is cataloging external factors that could create IT risk for a logistics firm expanding into a new country. Which TWO of the following are external factors that should be included in the risk identification effort? (Choose two.)
⚠ Common exam trap
The trap here is listing internal control weaknesses or capability gaps as external factors, when external factors must originate outside the organization's own 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
✓
New data residency and privacy regulations in the target country.
External factors are conditions outside the organization's control that shape its risk landscape. New data residency and privacy regulations and the maturity of local telecom and power infrastructure both originate in the target country's legal and physical environment, so they must be identified during expansion planning. Internal items such as staff skills, training rates, and encryption choices are capability and control decisions the firm governs itself.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The organization's chosen encryption standard for data at rest.
Why it's wrong here
The encryption standard is an internal design decision and control choice, not an external environmental factor. It reflects how the firm chooses to protect data and can be changed by policy. While relevant to risk treatment, it originates inside the organization and therefore does not belong in a catalog of external factors driving risk identification.
- ✗
The firm's internal security awareness training completion rate.
Why it's wrong here
Training completion rate is an internal control metric reflecting the organization's own program maturity. It is a useful vulnerability indicator but it is generated and governed internally, so it does not qualify as an external factor. Including it here would confuse internal control posture with the external environment the question targets.
- ✓
New data residency and privacy regulations in the target country.
Why this is correct
Data residency and privacy laws are external, environmental factors outside the firm's control that can create compliance and operational risk. They influence where data may be stored and processed, affecting architecture and vendor choices. Capturing them during identification ensures the expansion plan accounts for legal constraints before systems are deployed, rather than discovering violations after the fact.
- ✓
The maturity of the local telecommunications and power infrastructure.
Why this is correct
Local telecom and power infrastructure are external environmental conditions that directly affect availability and resilience of IT services. Their maturity influences outage frequency and recovery options in the new market. These are conditions the firm cannot control but must factor into risk identification and continuity planning for the expansion.
- ✗
The technical skill level of the firm's current IT staff.
Why it's wrong here
Staff skill level is an internal capability and vulnerability factor, not an external environmental factor. It matters for risk assessment, but it originates within the organization and can be changed through hiring and training. The question asks specifically for external factors, so internal workforce characteristics fall outside the category being cataloged.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official ISACA exam blueprint
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.