CRISC Risk Response and Reporting Practice Question
A risk practitioner is performing a cost-benefit analysis for a proposed control. The annualized loss expectancy (ALE) for a risk is currently $500,000. The proposed control will reduce the ALE by 80%, and the annual cost of the control is $150,000. What is the net benefit 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
✓
$250,000
The reduction in ALE is $500,000 × 0.80 = $400,000. The annual control cost is $150,000, so net benefit = $400,000 - $150,000 = $250,000.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$100,000
Why it's wrong here
Incorrect calculation.
- ✓
$250,000
Why this is correct
Correct calculation.
- ✗
$400,000
Why it's wrong here
This is the gross reduction, not net of cost.
- ✗
$350,000
Why it's wrong here
Incorrect; subtracts control cost from original ALE.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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