Quick Answer
The answer is to avoid the risk by terminating the vendor contract. This is the correct risk response because risk avoidance is the only strategy that eliminates the exposure entirely when a third party refuses to remediate critical findings and the organization’s risk appetite for third-party risk is low. In the CRISC exam, this scenario tests your ability to distinguish avoidance from mitigation, transfer, or acceptance—especially when contractual clauses exist but are unenforceable due to the vendor’s refusal. A common trap is choosing “accept” or “mitigate” because the contract includes security standards, but with a low risk appetite and unwillingness to fix the issues, avoidance through termination is the only appropriate action. Memory tip: when the vendor won’t budge and your appetite is low, the only way to go is “no go”—avoid and terminate.
This CRISC practice question tests your understanding of risk response and mitigation. Compare every option against the stated constraints before choosing — the best answer satisfies all requirements, not just the most obvious one. 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 third-party vendor's security assessment reveals multiple high-risk findings related to data handling. The vendor is unwilling to remediate, citing cost. The vendor contract includes a clause that requires adherence to security standards. The organization's risk appetite for third-party risk is low. What is the most appropriate risk response?
Avoid by terminating the contract
Termination eliminates the risk.
Mitigate by reducing data shared
Why wrong: Partial mitigation may not satisfy low appetite.
Transfer via insurance
Why wrong: Insurance covers losses but does not prevent the risk.
Accept the risk and monitor
Why wrong: Acceptance violates the low risk appetite.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Avoid by terminating the contract
Option A is correct because avoidance by terminating the contract addresses the risk directly. Options B, C, and D do not fully resolve the risk given the low appetite.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Avoid by terminating the contract
Why this is correct
Termination eliminates the risk.
Related concept
Static NAT maps one inside address to one outside address.
Mitigate by reducing data shared
Why it's wrong here
Partial mitigation may not satisfy low appetite.
Transfer via insurance
Why it's wrong here
Insurance covers losses but does not prevent the risk.
Accept the risk and monitor
Why it's wrong here
Acceptance violates the low risk appetite.
Common exam traps
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Real-world example
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related CRISC NAT questions on configuration and troubleshooting.
Risk Response and Mitigation — study guide chapter
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FAQ
Risk Response and Mitigation — This question tests Risk Response and Mitigation — Static NAT maps one inside address to one outside address..
The correct answer is: Avoid by terminating the contract — Option A is correct because avoidance by terminating the contract addresses the risk directly. Options B, C, and D do not fully resolve the risk given the low appetite.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related CRISC NAT questions on configuration and troubleshooting.
Static NAT maps one inside address to one outside address.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A risk assessment identifies that a legacy system has a high risk of failure with no available vendor support. The organization decides to decommission the system and migrate to a modern platform. This is:
hardWhy A: Option D is correct because decommissioning the system eliminates the risk entirely, which is avoidance.
Variation 2. Which TWO of the following are examples of risk avoidance? (Select TWO.)
mediumWhy C: Options C and D are correct because discontinuing a product and not entering a market both eliminate the risk by avoiding the activity.
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Last reviewed: Jun 24, 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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