Quick Answer
The correct answer is to formally accept the residual risk. This is the most appropriate step because when the cost to further reduce the risk exceeds the potential loss, the principle of cost-benefit analysis dictates that additional mitigation is not economically justified. In risk management, you accept residual risk above tolerance only when the cost of further controls is prohibitive, meaning the expense outweighs the expected benefit of reducing the exposure. On the CRISC exam, this scenario tests your understanding of the risk response decision hierarchy, where acceptance is a valid option after controls are implemented and cost-effectiveness is evaluated. A common trap is choosing to implement more controls out of a false sense of security, but the exam emphasizes that risk acceptance with formal sign-off is the correct governance step when mitigation is not cost-justified. Remember the memory tip: “If the fix costs more than the hit, sign off and accept it.”
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.
After implementing a set of controls, the risk owner calculates the residual risk and finds it is still above the risk tolerance. However, the cost to further reduce the risk exceeds the potential loss. What is the MOST appropriate next step?
Formally accept the residual risk
Acceptance with sign-off is appropriate when mitigation is too costly.
Re-assess the inherent risk
Why wrong: Re-assessment does not address the residual risk.
Reduce current controls to lower costs
Why wrong: This would increase risk.
Implement additional controls despite the cost
Why wrong: Not cost-effective.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Formally accept the residual risk
Option B is correct because when additional mitigation is cost-prohibitive, acceptance with formal sign-off is appropriate. Option A is wrong as implementing further controls is not cost-effective. Option C is wrong because reducing controls would increase risk. Option D is wrong because re-assessing inherent risk doesn't change the situation.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Formally accept the residual risk
Why this is correct
Acceptance with sign-off is appropriate when mitigation is too costly.
Related concept
Read the scenario before looking for a memorised answer.
Re-assess the inherent risk
Why it's wrong here
Re-assessment does not address the residual risk.
Reduce current controls to lower costs
Why it's wrong here
This would increase risk.
Implement additional controls despite the cost
Why it's wrong here
Not cost-effective.
Common exam traps
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
Identify which CRISC exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Risk Response and Mitigation — study guide chapter
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FAQ
Risk Response and Mitigation — This question tests Risk Response and Mitigation — Read the scenario before looking for a memorised answer..
The correct answer is: Formally accept the residual risk — Option B is correct because when additional mitigation is cost-prohibitive, acceptance with formal sign-off is appropriate. Option A is wrong as implementing further controls is not cost-effective. Option C is wrong because reducing controls would increase risk. Option D is wrong because re-assessing inherent risk doesn't change the situation.
Identify which CRISC exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Read the scenario before looking for a memorised answer.
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. After implementing multiple controls, the residual risk for a new product launch is still slightly above the risk appetite. The risk manager decides to proceed with the launch and monitor the risks regularly. This is:
hardWhy C: Option A is correct because the risk is accepted formally as it is within an acceptable range after controls.
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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