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CRISC Risk Response and Mitigation Practice Question

After a risk assessment, a company decides to stop using a third-party service that has high residual risk. This is an example of:

⚠ Common exam trap

Watch out — candidates often confuse 'avoidance' with 'mitigation' because both involve action, but avoidance eliminates the risk source entirely, whereas mitigation reduces but does not remove the risk.

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

✓

Risk Avoidance

By discontinuing the use of the third-party service, the company eliminates the risk entirely rather than reducing or accepting it. This is the definition of risk avoidance, where the activity giving rise to the risk is ceased. The decision is based on the residual risk being too high to be acceptable or cost-effectively mitigated.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • ✗

    Risk Mitigation

    Why it's wrong here

    Mitigation reduces risk likelihood or impact while keeping the activity; terminating the third-party service removes the risk source entirely, which is risk avoidance. Mitigation would be correct if controls were added to lower the residual risk to an acceptable level.

  • ✓

    Risk Avoidance

    Why this is correct

    Risk avoidance eliminates the activity generating the risk entirely, so the high residual risk from the third-party service ceases to exist rather than being reduced, transferred or accepted. Discontinuing the service satisfies the stem's constraint of removing exposure, unlike mitigation which would retain the relationship while adding controls.

  • ✗

    Risk Transfer

    Why it's wrong here

    Transferring risk means shifting its financial impact to another party, such as via insurance or contractual indemnity. Here the company eliminates the activity entirely, so no risk remains to transfer. Transfer would be correct if it retained the third-party service but insured against the residual exposure.

  • ✗

    Risk Acceptance

    Why it's wrong here

    Acceptance means retaining the residual risk and continuing the activity, typically with documented sign-off. Ceasing the third-party service removes the risk source altogether, which is risk avoidance. Acceptance would be correct if the company judged the residual risk tolerable and kept using the service.

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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