Quick Answer
The answer is to implement additional controls to reduce the probability to 2%. This is correct because when residual risk exceeds the organization’s risk appetite, the risk response must bring it back within tolerance, regardless of a simple cost-benefit analysis; here, the 5% probability of a $10 million loss surpasses the 3% maximum acceptable probability, so further mitigation is mandatory. On the Certified in Risk and Information Systems Control CRISC exam, this scenario tests your understanding that risk appetite sets a hard boundary—if residual risk is above that threshold, acceptance is not an option, and the primary response is to lower probability or impact until the risk aligns with appetite. A common trap is choosing to accept the risk based on cost-benefit, but the exam emphasizes that appetite overrides pure financial calculation when the risk is outside the defined tolerance. Remember the memory tip: “Appetite is the line—if residual crosses it, you must fix it.”
This CRISC practice question tests your understanding of risk response and mitigation. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 security controls, a risk assessment shows a residual risk of data exfiltration with a probability of 5% and potential loss of $10 million. The organization's risk appetite allows a maximum acceptable risk level of 3% probability for such impact. The cost of further mitigation is $1 million. What is the best risk response?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "best"
Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Implement additional controls to reduce probability to 2%
Further mitigation brings risk within appetite.
Accept the residual risk
Why wrong: Risk exceeds appetite.
Purchase cybersecurity insurance
Why wrong: Insurance reduces impact but does not lower probability below appetite threshold.
Discontinue the process
Why wrong: Avoidance is not necessary if mitigation is feasible.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Implement additional controls to reduce probability to 2%
Option C is correct because the residual risk exceeds the risk appetite, so additional mitigation is required regardless of cost-benefit. Option A is wrong because the risk is outside appetite. Option B may reduce impact but not probability; appetite is based on probability. Option D is overly disruptive.
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.
Implement additional controls to reduce probability to 2%
Why this is correct
Further mitigation brings risk within appetite.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
Accept the residual risk
Why it's wrong here
Risk exceeds appetite.
Purchase cybersecurity insurance
Why it's wrong here
Insurance reduces impact but does not lower probability below appetite threshold.
Discontinue the process
Why it's wrong here
Avoidance is not necessary if mitigation is feasible.
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: Implement additional controls to reduce probability to 2% — Option C is correct because the residual risk exceeds the risk appetite, so additional mitigation is required regardless of cost-benefit. Option A is wrong because the risk is outside appetite. Option B may reduce impact but not probability; appetite is based on probability. Option D is overly disruptive.
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.
Yes — watch for: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Read the scenario before looking for a memorised answer.
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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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