Quick Answer
The answer is to review the incident to determine if risk appetite needs adjustment. This is correct because when a major incident exceeds the defined risk appetite, the risk committee’s immediate duty is not to escalate or accept blindly, but to perform a post-incident analysis that evaluates whether the appetite itself was realistic or if additional controls are required. On the CRISC exam, this tests your understanding of the risk response lifecycle, specifically that appetite is a dynamic threshold that must be validated against real-world events; a common trap is jumping to board reporting or immediate acceptance without analysis. Remember the memory tip: “Breach first, then teach”—after a risk appetite breach, you must first review and learn before you act.
This CRISC practice question tests your understanding of risk and control monitoring and reporting. 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.
An organization defines its risk appetite as 'no more than one major security incident per year.' During the year, a major incident occurs. The monitoring team reports this to the risk committee. What should be the NEXT step?
Immediately change the risk appetite to tolerate two incidents per year.
Why wrong: Changing without analysis is arbitrary.
Review the incident to determine if risk appetite needs adjustment.
Appropriate escalation and review.
Report the breach to the board of directors.
Why wrong: Board reporting may follow committee review.
Accept the incident and continue with current controls.
Why wrong: No analysis of improvement.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Review the incident to determine if risk appetite needs adjustment.
Option C is correct because the risk committee should review the incident and consider whether to adjust risk appetite or implement additional controls. Option A is wrong because reporting to board is premature without analysis. Option B is wrong because accepting without analysis is passive. Option D is wrong because change may not be needed; appetite may be reaffirmed.
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.
Immediately change the risk appetite to tolerate two incidents per year.
Why it's wrong here
Changing without analysis is arbitrary.
Review the incident to determine if risk appetite needs adjustment.
Why this is correct
Appropriate escalation and review.
Related concept
Read the scenario before looking for a memorised answer.
Report the breach to the board of directors.
Why it's wrong here
Board reporting may follow committee review.
Accept the incident and continue with current controls.
Why it's wrong here
No analysis of improvement.
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 and Control Monitoring and Reporting — study guide chapter
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FAQ
Risk and Control Monitoring and Reporting — This question tests Risk and Control Monitoring and Reporting — Read the scenario before looking for a memorised answer..
The correct answer is: Review the incident to determine if risk appetite needs adjustment. — Option C is correct because the risk committee should review the incident and consider whether to adjust risk appetite or implement additional controls. Option A is wrong because reporting to board is premature without analysis. Option B is wrong because accepting without analysis is passive. Option D is wrong because change may not be needed; appetite may be reaffirmed.
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.
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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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