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CRISC Has a risk appetite that is risk-averse Practice Question
An organization has a risk appetite that is risk-averse. Which risk treatment option would be most aligned with this appetite?
⚠ Common exam trap
It's easy for candidates to confuse 'risk transfer' with 'risk elimination,' assuming insurance removes all risk, when in fact it only covers financial loss, leaving operational and reputational risks intact.
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
✓
Avoid the risk by discontinuing the activity
A risk-averse organization prioritizes avoiding exposure to threats. Discontinuing the activity that introduces the risk (option A) eliminates the threat source entirely, ensuring no residual risk remains. This aligns directly with a risk-averse appetite, where even low-probability, high-impact events are unacceptable.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Avoid the risk by discontinuing the activity
Why this is correct
Avoidance aligns with risk-averse appetite.
- ✗
Mitigate the risk with controls
Why it's wrong here
Mitigation still retains some risk.
- ✗
Accept the risk
Why it's wrong here
Acceptance is not risk-averse.
- ✗
Transfer the risk through insurance
Why it's wrong here
Transfer still leaves residual risk.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.