- A
Avoid the risk by discontinuing the process
Why wrong: Drastic and may impact business operations unnecessarily.
- B
Accept the risk with formal sign-off
Why wrong: Not appropriate if the risk is high and can be transferred cost-effectively.
- C
Mitigate the risk by implementing controls
Why wrong: Not cost-effective as control costs exceed potential financial loss.
- D
Transfer the risk through cyber insurance
Transfer is cost-effective when control costs exceed potential loss.
Question 68 of 1,000
CRISC IT Risk Assessment Practice Question
This CRISC practice question tests your understanding of it risk assessment. 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.
An organization has identified a high-risk IT process that, if continued, could result in significant regulatory fines. The risk owner recommends implementing additional controls. However, the cost of controls exceeds the potential financial loss. Which risk treatment option is MOST appropriate?
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
✓
Transfer the risk through cyber insurance
The cost of implementing additional controls exceeds the potential financial loss from regulatory fines, making mitigation economically inefficient. Transferring the risk through cyber insurance is the most appropriate option because it shifts the financial impact of the fines to an insurer, aligning with cost-benefit analysis principles in risk management.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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 process
Why it's wrong here
Drastic and may impact business operations unnecessarily.
- ✗
Accept the risk with formal sign-off
Why it's wrong here
Not appropriate if the risk is high and can be transferred cost-effectively.
- ✗
Mitigate the risk by implementing controls
Why it's wrong here
Not cost-effective as control costs exceed potential financial loss.
- ✓
Transfer the risk through cyber insurance
Why this is correct
Transfer is cost-effective when control costs exceed potential loss.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often choose 'mitigate' (Option C) without performing a cost-benefit analysis, forgetting that risk management requires controls to be cost-justified relative to the potential loss.
Detailed technical explanation
How to think about this question
Risk transfer via cyber insurance typically covers regulatory fines and legal defense costs, but policies often have exclusions for willful negligence or failure to maintain baseline security controls. In practice, the insurer may require a minimum set of controls (e.g., ISO 27001 compliance) before underwriting, so the organization must still implement some cost-effective measures to qualify for coverage.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
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
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this CRISC question test?
IT Risk Assessment — This question tests IT Risk Assessment — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Transfer the risk through cyber insurance — The cost of implementing additional controls exceeds the potential financial loss from regulatory fines, making mitigation economically inefficient. Transferring the risk through cyber insurance is the most appropriate option because it shifts the financial impact of the fines to an insurer, aligning with cost-benefit analysis principles in risk management.
What should I do if I get this CRISC question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jul 4, 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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