CRISC IT Risk Assessment Practice Question
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?
⚠ Common exam trap
Watch out — 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.
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.
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.
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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.