- A
Inherent risk score
Residual risk is based on inherent risk reduced by controls.
- B
Control design adequacy
Design adequacy is part of control effectiveness assessment.
- C
Cost-benefit analysis of controls
Why wrong: Cost-benefit analysis is used for prioritization, not directly in residual risk calculation.
- D
Control operating effectiveness
Operating effectiveness is critical; if not effective, controls provide less reduction.
- E
Risk appetite statement
Why wrong: Risk appetite determines whether residual risk is acceptable, but is not used in the calculation itself.
Question 300 of 1,000
CRISC IT Risk Assessment Practice Question
This CRISC practice question tests your understanding of it risk assessment. 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 is conducting a risk assessment and finds that the inherent risk for a critical asset is very high due to a high threat event frequency and high vulnerability. The current controls are assessed as adequate in design but not operating effectively. Which THREE of the following should be considered when calculating residual risk?
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
✓
Inherent risk score
Inherent risk score (A) is correct because residual risk is calculated by considering the inherent risk level and the effectiveness of controls in reducing that risk. Since the inherent risk is very high due to high threat frequency and vulnerability, this baseline score must be factored into the residual risk calculation to determine the remaining risk after controls are applied.
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.
- ✓
Inherent risk score
Why this is correct
Residual risk is based on inherent risk reduced by controls.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Control design adequacy
Why this is correct
Design adequacy is part of control effectiveness assessment.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Cost-benefit analysis of controls
Why it's wrong here
Cost-benefit analysis is used for prioritization, not directly in residual risk calculation.
- ✓
Control operating effectiveness
Why this is correct
Operating effectiveness is critical; if not effective, controls provide less reduction.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Risk appetite statement
Why it's wrong here
Risk appetite determines whether residual risk is acceptable, but is not used in the calculation itself.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse risk appetite (E) as a direct input to residual risk calculation, when it is actually a threshold for evaluating residual risk, not a component of its calculation.
Detailed technical explanation
How to think about this question
Residual risk is computed as inherent risk minus the risk reduction provided by controls, where control effectiveness is measured by both design adequacy and operating effectiveness. In this scenario, even though controls are adequate in design (B), their lack of operating effectiveness (D) means they do not reduce risk as intended, so both factors must be considered to accurately quantify the remaining exposure. This aligns with the ISACA risk assessment methodology, where residual risk = inherent risk × (1 - control effectiveness).
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.
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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: Inherent risk score — Inherent risk score (A) is correct because residual risk is calculated by considering the inherent risk level and the effectiveness of controls in reducing that risk. Since the inherent risk is very high due to high threat frequency and vulnerability, this baseline score must be factored into the residual risk calculation to determine the remaining risk after controls are applied.
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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