This CRISC practice question tests your understanding of risk response and mitigation. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 considering outsourcing its IT support to a third-party provider. The risk manager has identified that the provider's data handling practices may not comply with regulatory requirements. Which of the following is the BEST risk response strategy?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "best"
Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Mitigate by regularly monitoring the provider
Why wrong: Monitoring is good but may not fully address regulatory risk.
Avoid by keeping IT support in-house
Avoidance is appropriate when compliance cannot be assured.
Transfer the risk through the outsourcing contract
Why wrong: Contract alone may not ensure compliance.
Accept the risk because the provider is cheaper
Why wrong: Accepting regulatory risk is not advisable.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Avoid by keeping IT support in-house
Option D is correct because the most effective response is to avoid by not outsourcing if compliance cannot be ensured. Option A is wrong because transferring via contract may not be sufficient. Option B is wrong because mitigation through monitoring may not ensure compliance. Option C is wrong because acceptance is not appropriate when regulatory non-compliance is possible.
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.
Mitigate by regularly monitoring the provider
Why it's wrong here
Monitoring is good but may not fully address regulatory risk.
Avoid by keeping IT support in-house
Why this is correct
Avoidance is appropriate when compliance cannot be assured.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
Transfer the risk through the outsourcing contract
Why it's wrong here
Contract alone may not ensure compliance.
Accept the risk because the provider is cheaper
Why it's wrong here
Accepting regulatory risk is not advisable.
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.
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FAQ
Risk Response and Mitigation — This question tests Risk Response and Mitigation — Read the scenario before looking for a memorised answer..
The correct answer is: Avoid by keeping IT support in-house — Option D is correct because the most effective response is to avoid by not outsourcing if compliance cannot be ensured. Option A is wrong because transferring via contract may not be sufficient. Option B is wrong because mitigation through monitoring may not ensure compliance. Option C is wrong because acceptance is not appropriate when regulatory non-compliance is possible.
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.
Yes — watch for: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
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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