CRISC IT Risk Assessment Practice Question
An organization is considering outsourcing its payroll processing to a third party. The risk assessment shows that the inherent risk of payroll errors is high, but the vendor contract includes liability clauses and the organization obtains cyber insurance. This risk treatment is best described as:
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
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Risk transfer
Transfer involves shifting risk to a third party, such as through outsourcing with contractual liability transfer and insurance.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Risk transfer
Why this is correct
Outsourcing and insurance are examples of risk transfer.
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Risk acceptance
Why it's wrong here
Acceptance would mean retaining the risk without transfer.
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Risk mitigation
Why it's wrong here
Mitigation would involve controls to reduce likelihood or impact, not transfer.
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Risk avoidance
Why it's wrong here
Avoidance would be ceasing the payroll activity entirely.
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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.