CRISC Risk Response and Reporting Practice Question
An organization is evaluating a new security control that costs $50,000 annually to implement and maintain. The current annualized loss expectancy (ALE) for a related risk is $200,000. The control is expected to reduce the ALE by 85%. Using cost-benefit analysis, what is the net benefit of implementing this control?
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
✓
$120,000
The reduction in ALE is 85% of $200,000 = $170,000. The annual control cost is $50,000. Net benefit = $170,000 - $50,000 = $120,000.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
$120,000
Why this is correct
The net benefit is $120,000 per year.
- ✗
$30,000
Why it's wrong here
This is the residual ALE after control, not the net benefit.
- ✗
$170,000
Why it's wrong here
This is the reduction in ALE, not the net benefit.
- ✗
$150,000
Why it's wrong here
This would be the reduction in ALE without subtracting control costs.
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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.