CRISC IT Risk Identification Practice Question
An organization's board has set a risk appetite statement that says: 'We accept moderate levels of operational risk but will not tolerate any compliance violations.' During risk identification, which type of risk should be given the HIGHEST priority?
⚠ Common exam trap
CRISC often tests the misconception that operational risks are always the highest priority because they are most frequent, but the key is to align with the stated risk appetite, which here explicitly excludes compliance risks.
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
✓
Compliance risks
The board's risk appetite statement explicitly states zero tolerance for compliance violations, meaning any compliance risk falls outside the acceptable risk threshold. Since risk appetite defines the boundaries for risk-taking, risks that breach this threshold must be prioritized highest. Compliance risks directly violate the stated appetite, so they require immediate attention and mitigation. This aligns with CRISC principles that risk prioritization must align with organizational risk appetite.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Reputational risks
Why it's wrong here
Reputational risk is not named in the appetite statement, so it cannot be derived as highest priority from it. It is tempting because compliance failures often damage reputation, but the board's wording sets zero tolerance for compliance violations specifically, and reputational exposure is a consequence rather than the stated category.
- ✓
Compliance risks
Why this is correct
The board's statement explicitly declares zero tolerance for compliance violations, making this the binding constraint. Unlike operational risk, where moderate exposure is accepted, any compliance breach exceeds the stated appetite, so compliance risks demand the highest prioritisation during identification.
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Operational risks
Why it's wrong here
Operational risk is explicitly tolerated at moderate levels by the board's statement, so it cannot rank highest. It is tempting because operational risk dominates day-to-day registers, and it would lead where appetite permits moderate exposure — but here compliance violations carry zero tolerance, making compliance risk the priority.
- ✗
Strategic risks
Why it's wrong here
Strategic risk is not addressed by the appetite statement, which speaks only to operational tolerance and compliance intolerance. Strategic risk would rank highest where appetite constrains long-term direction or market positioning, but nothing in this statement elevates it above the explicitly zero-tolerance compliance category.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official ISACA exam blueprint
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.