CRISC Information Technology and Security Practice Question
An organization uses the FAIR (Factor Analysis of Information Risk) model to quantify cyber risk. Which of the following is the correct definition of 'Loss Magnitude' in the FAIR model?
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
✓
The probable financial impact of a cyber incident
In FAIR, Loss Magnitude is the probable financial impact of a cyber incident, typically expressed as a monetary value. It is calculated based on primary and secondary losses.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
The probable financial impact of a cyber incident
Why this is correct
Correct. Loss Magnitude is the financial impact.
- ✗
The cost of implementing security controls
Why it's wrong here
This is cost of control, not loss magnitude.
- ✗
The number of records compromised in a data breach
Why it's wrong here
This is a metric but not the FAIR definition of Loss Magnitude.
- ✗
The probability that a threat event will occur
Why it's wrong here
This is Threat Event Frequency, not Loss Magnitude.
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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.