Quick Answer
The answer is unauthorized access by cloud provider employees. This is the correct choice because when the provider does not support customer-managed encryption keys, the cloud provider retains full control over the key material, meaning its administrators with system-level access can decrypt and view customer data at will. The core technical concept here is loss of key sovereignty and separation of duties—without customer-held keys, the provider becomes both the custodian and the potential threat actor. On the Certified in Risk and Information Systems Control CRISC exam, this scenario tests your understanding of cloud encryption key management risk, specifically how provider-managed keys create a direct vector for insider threats. A common trap is selecting “data loss due to misconfiguration” or “inability to audit logs,” but the most immediate risk is the provider’s own staff gaining unauthorized access. Memory tip: “No key, no control—provider employees become the risk.”
This CRISC practice question tests your understanding of it risk assessment. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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.
A risk assessment for a cloud migration project identifies that the cloud provider does not support encryption keys managed by the customer. Which of the following risk scenarios is MOST directly related to this finding?
Service availability disruption
Why wrong: Unrelated to key management.
Data loss due to misconfiguration
Why wrong: Not directly related to key management.
Unauthorized access by cloud provider employees
Directly related to key management control.
Non-compliance with data residency requirements
Why wrong: Key management does not address data location.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Unauthorized access by cloud provider employees
When the cloud provider does not support customer-managed encryption keys, the provider retains control over the key material. This means that provider employees with administrative access to the key management system could potentially decrypt and access customer data, leading to unauthorized access. This directly creates a risk scenario of unauthorized access by cloud provider employees, as the customer loses the ability to enforce separation of duties and key sovereignty.
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.
Service availability disruption
Why it's wrong here
Unrelated to key management.
Data loss due to misconfiguration
Why it's wrong here
Not directly related to key management.
Unauthorized access by cloud provider employees
Why this is correct
Directly related to key management control.
Related concept
Read the scenario before looking for a memorised answer.
Non-compliance with data residency requirements
Why it's wrong here
Key management does not address data location.
Common exam traps
The trap here is that candidates often confuse encryption key management with data residency or misconfiguration risks, but the core issue is that provider-managed keys eliminate the customer's ability to prevent the provider from decrypting their data, directly enabling unauthorized access by provider employees.
Detailed technical explanation
In cloud encryption models, the distinction between server-side encryption with customer-provided keys (SSE-C) and server-side encryption with customer-managed keys (SSE-KMS) is critical. Without customer-managed keys, the provider's key management service (KMS) holds the master key, and the provider's infrastructure can decrypt data at rest for internal operations (e.g., backup, replication, or compliance audits). This violates the principle of 'zero-knowledge' encryption, where the provider should have no ability to access plaintext data. Real-world examples include AWS SSE-S3 vs. SSE-KMS with a customer-managed CMK, or Azure SSE with platform-managed keys vs. customer-managed keys in Azure Key Vault.
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
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FAQ
IT Risk Assessment — This question tests IT Risk Assessment — Read the scenario before looking for a memorised answer..
The correct answer is: Unauthorized access by cloud provider employees — When the cloud provider does not support customer-managed encryption keys, the provider retains control over the key material. This means that provider employees with administrative access to the key management system could potentially decrypt and access customer data, leading to unauthorized access. This directly creates a risk scenario of unauthorized access by cloud provider employees, as the customer loses the ability to enforce separation of duties and key sovereignty.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 25, 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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