CRISC Risk Response and Reporting Practice Question
During a cost-benefit analysis for a new control, the annualized loss expectancy (ALE) without the control is $500,000. The control is expected to reduce risk by 80% and will cost $150,000 annually to operate. What is the net benefit of implementing the 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
✓
$250,000
ALE reduction is 80% of $500,000 = $400,000. Net benefit = ALE reduction - annual control cost = $400,000 - $150,000 = $250,000.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$400,000
Why it's wrong here
This is the ALE reduction before subtracting control cost.
- ✗
$100,000
Why it's wrong here
This might result from miscalculating ALE reduction as 60%.
- ✗
$350,000
Why it's wrong here
This would be if control cost were $50,000.
- ✓
$250,000
Why this is correct
Net benefit = $400,000 - $150,000 = $250,000.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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