CRISC Risk Response and Reporting Practice Question
During a cost-benefit analysis for a proposed control, the annual loss expectancy (ALE) for a risk is currently $500,000. The control will cost $100,000 annually and is expected to reduce the ALE by 80%. What is the net benefit of implementing this control?
⚠ Common exam trap
CRISC often tests the distinction between gross reduction in ALE and net benefit, tricking candidates into forgetting to subtract the annual control cost from the ALE reduction.
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
✓
$300,000
The current annual loss expectancy (ALE) is $500,000. An 80% reduction lowers the ALE by $400,000, resulting in a new ALE of $100,000. The annual control cost is $100,000, so the net benefit is the reduction in ALE ($400,000) minus the control cost ($100,000), which equals $300,000.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$100,000
Why it's wrong here
This is the control cost, not the net benefit.
- ✓
$300,000
Why this is correct
Reduction of $400,000 minus cost of $100,000 equals $300,000 net benefit.
- ✗
$400,000
Why it's wrong here
This is the reduction, not the net benefit after subtracting control cost.
- ✗
$500,000
Why it's wrong here
This is the original ALE, not the net benefit.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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