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 is expected to reduce the ALE by 80% and will cost $150,000 per year. What is the net benefit of implementing the control?
⚠ Common exam trap
The trap here is that candidates often forget to subtract the annual control cost from the gross savings, mistakenly selecting the gross savings ($400,000) as the net benefit.
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
The current annual loss expectancy (ALE) is $500,000. An 80% reduction means the control saves $400,000 per year. Subtracting the annual control cost of $150,000 yields a net benefit of $250,000. This is calculated as (ALE × reduction percentage) – control cost.
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 might result from subtracting reduction from cost incorrectly.
- ✓
$250,000
Why this is correct
Correct calculation of net benefit.
- ✗
$400,000
Why it's wrong here
This is the reduction in ALE, not net benefit.
- ✗
$350,000
Why it's wrong here
This would be the case if the cost was ignored or subtracted incorrectly.
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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.