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CRISC IT Risk Assessment Practice Question

During an IT risk assessment, the risk owner identifies a high inherent risk for a legacy system. After implementing a firewall and intrusion detection system, the residual risk is calculated. Which of the following best describes residual risk?

⚠ Common exam trap

Watch out — candidates often confuse residual risk with inherent risk (Option A) or with risk response strategies like transfer (Option C) or acceptance (Option D), rather than recognizing it as the risk remaining after control implementation.

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 risk level after considering control effectiveness

Residual risk is the level of risk that remains after controls have been implemented and their effectiveness has been factored in. In this scenario, the firewall and intrusion detection system are controls that reduce the inherent risk, but some risk (e.g., from zero-day exploits or misconfigurations) will persist, which is the residual risk.

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 risk level before any controls are implemented

    Why it's wrong here

    This describes inherent risk — the exposure before the firewall and IDS are implemented. Residual risk is calculated after those controls reduce the inherent level. Inherent risk is the correct term when the stem asks about exposure prior to any mitigation.

  • ✓

    The risk level after considering control effectiveness

    Why this is correct

    Residual risk is what remains after existing controls are applied to an inherent risk. The firewall and intrusion detection system reduce the high inherent level, so the recalculated figure reflects control effectiveness rather than the untreated exposure.

  • ✗

    The risk that is transferred to a third party

    Why it's wrong here

    Transferring risk to a third party, such as via cyber insurance, is risk transference, not residual risk. Residual risk is what remains after the firewall and IDS controls are applied. Transference is the right answer when the question asks how a risk is shared with an external party.

  • ✗

    The risk that is accepted without action

    Why it's wrong here

    Accepting risk without action is a risk response, not a measurement. Residual risk is the remaining exposure after the firewall and IDS are applied, regardless of whether it is accepted. Risk acceptance is correct when the question asks how management chooses to respond to a risk.

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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