CRISC IT Risk Assessment Practice Question
During an IT risk assessment, the risk team calculates the Annualized Loss Expectancy (ALE) for a critical application. Which quantitative risk analysis framework is most commonly used for this calculation?
⚠ Common exam trap
It's easy for candidates to confuse NIST SP 800-30 as the standard for quantitative ALE calculation because it is widely used for risk assessments, but it is primarily qualitative and does not provide the specific quantitative decomposition that FAIR does.
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
✓
FAIR
The Factor Analysis of Information Risk (FAIR) framework is the most commonly used quantitative risk analysis framework for calculating Annualized Loss Expectancy (ALE) because it provides a structured, probabilistic approach to decompose risk into loss event frequency and loss magnitude. Unlike qualitative frameworks, FAIR enables precise ALE computation by modeling threat event frequency, vulnerability, and probable loss, making it the standard for quantitative IT risk assessments in the CRISC domain.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
NIST SP 800-30
Why it's wrong here
NIST SP 800-30 is a qualitative risk assessment framework, not designed for ALE calculation.
- ✓
FAIR
Why this is correct
FAIR is a quantitative framework that models risk as a function of Loss Event Frequency and Loss Magnitude, used to compute ALE.
- ✗
ISO 31000
Why it's wrong here
ISO 31000 provides principles and guidelines for risk management, not a specific quantitative model.
- ✗
COBIT 5
Why it's wrong here
COBIT 5 is a governance and management framework, not a quantitative risk analysis framework.
Go deeper
Related to this question
About these practice questions
One of 983 original CRISC practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
JA
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.