CRISC Risk Response and Mitigation Practice Question
This CRISC practice question tests your understanding of risk response and mitigation. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
GlobalTech Inc., a multinational corporation, is planning to migrate its customer data to a new cloud platform. The migration involves transferring sensitive personally identifiable information (PII) from an on-premises database to a cloud-based CRM. The risk manager conducted a risk assessment and identified several risks, including unauthorized access during transit and residual data exposure due to misconfiguration. Mitigation controls include encryption in transit, encryption at rest, and strict access controls. The residual risk after mitigation is assessed as medium. The risk appetite statement defines that 'No data breach incidents resulting in regulatory fines exceeding $1 million are acceptable.' The estimated potential fine from a breach is $5 million with a likelihood of 2% after controls. The cost of additional controls to reduce likelihood to 0.5% is $500,000. The migrating team proposes to purchase cyber insurance with a $3 million coverage for $200,000 annual premium. The board of directors prefers to accept the residual risk to avoid additional costs. What should the risk manager do?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Advise the board to avoid the migration until all risks are eliminated.
Option D is correct because the potential fine of $5 million exceeds the appetite threshold of $1 million, making the risk unacceptable. The proposed controls and insurance do not reduce the impact below $1 million. Avoidance is the only option that fully aligns with the risk appetite. Options A, B, and C fail to bring the risk within appetite.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Advise the board to avoid the migration until all risks are eliminated.
Why this is correct
Avoidance is the only response that satisfies the risk appetite.
Related concept
Static NAT maps one inside address to one outside address.
✗
Recommend purchasing cyber insurance to transfer the risk.
Why it's wrong here
Insurance coverage of $3 million leaves a residual impact of $2 million, still above appetite.
✗
Accept the board's decision since the residual risk is medium.
Why it's wrong here
Acceptance violates the risk appetite.
✗
Recommend implementing additional controls to reduce likelihood to 0.5%.
Why it's wrong here
Reducing likelihood does not lower the impact below $1 million.
Common exam traps
Common exam trap: NAT rules depend on direction and matching traffic
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
How to think about this question
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
KKey Concepts to Remember
Static NAT maps one inside address to one outside address.
PAT allows many inside hosts to share one public address using ports.
Inside local and inside global describe the private and translated addresses.
NAT ACLs identify traffic for translation, not always security filtering.
TExam Day Tips
→Identify inside and outside interfaces first.
→Check whether the scenario needs static NAT, dynamic NAT or PAT.
→Do not confuse NAT matching ACLs with normal packet-filtering intent.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Real-world example
How this comes up in practice
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
Got this wrong? Here's your next step.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related CRISC NAT questions on configuration and troubleshooting.
Risk Response and Mitigation — This question tests Risk Response and Mitigation — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: Advise the board to avoid the migration until all risks are eliminated. — Option D is correct because the potential fine of $5 million exceeds the appetite threshold of $1 million, making the risk unacceptable. The proposed controls and insurance do not reduce the impact below $1 million. Avoidance is the only option that fully aligns with the risk appetite. Options A, B, and C fail to bring the risk within appetite.
What should I do if I get this CRISC question wrong?
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related CRISC NAT questions on configuration and troubleshooting.
What is the key concept behind this question?
Static NAT maps one inside address to one outside address.
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Question Discussion
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