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Risk Response and MitigationhardMultiple ChoiceObjective-mapped

CRISC Risk Response and Mitigation Practice Question

Exhibit

Refer to the exhibit.
Risk Register Excerpt:
Asset: Customer Database
Inherent Risk (Likelihood: High, Impact: High) => High
Control Set: Access controls (effective), Encryption (effective), Intrusion Detection (moderate)
Current Residual Risk: Medium
Mitigation Options:
A. Implement additional monitoring (cost: $50k, reduces residual to Low)
B. Accept the residual risk (cost: $0)
C. Transfer via cyber insurance (premium: $30k)
D. Avoid by discontinuing database operations (cost: $2M)
What is the most appropriate risk response given the current residual risk is Medium and the organization's risk appetite is Low?

Refer to the exhibit. Given the organization's risk appetite is Low, which risk response is most appropriate?

⚠ Common exam trap

ISACA often tests the misconception that transferring risk (e.g., insurance) eliminates the risk itself, when in fact it only covers financial loss, leaving the operational risk level unchanged.

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

Implement additional monitoring to reduce residual risk to Low.

With a Low risk appetite, the organization requires residual risk to be Low. Option D proposes implementing additional monitoring to reduce the Medium residual risk to Low, which aligns with the risk appetite. This is a corrective response that mitigates the risk without unnecessary business disruption.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Accept the current residual risk because it is Medium.

    Why it's wrong here

    Incorrect: The risk appetite is Low, so Medium residual risk is unacceptable.

  • Avoid the risk by discontinuing operations.

    Why it's wrong here

    Incorrect: Avoidance is too extreme and costly compared to the mitigation option.

  • Transfer the risk via insurance.

    Why it's wrong here

    Incorrect: Insurance transfers financial impact but does not reduce the likelihood; residual risk remains Medium.

  • Implement additional monitoring to reduce residual risk to Low.

    Why this is correct

    Correct: This aligns with the low risk appetite by reducing residual risk to an acceptable level.

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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