Quick Answer
The answer is that residual risk remains high. This is because residual risk is calculated by considering the inherent risk level and the effectiveness of controls; when a control fails 10% of the time, it is deemed ineffective for a high inherent risk, meaning it fails to reduce the risk to a lower level. On the CRISC exam, this scenario tests your understanding that control effectiveness directly impacts residual risk calculation—a control with a 10% failure rate is considered insufficient for high inherent risk, leaving residual risk unchanged at high. A common trap is assuming any control automatically lowers risk, but the key is that ineffective controls do not alter the residual risk level. Remember the memory tip: “High inherent plus weak control equals high residual”—the failure rate must be low enough to shift the risk category.
This CRISC practice question tests your understanding of it risk assessment. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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.
A company is evaluating control effectiveness for a critical system. The control fails 10% of the time when tested. The inherent risk level is 'high'. What is the effect on residual risk?
Residual risk is unchanged
Why wrong: A control, even with failures, changes residual risk.
Residual risk is high
Control failure rate of 10% does not sufficiently reduce inherent risk.
Residual risk is low
Why wrong: Low residual risk requires highly effective controls.
Residual risk is medium
Why wrong: A more effective control is needed to achieve medium residual risk.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Residual risk is high
Residual risk is the risk remaining after controls are applied. With a control that fails 10% of the time and an inherent risk level of 'high', the residual risk remains high because the control is not sufficiently effective to reduce the risk to a lower level. In risk assessment, a control with a 10% failure rate is considered ineffective for a high inherent risk, leaving the residual risk unchanged at high.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Residual risk is unchanged
Why it's wrong here
A control, even with failures, changes residual risk.
Residual risk is high
Why this is correct
Control failure rate of 10% does not sufficiently reduce inherent risk.
Related concept
Read the scenario before looking for a memorised answer.
Residual risk is low
Why it's wrong here
Low residual risk requires highly effective controls.
Residual risk is medium
Why it's wrong here
A more effective control is needed to achieve medium residual risk.
Common exam traps
The trap here is that candidates mistakenly think a control that works 90% of the time is effective enough to reduce residual risk, but for a high inherent risk, even a 10% failure rate leaves the residual risk high because the control is not sufficiently reliable.
Detailed technical explanation
In CRISC risk assessment, residual risk is calculated as inherent risk minus control effectiveness. A control with a 90% success rate (10% failure) provides only a marginal reduction, and for a high inherent risk, the residual risk remains high. This aligns with the ISACA Risk IT framework, where control effectiveness must be mapped to risk reduction levels, and a 10% failure rate is typically insufficient to lower the risk category.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A practitioner preparing for the CRISC exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
IT Risk Assessment — This question tests IT Risk Assessment — Read the scenario before looking for a memorised answer..
The correct answer is: Residual risk is high — Residual risk is the risk remaining after controls are applied. With a control that fails 10% of the time and an inherent risk level of 'high', the residual risk remains high because the control is not sufficiently effective to reduce the risk to a lower level. In risk assessment, a control with a 10% failure rate is considered ineffective for a high inherent risk, leaving the residual risk unchanged at high.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 25, 2026
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.
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