The answer is to formalize the risk treatment plan and include the compensating controls in the risk register. This is correct because when handling residual risk documentation, the risk owner must formally capture how compensating controls reduce the inherent risk from 'high' to 'medium' within the risk register, ensuring the organization’s true risk position is transparent and auditable. On the CRISC exam, this scenario tests your understanding that residual risk must be documented even when it falls within appetite, as the risk response plan still requires formal approval and tracking. A common trap is assuming that if residual risk is acceptable, no further action is needed, but the risk appetite statement mandates a documented response plan for all high inherent risks. Remember the mnemonic: “Document to diminish” — always record compensating controls to officially lower the residual risk rating.
CRISC IT Risk Assessment Practice Question
This CRISC practice question tests your understanding of it risk assessment. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 large enterprise uses a risk matrix with impact categories (very low, low, medium, high, very high) and likelihood (rare, unlikely, possible, likely, almost certain). A risk identified has a 'likely' likelihood and 'high' impact. According to the matrix, risks with this combination are classified as 'high' risk. The risk appetite statement requires that all high risks have a response plan within 30 days. However, the risk owner argues that due to effective compensating controls, the residual risk is only 'medium'. Which of the following is the BEST course of action?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "best"
Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Formalize the risk treatment plan and include the compensating controls in the risk register.
Option B is correct because the organization should formally document the compensating controls and update the risk register to reflect residual risk. This ensures that the risk management process captures the true risk position. Option A is wrong because extending the deadline does not address the residual risk. Option C is unnecessary if residual risk is within appetite. Option D lacks formality and may not satisfy the requirement.
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.
✓
Formalize the risk treatment plan and include the compensating controls in the risk register.
Why this is correct
Formalizing the plan and documenting controls shows that the risk is managed and residual risk is acceptable.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Static NAT maps one inside address to one outside address.
✗
Implement additional controls to ensure the residual risk becomes low.
Why it's wrong here
Additional controls may not be necessary if residual risk is already within appetite.
✗
Accept the risk as is, since controls reduce it to acceptable level.
Why it's wrong here
Acceptance without formal documentation does not meet the risk appetite requirement for a response plan.
✗
Document the residual risk as medium and extend the response deadline beyond 30 days.
Why it's wrong here
Extending the deadline does not properly address the risk appetite requirement.
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.
IT Risk Assessment — This question tests IT Risk Assessment — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: Formalize the risk treatment plan and include the compensating controls in the risk register. — Option B is correct because the organization should formally document the compensating controls and update the risk register to reflect residual risk. This ensures that the risk management process captures the true risk position. Option A is wrong because extending the deadline does not address the residual risk. Option C is unnecessary if residual risk is within appetite. Option D lacks formality and may not satisfy the requirement.
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.
Are there clue words in this question I should notice?
Yes — watch for: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
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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