The correct recommendation is to implement controls to reduce the residual risk to an acceptable level. This is because the organization’s risk appetite explicitly allows only low residual risk, yet the inherent risk score of 15 (out of 25) is moderate and, with no controls in place, the residual risk equals that full 15—exceeding the acceptable threshold. On the CRISC exam, this scenario tests your ability to distinguish between inherent risk, residual risk, and risk appetite, and to recognize that controls are the primary mechanism to close the gap between current residual risk and the appetite. A common trap is to accept or transfer the risk without first attempting to reduce it, but since the appetite is low and no controls exist, mitigation is the logical first step. Memory tip: think of risk appetite as the “speed limit” and residual risk as your current speed—if you’re over the limit, you need to hit the brakes (controls) before you can coast.
CRISC IT Risk Identification Practice Question
This CRISC practice question tests your understanding of it risk identification. 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.
An IT risk manager is reviewing the results of a recent risk assessment. The organization has a risk appetite that allows for low residual risk. One identified risk has an inherent risk score of 15 (on a scale of 1-25) and currently has no controls. Which of the following is the BEST recommendation for this risk?
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
✓
Implement controls to reduce the residual risk to an acceptable level.
The inherent risk score of 15 (out of 25) is moderate, but the organization's risk appetite allows only low residual risk. Since there are currently no controls, the residual risk equals the inherent risk of 15, which exceeds the acceptable threshold. Therefore, implementing controls is the best recommendation to reduce the residual risk to a level that aligns with the risk appetite.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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 risk because the score is moderate.
Why it's wrong here
Acceptance without controls may not align with a low risk appetite.
✓
Implement controls to reduce the residual risk to an acceptable level.
Why this is correct
Controls are necessary to lower the residual risk to within appetite.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Transfer the risk via cyber insurance.
Why it's wrong here
Insurance does not reduce the inherent risk score.
✗
Avoid the risk by discontinuing the business process.
Why it's wrong here
This is an extreme measure and not necessary if controls can mitigate the risk.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates see a moderate score (15 out of 25) and assume acceptance is appropriate, but they overlook the specific risk appetite constraint that requires low residual risk, making acceptance invalid without controls.
Detailed technical explanation
How to think about this question
In risk management, residual risk is calculated as inherent risk minus the effect of controls. With no controls, residual risk equals inherent risk (15). The risk appetite defines the maximum residual risk the organization is willing to accept—here, 'low' typically corresponds to a score of 5 or below on a 1-25 scale. Implementing controls (e.g., firewalls, access controls, encryption) can reduce the likelihood and/or impact, bringing the residual risk score down to an acceptable level. This aligns with the ISACA CRISC framework, which emphasizes that controls should be selected to bring residual risk within the defined risk appetite.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
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
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
IT Risk Identification — This question tests IT Risk Identification — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Implement controls to reduce the residual risk to an acceptable level. — The inherent risk score of 15 (out of 25) is moderate, but the organization's risk appetite allows only low residual risk. Since there are currently no controls, the residual risk equals the inherent risk of 15, which exceeds the acceptable threshold. Therefore, implementing controls is the best recommendation to reduce the residual risk to a level that aligns with the risk appetite.
What should I do if I get this CRISC question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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?
Read the scenario before looking for a memorised answer.
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Question Discussion
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