Quick Answer
The answer is to avoid the risk by discontinuing the activity. This is correct because a risk-averse appetite means the organization finds even minimal exposure unacceptable, and the avoid treatment eliminates the threat source entirely, leaving zero residual risk. On the CRISC exam, this tests your understanding of how risk appetite directly dictates treatment selection—a risk-averse organization will never accept, mitigate, or transfer a risk if avoidance is feasible. A common trap is choosing “mitigate” because it feels proactive, but mitigation still leaves residual risk, which contradicts a risk-averse stance. For a memory tip, think of the “AAA” rule: Averse Appetite demands Avoidance.
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.
An organization has a risk appetite that is risk-averse. Which risk treatment option would be most aligned with this appetite?
Avoid the risk by discontinuing the activity
Avoidance aligns with risk-averse appetite.
Mitigate the risk with controls
Why wrong: Mitigation still retains some risk.
Accept the risk
Why wrong: Acceptance is not risk-averse.
Transfer the risk through insurance
Why wrong: Transfer still leaves 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
Avoid the risk by discontinuing the activity
A risk-averse organization prioritizes avoiding exposure to threats. Discontinuing the activity that introduces the risk (option A) eliminates the threat source entirely, ensuring no residual risk remains. This aligns directly with a risk-averse appetite, where even low-probability, high-impact events are unacceptable.
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.
Avoid the risk by discontinuing the activity
Why this is correct
Avoidance aligns with risk-averse appetite.
Related concept
Read the scenario before looking for a memorised answer.
Mitigate the risk with controls
Why it's wrong here
Mitigation still retains some risk.
Accept the risk
Why it's wrong here
Acceptance is not risk-averse.
Transfer the risk through insurance
Why it's wrong here
Transfer still leaves residual risk.
Common exam traps
The trap here is that candidates often confuse 'risk transfer' with 'risk elimination,' assuming insurance removes all risk, when in fact it only covers financial loss, leaving operational and reputational risks intact.
Detailed technical explanation
In risk management frameworks like ISO 31000, risk avoidance is the only treatment that reduces risk to zero by removing the activity or asset. For example, a bank with a risk-averse appetite might discontinue a high-frequency trading algorithm that introduces systemic market risk, rather than implementing controls (mitigation) or buying insurance (transfer), because the latter options still leave the organization exposed to operational disruption and regulatory scrutiny. The key distinction is that avoidance eliminates the threat source, while other treatments only manage the impact or likelihood.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
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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: Avoid the risk by discontinuing the activity — A risk-averse organization prioritizes avoiding exposure to threats. Discontinuing the activity that introduces the risk (option A) eliminates the threat source entirely, ensuring no residual risk remains. This aligns directly with a risk-averse appetite, where even low-probability, high-impact events are unacceptable.
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 11, 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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