The answer is to implement additional monitoring to reduce residual risk to Medium or Low. This is correct because when risk appetite is low, the organization demands that residual risk—the risk remaining after controls are applied—must fall within that low tolerance; simply accepting or transferring a Medium residual risk would violate the appetite threshold. On the CRISC exam, this scenario tests your ability to map risk responses to the stated appetite, often presenting traps where a response like “accept” or “avoid” seems logical but fails to address the specific residual risk level required. A common memory tip is to think of risk appetite as the “speed limit” for residual risk: if the limit is Low, you must apply corrective or detective controls—like additional monitoring—to slow the risk down to that level, rather than just ignoring the speed or taking a different road.
CRISC Risk Response and Mitigation Practice Question
This CRISC practice question tests your understanding of risk response and mitigation. Compare every option against the stated constraints before choosing — the best answer satisfies all requirements, not just the most obvious one. 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.
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?
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?
A
Accept the current residual risk because it is Medium.
Why wrong: Incorrect: The risk appetite is Low, so Medium residual risk is unacceptable.
B
Avoid the risk by discontinuing operations.
Why wrong: Incorrect: Avoidance is too extreme and costly compared to the mitigation option.
C
Transfer the risk via insurance.
Why wrong: Incorrect: Insurance transfers financial impact but does not reduce the likelihood; residual risk remains Medium.
D
Implement additional monitoring to reduce residual risk to Low.
Correct: This aligns with the low risk appetite by reducing residual risk to an acceptable level.
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.
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 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.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
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.
Detailed technical explanation
How to think about this question
Residual risk is calculated as inherent risk minus the effect of controls. In this scenario, the current residual risk is Medium, meaning existing controls are insufficient to meet the Low appetite. Additional monitoring (e.g., SIEM rules, enhanced logging, or automated alerting) can detect and respond to threats faster, effectively reducing the likelihood or impact to achieve a Low residual risk. This aligns with the CRISC principle that risk response must be commensurate with risk appetite and tolerance levels.
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.
Risk Response and Mitigation — This question tests Risk Response and Mitigation — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: 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.
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.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.