CRISC IT Risk Assessment Practice Question
Which TWO of the following are considered direct costs in the financial impact assessment of a risk event?
⚠ Common exam trap
Test-takers frequently confuse indirect costs (like reputation loss or increased premiums) with direct costs, failing to recognize that direct costs must be immediate, quantifiable, and directly attributable to the incident response activities.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Incident response team expenses
Incident response team expenses (C) are direct costs because they are immediate, quantifiable outlays incurred specifically to respond to and mitigate a risk event. Similarly, customer notification costs (E) are direct costs as they represent mandatory, traceable expenditures for informing affected parties, often required by regulations like GDPR or HIPAA. These costs are directly attributable to the incident and can be precisely measured.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Increased insurance premium
Why it's wrong here
Often indirect or subsequent.
- ✗
Reputation loss
Why it's wrong here
Indirect cost.
- ✓
Incident response team expenses
Why this is correct
Direct cost.
- ✗
Lost business opportunities
Why it's wrong here
Indirect cost.
- ✓
Customer notification costs
Why this is correct
Direct cost.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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