The answer is the risk of a data breach due to unencrypted sensitive data and the risk of unauthorized access due to a weak password policy. These are correct because inherent risk examples represent the raw, uncontrolled exposure that exists before any security controls are applied—encryption for the data breach and multifactor authentication for the weak password. On the Certified in Risk and Information Systems Control CRISC exam, this concept tests your ability to distinguish inherent risk from residual risk, often appearing in scenario-based questions where you must identify the risk level before mitigation. A common trap is confusing a control failure with inherent risk; remember, inherent risk assumes no controls are in place at all. For a memory tip, think of inherent risk as the “bare bones” danger—what could go wrong if you did nothing to protect the asset.
CRISC IT Risk Assessment Practice Question
This CRISC practice question tests your understanding of it risk assessment. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.
Which TWO of the following are examples of inherent risk?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Risk of unauthorized access due to weak password policy
Inherent risk is the risk that exists in the absence of any controls or mitigations. Option A describes the risk of unauthorized access due to a weak password policy, which is a vulnerability present before any compensating controls (like multifactor authentication) are applied. Option B describes the risk of a data breach due to unencrypted sensitive data, which is a direct exposure that exists before encryption controls are implemented. Both represent the raw, uncontrolled risk level.
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.
✓
Risk of unauthorized access due to weak password policy
Why this is correct
This is a risk that exists without controls.
Related concept
Read the scenario before looking for a memorised answer.
✓
Risk of data breach due to unencrypted sensitive data
Why this is correct
Unencrypted data is an inherent vulnerability.
Related concept
Read the scenario before looking for a memorised answer.
✗
Residual risk after implementing firewalls
Why it's wrong here
Residual risk is after controls, not inherent.
✗
Risk appetite defined by the board
Why it's wrong here
Risk appetite is a threshold, not a risk itself.
✗
Risk reduction achieved by multifactor authentication
Why it's wrong here
This describes control effectiveness, not inherent risk.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing inherent risk with residual risk or control effectiveness; candidates often pick options that describe the result of controls (like risk reduction) or the state after controls (residual risk) instead of the raw, uncontrolled exposure.
Detailed technical explanation
How to think about this question
Inherent risk is calculated as the product of the likelihood of a threat exploiting a vulnerability and the impact of that event, assuming no controls are in place. For example, in a database storing unencrypted personally identifiable information (PII), the inherent risk of a data breach is high because the data is exposed to any attacker who gains access, regardless of whether network firewalls or access controls are later added. This concept is foundational to risk assessment frameworks like ISO 31000 and NIST SP 800-30, where inherent risk is the starting point for control selection.
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 Assessment — This question tests IT Risk Assessment — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Risk of unauthorized access due to weak password policy — Inherent risk is the risk that exists in the absence of any controls or mitigations. Option A describes the risk of unauthorized access due to a weak password policy, which is a vulnerability present before any compensating controls (like multifactor authentication) are applied. Option B describes the risk of a data breach due to unencrypted sensitive data, which is a direct exposure that exists before encryption controls are implemented. Both represent the raw, uncontrolled risk level.
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.
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Question Discussion
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