CRISC Risk Response and Mitigation Practice Question
Which TWO of the following are examples of risk avoidance? (Select TWO.)
⚠ Common exam trap
Many exam-takers confuse risk avoidance with risk mitigation or transfer, mistakenly selecting options like 'installing a firewall' (mitigation) or 'purchasing insurance' (transfer) as examples of avoidance, when avoidance requires ceasing or not starting the risk-generating activity.
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
✓
Deciding not to enter a new market
Risk avoidance involves taking action to eliminate the risk entirely by not engaging in the activity that introduces it. Option C, 'Deciding not to enter a new market,' avoids all associated market, regulatory, and competitive risks by simply not pursuing that business opportunity. Option E, 'Discontinuing a risky product line,' removes the risk by ceasing the activity that generates it, such as halting production of a product with known safety or compliance issues.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Accepting the risk
Why it's wrong here
Acceptance is a separate strategy.
- ✗
Installing a firewall
Why it's wrong here
Firewall is risk mitigation.
- ✓
Deciding not to enter a new market
Why this is correct
Not entering the market avoids the associated risks.
- ✗
Purchasing insurance
Why it's wrong here
Insurance is risk transfer.
- ✓
Discontinuing a risky product line
Why this is correct
Discontinuing removes the risk, which is avoidance.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.