Risk Events CRISC Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   Which activity is an example of monitoring risk events?

   • AReviewing key risk indicators (KRIs) on a regular basis
   • BDocumenting a risk event in the risk register
   • CConducting an annual risk assessment
   • DImplementing a risk mitigation plan
   Reveal Solution Discussion Select an answer first
2. 2expert · hard

   A financial institution is considering the risk of a new regulation that could significantly increase compliance costs. The risk team has determined that the likelihood of the regulation being enacted is high, and the impact is high. The institution has a limited budget for compliance. Which risk response strategy would be most appropriate?

   • AMitigation by investing in compliance automation.
   • BTransfer by outsourcing compliance to a third party.
   • CAcceptance because the regulation is likely to be enacted.
   • DAvoidance by exiting the affected business line.
   Reveal Solution Discussion Select an answer first
4. 3application · medium

   A software company is assessing the risk of a data breach. The risk team has identified a specific event: an attacker exploits a vulnerability in the company's customer database. They estimate that the likelihood of this event occurring in the next year is 20%, and the impact on customer trust and regulatory fines is estimated at $2 million. What is the risk exposure for this risk event?

   • A$400,000
   • B$2,000,000
   • C$40,000
   • D$200,000
   Reveal Solution Discussion Select an answer first
5. 4application · medium

   A financial services firm has a risk register that includes a risk event: a regulatory change that could increase compliance costs. The risk team reviews the register quarterly. During a review, they notice that the likelihood of this event has increased from 'unlikely' to 'possible' due to recent legislative proposals. What should the risk team do?

   • AIgnore the change because the risk was already documented.
   • BUpdate the likelihood rating in the risk register and reassess the risk exposure.
   • CRemove the risk event from the register because it is no longer relevant.
   • DImmediately implement a risk response without updating the register.
   Reveal Solution Discussion Select an answer first
6. 5foundation · easy

   Which of the following attributes is typically captured in a risk register for a risk event?

   • ADescription of the risk event
   • BEmployee performance ratings
   • CCompany stock price
   • DMarketing budget details
   Reveal Solution Discussion Select an answer first