Risk Response and Mitigation CRISC Practice Questions (Page 5)

Questions 21–22

1. 21application · medium

   A manufacturing company has identified a risk of supply chain disruption due to reliance on a single supplier. The risk owner proposes two response options: (1) invest in a backup supplier at a cost of $500,000 per year, reducing the expected annual loss from $2 million to $200,000; or (2) accept the risk because the probability of disruption is low. The company's risk appetite allows for some supply chain risk, but the risk owner wants to ensure the response is cost-effective. Which response should the risk owner select based on cost-benefit analysis?

   • ATransfer the risk by purchasing supply chain insurance instead of investing in a backup supplier.
   • BAvoid the risk by discontinuing products that depend on the single supplier.
   • CInvest in the backup supplier because the annual benefit of $1.8 million exceeds the $500,000 cost.
   • DAccept the risk because the probability of disruption is low and the cost of mitigation is high.
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   Which role is responsible for the day-to-day operation and maintenance of a specific control that mitigates a risk?

   • ASystem administrator
   • BControl owner
   • CData owner
   • DRisk owner
   Reveal Solution Discussion Select an answer first