CRISC Practice Questions: IT Risk Assessment Domain

Published: September 1, 2025 | 20 min read

Test your CRISC knowledge with 10 practice questions from the IT Risk Assessment domain. Includes detailed explanations and answers.

CRISC Practice Questions

Master the IT Risk Assessment Domain

Test your knowledge in the IT Risk Assessment domain with these 10 practice questions. Each question is designed to help you prepare for the CRISC certification exam with detailed explanations to reinforce your learning.

Question 1

A logistics company is conducting a risk assessment for its automated warehouse management system. Which step is essential to distinguish between inherent and residual risks effectively?

A) Identifying potential threats to the system.

B) Evaluating existing security controls and their effectiveness.

C) Mapping out the system's data flow and dependencies.

D) Reviewing the system's compliance with industry standards.

Show Answer & Explanation

Correct Answer: B

Explanation: The correct answer is B. Evaluating existing security controls and their effectiveness is essential to distinguish between inherent and residual risks, as it determines how much risk is mitigated. Option A identifies threats but does not distinguish risks. Option C helps understand the system but not risk levels. Option D ensures compliance but does not assess residual risk.

Question 2

A logistics company is assessing the inherent risk of using IoT devices in its supply chain operations. What should be the primary focus during this assessment?

A) The potential cost savings from using IoT devices.

B) The security vulnerabilities inherent in IoT devices.

C) The ease of integrating IoT devices with existing systems.

D) The competitive advantage gained from IoT implementation.

Show Answer & Explanation

Correct Answer: B

Explanation: The primary focus should be on the security vulnerabilities inherent in IoT devices, as these can significantly impact data integrity and operational security. Option A focuses on benefits rather than risks. Option C is relevant to implementation but not risk assessment. Option D is about strategic advantage, not risk.

Question 3

During an IT risk assessment at a healthcare organization, the risk team is evaluating the potential impact of a data breach involving patient records. Which factor should be considered to accurately determine the residual risk after implementing security controls?

A) The likelihood of a data breach occurring with controls in place.

B) The inherent risk of storing patient records electronically.

C) The cost of implementing additional security measures.

D) The regulatory requirements for data protection in healthcare.

Show Answer & Explanation

Correct Answer: A

Explanation: The correct answer is A. Residual risk is determined by evaluating the likelihood of a data breach occurring after security controls are implemented. Option B is incorrect because inherent risk doesn't account for controls. Option C is a consideration for cost-benefit analysis, not residual risk. Option D is important for compliance but doesn't directly determine residual risk.

Question 4

A tech startup is conducting a risk assessment for its SaaS product that leverages machine learning algorithms. What is a critical risk factor to consider?

A) The accuracy of the machine learning algorithms.

B) The potential for biased outcomes in algorithm results.

C) The speed of algorithm processing.

D) The user interface design of the SaaS product.

Show Answer & Explanation

Correct Answer: B

Explanation: The correct answer is B. Biased outcomes in machine learning can lead to significant ethical and reputational risks. Option A focuses on performance, not risk. Option C is about efficiency. Option D is related to usability, not risk.

Question 5

A logistics company is evaluating the risks associated with a new third-party logistics provider. What should be the primary focus to assess the risks before entering into a contract?

A) Evaluate the provider's financial stability and market reputation.

B) Analyze the provider's compliance with industry standards.

C) Assess the provider's historical performance data.

D) Determine the potential impact of a service disruption.

Show Answer & Explanation

Correct Answer: D

Explanation: Determining the potential impact of a service disruption (D) focuses on understanding the consequences of risks associated with the third-party provider, which is essential before contracting. Option A and B are important but do not directly assess the risk impact. Option C is historical and doesn't provide forward-looking risk insights.

Question 6

An e-commerce company is evaluating the risks of integrating third-party APIs into its platform. Which factor should be prioritized to assess the inherent risk of this integration?

A) The financial stability of the third-party vendor.

B) The complexity of the API integration process.

C) The security measures implemented by the third-party provider.

D) The potential impact on customer experience if the API fails.

Show Answer & Explanation

Correct Answer: C

Explanation: The correct answer is C. Assessing the security measures implemented by the third-party provider is crucial to understanding the inherent risk, as it directly impacts data security and integrity. Option A is relevant for vendor risk but not specifically for inherent risk of integration. Option B concerns operational complexity, not inherent risk. Option D relates to impact but not inherent risk.

Question 7

An insurance company is conducting a risk assessment on its IT infrastructure. The company wants to understand the impact of potential regulatory changes on its operations. What method should be used to assess this risk?

A) Regulatory impact analysis.

B) Operational risk assessment.

C) Compliance audit.

D) Market trend analysis.

Show Answer & Explanation

Correct Answer: A

Explanation: A regulatory impact analysis (Option A) is specifically designed to assess the effects of potential regulatory changes on operations, making it the most suitable method. Option B, operational risk assessment, is broader and not focused solely on regulatory changes. Option C, compliance audit, evaluates current compliance rather than future changes. Option D, market trend analysis, focuses on market conditions rather than regulatory impacts.

Question 8

A multinational financial institution is conducting an IT risk assessment focusing on its cloud infrastructure. The Chief Risk Officer (CRO) emphasizes the need to distinguish between inherent and residual risks. What is the primary difference between inherent and residual risk in this context?

A) Inherent risk is the risk before any controls are applied, while residual risk is the risk remaining after controls are implemented.

B) Inherent risk is the risk that can be completely eliminated, while residual risk is the risk that cannot be mitigated.

C) Inherent risk is always higher than residual risk, regardless of the controls in place.

D) Residual risk accounts for potential external threats, while inherent risk considers only internal vulnerabilities.

Show Answer & Explanation

Correct Answer: A

Explanation: Option A is correct because inherent risk refers to the level of risk before any controls are in place, while residual risk is the remaining risk after controls have been applied. Option B is incorrect because inherent risk cannot be completely eliminated. Option C is misleading as residual risk can sometimes be higher if controls are ineffective. Option D incorrectly attributes the nature of risks to internal vs. external factors, which is not how inherent and residual risks are defined.

Question 9

A logistics company is assessing the risks of implementing a new containerized application for supply chain management. Which of the following should be evaluated to understand the inherent risk of this technology?

A) The application's ability to scale with demand.

B) The security vulnerabilities inherent in container technology.

C) The ease of deploying updates to the application.

D) The cost savings from using container technology.

Show Answer & Explanation

Correct Answer: B

Explanation: Option B is correct because understanding the security vulnerabilities inherent in container technology is essential to assessing its inherent risk. Option A is a performance concern, not a risk factor. Option C is an operational benefit but not a risk assessment focus. Option D is a financial benefit, not related to inherent risk.

Question 10

A financial services company is undergoing a digital transformation, including the adoption of cloud-based services. The IT risk manager must assess the risks associated with this transition. Which of the following should be the primary focus during the risk identification process?

A) Evaluating the financial impact of potential data breaches.

B) Identifying the cloud service provider's compliance with industry standards.

C) Assessing the alignment of cloud services with the company's risk appetite.

D) Understanding the inherent risks associated with cloud service adoption.

Show Answer & Explanation

Correct Answer: D

Explanation: The correct answer is D. Understanding the inherent risks associated with cloud service adoption is crucial during the risk identification phase, as it establishes the baseline risk level before any controls are applied. Option A focuses on financial impact, which is more relevant during risk analysis. Option B is important for compliance but not the primary focus during risk identification. Option C is relevant for risk governance but not the initial step in risk identification.

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About CRISC Certification

The CRISC certification validates your expertise in it risk assessment and other critical domains. Our comprehensive practice questions are carefully crafted to mirror the actual exam experience and help you identify knowledge gaps before test day.