CRISC Practice Questions: Risk Response and Reporting Domain

Published: September 1, 2025 | 20 min read

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

CRISC Practice Questions

Master the Risk Response and Reporting Domain

Test your knowledge in the Risk Response and Reporting 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 telecommunications company is reviewing its key control indicators (KCIs) to enhance risk monitoring. Which of the following considerations is most important when designing effective KCIs?

A) KCIs should be based on historical data trends.

B) KCIs should align with the company's strategic objectives and risk appetite.

C) KCIs should focus exclusively on operational metrics.

D) KCIs should be reviewed and updated only during annual audits.

Show Answer & Explanation

Correct Answer: B

Explanation: KCIs that align with strategic objectives and risk appetite (Option B) ensure that they effectively monitor and control risks relevant to the company's goals. Relying solely on historical data (Option A) may not capture emerging risks. Focusing exclusively on operational metrics (Option C) ignores other critical areas. Annual reviews (Option D) may not be frequent enough for dynamic risk environments.

Question 2

A telecommunications company is concerned about the risk of service outages due to third-party API failures. What is the most effective risk response to minimize this risk?

A) Avoid using third-party APIs in critical services.

B) Transfer the risk by requiring the API provider to carry liability insurance.

C) Mitigate the risk by implementing redundancy and failover mechanisms.

D) Accept the risk and focus on customer communication during outages.

Show Answer & Explanation

Correct Answer: C

Explanation: Mitigating the risk by implementing redundancy and failover mechanisms ensures service continuity even if third-party APIs fail. Avoiding third-party APIs may not be feasible for competitive service delivery. Transferring risk through insurance does not prevent outages. Accepting the risk without mitigation could lead to customer dissatisfaction.

Question 3

An IT services company is evaluating its risk treatment strategy for a critical vulnerability in its SaaS platform. What should be the primary consideration when deciding between patching the vulnerability immediately or scheduling it for the next maintenance cycle?

A) The potential impact on customer operations if exploited.

B) The cost of immediate patch deployment.

C) The availability of technical staff to implement the patch.

D) The historical frequency of similar vulnerabilities.

Show Answer & Explanation

Correct Answer: A

Explanation: Option A is correct as the potential impact on customer operations is paramount in deciding the urgency of patching. Option B is a secondary consideration compared to risk impact. Option C is logistical but not the primary factor. Option D provides context but does not influence immediate risk treatment decisions.

Question 4

A logistics company is using a third-party API to optimize delivery routes. They are concerned about the potential risk of service disruption. What is the best approach to manage this risk?

A) Develop an in-house API as a backup solution.

B) Negotiate a service-level agreement with the provider.

C) Monitor the provider's service status regularly.

D) Implement a multi-cloud strategy for redundancy.

Show Answer & Explanation

Correct Answer: A

Explanation: Developing an in-house API as a backup solution (A) provides a direct way to ensure continuity in case of third-party service disruption. An SLA (B) is important but does not prevent disruptions. Monitoring service status (C) is reactive rather than proactive. A multi-cloud strategy (D) is more relevant for cloud services than APIs.

Question 5

A telecommunications company is preparing a risk report for its board of directors, focusing on emerging risks associated with 5G technology. What should be the primary focus of this report to align with strategic objectives?

A) Potential technical challenges in 5G deployment.

B) Regulatory compliance requirements for 5G.

C) Opportunities for market expansion with 5G.

D) Security vulnerabilities inherent in 5G networks.

Show Answer & Explanation

Correct Answer: D

Explanation: Security vulnerabilities inherent in 5G networks (D) should be the primary focus, as they directly impact the company's ability to safely leverage 5G technology in alignment with strategic objectives. Technical challenges (A) and regulatory compliance (B) are important but secondary to security. Market opportunities (C) are strategic but do not address risk.

Question 6

A multinational corporation has set a risk appetite for IT system downtimes. The IT risk manager is tasked with reporting on system availability. Which KPI (Key Performance Indicator) should be used to align with the organization's risk appetite?

A) Average response time of IT support.

B) Number of IT system downtimes per month.

C) Percentage of system uptime.

D) Cost of IT system maintenance.

Show Answer & Explanation

Correct Answer: C

Explanation: The percentage of system uptime directly reflects system availability and is aligned with the risk appetite for downtimes. Average response time and number of downtimes are related but less comprehensive, and maintenance cost does not measure availability.

Question 7

An e-commerce company is evaluating its third-party vendors for compliance with their security policies. Which key performance indicator (KPI) would be most relevant for assessing vendor compliance?

A) The number of security incidents reported by the vendor.

B) The vendor’s response time to security audit findings.

C) The percentage of vendor staff trained in security awareness.

D) The frequency of security audits conducted by the vendor.

Show Answer & Explanation

Correct Answer: B

Explanation: The vendor’s response time to security audit findings is a relevant KPI as it indicates the vendor's commitment to addressing compliance issues promptly. The number of incidents and frequency of audits provide context but do not directly measure compliance. Training percentage is important but secondary to actual compliance actions.

Question 8

An e-commerce company is experiencing frequent downtime due to server overloads during peak sales periods. The IT risk team needs to report this issue to senior management. Which Key Risk Indicator (KRI) would be most effective in communicating the risk?

A) Number of server overload incidents per month.

B) Percentage of sales lost due to downtime.

C) Average server response time during peak hours.

D) Total number of servers in operation.

Show Answer & Explanation

Correct Answer: B

Explanation: Option B is correct as it directly correlates the risk to business impact, which is crucial for senior management's decision-making. Option A provides frequency data but lacks impact context. Option C is more about performance than risk. Option D is irrelevant to the specific risk of downtime.

Question 9

A manufacturing company has identified a risk of production delays due to equipment failures. The Risk Manager needs to report on this risk. Which Key Performance Indicator (KPI) would be most useful?

A) Number of equipment failures per month.

B) Time taken to repair equipment failures.

C) Percentage of production targets met.

D) Cost of equipment maintenance.

Show Answer & Explanation

Correct Answer: C

Explanation: The percentage of production targets met is the most useful KPI, as it reflects the impact of equipment failures on overall production efficiency. The number of failures (Option A) and repair time (Option B) are more operational metrics. The cost of maintenance (Option D) does not directly indicate production effectiveness.

Question 10

A retail company has implemented several new controls to address identified risks in its supply chain. Which metric should the company prioritize to ensure these controls are effectively reducing risk over time?

A) Key Risk Indicators (KRIs)

B) Key Performance Indicators (KPIs)

C) Key Control Indicators (KCIs)

D) Return on Investment (ROI)

Show Answer & Explanation

Correct Answer: C

Explanation: Key Control Indicators (KCIs) (C) are the most appropriate metric to prioritize as they specifically measure the effectiveness of controls in mitigating risk. KRIs (A) are useful for assessing risk levels but not control effectiveness. KPIs (B) focus on performance rather than risk. ROI (D) is more financial and less directly related to control effectiveness.

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About CRISC Certification

The CRISC certification validates your expertise in risk response and reporting 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.