Isaca CRISC Exam - Topic 1 Question 105 Discussion

Actual exam question for Isaca's CRISC exam

Question #: 105
Topic #: 1

[All CRISC Questions]

Which of the following should be an element of the risk appetite of an organization?

AThe effectiveness of compensating controls

BThe enterprise's capacity to absorb loss

CThe residual risk affected by preventive controls

DThe amount of inherent risk considered appropriate

Show Suggested Answer

Suggested Answer: B

Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. One of the elements of risk appetite is the enterprise's capacity to absorb loss, which is the maximum amount of loss that an organization can withstand without jeopardizing its existence or strategic objectives. The effectiveness of compensating controls, the residual risk affected by preventive controls, and the amount of inherent risk considered appropriate are not elements of risk appetite, but rather factors that influence the risk assessment and responseprocesses.Reference= [CRISC Review Manual (Digital Version)], page 41;CRISC Review Questions, Answers & Explanations Database, question 196.

by Stephane at Nov 24, 2025, 02:29 PM

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Santos

9 hours ago

B for sure. You gotta know how much risk your organization can handle before setting your appetite.

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Leila

6 days ago

Haha, I bet the exam writers are having a field day coming up with these tricky risk management questions!

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Christa

11 days ago

C. The residual risk affected by preventive controls is crucial for understanding the organization's risk profile.

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Nancey

16 days ago

Hmm, I'm torn between B and D. Both seem like important factors in determining risk appetite.

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My

21 days ago

D. The amount of inherent risk considered appropriate seems like the most relevant option here.

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Sharan

26 days ago

I feel like residual risk and preventive controls were emphasized in our last class, but I can't recall if that connects to risk appetite directly.

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Hollis

1 month ago

I practiced a similar question where we discussed inherent risk, so I wonder if option D is relevant here too.

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Ludivina

1 month ago

I'm not entirely sure, but I remember something about compensating controls being important. Could that be option A?

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Antonio

1 month ago

I think the risk appetite should relate more to the enterprise's capacity to absorb loss, so I would lean towards option B.

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Gilma

2 months ago

D makes the most sense to me. The risk appetite is about the organization's willingness to accept risk, not the effectiveness of controls or residual risk.

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Shannan

2 months ago

I'm a bit confused on the differences between some of these options. I'll have to think it through carefully before selecting an answer.

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Marylyn

2 months ago

This seems straightforward. The risk appetite should be the amount of inherent risk the organization deems appropriate, so I'm going with D.

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Junita

2 months ago

I think B is key. Capacity to absorb loss is crucial.

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Joanna

2 months ago

I think the correct answer is B. The enterprise's capacity to absorb loss is a key element of risk appetite.

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King

3 months ago

I lean towards C. Understanding residual risk helps in planning.

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Lorita

3 months ago

I think A is super important too, can't overlook those controls.

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Edison

3 months ago

Okay, I know risk appetite is about the level of risk an organization is willing to accept. I'm leaning towards D, but I want to double-check the definitions of the other options.

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Alline

3 months ago

Hmm, I think the key here is understanding the concept of risk appetite. I'll need to review my notes on that before deciding.

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Tandra

2 months ago

I agree, risk appetite is crucial.

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