ISACA IT Risk Fundamentals Practice Exam | Master IT Risk Concepts with Exam Sage
What is the ISACA IT Risk Fundamentals Exam?
The ISACA IT Risk Fundamentals Exam is designed to validate your understanding of key IT risk concepts, frameworks, and best practices essential for managing information technology risks in any organization. Whether you are beginning your journey in IT risk management or looking to strengthen your foundational knowledge, this exam tests your ability to identify, assess, and respond to IT risks effectively.
What Will You Learn?
By preparing with the ISACA IT Risk Fundamentals Practice Exam, you will:
Gain comprehensive knowledge of IT risk management principles and terminology
Understand the different types of IT risks, including cyber, operational, and strategic risks
Learn how to apply risk assessment techniques such as qualitative and quantitative analysis
Explore various risk response strategies like avoidance, mitigation, transfer, and acceptance
Become familiar with essential control frameworks including COBIT and NIST
Develop skills to evaluate the effectiveness of IT controls and governance
Master the concepts of risk appetite, residual risk, and risk monitoring
Topics Covered in This Practice Exam
Introduction to IT Risk and Risk Management
Risk Identification and Assessment
IT Control Types and Frameworks
Risk Response and Treatment Options
Monitoring and Reporting IT Risks
Governance and Compliance in IT Risk
Security Principles: CIA Triad and Attack Surfaces
Human Factors and Social Engineering Risks
Practical Scenarios and Risk Management Best Practices
Why Choose Exam Sage for Your ISACA IT Risk Fundamentals Exam Prep?
At Exam Sage, we understand that thorough preparation is key to success. Our practice exams are meticulously crafted by industry experts to mirror the structure and difficulty of the actual ISACA IT Risk Fundamentals Exam. Each question is accompanied by clear, detailed explanations to deepen your understanding and help you learn from every answer.
With Exam Sage, you benefit from:
Up-to-date, realistic practice questions aligned with current exam objectives
Access the most relevant study material
User-friendly interface designed for efficient studying anytime, anywhere
A trusted platform with a proven track record of helping candidates pass their certification exams
Prepare with confidence, master IT risk fundamentals, and advance your IT career with Exam Sage — your trusted partner for exam success.
Sample Questions and Answers
1. What is the primary objective of IT risk management?
A) To eliminate all IT risks
B) To identify, assess, and mitigate IT risks to an acceptable level
C) To increase IT risk exposure for innovation
D) To transfer all IT risks to third parties
Answer: B
Explanation: The goal of IT risk management is to identify, assess, and manage risks to ensure they are within an organization’s risk tolerance, not to eliminate all risks which is often impossible.
2. Which framework is commonly used for IT risk management?
A) COBIT
B) ITIL
C) COSO
D) ISO/IEC 27005
Answer: D
Explanation: ISO/IEC 27005 specifically addresses IT risk management and provides guidelines for managing information security risks. COBIT is broader governance, ITIL focuses on service management, and COSO is an enterprise risk framework.
3. What is a residual risk?
A) Risk after controls have been applied
B) Risk that has been completely mitigated
C) Risk that cannot be identified
D) Risk ignored by management
Answer: A
Explanation: Residual risk is the remaining risk after the implementation of controls or mitigation measures.
4. Which of the following is NOT a common risk response strategy?
A) Accept
B) Avoid
C) Transfer
D) Eliminate
Answer: D
Explanation: Eliminate is not generally considered a risk response since it’s rarely possible to completely eliminate IT risks. Common strategies are accept, avoid, mitigate, and transfer.
5. What does “inherent risk” refer to?
A) Risk present before any controls are applied
B) Risk after controls are applied
C) Risk transferred to external parties
D) Risk that has been accepted
Answer: A
Explanation: Inherent risk is the level of risk before any mitigating controls are implemented.
6. What is the purpose of a risk register?
A) To document all identified risks, their assessment, and mitigation plans
B) To list all IT assets
C) To record system outages
D) To track employee performance
Answer: A
Explanation: A risk register is used to document risks, their likelihood, impact, controls, and action plans.
7. What type of control is a firewall?
A) Detective control
B) Preventive control
C) Corrective control
D) Directive control
Answer: B
Explanation: Firewalls are preventive controls that block unauthorized access before it occurs.
8. Which of the following is a quantitative risk assessment method?
A) SWOT analysis
B) Risk matrix
C) Annualized Loss Expectancy (ALE)
D) Brainstorming
Answer: C
Explanation: ALE is a quantitative method that calculates expected losses in monetary terms.
9. What is the key benefit of integrating IT risk management with enterprise risk management?
A) Increased IT department budget
B) Consistent risk appetite and unified risk approach
C) Elimination of all risks
D) Faster software development
Answer: B
Explanation: Integration ensures alignment in risk appetite and consistent risk handling across the enterprise.
10. What does “risk appetite” mean?
A) The amount of risk an organization is willing to accept
B) The total elimination of risk
C) The financial budget for risk management
D) The amount of risk that exists without controls
Answer: A
Explanation: Risk appetite defines how much risk an organization is prepared to accept in pursuit of objectives.
11. Which phase of the risk management process involves evaluating the effectiveness of controls?
A) Risk identification
B) Risk assessment
C) Risk monitoring
D) Risk treatment
Answer: C
Explanation: Risk monitoring involves continuous review and assessment of controls and risk environment.
12. What is the first step in the IT risk management process?
A) Risk identification
B) Risk assessment
C) Risk treatment
D) Risk monitoring
Answer: A
Explanation: Risk management begins with identifying all potential risks that could impact IT resources or objectives.
13. Which of these is an example of a risk transfer?
A) Implementing antivirus software
B) Purchasing cyber insurance
C) Conducting staff training
D) Disabling unused ports
Answer: B
Explanation: Purchasing insurance transfers some financial risk to a third party.
14. What does “likelihood” refer to in risk assessment?
A) The potential impact of a risk
B) The chance that a risk event will occur
C) The number of controls implemented
D) The cost of mitigation
Answer: B
Explanation: Likelihood is the probability that a risk event will happen.
15. Which IT governance framework aligns IT goals with business objectives?
A) COBIT
B) NIST
C) ISO 9001
D) ITIL
Answer: A
Explanation: COBIT provides a framework to ensure IT aligns with business goals and manages risks effectively.
16. What is a key characteristic of a “control environment”?
A) Organizational culture and policies supporting risk management
B) IT hardware configuration
C) Incident response plans
D) Budget allocation
Answer: A
Explanation: The control environment includes culture, policies, and ethical values influencing how risks are managed.
17. What type of risk is associated with new technology adoption?
A) Operational risk
B) Strategic risk
C) Compliance risk
D) Market risk
Answer: B
Explanation: Strategic risks arise from decisions such as adopting new technology, which can impact business direction.
18. What is a risk appetite statement?
A) A formal declaration of the level and type of risk an organization is willing to take
B) A description of IT systems
C) A risk mitigation plan
D) A list of controls
Answer: A
Explanation: It clearly states how much risk the organization is prepared to tolerate.
19. What is an example of a detective control?
A) Antivirus software
B) Security camera monitoring
C) Strong passwords
D) Access control lists
Answer: B
Explanation: Security cameras detect and record events after they occur, helping identify incidents.
20. What is the purpose of a risk assessment matrix?
A) To rank risks based on likelihood and impact
B) To track project milestones
C) To document IT assets
D) To schedule audits
Answer: A
Explanation: A risk matrix helps prioritize risks by plotting their likelihood against potential impact.
21. Which risk treatment strategy is suitable when a risk’s impact is low and cost of mitigation is high?
A) Mitigate
B) Accept
C) Transfer
D) Avoid
Answer: B
Explanation: Accepting the risk is appropriate if mitigation cost outweighs potential impact.
22. How does an IT risk manager determine risk tolerance?
A) By analyzing organizational goals and stakeholder expectations
B) By reviewing only financial reports
C) By eliminating all risks
D) By following competitor practices
Answer: A
Explanation: Risk tolerance is based on the organization’s goals, culture, and stakeholder risk preferences.
23. What is an IT risk scenario?
A) A hypothetical description of a risk event and its potential impact
B) A system outage report
C) A project schedule
D) A list of IT assets
Answer: A
Explanation: Risk scenarios help in understanding possible events and consequences for risk analysis.
24. What is the role of controls in risk management?
A) To reduce risk to an acceptable level
B) To increase risk
C) To ignore risk
D) To document risk
Answer: A
Explanation: Controls are designed to reduce risk likelihood or impact.
25. Why is continuous monitoring important in IT risk management?
A) To ensure risk levels remain within acceptable limits
B) To increase risk exposure
C) To delay mitigation efforts
D) To reduce budget
Answer: A
Explanation: Continuous monitoring detects changes in risk and control effectiveness over time.
26. Which of the following is an example of compliance risk?
A) Data breach
B) Failure to adhere to GDPR regulations
C) Hardware failure
D) Employee turnover
Answer: B
Explanation: Compliance risk involves failure to meet legal or regulatory requirements.
27. What does a risk heat map show?
A) Distribution of risks by severity and likelihood visually
B) IT asset inventory
C) Disaster recovery procedures
D) Budget allocation
Answer: A
Explanation: Risk heat maps visually represent risks to prioritize based on impact and likelihood.
28. What is the difference between a threat and a vulnerability?
A) A threat is a potential cause of an incident; a vulnerability is a weakness that can be exploited
B) They are the same
C) Vulnerability causes threats
D) Threat eliminates vulnerability
Answer: A
Explanation: A threat is an external or internal factor that may cause harm; vulnerability is a weakness that can be exploited by a threat.
29. Which of the following is an example of an operational risk?
A) Phishing attack
B) Change in market demand
C) Natural disaster
D) Regulatory change
Answer: A
Explanation: Operational risks arise from failures in processes or systems, like phishing attacks targeting employees.
30. What is the importance of aligning IT risk management with business objectives?
A) Ensures IT risks do not jeopardize business goals
B) Increases IT spending
C) Reduces IT staff workload
D) Eliminates all IT risks
Answer: A
Explanation: Alignment ensures risk management supports and protects business priorities, enhancing decision-making and resilience.
31. What is the role of risk appetite in decision making?
A) It defines the maximum risk level an organization is willing to accept when making decisions
B) It eliminates risk from decisions
C) It sets the risk budget for IT purchases
D) It restricts all risky decisions
Answer: A
Explanation: Risk appetite guides decision makers by defining acceptable risk thresholds, allowing for informed risk-taking aligned with organizational goals.
32. Which of the following best describes risk mitigation?
A) Accepting the risk as is
B) Implementing measures to reduce either the likelihood or impact of a risk
C) Ignoring risks with low impact
D) Transferring risk through contracts
Answer: B
Explanation: Risk mitigation involves taking proactive steps to lessen risk likelihood or impact.
33. What is a key benefit of IT risk management maturity models?
A) To benchmark and improve risk management practices over time
B) To certify IT staff
C) To increase IT budgets
D) To replace internal audits
Answer: A
Explanation: Maturity models help organizations assess and progressively enhance their risk management capabilities.
34. What type of control is an incident response plan?
A) Preventive control
B) Detective control
C) Corrective control
D) Directive control
Answer: C
Explanation: Incident response plans are corrective controls designed to respond and recover after a risk event.
35. Which statement about IT risk appetite and risk tolerance is correct?
A) Risk appetite is broader than risk tolerance
B) Risk tolerance defines the type of risks accepted, while risk appetite defines risk limits
C) They are interchangeable terms
D) Risk tolerance is the maximum risk level an organization will accept
Answer: A
Explanation: Risk appetite is the overall attitude toward risk, whereas tolerance defines acceptable variations around that appetite.
36. Which document typically includes risk acceptance criteria?
A) Risk management policy
B) Service level agreement
C) Business continuity plan
D) Asset inventory
Answer: A
Explanation: Risk management policies define how risks are evaluated and accepted within the organization.
37. What is the purpose of IT risk governance?
A) To establish structures and processes to manage IT risks aligned with business objectives
B) To create software development plans
C) To increase IT infrastructure spending
D) To monitor hardware performance
Answer: A
Explanation: IT risk governance ensures risks are managed in alignment with business goals through defined roles and policies.
38. Which of these is an example of a preventive physical control?
A) Security guards at the entrance
B) CCTV cameras monitoring after incidents
C) Antivirus software
D) Incident response teams
Answer: A
Explanation: Security guards physically prevent unauthorized access, serving as preventive controls.
39. What is the main difference between qualitative and quantitative risk assessments?
A) Qualitative assesses risk impact using categories; quantitative uses numerical data and values
B) Quantitative ignores likelihood
C) Qualitative always uses monetary values
D) Quantitative is less precise
Answer: A
Explanation: Qualitative uses descriptive scales; quantitative uses data and numbers for precise risk valuation.
40. What is a threat actor in IT risk?
A) An entity or individual that exploits vulnerabilities to cause harm
B) A software bug
C) A security policy
D) An IT asset
Answer: A
Explanation: Threat actors are hackers, insiders, or groups that pose risks by exploiting vulnerabilities.
41. Why is risk communication important?
A) To ensure stakeholders are aware of risks and mitigation plans
B) To document IT asset locations
C) To increase risk exposure
D) To delay incident response
Answer: A
Explanation: Communication keeps all parties informed for coordinated risk management actions.
42. What is the role of a risk owner?
A) Responsible for managing specific risks and implementing mitigation strategies
B) IT auditor
C) External consultant
D) Vendor
Answer: A
Explanation: Risk owners oversee particular risks to ensure proper controls and monitoring.
43. Which is an example of a technical control?
A) Encryption of sensitive data
B) Security awareness training
C) Physical access badges
D) Incident response plan
Answer: A
Explanation: Encryption is a technical control that protects data confidentiality.
44. Which of the following best describes risk avoidance?
A) Taking steps to prevent risk occurrence by changing plans or processes
B) Accepting risk impact
C) Transferring risk via insurance
D) Ignoring risk
Answer: A
Explanation: Avoidance removes exposure by not engaging in risky activities.
45. What is a key element in an effective risk assessment?
A) Accurate identification of assets, threats, vulnerabilities, and impacts
B) Ignoring low-level risks
C) Focusing only on financial risk
D) Documenting only past incidents
Answer: A
Explanation: Comprehensive risk assessment covers all components to evaluate risk properly.
46. What is the difference between risk and issue in IT risk management?
A) Risks are potential future events; issues are current problems
B) Risks are always technical; issues are business-related
C) Risks are always low impact; issues are high impact
D) Risks and issues are the same
Answer: A
Explanation: Risks represent what might happen, while issues are already occurring problems.
47. What does “defense in depth” mean in IT risk management?
A) Using multiple layers of controls to protect assets
B) Using one strong control only
C) Ignoring minor risks
D) Delegating all risk management
Answer: A
Explanation: Multiple overlapping controls reduce the chance of successful attacks or failures.
48. Which of the following is a benefit of conducting regular risk assessments?
A) Identifying new risks and ensuring existing controls remain effective
B) Eliminating all risks
C) Increasing risk appetite
D) Reducing risk communication
Answer: A
Explanation: Regular assessments help maintain awareness and improve risk management.
49. What does “risk transfer” typically involve?
A) Shifting risk responsibility to a third party
B) Eliminating risk completely
C) Accepting risk as is
D) Ignoring risk in low-impact areas
Answer: A
Explanation: Risk transfer usually happens through insurance or outsourcing contracts.
50. How can IT risk be measured?
A) By assessing likelihood and impact, often using qualitative or quantitative metrics
B) Only by counting incidents
C) By IT budget size
D) By number of users
Answer: A
Explanation: Risk measurement involves evaluating how often a risk might occur and its consequences.
51. Which of these is an example of residual risk?
A) Risk that remains after implementing firewalls and antivirus
B) Risk that has been transferred to insurance
C) Risk that no longer exists
D) Risk ignored by management
Answer: A
Explanation: Residual risk remains even after controls are in place.
52. What is a risk tolerance?
A) The acceptable variation in risk-taking around the risk appetite
B) The total elimination of risk
C) A risk transfer method
D) A regulatory requirement
Answer: A
Explanation: Tolerance sets boundaries for acceptable risk beyond appetite.
53. What is a key objective of IT risk reporting?
A) To provide timely and relevant information to stakeholders for decision-making
B) To increase the IT budget
C) To delay risk treatment
D) To document historical data only
Answer: A
Explanation: Reporting ensures informed, proactive management of risks.
54. Which of the following best describes risk acceptance?
A) Choosing not to take action to mitigate a risk due to low impact or cost
B) Transferring risk to a third party
C) Ignoring risk completely
D) Eliminating risk
Answer: A
Explanation: Risk acceptance involves consciously choosing to tolerate risk.
55. Which of these is a key input for risk identification?
A) Business objectives and IT assets
B) Only IT budget reports
C) Employee satisfaction surveys
D) Customer service feedback
Answer: A
Explanation: Understanding assets and objectives helps identify relevant risks.
56. What does an IT risk management framework provide?
A) A structured approach and tools for managing IT risks effectively
B) Hardware configurations
C) Software development schedules
D) Financial audit procedures
Answer: A
Explanation: Frameworks guide organizations in implementing consistent risk practices.
57. Which of the following is a typical output of a risk assessment?
A) Prioritized list of risks with recommended treatments
B) Software installation list
C) Network diagrams
D) Employee attendance records
Answer: A
Explanation: Risk assessments identify and prioritize risks for management action.
58. What is the main purpose of business impact analysis (BIA)?
A) To determine the potential effects of disruptions on critical business functions
B) To create IT security policies
C) To develop software applications
D) To monitor IT infrastructure
Answer: A
Explanation: BIA helps prioritize recovery and risk mitigation efforts based on business impact.
59. Why is stakeholder involvement important in IT risk management?
A) To ensure risk decisions reflect business needs and gain organizational support
B) To delay risk treatment
C) To increase IT department workload
D) To reduce communication
Answer: A
Explanation: Engaging stakeholders aligns risk management with business objectives and improves buy-in.
60. What is the difference between a risk and a control?
A) A risk is a potential event that could cause harm; a control is a measure to reduce or prevent the risk
B) They are the same
C) A control increases risk
D) Risks eliminate controls
Answer: A
Explanation: Controls are actions or mechanisms designed to reduce the likelihood or impact of risks.
