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    PracticeCPA®CPA ISC Practice ExamQuestion 64
    Easy1 markMultiple Choice
    Area I: Information SystemsRisk ManagementConceptsCOSO

    CPA · Question 64 · Area I: Information Systems

    Which of the following is a 'Risk Response' strategy where the organization decides to stop the activity that causes the risk?

    Answer options:

    A.

    Risk Acceptance

    B.

    Risk Avoidance

    C.

    Risk Mitigation / Reduction

    D.

    Risk Sharing / Transfer

    How to approach this question

    Avoid = Stop. Mitigate = Fix. Transfer = Insure. Accept = Live with it.

    Full Answer

    B.Risk Avoidance✓ Correct
    B
    Risk Avoidance involves exiting the activity that generates the risk. For example, if a legacy system is too insecure to patch, decommissioning it is avoidance.

    Common mistakes

    Confusing Avoidance (stopping) with Mitigation (fixing).
    Question 63All questionsQuestion 65

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