Certified in Risk and Information Systems Control (CRISC) Practice Test 2025 - Free CRISC Practice Questions and Study Guide

The purpose of Lost Causal Analysis (LCA) is fundamentally about understanding and learning from past events. By creating a database of likelihoods from these events, LCA serves as a tool to assess and quantify how often certain risks may occur based on historical data. This analysis aids organizations in identifying patterns and trends that can indicate which risks have a higher probability of occurring in the future.

Through the accumulation and study of this data, organizations can make informed decisions regarding risk management strategies and better allocate resources to mitigate these risks proactively. The insights gained from LCA specifically focus on the causal factors behind previous losses, enabling businesses to not only foresee potential risks but also to develop more accurate predictive models.

Choosing to analyze current controls or design new policies might also be valuable, but they do not capture the essence of LCA, which centers around learning from past losses and building a comprehensive understanding of risk likelihood based on those occurrences. Preventing future risks does result from the insights gained, but it is not the primary function of LCA itself. The database of historical likelihoods stands at the core of LCA’s purpose, allowing for a detailed analysis of risk rather than direct intervention or policy creation.

Ask an Examzify Tutor