CAS-003 · Question #684
A company is purchasing an application that will be used to manage all IT assets as well as provide an incident and problem management solution for IT activity. The company narrows the search to two…
The correct answer is B. Acceptance. This question tests understanding of risk response strategies in relation to risk appetite. The company evaluated both applications and determined it could not tolerate the higher risk level of Application A. By selecting Application B, the company accepted the residual risk…
Question
A company is purchasing an application that will be used to manage all IT assets as well as provide an incident and problem management solution for IT activity. The company narrows the search to two products. Application A and Application B; which meet all of its requirements. Application A is the most cost-effective product, but it is also the riskiest so the company purchases Application B. Which of the following types of strategies did the company use when determining risk appetite?
Options
- AMitigation
- BAcceptance
- CAvoidance
- DTransfer
How the community answered
(34 responses)- A3% (1)
- B94% (32)
- C3% (1)
Explanation
This question tests understanding of risk response strategies in relation to risk appetite. The company evaluated both applications and determined it could not tolerate the higher risk level of Application A. By selecting Application B, the company accepted the residual risk that comes with that product - because no solution is zero-risk. 'Avoidance' would mean not acquiring any application at all to eliminate the risk entirely. 'Mitigation' would mean reducing the risk (e.g., adding controls to Application A). 'Transfer' would mean shifting the risk to a third party via insurance or contract. Here, the company accepted the risk profile of Application B because it aligned with their risk appetite threshold.
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