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CAS-005 · Question #38

CAS-005 Question #38: Real Exam Question with Answer & Explanation

The correct answer is D: Purchasing insurance. When the cost to mitigate certain risks is higher than the asset values, the best approach is to purchase insurance. This method allows the company to transfer the risk to an insurance provider, ensuring that financial losses are covered in the event of an incident. This approach

Submitted by kevin_r· Mar 6, 2026Governance, Risk, and Compliance

Question

An engineering team determines the cost to mitigate certain risks is higher than the asset values. The team must ensure the risks are prioritized appropriately. Which of the following is the best way to address the issue?

Options

  • AData labeling
  • BBranch protection
  • CVulnerability assessments
  • DPurchasing insurance

Explanation

When the cost to mitigate certain risks is higher than the asset values, the best approach is to purchase insurance. This method allows the company to transfer the risk to an insurance provider, ensuring that financial losses are covered in the event of an incident. This approach is cost-effective and ensures that risks are prioritized appropriately without overspending on mitigation efforts.

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