CERTIFIED-IN-CYBERSECURITY Question #425: Real Exam Question with Answer & Explanation

Question

What is the main difference between risk avoidance and risk transference?

Options

• ARisk avoidance is the process of eradicating risk, while risk transference is the process of
• BRisk avoidance is the process of transferring risk to another party, while risk transference is the
• CRisk avoidance is the process of transferring risk to another party, while risk transference is the
• DRisk avoidance is the process of withdrawing from a risk scenario, while risk transference is the

Explanation

Risk avoidance involves identifying a risk and deciding not to engage in the action or activity that creates that risk. For example, to avoid potential legal or financial risks, a company might decide not to launch a new product in a particular market. On the other hand, risk transfer involves shifting the potential risk to another party, usually through insurance or outsourcing. For example, a company could transfer the risk of a data breach to an insurance company by purchasing cyber insurance (see ISC2 Study Guide, Chapter 1, Module 2). The other options are incorrect because, as we discussed above, risk avoidance does not involve transferring risk to another party, and risk transfer does not involve eliminating or reducing risk. Risk mitigation is a separate risk management strategy that involves taking steps to reduce the potential impact or likelihood of a risk, which is not mentioned in the options

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