Which of the following terms refers to a strategy that involves contracting with a third-party service provider to provide IT infrastructure and services during a disruption?

Question

Options

• ARisk transference
• BRisk avoidance
• CRisk acceptance
• DRisk mitigation

• A
  92% (24)
• C
  4% (1)
• D
  4% (1)

Explanation

Risk transference (also called risk transfer) involves shifting the financial or operational burden of a risk to a third party - such as a managed service provider, cloud vendor, or insurer. Contracting a third-party provider to maintain IT infrastructure during a disruption is a classic example: the organization transfers the responsibility and risk of service continuity to an external entity. Risk avoidance eliminates the activity causing the risk; risk acceptance acknowledges and tolerates it; risk mitigation reduces the likelihood or impact. Only risk transference fits the scenario described.

No community discussion yet for this question.