CERTIFIED-IN-CYBERSECURITY Question #80: Real Exam Question with Answer & Explanation

The correct answer is C: Risk transfer. Risk transfer is a risk management strategy that contractually shifts a pure risk from one party to another (in this case, to an insurance company). Risk avoidance consists in stopping activities and exposures that can negatively affect an organization and its assets. Risk mitiga

Security Principles - Basic Risk Management Concepts

Question

When a company hires an insurance company to mitigate risk, which risk management technique is being applied?

Options

ARisk avoidance
BRisk mitigation
CRisk transfer
DRisk tolerance

Explanation

Risk transfer is a risk management strategy that contractually shifts a pure risk from one party to another (in this case, to an insurance company). Risk avoidance consists in stopping activities and exposures that can negatively affect an organization and its assets. Risk mitigation consists of mechanisms to reduce the risk. Finally, risk tolerance is the degree of risk that an investor is willing to endure.

Topics

#Risk Management#Risk Transfer#Insurance#Risk Treatment

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