CISM · Question #699
Which of the following risk responses is an example of risk transfer?
The correct answer is D. Purchasing cybersecurity insurance. Purchasing cybersecurity insurance is the classic example of risk transfer because it shifts the financial consequences of a risk event to a third party (the insurer) in exchange for a premium. Risk transfer does not eliminate the risk itself but moves the financial burden of…
Question
Which of the following risk responses is an example of risk transfer?
Options
- AUtilizing third-party applications
- BMoving risk ownership to another department
- CConducting off-site backups
- DPurchasing cybersecurity insurance
How the community answered
(21 responses)- C5% (1)
- D95% (20)
Explanation
Purchasing cybersecurity insurance is the classic example of risk transfer because it shifts the financial consequences of a risk event to a third party (the insurer) in exchange for a premium. Risk transfer does not eliminate the risk itself but moves the financial burden of its impact. Option A (utilizing third-party applications) is outsourcing functionality, not necessarily transferring risk-liability may still remain with the organization. Option B (moving risk ownership to another department) is an internal administrative change, not true risk transfer outside the organization. Option C (conducting off-site backups) is a risk mitigation strategy that reduces the impact of data loss, not a transfer.
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