CISM · Question #784
Which of the following risks is an example of risk transfer?
The correct answer is D. Purchasing cybersecurity insurance. Risk transfer shifts the financial or legal burden of a risk to a third party. Cybersecurity insurance is the classic example: if a breach occurs, the insurer bears the financial consequences rather than the organization. Utilizing third-party applications (A) may introduce…
Question
Which of the following risks 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
(22 responses)- A5% (1)
- D95% (21)
Explanation
Risk transfer shifts the financial or legal burden of a risk to a third party. Cybersecurity insurance is the classic example: if a breach occurs, the insurer bears the financial consequences rather than the organization. Utilizing third-party applications (A) may introduce risk but does not transfer it - the organization still owns the outcome. Moving risk ownership to another department (B) is internal reassignment, not transfer to an outside party. Off-site backups (C) are a risk mitigation or recovery control, not a transfer mechanism.
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