Your company is covered under a liability insurance policy, which provides various liability coverage for information security risks, including any physical damage of assets, hacking attacks, etc. Whi

The correct answer is B. Risk transfer. Risk transfer is the practice of passing risk from one entity to another entity. In other words, if a company is covered under a liability insurance policy providing various liability coverage for information security risks, including any physical damage of assets, hacking attack

Security Leadership and Management

Question

Your company is covered under a liability insurance policy, which provides various liability coverage for information security risks, including any physical damage of assets, hacking attacks, etc. Which of the following risk management techniques is your company using?

Options

ARisk mitigation
BRisk transfer
CRisk acceptance
DRisk avoidance

How the community answered

(63 responses)

A
5% (3)
B
92% (58)
C
2% (1)
D
2% (1)

Explanation

Risk transfer is the practice of passing risk from one entity to another entity. In other words, if a company is covered under a liability insurance policy providing various liability coverage for information security risks, including any physical damage of assets, hacking attacks, etc., it means it has transferred its security risks to the insurance company. Answer option D is incorrect. Risk avoidance is the practice of not performing an activity that could carry risk. Avoidance may to all risks, but avoiding risks also means losing out on the potential gain that accepting (retaining) the risk may have allowed. Answer option A is incorrect. Risk mitigation is the practice of reducing the severity of the loss or the likelihood of the loss from occurring. Answer option C is incorrect. Risk acceptance is the practice of accepting certain risk(s), typically based on a business decision that may also weigh the cost versus the benefit of dealing with the risk in another way.

Topics

#Risk Management#Risk Transfer#Insurance#Cybersecurity Risks

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