CompTIACompTIA
CNX-001 · Question #65
CNX-001 Question #65: Real Exam Question with Answer & Explanation
The correct answer is C: Risk transference. By purchasing an insurance policy, the company shifts the financial burden of rebuilding after a natural disaster to the insurer, which is the essence of risk transference.
Cloud Network Security
Question
A company is expanding operations and opening a new facility. The executive leadership team decides to purchase an insurance policy that will cover the cost of rebuilding the facility in case of a natural disaster. Which of the following describes the team's decision?
Options
- ABusiness continuity
- BDisaster recovery
- CRisk transference
- DMemorandum of understanding
Explanation
By purchasing an insurance policy, the company shifts the financial burden of rebuilding after a natural disaster to the insurer, which is the essence of risk transference.
Topics
#Risk Management#Risk Transference#Insurance#Disaster Preparedness
Community Discussion
No community discussion yet for this question.