SSCP · Question #1122
Contracting with an insurance company to cover losses due to information security breaches is known as risk __________.
The correct answer is C. Assignment. Contracting with an insurance company to cover losses from security breaches is a risk management strategy known as risk assignment or transfer.
Question
Contracting with an insurance company to cover losses due to information security breaches is known as risk __________.
Options
- AAvoidance
- BReduction
- CAssignment
- DAcceptance
How the community answered
(35 responses)- A6% (2)
- B3% (1)
- C89% (31)
- D3% (1)
Why each option
Contracting with an insurance company to cover losses from security breaches is a risk management strategy known as risk assignment or transfer.
Risk avoidance involves eliminating the risk altogether by ceasing the activity that creates the risk.
Risk reduction (or mitigation) involves implementing controls to lower the likelihood or impact of a risk.
Risk assignment, also known as risk transfer, is a strategy where the financial burden or responsibility for a risk is shifted to a third party, such as purchasing insurance to cover potential losses from security incidents.
Risk acceptance involves acknowledging a risk and deciding to take no action to mitigate or transfer it.
Concept tested: Risk management strategies (assignment/transfer)
Source: https://learn.microsoft.com/en-us/security/benchmark/azure/security-controls-v3-governance-strategy#gs-3-identify-and-document-risk-treatment-decisions
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