A Chief Information Security Officer has decided that purchasing insurance when the ALE of expected incidents exceeds $1 million is the most cost-effective approach. Which of the following does the…

The correct answer is C. Risk threshold. The $1 million represents a predefined trigger point at which a specific risk response is initiated, indicating the level at which the organization decides to take action by transferring the risk through insurance.

Submitted by tunde_lagos· Mar 6, 2026Security program management and oversight

Question

A Chief Information Security Officer has decided that purchasing insurance when the ALE of expected incidents exceeds $1 million is the most cost-effective approach. Which of the following does the $1 million represent?

Options

ARisk indicator
BRisk tolerance
CRisk threshold
DRisk exposure

How the community answered

(60 responses)

A
2% (1)
B
2% (1)
C
90% (54)
D
7% (4)

Explanation

The $1 million represents a predefined trigger point at which a specific risk response is initiated, indicating the level at which the organization decides to take action by transferring the risk through insurance.

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