SY0-701 · Question #3
A company purchased cyber insurance to address items listed on the risk register. Which of the following strategies does this represent?
The correct answer is B. Transfer. Transfer: Transferring a risk involves shifting some or all of the risk to another party, such as an insurance provider, through contractual agreements or financial arrangements. If the company purchases cyber insurance to address items listed on the risk register, it…
Question
A company purchased cyber insurance to address items listed on the risk register. Which of the following strategies does this represent?
Options
- AAccept
- BTransfer
- CMitigate
- DAvoid
How the community answered
(50 responses)- A2% (1)
- B88% (44)
- C4% (2)
- D6% (3)
Explanation
Transfer: Transferring a risk involves shifting some or all of the risk to another party, such as an insurance provider, through contractual agreements or financial arrangements. If the company purchases cyber insurance to address items listed on the risk register, it represents a risk transfer strategy. The company is transferring the financial burden of potential cyber incidents to the insurance provider, who will compensate the company for covered losses. Given the scenario described, the strategy represented by the company's purchase of cyber insurance to address items listed on the risk register is Transfer. The company is transferring some of the financial consequences of potential cyber incidents to the insurance provider through the purchase of insurance coverage.
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