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SY0-701 · Question #870

A company decides to purchase an insurance policy. Which of the following risk management strategies is this company implementing?

The correct answer is D. Transfer. Purchasing an insurance policy is a risk transfer strategy, as the financial impact of a risk is shifted from the company to the insurance provider.

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

Question

A company decides to purchase an insurance policy. Which of the following risk management strategies is this company implementing?

Options

  • AMitigate
  • BAccept
  • CAvoid
  • DTransfer

How the community answered

(28 responses)
  • B
    4% (1)
  • C
    4% (1)
  • D
    93% (26)

Explanation

Purchasing an insurance policy is a risk transfer strategy, as the financial impact of a risk is shifted from the company to the insurance provider.

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