CAS-004 Governance, Risk, and Compliance Practice Question
An organization has implemented a risk treatment plan that includes purchasing cyber insurance for potential data breach costs. Which risk treatment option does this represent?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Risk transfer
Cyber insurance transfers the financial risk to an insurance company, which is risk transfer.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Risk mitigation
Why it's wrong here
Mitigation involves reducing risk through controls.
- ✗
Risk avoidance
Why it's wrong here
Avoidance means eliminating the activity causing the risk.
- ✗
Risk acceptance
Why it's wrong here
Acceptance means acknowledging the risk without further action.
- ✓
Risk transfer
Why this is correct
Insurance transfers the financial impact to a third party.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CAS-005 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CAS-005 exam.