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CAS-004 Practice Question: An organization's risk appetite is defined as…
An organization's risk appetite is defined as 'low' for data privacy. Which of the following risk treatments is most aligned with this appetite?
⚠ Common exam trap
The CAS-004 exam often tests the distinction between risk mitigation and risk avoidance, where candidates mistakenly choose encryption (mitigation) as the best option for a low-risk appetite, overlooking that avoidance eliminates the risk entirely.
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
✓
Avoid the risk by not collecting unnecessary personal data
With a 'low' risk appetite for data privacy, the organization must minimize exposure to privacy breaches. Avoiding the risk by not collecting unnecessary personal data is the most aligned treatment because it eliminates the privacy risk entirely rather than reducing or transferring it. This approach ensures no personal data exists to be compromised, directly supporting a low-risk appetite.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Transfer the risk through cyber insurance
Why it's wrong here
Transfer does not align with avoidance
- ✗
Mitigate the risk by encrypting personal data
Why it's wrong here
Mitigation still retains some risk
- ✓
Avoid the risk by not collecting unnecessary personal data
Why this is correct
Eliminates risk directly
- ✗
Accept the risk and self-insure
Why it's wrong here
Inconsistent with low appetite
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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.