Quick Answer
The answer is to avoid the risk by not collecting unnecessary personal data. This choice is most aligned with a low risk appetite for data privacy because avoidance eliminates the threat entirely, ensuring no personal data exists to be breached, whereas reduction or transfer still leaves residual exposure that conflicts with a low tolerance for privacy risk. On the CompTIA SecurityX CAS-004 exam, this tests your ability to map risk appetite to the appropriate treatment strategy, often appearing in scenario-based questions where a low appetite demands the strictest control. A common trap is selecting mitigation or transfer, which only lowers or shifts risk rather than removing it, so remember that low appetite for privacy means zero tolerance for data collection. Memory tip: “Low appetite, no data—avoid to eradicate.”
This CAS-004 practice question tests your understanding of governance, risk and compliance. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
An organization's risk appetite is defined as 'low' for data privacy. Which of the following risk treatments is most aligned with this appetite?
Transfer the risk through cyber insurance
Why wrong: Transfer does not align with avoidance
Mitigate the risk by encrypting personal data
Why wrong: Mitigation still retains some risk
Avoid the risk by not collecting unnecessary personal data
Eliminates risk directly
Accept the risk and self-insure
Why wrong: Inconsistent with low appetite
Answer choices
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.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
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
Related concept
Read the scenario before looking for a memorised answer.
Accept the risk and self-insure
Why it's wrong here
Inconsistent with low appetite
Common exam traps
Cisco 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.
Detailed technical explanation
Risk appetite defines the level of risk an organization is willing to accept; for data privacy, a low appetite often mandates data minimization under frameworks like GDPR Article 5(1)(c). Avoiding risk through not collecting data is a form of risk avoidance, which is the most stringent treatment, ensuring zero residual privacy risk. In contrast, encryption (e.g., AES-256) protects data at rest or in transit but does not prevent unauthorized access during processing or via side-channel attacks, leaving residual risk.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
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FAQ
Governance, Risk and Compliance — This question tests Governance, Risk and Compliance — Read the scenario before looking for a memorised answer..
The correct answer is: 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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
This CAS-004 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-004 exam.
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