CAS-004 Governance, Risk, and Compliance Practice Question
Which of the following risk treatment options involves transferring the financial impact of a risk to a third party, such as through insurance?
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
✓
Transfer
Risk transfer shifts the financial burden to another party, e.g., purchasing cyber insurance.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Avoid
Why it's wrong here
Incorrect. Risk avoidance means eliminating the activity that causes the risk.
- ✗
Accept
Why it's wrong here
Incorrect. Risk acceptance means acknowledging the risk without taking action.
- ✓
Transfer
Why this is correct
Correct. Risk transfer passes the risk to a third party, e.g., via insurance.
- ✗
Mitigate
Why it's wrong here
Incorrect. Risk mitigation involves reducing the likelihood or impact.
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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.