mediummultiple choiceObjective-mapped

A business unit is worried about the financial impact of a rare but severe data center outage. After reviewing the risk register, leadership decides to purchase cyber insurance and document the remaining exposure rather than redesign the entire platform. Which risk treatment is this?

Question 1mediummultiple choice
Full question →

A business unit is worried about the financial impact of a rare but severe data center outage. After reviewing the risk register, leadership decides to purchase cyber insurance and document the remaining exposure rather than redesign the entire platform. Which risk treatment is this?

Answer choices

Why each option matters

Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.

A

Best answer

Risk transfer

Risk transfer shifts some financial impact to a third party, such as through insurance or a contractual liability arrangement.

B

Distractor review

Risk avoidance

Risk avoidance would mean eliminating the activity or system entirely, which is not happening in this case.

C

Distractor review

Risk mitigation

Risk mitigation reduces the likelihood or impact with controls, but purchasing insurance mainly shifts financial exposure.

D

Distractor review

Risk acceptance

Risk acceptance means acknowledging the risk without moving it elsewhere, which is not the decision described here.

Common exam trap

Common exam trap: answer the scenario, not the keyword

Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.

Technical deep dive

How to think about this question

This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.

KKey Concepts to Remember

  • Read the scenario before looking for a memorised answer.
  • Find the constraint that changes the correct option.
  • Eliminate answers that are true in general but not in this case.
  • Use explanations to understand the rule behind the answer.

TExam Day Tips

  • Underline the problem statement mentally.
  • Watch for words such as best, first, most likely and least administrative effort.
  • Review why wrong options are wrong, not only why the correct option is correct.

Related practice questions

Related SY0-701 practice-question pages

Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.

More questions from this exam

Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.

FAQ

Questions learners often ask

What does this SY0-701 question test?

Read the scenario before looking for a memorised answer.

What is the correct answer to this question?

The correct answer is: Risk transfer — Risk transfer is correct because the organization is using insurance to move some of the financial consequences to another party. The underlying outage risk still exists, but the cost impact is partially shifted away from the business. This is common when a threat is low frequency but high impact and redesign would be too expensive or disruptive. The residual risk is still documented, which is important for governance and oversight. Why others are wrong: Avoidance would require stopping the risky activity, which the business is not doing. Mitigation would focus on controls that reduce likelihood or impact, such as redundancy or failover. Acceptance would mean the organization keeps the exposure without transferring it, which does not match the insurance decision.

What should I do if I get this SY0-701 question wrong?

Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.

Discussion

Loading comments…

Sign in to join the discussion.