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Security Program Management and OversighthardMultiple ChoiceObjective-mapped

SY0-701 Security Program Management and Oversight Practice Question

Exhibit

Risk register excerpt:
- Risk ID: R-22
- Asset: Internet-facing file transfer appliance
- Finding: Unsupported firmware; vendor end-of-support was announced 9 months ago
- Likelihood: High
- Impact: High
- Current control: Basic password policy only
- Estimated cost to replace: $9,500 one-time
- Estimated cost to add WAF rules: $2,000
- Business note: The system processes customer tax documents and cannot be left exposed for a full quarter.

Based on the exhibit, which risk treatment should the security manager recommend first?

⚠ Common exam trap

Watch out — candidates often confuse 'transfer the risk' (Option D) with a proactive security measure, when in fact cyber insurance is a financial risk transfer that does not address the technical vulnerability, whereas mitigation (Option C) directly reduces the likelihood of exploitation.

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

Mitigate the risk by replacing or isolating the appliance and removing direct internet exposure.

The exhibit shows a legacy file transfer appliance with direct internet exposure and known unpatched vulnerabilities. The most immediate and effective risk treatment is to mitigate the risk by replacing or isolating the appliance and removing its direct internet exposure. This directly reduces the likelihood of exploitation by eliminating the attack surface, which aligns with the principle of defense-in-depth and is the first step before considering acceptance, avoidance, or 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.

  • Accept the risk and document it for the next quarterly review.

    Why it's wrong here

    Acceptance is only appropriate when the cost of mitigation exceeds the expected loss, or when the risk falls within the organization's risk appetite. Here, the appliance is unsupported, internet-facing, and processes sensitive tax data, making the likelihood and impact high. Documenting the risk for quarterly review does nothing to reduce the exposure, and the residual risk is likely above the risk appetite, so this is not a defensible decision.

  • Avoid the risk by permanently shutting down the file transfer service.

    Why it's wrong here

    Shutting down the file transfer service removes the vulnerability entirely, but it also disrupts a legitimate business process. The service has an operational need, so avoidance would cause business impact that may be as significant as the security risk itself. Risk avoidance should be reserved for risks that cannot be cost-effectively reduced or transferred, and here mitigation is feasible.

  • Mitigate the risk by replacing or isolating the appliance and removing direct internet exposure.

    Why this is correct

    Mitigation is best because the asset is unsupported, internet-facing, and processes sensitive tax data. The cost to replace is manageable compared with the exposure. A WAF alone does not adequately protect an unsupported service, so the manager should reduce the vulnerability and exposure directly.

  • Transfer the risk by purchasing cyber insurance and keeping the current configuration.

    Why it's wrong here

    Cyber insurance transfers financial risk, not the technical vulnerability. The unsupported appliance remains directly exposed to the internet, so attackers can still compromise it, exfiltrate tax data, and pivot into the network. Insurance may cover downstream costs, but it does not prevent a breach, and insurers often require implementing security controls before paying out.

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Last reviewed: Jun 11, 2026

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