CGEIT Risk Optimization Practice Question
An enterprise is facing a high-impact risk that cannot be fully mitigated. The board decides to transfer this risk. Which of the following is the best implementation of risk transfer?
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
✓
Purchasing comprehensive cyber-insurance to cover potential financial losses.
Risk transfer is about moving financial liability, not operational responsibility.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Moving all data to a public cloud provider.
Why it's wrong here
Cloud providers generally have limited liability for data breaches.
- ✓
Purchasing comprehensive cyber-insurance to cover potential financial losses.
Why this is correct
Insurance is a classic transfer mechanism for financial liability.
- ✗
Outsourcing the entire IT department to a third-party managed service provider.
Why it's wrong here
This transfers operational activity but often retains the residual risk/liability.
- ✗
Signing an indemnity clause in a software license agreement.
Why it's wrong here
Indemnity clauses are rarely enforceable against major software vendors.
About these practice questions
One of 214 original CGEIT practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed August 2026 · checked against the official ISACA exam blueprint
This CGEIT practice question is part of Courseiva's free ISACA 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 CGEIT exam.