Question 153 of 871
CISM Information Security Risk Management Practice Question
A large retail chain with hundreds of stores uses point-of-sale (POS) systems that run an outdated operating system. The annual risk assessment identified this as a high-risk issue because the OS is no longer patched and has known vulnerabilities. The business unit manager opposes replacing all POS systems immediately due to cost and potential disruption to operations. As the risk manager, you need to recommend a risk response that balances risk reduction with business continuity. Which strategy is most appropriate?
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
✓
Risk mitigation: implement compensating controls and schedule a phased upgrade
Risk mitigation through compensating controls (e.g., network segmentation, strict access controls, intrusion detection) combined with a phased upgrade reduces risk while allowing continued operations. Option A is risk avoidance but is too disruptive and costly. Option D is risk transfer via insurance, but insurance does not prevent the incident or reduce the operational impact. Option C is risk acceptance without action, which is inappropriate for a high-risk issue.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Risk avoidance: immediately replace all POS systems with modern ones
Why it's wrong here
Incorrect; this is too disruptive and expensive for a phased approach.
- ✓
Risk mitigation: implement compensating controls and schedule a phased upgrade
Why this is correct
Correct; this balances risk reduction with business continuity.
- ✗
Risk acceptance: accept the risk because the business cannot afford replacement
Why it's wrong here
Incorrect; acceptance without action is not prudent for high risk.
- ✗
Risk transfer: purchase cyber insurance to cover potential losses from POS attacks
Why it's wrong here
Incorrect; insurance does not mitigate the underlying risk.
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Last reviewed: Jun 24, 2026
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