CRISC IT Risk Assessment Practice Question
A company uses cyber insurance to cover losses from data breaches. This is an example of which risk treatment?
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
Transfer shifts risk to a third party, such as an insurance company.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Avoid
Why it's wrong here
Avoidance eliminates the activity generating the risk entirely, such as ceasing to store customer data. Buying insurance retains the breach exposure and transfers only the financial consequence, so the risk remains. Avoidance would be correct if the company discontinued the data-processing operation causing the exposure.
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Transfer
Why this is correct
Cyber insurance shifts the financial impact of breach losses to an insurer, which is risk transfer. The organisation retains the risk itself but compensates losses externally, satisfying the definition of transfer as a risk treatment.
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Mitigate
Why it's wrong here
Mitigation reduces likelihood/impact via controls.
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Accept
Why it's wrong here
Acceptance retains the risk with no transfer mechanism and no compensating control, funding losses from the organisation's own reserves. Cyber insurance explicitly shifts the financial consequence to a third party, which is transference. Acceptance would be correct if the company simply tolerated the loss without insurance.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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