CRISC Risk Response and Mitigation Practice Question
A global company uses a critical third-party vendor for data processing. The inherent risk is high, but the vendor has implemented robust controls. However, due to recent geopolitical instability, the vendor's physical location is at risk. The risk owner recommends purchasing a business continuity insurance policy. Which risk response is being applied?
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
Purchasing insurance transfers the financial risk to the insurer. Options B, C, and D do not describe transfer via insurance.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Transfer
Why this is correct
Insurance transfers the risk to a third party.
- ✗
Avoid
Why it's wrong here
Avoidance would mean discontinuing the vendor relationship.
- ✗
Accept
Why it's wrong here
Accepting would mean no action is taken.
- ✗
Mitigate
Why it's wrong here
Mitigation involves implementing controls, not insurance.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CRISC 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 CRISC exam.