CRISC IT Risk Assessment Practice Question
A risk assessment identifies a threat with high likelihood and high impact. The risk owner proposes transferring the risk via cyber insurance. However, the insurance policy has a high deductible and excludes certain attack types. Which THREE of the following should be considered when evaluating the effectiveness of this 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
✓
The cost of the insurance premium relative to the expected loss
Risk transfer effectiveness depends on policy coverage, residual risk after transfer, and cost-benefit. Likelihood reduction is not directly applicable as transfer does not reduce likelihood.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The impact of the risk on operational productivity
Why it's wrong here
Operational impact is not directly transferred; insurance covers financial loss, not all operational impacts.
- ✗
The likelihood of the threat event occurring
Why it's wrong here
Transfer does not affect likelihood; it only shifts financial impact.
- ✓
The cost of the insurance premium relative to the expected loss
Why this is correct
Cost-benefit analysis ensures the transfer is economically justified.
- ✓
The residual risk after insurance is applied
Why this is correct
Residual risk remains due to deductibles and exclusions.
- ✓
The extent of coverage and exclusions in the policy
Why this is correct
Coverage determines how much risk is actually transferred.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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