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IT Risk AssessmentmediumMultiple ChoiceObjective-mapped

CRISC IT Risk Assessment Practice Question

An organization is considering purchasing cyber insurance to cover potential losses from a data breach. This is an example of which risk treatment option?

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

Transferring risk to a third party, such as an insurance company, is a risk transfer strategy. The insurance company assumes the financial risk in exchange for premiums.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Accept

    Why it's wrong here

    Incorrect; acceptance retains risk without mitigation.

  • Transfer

    Why this is correct

    Correct; insurance transfers financial risk to the insurer.

  • Avoid

    Why it's wrong here

    Incorrect; avoidance eliminates the activity.

  • Mitigate

    Why it's wrong here

    Incorrect; mitigation implements controls.

About these practice questions

One of 983 original CRISC 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 →

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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.