CRISC IT Risk Assessment Practice Question
An organization is evaluating risks and decides to purchase cyber insurance to cover potential financial losses from data breaches. Which risk treatment option does this represent?
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 involves shifting risk to a third party, such as through insurance or outsourcing with liability transfer.
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 financial risk to the insurer.
- ✗
Accept
Why it's wrong here
Acceptance means no action is taken; insurance is a specific treatment.
- ✗
Mitigate
Why it's wrong here
Mitigation reduces likelihood or impact; insurance does not reduce the event itself.
- ✗
Avoid
Why it's wrong here
Avoidance eliminates the risk activity, not transfers it.
Go deeper
Related to this question
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 →
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.