CRISC Risk Response and Mitigation Practice Question
An organization purchases cyber insurance to cover potential losses from data breaches. This is an example of:
⚠ Common exam trap
Many candidates confuse risk transfer with risk mitigation, thinking insurance reduces the likelihood of a breach, when in fact it only shifts the financial consequences.
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
✓
Risk Transfer
Purchasing cyber insurance transfers the financial risk of a data breach to the insurer, making it a classic example of risk transfer. In risk management, transfer shifts the impact of a loss to a third party (e.g., an insurance carrier) without eliminating the underlying threat or vulnerability. This aligns with the CRISC domain of Risk Response and Mitigation, where transfer is a distinct response strategy.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Risk Avoidance
Why it's wrong here
Avoidance means ceasing the activity that causes risk.
- ✓
Risk Transfer
Why this is correct
Insurance is a classic example of risk transfer.
- ✗
Risk Mitigation
Why it's wrong here
Mitigation involves reducing risk through controls, not transferring financial impact.
- ✗
Risk Acceptance
Why it's wrong here
Acceptance would be tolerating the risk without transferring or mitigating.
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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.