CRISC IT Risk Assessment Practice Question
Which risk treatment option involves purchasing cyber insurance?
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
Cyber insurance is a form of risk transfer, where the financial impact of a loss is shifted to the insurer.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Avoid
Why it's wrong here
Avoidance eliminates the activity or exposure generating the risk entirely, which insurance does not do; the risk remains and is merely funded. It tempts because avoidance is a recognised treatment, but it would be correct only where the organisation stops the risky processing altogether.
- ✓
Transfer
Why this is correct
Transfer shifts the financial consequence of a risk to a third party. Cyber insurance does exactly this: the insurer absorbs covered losses in exchange for premiums, leaving the organisation's residual exposure reduced rather than retained, avoided, or mitigated.
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Mitigate
Why it's wrong here
Insurance transfers the financial consequence of a risk to a third party rather than reducing its likelihood or impact, so it is transfer, not mitigate. Mitigation is tempting because controls and insurance are both documented in risk registers, but mitigation changes the risk itself through safeguards.
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Accept
Why it's wrong here
Acceptance retains the risk and its financial impact, with no third-party compensation, whereas insurance shifts that loss to the insurer. It tempts because acceptance is valid for low-impact risks, but it would be correct only where the organisation consciously funds any loss itself.
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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.