ISC2 CC Security Principles Practice Question
An organization decides to purchase cyber insurance to cover potential losses from a data breach. This is an example of which risk treatment strategy?
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
Risk transfer involves shifting the financial impact of a risk to another party, such as through insurance.
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 mitigation
Why it's wrong here
Mitigation involves implementing controls to reduce risk.
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Risk acceptance
Why it's wrong here
Acceptance means acknowledging the risk without transferring or mitigating.
- ✓
Risk transfer
Why this is correct
Correct. Insurance transfers the financial risk to the insurer.
- ✗
Risk avoidance
Why it's wrong here
Avoidance means discontinuing the activity that causes the risk.
Go deeper
Related to this question
Learn chapter
Risk Management and Security Controls
Key term
Impact
Impact is the measure of the potential damage or harm that a risk event could cause to an organization's assets, operations, or reputation.
Key term
Risk transfer
Risk transfer is the practice of shifting the financial burden of a potential loss to another party, typically through insurance or contracts.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CC practice question is part of Courseiva's free ISC2 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 CC exam.