CCSP Legal, Risk, and Compliance Practice Question
A multinational corporation uses multiple cloud service providers for its critical applications. The board is concerned about concentration risk. Which strategy would best address this risk?
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
✓
Adopting a multi-cloud strategy that distributes applications across multiple cloud providers
Concentration risk refers to over-reliance on a single provider. A multi-cloud strategy reduces this risk by distributing workloads across multiple providers, avoiding a single point of failure.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Negotiating a longer contract with the primary cloud provider to ensure stability
Why it's wrong here
Longer contract increases reliance, not reduces concentration risk.
- ✗
Implementing a hybrid cloud model with on-premises infrastructure only
Why it's wrong here
Hybrid cloud may still involve one provider; multi-cloud specifically addresses concentration.
- ✓
Adopting a multi-cloud strategy that distributes applications across multiple cloud providers
Why this is correct
Multi-cloud reduces dependency on a single provider.
- ✗
Requiring each business unit to use the same cloud provider for consistency
Why it's wrong here
This increases concentration risk.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CCSP 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 CCSP exam.