ISC Risk Management Practice Question
Which risk response strategy is being employed when a company purchases 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
✓
Transference
Transferring the financial impact of a risk to a third party is risk transference (sharing).
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Acceptance
Why it's wrong here
Acceptance involves acknowledging the risk without action.
- ✗
Avoidance
Why it's wrong here
Avoidance involves ceasing the activity.
- ✗
Mitigation
Why it's wrong here
Mitigation involves reducing the probability or impact.
- ✓
Transference
Why this is correct
Insurance is a classic risk transfer mechanism.
About these practice questions
Courseiva writes every ISC question from scratch — 219 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed August 2026 · checked against the official (ISC)² exam blueprint
This ISC practice question is part of Courseiva's free (ISC)² 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 ISC exam.