ITIL4F Key Concepts of ITIL 4 Practice Question
A service consumer transfers costs and risks to the provider by using a service. Which of the following is an example of a risk that is removed from the consumer?
⚠ Common exam trap
Watch out — candidates often confuse cost transfer (Option B) with risk transfer, or mistakenly think that all operational risks (like employee errors or data loss from internal processes) are automatically assumed by the provider, when in fact only risks explicitly covered by the service warranty and SLA are transferred.
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
✓
The provider's hardware failure causing service outage
It describes a risk that is transferred from the consumer to the provider when using a service. The provider's hardware failure causing a service outage is a risk that the consumer no longer bears; instead, the provider is responsible for managing and mitigating this risk through redundancy, SLAs, and incident management processes. This aligns with the ITIL 4 concept of utility and warranty, where warranty ensures the service is available when needed, shifting operational risks to the provider.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The risk of employee errors in using the service
Why it's wrong here
This risk typically remains with the service consumer. While the service provider delivers the service, the consumer is responsible for ensuring their employees are adequately trained and follow correct operational procedures when interacting with it. Employee errors in service usage, such as incorrect data entry or misuse of features, are internal control issues for the consumer, not risks transferred to the provider. The provider cannot control the consumer's internal user behavior.
- ✗
The cost of purchasing and maintaining servers
Why it's wrong here
While the consumer no longer directly incurs this cost when using a service, they don't "transfer" it in the sense of offloading a pre-existing burden. Instead, the service provider assumes the responsibility and financial burden for purchasing and maintaining the necessary infrastructure as part of their operational model. The consumer pays a service fee for the outcome, which implicitly covers these provider costs, rather than directly transferring the cost of specific assets.
- ✗
The risk of data loss due to the consumer's internal processes
Why it's wrong here
This risk remains squarely with the service consumer. While the provider is responsible for the security and integrity of the service infrastructure, the consumer retains accountability for their own internal data handling processes, access management, and user configurations that could lead to data loss. The provider cannot mitigate risks stemming from the consumer's specific operational procedures or internal governance failures.
- ✓
The provider's hardware failure causing service outage
Why this is correct
This option perfectly illustrates a risk transferred from the consumer to the provider. When a consumer utilizes a service, they rely on the provider's infrastructure and operational capabilities. The risk associated with the provider's own hardware failing and subsequently causing a service outage is entirely borne by the provider, who is responsible for maintaining availability and resolving such incidents according to agreed service levels. The consumer pays for the service's outcome, not the direct management of infrastructure risks.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This ITIL4F practice question is part of Courseiva's free PeopleCert 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 ITIL4F exam.