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ITIL4F Key Concepts of ITIL 4 Practice Question

An organization is considering adopting a cloud-based CRM system to replace its on-premise solution. According to ITIL 4, which of the following is a risk that is transferred from the consumer to the service provider?

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 risk of hardware failure in the data center

When using a cloud service, the provider typically takes on risks like hardware failures, so the consumer no longer bears that risk.

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 non-compliance with industry regulations

    Why it's wrong here

    While cloud providers often offer services and infrastructure certified for various compliance standards, the ultimate responsibility for ensuring an organization's specific data, processes, and usage patterns adhere to industry regulations (e.g., GDPR, HIPAA) remains with the consumer. The customer defines what data is stored, how it's accessed, and how their internal operations align with regulatory requirements, making this a shared but primarily consumer-owned risk. The provider ensures the platform's compliance, but the customer ensures their *use* of the platform is compliant.

  • The risk of hardware failure in the data center

    Why this is correct

    This option is correct because in a cloud-based CRM (Software as a Service model), the cloud provider is entirely responsible for managing and maintaining the underlying physical infrastructure, including servers, storage arrays, and networking equipment within their data centers. Consequently, the risk associated with hardware component failures, and the subsequent impact on service availability, is transferred from the consuming organization to the cloud service provider. The provider implements redundancy and fault tolerance to mitigate this risk.

  • The risk of data loss due to user error

    Why it's wrong here

    Despite the robust backup and recovery services offered by cloud providers, the risk of data loss stemming from actions initiated by the customer's own users or administrators, such as accidental deletion, incorrect data entry, or misconfiguration, typically remains with the consumer. Cloud providers protect against infrastructure failures, but they generally do not assume responsibility for data integrity issues caused by human error or malicious activity originating from within the customer's environment. The customer controls user access and data manipulation.

  • The risk of reduced employee productivity during migration

    Why it's wrong here

    The process of migrating to a new CRM system, whether cloud-based or on-premise, inherently involves significant organizational change, including new workflows, training requirements, and potential temporary disruptions to daily operations. Any reduction in employee productivity during this transition phase, as staff adapt to the new system and processes, is a direct operational impact that the adopting organization must manage and mitigate internally. This risk is entirely owned by the consumer, as it pertains to their internal workforce and change management capabilities.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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