ITIL4F Key Concepts of ITIL 4 Practice Question
Which TWO of the following are examples of risks that can be removed or reduced by a service provider according to ITIL 4?
⚠ Common exam trap
ITIL 4 often tests the distinction between risks the service provider can directly control (operational risks like hardware failure and backup failures) versus risks that are external or customer-owned (regulatory, market, or HR risks), leading candidates to incorrectly select options that seem plausible but are outside the provider's scope of risk reduction.
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 of data loss due to backup failures
In ITIL 4, a service provider can remove or reduce certain risks for the consumer by taking on activities and responsibilities that the consumer would otherwise have to manage. Option B is correct because backup is a classic service provider responsibility: by implementing and operating reliable backup and restore capabilities (e.g., scheduled backups, replication, and tested recovery), the provider reduces the consumer's risk of data loss due to backup failures. Option C is correct because managing and maintaining server hardware — including monitoring, redundancy, failover, and replacement — is a core infrastructure service that a provider can assume, thereby reducing the consumer's exposure to server hardware failure. Option A is not correct in this context because regulatory compliance obligations typically remain with the consumer organization, even if a provider offers compliance-related controls; the risk of fines is not generally removed or reduced by the provider. Option D is not correct because employee turnover is an internal HR and organizational risk that a service provider does not normally absorb for the consumer. Option E is not correct because market competition is a business and strategic risk outside the scope of service provider risk transfer under ITIL 4.
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 of regulatory fines for non-compliance
Why it's wrong here
ITIL 4 frames service provider risk removal around risks the consumer would otherwise carry in pursuing outcomes, such as demand, capability and resource risks. Regulatory compliance obligations remain the consumer's own accountability regardless of provider involvement. This would be correct if the stem addressed transferred operational or demand-side risks.
- ✓
Risk of data loss due to backup failures
Why this is correct
Where the provider operates and verifies backup and restore arrangements, the consumer's exposure to losing data through failed backups is reduced or removed. This satisfies ITIL 4's risk-reduction principle by shifting responsibility for backup reliability to the service provider.
- ✓
Risk of server hardware failure
Why this is correct
A service provider owning and maintaining the servers absorbs hardware faults through redundancy, monitoring and replacement, so the consumer no longer carries that exposure. This satisfies ITIL 4's service-provider risk removal by transferring the physical infrastructure failure risk away from the consumer.
- ✗
Risk of employee turnover
Why it's wrong here
Employee turnover is an internal workforce management concern, not a risk transferred to or absorbed by a service provider under ITIL 4's service relationship model. The provider reduces consumer risks tied to outcomes, demand and resource constraints. This would be correct if the stem described risks inherent in the consumer's own service consumption.
- ✗
Risk of market competition
Why it's wrong here
Market competition is a strategic business risk the consumer retains; a service provider cannot remove or reduce it through service delivery. ITIL 4 addresses risks such as demand, resource and capability constraints the consumer would otherwise bear. This would be correct if the stem concerned risks arising from the consumer's own service consumption.
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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.