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Practice CPA®CPA ISC Practice Exam 5Question 60

Easy1 markMultiple Choice

Area II: SecurityRisk ManagementInsuranceArea II

CPA · Question 60 · Area II: Security

A company purchases cyber insurance. Which risk management strategy is this?

Answer options:

A.

Risk Avoidance

B.

Risk Mitigation

C.

Risk Transfer (Sharing)

D.

Risk Acceptance

How to approach this question

Insurance = Transfer.

Full Answer

C.Risk Transfer (Sharing)✓ Correct

Risk Transfer (Sharing)

Buying insurance transfers the financial risk of an incident to the insurer.

Common mistakes

Thinking insurance mitigates the technical risk (it doesn't stop the hack, just pays for it).

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