Risk Management Techniques for Information Security
Question
Your company is covered under a liability insurance policy, which provides various liability coverage for information security risks, including any physical damage of assets, hacking attacks, etc.
Which of the following risk management techniques is your company using.
Answers
Explanations
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A. B. C. D.D.
The risk management technique that your company is using is risk transfer.
Risk transfer involves transferring the risk to another party, usually through the purchase of insurance or by outsourcing the risk to a third party. By purchasing liability insurance coverage, your company is transferring the risk of financial losses from information security risks to the insurance company. This means that in case of any physical damage to assets or hacking attacks, the insurance company will compensate for any financial losses incurred by the company.
It is important to note that risk transfer does not eliminate the risk entirely; it simply shifts the responsibility for managing the risk to another party. In this case, the insurance company is responsible for managing and mitigating the risk.
Risk acceptance, on the other hand, is a risk management technique where the organization chooses to accept the risk and absorb any potential losses that may occur. This technique is often used when the cost of mitigating the risk is higher than the potential loss from the risk.
Risk avoidance is a risk management technique where the organization avoids the activity or situation that creates the risk altogether. This technique is often used when the potential loss from the risk is too high, and the organization cannot afford to take the risk.
Risk mitigation is a risk management technique that involves reducing the probability and/or impact of a risk. This technique is often used when the potential loss from the risk is too high, and the organization cannot afford to take the risk. It involves implementing controls or measures to prevent the risk from occurring or reducing the impact of the risk if it does occur.
In summary, your company is using the risk transfer technique by purchasing liability insurance coverage to transfer the risk of financial losses from information security risks to the insurance company.
