Asked by Cristian Garcia on Jun 26, 2024

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Your company decides to purchase security insurance from Travelers Insurance in case your systems get hacked and employee information is stolen. This is an example of risk _________.

A) acceptance
B) avoidance
C) limitation
D) transference

Risk Transference

A risk management technique where the potential for loss or damage is shifted from one party to another, often through insurance or contracts.

Security Insurance

Financial products or services that provide protection against losses from cybersecurity incidents or data breaches.

  • Understand the principles of risk management strategies in cybersecurity including risk transference.
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Shikha AgrawalJul 01, 2024
Final Answer :
D
Explanation :
Purchasing insurance to protect against the financial impact of a security breach is an example of risk transference. This means the financial risk associated with a data breach is transferred to the insurance company.