ITPEC IP April 2024 Question 37
ITPEC IP April 2024 — Question 37 of 100
Withdrawing from a service that carries high risk is risk avoidance because it eliminates the activity that creates the risk. Avoidance changes the plan so the organization is no longer exposed to that particular threat, for example by discontinuing a service, rejecting a technology, or not entering a risky market.
Answer (d)
Why not others:
- (a) adding controls to lower likelihood or impact is risk reduction
- (b) insurance transfers some financial consequence to another party
- (c) knowingly bearing a small risk without further treatment is risk acceptance
Key rule: Avoid the activity to avoid the risk; reduce it with controls, transfer it through contracts or insurance, or accept it with informed approval.
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