ITPEC IP April 2025 Question 44
When risk treatment in risk management for information security is divided into the four (4) categories of risk avoidance, risk sharing, risk mitigation, and risk retention, which of the following is the appropriate explanation of risk sharing?
Explanation
Transferring or distributing the risk to another organization by agreement, such as buying insurance — this is risk sharing.
The four ways to treat a risk, one per option:
- •Risk avoidance — stop the activity that carries the risk, so the risk no longer exists: option (a)
- •Risk mitigation — take measures that lower the likelihood or the damage: option (b)
- •Risk sharing (transfer) — pass part of the loss to a third party by contract, such as an insurer or an outsourcing partner: option (c)
- •Risk retention (acceptance) — knowingly take no special measure because the risk is small: option (d)
Answer (c)
Why not others:
- •(a) — not handling personal information at all removes the risk factor itself, which is risk avoidance
- •(b) — spreading the data center over distant sites lowers the damage a disaster can do, which is risk mitigation
- •(d) — accepting a small risk without measures is risk retention
Key rule: Sharing does not make the event less likely; the disaster can still happen, but part of the financial loss falls on the other party.
Security · AI-written, may contain errors
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