CompTIA Security+ (SY0-501) — Question 330

A company determines that it is prohibitively expensive to become compliant with new credit card regulations. Instead, the company decides to purchase insurance to cover the cost of any potential loss. Which of the following is the company doing?

Answer options

• A. Transferring the risk
• B. Accepting the risk
• C. Avoiding the risk
• D. Migrating the risk

Correct answer: A

Explanation

The correct answer is 'Transferring the risk' because the company is shifting the financial burden of potential losses to the insurance provider. 'Accepting the risk' would imply the company is willing to take on the potential losses themselves, while 'Avoiding the risk' means they would eliminate the exposure altogether. 'Migrating the risk' is not a standard term used in risk management contexts.