CompTIA Security+ (SY0-601) — Question 678

The board of directors at a company contracted with an insurance firm to limit the organization's liability. Which of the following risk management practices does this BEST describe?

Answer options

• A. Transference
• B. Avoidance
• C. Mitigation
• D. Acknowledgement

Correct answer: A

Explanation

The correct answer is A, Transference, as it refers to shifting the risk to another party, in this case, an insurance firm. Avoidance (B) involves eliminating the risk entirely, Mitigation (C) aims to reduce the impact of the risk, and Acknowledgement (D) refers to recognizing the risk without taking action.