A company buys insurance to protect itself against a cyberattack. This type of traditional risk response isSelect answer from the options belowinherent risk.residual risk.transferring risk.avoiding risk.
Question
A company buys insurance to protect itself against a cyberattack. This type of traditional risk response isSelect answer from the options belowinherent risk.residual risk.transferring risk.avoiding risk.
Solution
The correct answer is "transferring risk." This is because when a company buys insurance to protect itself against a cyberattack, it is transferring the risk to the insurance company. If a cyberattack does occur, the insurance company will bear the financial burden, not the company that bought the insurance. This is a common risk management strategy.
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