Your company decides to purchase security insurance from Travelers Insurance in case your systems get hacked and employee information is stolen. This is an example of risk _________.
A) acceptance
B) avoidance
C) limitation
D) transference

Question

Quizplus · Accepted Answer

Purchasing insurance to protect against the financial impact of a security breach is an example of risk transference. This means the financial risk associated with a data breach is transferred to the insurance company.

Your Company Decides to Purchase Security Insurance from Travelers Insurance