KSA Risk Management & Assessment 3

Question 1

A company buys cyber insurance to cover potential breach costs. Which risk response is this?

Accepted Answer

Transfer

Answer

Insurance shifts the financial consequence of a risk to a third party, which is transfer.

Question 2

A manager decides to cancel a project feature because its risk is too high. This is risk:

Accepted Answer

Avoidance

Answer

Avoidance eliminates the threat by removing the activity that creates it.

Question 3

Adding redundant servers to reduce the impact of a hardware failure is an example of:

Accepted Answer

Risk mitigation

Answer

Redundancy lowers the impact or likelihood of a failure, which is mitigation.

Question 4

What is the difference between active and passive risk acceptance?

Accepted Answer

Active acceptance sets aside contingency reserves; passive takes no action unless the risk occurs

Answer

Active acceptance establishes a contingency plan or reserve, while passive acceptance simply deals with consequences if they happen.

Question 5

A contingency plan is best described as:

Accepted Answer

A response prepared to execute only if a specific risk event occurs

Answer

Contingency plans are predefined responses activated when a risk event or its trigger occurs.

KSA - Knowledge, Skills, and Abilities Practice Test