Risk Management for Cyber Security Managers - Risk Transference

The video discusses the third method of responding to risk: transferring it. When an organization cannot mitigate or avoid a risk due to cost, it can transfer the risk to another entity, such as an insurance company. An example given is a data center at risk of flooding, where the organization opts to pay for insurance rather than relocating the center. This way, if flooding occurs, the insurance covers the costs. The video concludes by introducing the next topic, risk acceptance.

What is the primary reason for transferring risk to another entity?

• To completely eliminate the risk

• To share the risk equally

• To avoid any responsibility for the risk

• To outsource the risk due to cost constraints

In the example provided, what risk is the organization facing?

• Power outage

• Flooding of the data center

• Data theft

• Cyber attack

Why does the organization choose to pay for insurance in the example?

• Because it is cheaper than moving the data center

• Because it guarantees no risk

• Because it is a legal requirement

• Because it increases the company's profits

What is the role of the insurance company in the risk transfer process?

• To manage the company's operations

• To cover the costs if the risk materializes

• To prevent the risk from occurring

• To provide technical support

What topic is hinted at for the next video?

• Risk analysis

• Risk acceptance

• Risk avoidance

• Risk mitigation