CIPT Exam Dumps | What would be an example of an organization transferring the risks associated with a data breach?

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Question 56/96

What would be an example of an organization transferring the risks associated with a data breach?

A. Using a third-party service to process credit card transactions.

B. Encrypting sensitive personal data during collection and storage

C. Purchasing insurance to cover the organization in case of a breach.

D. Applying industry standard data handling practices to the organization' practices.

Correct Answer: C

Risk transfer involves shifting the potential negative consequences of a risk to a third party. By purchasing insurance, an organization transfers the financial risk associated with a data breach to the insurance company.
This is a common practice to mitigate the impact of data breaches.
References:
* IAPP CIPT Study Guide: Risk Management and Data Breaches.
* IAPP Certified Information Privacy Technologist (CIPT) Handbook: Section on Risk Management.

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