An organization has established a contract with a vendor that includes penalties for loss of availability. Which risk treatment has been adopted by the organization?
Correct Answer: C
The organization has adopted the risk treatment of transfer, which means that it has shifted some or all of the potential negative consequences of a risk event to another party, such as a vendor, an insurer, or a partner. By including penalties for loss of availability in the contract, the organization has transferred the financial impact of a service disruption to the vendor, who will be liable for compensating the organization for the loss.
Transfer does not eliminate the risk, but it reduces the organization's exposure to the risk.
References:
*ISACA, Risk and Information Systems Control Review Manual, 7th Edition, 2020, p. 2111
*ISACA, A Nuanced View of Risk Response2