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IAPP CIPT Practice Test 1

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

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

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

Encrypting sensitive personal data during collection and storage

Encrypting sensitive personal data during collection and storage

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

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

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

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

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Suggested answer: C
Explanation:

Reference: http://www.hpso.com/Documents/pdfs/newsletters/firm09-rehabv1.pdfPurchasing insurance to cover the organization in case of a breach. By purchasing insurance, theorganization can transfer the financial risks associated with a data breach to an insurance provider.

This is a risk management strategy that can help an organization mitigate the financial impact of a breach.

Transferring risk means shifting some or all of the potential losses or liabilities associated with a risk to another party2. Purchasing insurance is one way of transferring risk, as it allows the organization to share the financial burden of a data breach with an insurer. The other options do not involve transferring risk, but rather reducing, avoiding or accepting it.

asked 22/11/2024
Nidal Allamadani
55 questions