IAPP CIPT Practice Test 1

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.
Encrypting sensitive personal data during collection and storage
Purchasing insurance to cover the organization in case of a breach.
Applying industry standard data handling practices to the organization' practices.
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.