Ciscon Telecom is a mobile operator in the European Union.The company provides personalized services to its customers and its databases contain valuable information about its customers.The loss of customer information which is used to decide services would be extremely harmful to the organization.Which of the following strategies used by Ciscon is an example of risk transference?
A) The company insures any possible data loss for a large sum.
B) The company forms a special team of top executives to monitor and correct the information policies.
C) It installs a corporate firewall to protect unauthorized access to information.
D) It enforces a strict employee data policy and prohibits employees from unauthorized access.
E) The company decides to absorb any damages that might occur.

Question

Quizplus · Accepted Answer

Risk transference involves shifting the risk to a third party. In this case, Ciscon insures any possible data loss, which transfers the risk to the insurance company, making it an example of risk transference.

Ciscon Telecom Is a Mobile Operator in the European Union