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Difficulty: MediumRisk Identification, Assessment, and Response Strategies

An organization relies on a legacy payment processing gateway that cannot be immediately upgraded due to vendor dependencies. A recent assessment identified multiple unpatched vulnerabilities in the gateway. To manage the associated exposure, the security team implements microsegmentation and deploys an inline web application firewall (WAF) to block exploit attempts, while the executive leadership team purchases a comprehensive cyber liability insurance policy to cover potential financial losses. Which of the following risk response strategies are implemented in this scenario? (Select TWO.)

  1. Risk mitigationAnswer
  2. Risk transferenceAnswer
  3. C
    Risk avoidance
  4. D
    Risk acceptance

Answer

The organization demonstrates risk mitigation by deploying technical security controls (microsegmentation and WAF) and risk transference by purchasing cyber liability insurance.
Risk mitigation is illustrated by deploying technical controls (microsegmentation and a web application firewall) to minimize vulnerability exposure. Risk transference is illustrated by securing a cyber liability insurance policy to pass monetary risk to an insurer.

Step-by-Step Solution

1
Analyze the technical security safeguards deployed by the security team.
Microsegmentation and inline web application firewalls lower the likelihood and impact of attacks against the legacy system, which represents risk mitigation.
Risk mitigation reduces risk exposure to an acceptable level using technical, administrative, or physical controls.
2
Analyze the financial protection measures authorized by executive leadership.
Purchasing cyber liability insurance shifts the monetary burden of potential breach incidents to the insurance carrier, which represents risk transference.
Risk transference reallocates financial risk exposure to a third party.

Key Concept

Risk Response Strategies
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Topics

Risk Identification, Assessment, and Response Strategies

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