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 the customers. The loss of customer information that is used to decide services would be extremely harmful to the organization. Which of the following strategies adopted by Ciscon is an example of risk transference

A. The company insures any possible data loss for a large sum.
B. It installs a corporate firewall to protect unauthorized access to information.
C. The company forms a special team of top executives to monitor and correct the information policies.
D. The company decides to absorb any damages that might occur.
E. It enforces a strict employee data policy and prohibits employees from unauthorized access.

A. The company insures any possible data loss for a large sum.

Explanation:

Risk Transference  is a common risk management technique which involves shifting of the burden of loss for a risk to another party through legislation, contract, insurance or other means.

In the case loss of customer information that is used to decide services which would be extremely harmful to Ciscon,  Ciscon will need to insure any possible data loss for a large sum as an adopted strategy of risk transference.

A. The company insures any possible data loss for a large sum.

Explanation:

Risk transference is the transferring of risk to a third party. It shift the burden that arise from lose of data from one party to another party through legislation or contract agreement. It is a common risk management techniques.

In this question, Ciscon telecom would be transferring the risk of losing data to a third party.

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