iSACA Cybersecurity Fundamentals Certification Practice Exam

Which risk response option involves not participating in a risky activity?

1. Mitigate

2. Accept

3. Avoid

4. Share/Transfer

The correct answer is: Avoid

The option that involves not participating in a risky activity is Avoid. When an organization chooses to avoid a risk, it means that they have decided to eliminate the possibility of that risk impacting them by refraining from engaging in certain actions or practices that could lead to negative outcomes. This could involve ceasing a business line, not launching a new product, or not engaging in a specific transaction that is deemed risky. Avoidance is often the most effective way to ensure that the risk does not manifest, as it eliminates the chance of the risk occurring entirely. By opting not to engage in the risky activity, the organization protects itself from potential losses or damages associated with that risk. Since avoiding risk eliminates exposure to its negative impacts, it is an important strategy in risk management. In contrast, the other options pertain to different strategies for handling risks. Mitigating involves reducing the likelihood or impact of a risk, accepting means acknowledging the risk without taking any action to address it, and sharing or transferring involves passing the risk to another party, often through insurance or outsourcing. Each of these approaches still involves some level of engagement with the risk, whereas avoidance entirely circumvents it.