Eliminating an asset or discontinuing an activity because the cost of protective controls is too high is an example of which risk response?

Prepare for the Coach CFE Exam. Study using flashcards and multiple-choice questions, each with hints and explanations. Get ready for your assessment!

Multiple Choice

Eliminating an asset or discontinuing an activity because the cost of protective controls is too high is an example of which risk response?

Explanation:
Avoiding risk means removing the source of the risk when trying to protect assets would be too costly or impractical. If the cost of protective controls for an asset or activity is prohibitive, discontinuing it eliminates the risk at its source. This is different from reducing risk through controls (mitigating), moving the risk to someone else (transferring), or simply accepting the risk without taking action (assuming).

Avoiding risk means removing the source of the risk when trying to protect assets would be too costly or impractical. If the cost of protective controls for an asset or activity is prohibitive, discontinuing it eliminates the risk at its source. This is different from reducing risk through controls (mitigating), moving the risk to someone else (transferring), or simply accepting the risk without taking action (assuming).

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy