Comprehensive and Detailed 250–300 Words Explanation From Exact Extract from Chief Information Security Officer (CCISO) Documents:
The EC-Council CCISO Body of Knowledge defines risk transference as shifting the financial impact of a risk to another party, while the risk itself still exists. The clearest and most common example of risk transference is procuring cyber insurance.
CCISO documentation explains that cyber insurance does not eliminate or reduce the likelihood of an incident; instead, it transfers the financial consequences—such as breach response costs, legal fees, and recovery expenses—to an insurer.
Outsourcing may shift operational responsibility but does not inherently transfer financial risk. Communication and process changes are examples of risk acceptance or mitigation, not transference.
Therefore, per CCISO risk treatment strategies, procuring cyber insurance best represents risk transference.
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