During a Risk Assessment, Results Show That a Fire in One

question 1018

Multiple Choice

During a risk assessment, results show that a fire in one of the company's datacenters could cost up to $20 million in equipment damages and lost revenue. As a result, the company insures the datacenter for up to $20 million damages for the cost of $30,000 a year. Which of the following risk response techniques has the company chosen?

• A) Transference
• B) Avoidance
• C) Mitigation
• D) Acceptance

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Definitions:

Personal Jurisdiction

The legal authority of a court over the parties to a lawsuit, based on their geographic or other relevant connections to the location where the court sits.

Service of Process

The procedure by which a party to a lawsuit gives an appropriate notice of initial legal action to another party (such as a defendant), court, or administrative body, thus allowing them to respond to the proceeding.

Montana

A state located in the Western United States, known for its vast wilderness areas and Rocky Mountain landscapes.

Articles of Incorporation

A document that establishes the existence of a corporation in the United States and includes basic information like the corporation's name, type of corporation, and the nature of the business.