When Selecting a Technical Solution for Identity Management, an Architect

question 23

Multiple Choice

When selecting a technical solution for identity management, an architect chooses to go from an in-house solution to a third-party SaaS provider. Which of the following risk management strategies is this an example of?

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

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Definitions:

Cost Method

A method of accounting where the investment is recorded at its acquisition cost, without subsequent change to market value.

Equity Method

An accounting technique used for recording investments in associate companies where the investment is initially recorded at cost and adjusted thereafter for the post-acquisition change in the investor's share of net assets of the investee.

Stock Investments-Long

Investments in stock securities intended to be held for a long-term period for capital appreciation, dividend income, or both.

Common Stock

Equity securities representing ownership in a company, entitling holders to vote and share in the company's profits.