Deciding to get cyber insurance is linked with which of the following risk mitigation types?

Choosing to obtain cyber insurance is a strategy associated with the transfer of risk. This approach involves shifting the financial burden and potential loss from a cybersecurity incident to an insurance provider. By securing insurance coverage, an organization can manage the financial implications of data breaches, cyberattacks, or other related incidents without bearing the full cost itself.

In this context, transferring risk through cyber insurance allows the organization to focus on its core activities while having a safety net in place if a cybersecurity event occurs. The insurer takes on the responsibility for certain losses, which underscores the importance of risk transfer in comprehensive risk management strategies.

Alongside this, acceptance, elimination, and reduction represent other strategies for handling risks but do not convey the same mechanism of financial risk management that insurance represents. Acceptance involves acknowledging the risk and deciding to bear the consequences, elimination means striving to completely remove the risk, and reduction refers to implementing measures to lower the likelihood or impact of the risk. Cyber insurance distinctly characterizes the transfer of financial risk to another party.