350-201 Question 22
Single answerA medium-sized enterprise recently experienced a ransomware attack that caused significant financial and operational damage. The security team is now tasked with presenting a proposal to the executive board on risk mitigation strategies, including cyber risk insurance. What is the primary purpose of cyber risk insurance in this scenario?
- A
To guarantee complete prevention of future ransomware attacks
- B
To provide financial coverage for costs associated with cyber incidents
- C
To replace the need for implementing additional cybersecurity technologies
- D
To ensure compliance with regulatory requirements for cybersecurity reporting
Show answer and explanation
Correct answer: B
Explanation
Cyber risk insurance is designed to reduce the financial burden of cyber incidents by covering costs such as legal expenses, data recovery, and business interruption. It does not prevent cyberattacks or replace the need for cybersecurity technologies but serves as a financial safety net when incidents occur.
- A. Incorrect.
Cyber risk insurance does not prevent ransomware attacks or other cyber incidents; it provides financial support in case such events occur.
- B. Correct.
The primary purpose of cyber risk insurance is to mitigate the financial impact of cyber incidents by covering costs such as data recovery, legal fees, and business interruption.
- C. Incorrect.
Cyber risk insurance complements cybersecurity technologies but does not replace the need for robust technical defenses and proactive measures.
- D. Incorrect.
While cyber risk insurance can help with the costs of regulatory compliance after an incident, its purpose is not solely tied to ensuring compliance.