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Risk transfer

As explained in Data-Driven Cybersecurity

A risk response strategy that shifts responsibility or financial consequences for a risk to another entity.

Risk transfer shifts responsibility or financial consequences for a risk to another entity rather than eliminating the risk. section 5.3.1 section 8.1.3

Organizations commonly transfer risk by:

  • Purchasing cybersecurity insurance to allocate breach-related financial effects to an insurer. section 5.3.1 section 8.1.3
  • Outsourcing security functions to a specialized third-party provider, especially when the risk lies beyond direct control. section 5.3.1 section 8.1.3
  • Recognizing that transfer reduces assigned responsibility or financial impact but does not remove the underlying risk. section 5.3.1

Data-breach coverage

An organization purchases an insurance policy covering legal fees, notification expenses, and recovery efforts after a data breach. The breach risk remains, but some financial consequences move to the insurer. section 8.1.3

How Data-Driven Cybersecurity covers it

How deep it goes
Defines the strategy and gives insurance and outsourcing examples, while stopping short of contract, policy, or implementation detail.
Examples
Uses cybersecurity insurance for breach costs and outsourcing security functions to a specialized third-party provider.
What you can do after
Evaluate/understand when insurance or outsourcing can shift risk responsibility without eliminating the underlying threat.
How it connects
Connects risk transfer with risk mitigation, risk acceptance, risk avoidance, deterrence, and detection and response.
Cover of Data-Driven Cybersecurity
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Related concepts

This explainer was generated by Manning's knowledge graph from the text of Data-Driven Cybersecurity. The section links point to the parts of the book it draws on.