An organization has purchased insurance coverage against potential unauthorized disclosure of personal data. What should be expected as a result of this risk response?
A. Reduced impact of a data breach.
Insurance coverage is a form of risk transfer, where the financial impact of a data breach is mitigated by transferring some of the potential costs to the insurance provider. This means that in the event of a data breach, the insurance can cover certain expenses, thus reducing the financial burden on the organization. However, it's important to note that insurance does not reduce the likelihood of a data breach occurring, nor does it remove the scenario from further analysis. While it may affect the organization's tolerance of the risk by mitigating financial impacts, the underlying risk of a data breach still exists and requires ongoing management.
The answer is A, you reduce the financial impact in such case. however the likehood of such risk will not be affected by this response.
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