Exam CRISC topic 1 question 410 discussion

The answer is A. According ISACA Crisc book 6th edition: Risk transfer is a decision to reduce loss by having another organization incur the cost. The most common example of risk transfer is the purchasing of insurance, which provides a guarantee of compensation or replacement should a loss occur. Partnerships are another form of risk transfer, in which two or more organizations work together under an arrangement in which both risk of loss and potential for profit are divided among the participants according to agreed-upon terms and conditions.

D. Mitigation: This involves taking steps to reduce the severity or likelihood of the risk. A reciprocal agreement for disaster recovery is a form of mitigation. It reduces the impact of a disaster by ensuring that there are agreed-upon resources and support available from another organization, thereby lessening the potential damage or downtime. "A" would be wrong because Transfer involves shifting the risk to another party, typically through insurance or outsourcing. A reciprocal agreement, where two parties agree to assist each other in the event of a disaster, doesn't transfer the risk to another party; instead, it involves a mutual arrangement for support.

In the context of risk management, a reciprocal agreement for disaster recovery is a form of risk transfer. These agreements typically involve two or more parties agreeing to assist each other in the event of a disaster, such as by providing access to physical resources like data centres or other facilities. By entering into such agreements, the organization transfers some of the risk associated with disaster recovery to the other party in the agreement.

Reciprocal agreements are a form of risk transfer because they transfer the risk of a disaster to another organization. In this case, the organization is transferring the risk of not being able to recover from a disaster to another organization. Risk transfer is a risk treatment option where the risk is transferred to another party, such as an insurance company or a third-party service provider. In the case of disaster recovery planning, the organization is transferring the risk of not being able to recover from a disaster to another organization through a reciprocal agreement. Therefore, the correct answer to the question is option A: Transfer.

mitigation

The correct answer is 'Mitigation'. A reciprocal agreement in which two organizations agree to provide computing resources to each other in the event of a disaster is a form of risk mitigation. This usually works well if both organizations have similar information processing facilities. Because the intended effect of reciprocal agreements is to have a functional DRP, it is a risk mitigation strategy

A is the Answer

In reciprocal agreements; you are transferring the risk of not being able to recover from a disaster to another organization same as sharing an opportunity in teaming agreement (subcontracting).

Agree with A. Reciprocal agreement is between two entities, so they are sharing the risk between them. Sharing = Transfer in ISACA world.

NO. When an organization's disaster recovery plan has a reciprocal agreement, the risk treatment option being applied is Transfer. A reciprocal agreement in a disaster recovery plan is a type of risk transfer in which two organizations agree to provide reciprocal support in the event of a disaster. If one organization experiences a disaster that affects its ability to operate, the other organization agrees to provide support and resources to help the affected organization recover. In exchange, the first organization agrees to provide support and resources to the second organization if it experiences a disaster.

Correct answer is D. Reciprocal agreement is a form of risk mitigation.

I think this answer is correct. R3-15 is similar.