Question

You are a very small company that sells healthcare insurance plans. You estimate that the breach of your customer database will cost you $100,000 and that this might happen once in 5 years. A vendor wants to sell you a Data Loss Prevention (DLP) solution that would cost $30,000 per year.
Which of the following is the best course of action?

a. Spend $25,000 on cyber insurance to transfer the risk
b. Spend the $30,000 to mitigate the risk
c. Accept the risk
d. Spend whatever it takes to ensure that this data is safe. Its sensitive data, after all!

Answer 1

Answer:

Spend $25000 on cyber insurance to transfer the risk

Explanation:

A cyber insurance is the best option since it protects the business from internet based risk such as the breach of customer database and other risks involved in the use of the internet by businesses and individual internet users.

The cost of purchasing a Data Loss Prevention solution that would cost $30000 per year will amount to $150000 in 5 years which will be more expensive compared to the cost of the risk it is been used to prevent. hence it is not a good option. also accepting the risk is a very bad option becasue the risk might harm the business beyond expectation.