A manager decides to acquire cybersecurity insurance for the company. Which of the following risk management strategies is the manager adopting?

The manager is adopting a risk transference strategy by acquiring cybersecurity insurance for the company. This approach involves shifting the financial consequences of certain risks to a third party—in this case, the insurance provider. By purchasing cybersecurity insurance, the manager is ensuring that if a covered cybersecurity incident occurs, the financial impacts (such as costs associated with data breaches, legal expenses, and recovery efforts) will be managed by the insurance company rather than the company itself.

This strategy allows the company to effectively manage its overall risk exposure by transferring some of that risk to a specialized organization that can absorb potential losses. Furthermore, this can enable the company to focus on its core operations while relying on the insurer to handle certain risks. Other risk management strategies, such as risk acceptance, risk avoidance, and risk mitigation, focus on different approaches to handling risks directly rather than transferring them to another entity.