Question

A privacy solutions engineer is documenting risk treatment decisions for a customer analytics platform. Management proposes purchasing a cyber-liability insurance policy that covers costs of data breach litigation and regulatory fines as the primary treatment for the identified privacy risk. What is the MOST important limitation the engineer should raise about relying on this approach?

Accepted Answer

Insurance transfers financial consequences but does not reduce the likelihood or impact of harm to affected data subjects

Answer

Insurance premiums increase the total cost of ownership of the analytics platform

Answer

Insurance policies must be reviewed annually to remain valid

Answer

Insurance requires approval from the supervisory authority before it can be relied upon