Risk Assessment

Correct Answer: Develop a contingency plan

The most appropriate response strategy for a high-impact, low-probability risk is to develop a contingency plan.

For high-impact risks, it's crucial to have a plan in place to mitigate the potential consequences if the risk occurs. A contingency plan allows the project team to respond quickly and effectively, minimizing the impact on the project.

While the risk has a low probability, its high impact makes it important enough to warrant careful planning. Developing a contingency plan strikes a balance between preparing for the risk and not overcommitting resources to prevent an unlikely event.

Implementing preventive measures might not be cost-effective for a low-probability risk. Transferring the risk through insurance could be expensive and may not cover all aspects of the project impact. Accepting the risk and allocating a reserve budget might not provide sufficient protection against a high-impact event.

A well-developed contingency plan ensures the team is prepared to handle the risk if it materializes, making it the most appropriate strategy in this scenario.

Correct Answer: Identify assets and potential threats

Identifying assets and potential threats is the first step in a risk assessment to understand what is at risk and what threats could compromise the security of those assets.

Correct Answer: Implement multi-factor authentication

Multi-factor authentication adds another layer of security to user logins, significantly reducing the likelihood of unauthorized access and mitigating the potential increase in cyberattacks when expanding online services.