A vulnerability management lead recommends purchasing an insurance policy for legacy systems. What type of risk strategy is this?

The recommended strategy of purchasing an insurance policy for legacy systems is an example of risk transference. This approach involves shifting the financial burden associated with potential risks to a third party—in this case, the insurance company. By taking out an insurance policy, the organization is not eliminating the risk of loss or damage due to vulnerabilities in the legacy systems; instead, it is transferring that risk, along with the associated potential costs, away from itself.

In risk transference, the organization acknowledges that the risk exists but seeks to manage the financial implications should the risk materialize. Insurance acts as a financial safety net, allowing the organization to maintain operations while securing protection against significant financial losses.

In contrast, risk avoidance would involve completely eliminating the risk by not using the legacy systems at all, which is not the case here. Risk acceptance means acknowledging the risk without taking further action—essentially saying that the risk is manageable without mitigating it or transferring it. Risk mitigation involves implementing measures to reduce either the likelihood or impact of the risks—such as upgrading systems or applying patches—which differs from taking out insurance to cover potential losses.