A company manages sensitive customer data for multiple clients. The current authentication mechanism to access the database is username and passphrase. The company is reviewing the risk of employee credential compromise that may lead to a data breach and decides to take action to mitigate the risk before further actions can be taken to eliminate the risk. Which action should the company take for now?

IT Questions Bank › Category: Cyber Threat Management › A company manages sensitive customer data for multiple clients. The current authentication mechanism to access the database is username and passphrase. The company is reviewing the risk of employee credential compromise that may lead to a data breach and decides to take action to mitigate the risk before further actions can be taken to eliminate the risk. Which action should the company take for now?

Install fingerprint or retinal scanners.
Implement multi-factor authentication.
Purchase an insurance policy.
Enhance data encryption with an advanced algorithm.

Explanation: Risk management is the identification, evaluation, and prioritization of risks. Organizations manage risk in one of four ways, avoidance, mitigation, transfer, or accept. In this scenario, implementing multi-factor authentication can reduce the risk of employee credential compromise, which is a mitigation action. Installing fingerprint or retinal scanners eliminates the risk, which is avoidance. Purchasing an insurance policy is transferring the financial risk to the insurance company.

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