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What approach should the risk manager of Company XYZ recommend after uncovering systemic security issues in Company ABC's flagship product?

  1. Avoid the risk

  2. Transfer the risk

  3. Mitigate the risk

  4. Accept the risk

The correct answer is: Avoid the risk

The most suitable recommendation for addressing systemic security issues is to avoid the risk. This approach involves eliminating or fundamentally changing the processes, products, or systems that are associated with the identified security vulnerabilities. By opting for avoidance, the risk manager aims to prevent the potential impacts of security breaches that could harm Company ABC’s reputation, lead to financial losses, or violate regulatory compliance. In situations where systemic issues exist, simply transferring the risk to another entity or accepting the risk may not sufficiently safeguard the organization or its stakeholders. Mitigation could be considered as a secondary step, often following the avoidance of risk; however, addressing root causes to eliminate the risk entirely is usually the most effective long-term solution. In this case, avoidance of the risk directly aligns with the goal of ensuring that systemic security vulnerabilities do not pose future threats to the company's operations or reputation.