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CISA QUESTION #1787
Question 1
What is the most critical issue associated with transferring operational risk to an outsourced contractor?
  • There is potential for uncontrollable escalation in operating costs over time
  • Outsourcing transfers the entire risk burden to the contractor
  • The organization retains legal liability regardless of who performs the work✔️
  • Outsourcing protects the company from all inherent operational risks
Correct Answer Explanation
While organizations can delegate operational tasks through outsourcing, they cannot transfer legal liability. As demonstrated by global product recall cases, companies remain financially and legally responsible for failures caused by their subcontractors. Liability is an organizational obligation that cannot be outsourced.