Final answer:
A company buying insurance to protect against a cyberattack is engaging in 'transferring risk'. Insurance allows the company to transfer the financial burden of a cyberattack to the insurer in exchange for regular premium payments.
Step-by-step explanation:
When a company buys insurance to protect itself against a cyberattack, this type of traditional risk response is known as transferring risk. By purchasing insurance, the company is transferring the financial risk of a cyberattack to the insurance firm. The concept of insurance is fundamentally about protecting individuals or organizations from significant financial losses by making regular payments, or premiums, to an insurance firm. These premiums are priced based on the probability of events occurring, and if a group member suffers a covered loss, they are remunerated by the insurance firm.