SaaS Risk Response Methods

C.

The risk response method applied in this scenario is "Transference".

Risk transference is the process of transferring the risk to a third party or another entity that can better handle or manage the risk. In this case, the SaaS provider is transferring the responsibility of any misuse of the service to the customer.

The SaaS provider is defining the terms of service agreement, where they specify that any misuse of the service will be the customer's responsibility. This means that the SaaS provider is transferring the risk of any misuse to the customer.

The other risk response methods are:

• Acceptance: Accepting the risk and taking no action to address it.
• Avoidance: Eliminating the risk by avoiding the activity or situation that could lead to the risk.
• Mitigation: Reducing the risk by implementing controls or countermeasures to lessen the likelihood or impact of the risk.

In summary, the risk response method applied in the scenario is "Transference" because the SaaS provider is transferring the responsibility of any misuse of the service to the customer.