Which of the following is an example of segregation of exposures?

• A. Keeping all replacements in one location
• B. Backing up data offsite
• C. Maintaining a spare mechanical part on hand in a separate location
• D. Relying on a single vendor

Answer: (C)

Segregation of exposures means spreading critical assets or risks across separate locations or contexts so a single event doesn’t affect them all at once. Keeping a spare mechanical part in a different location demonstrates this well: if the primary site is disrupted, you can still access the spare elsewhere to keep operations going, reducing downtime and loss. If all replacements were kept in one location, a single disaster could remove both the primary items and the spares, creating a bigger setback. Backing up data offsite helps protect information and support recovery, which is a form of resilience, but it targets data protection rather than physically separating a critical asset from the same risk. Relying on a single vendor increases risk by concentration in one supplier, rather than distributing exposures.