A company determines that it is prohibitively expensive to become compliant with new credit card regulations. Instead, the company decides to purchase insurance to cover the cost of any potential loss. Which of the following is the company doing?
A) Transferring the risk
B) Accepting the risk
C) Avoiding the risk
D) Migrating the risk

Question

Quizplus · Accepted Answer

The company is transferring the risk by purchasing insurance, which shifts the financial burden of potential losses to the insurance provider.

A Company Determines That It Is Prohibitively Expensive to Become