Which of the following actions might management take in order to transfer a residual fraud risk?
A) Eliminate the related asset
B) Exit the related activity
C) Purchase fidelity insurance
D) Implement countermeasures

Question

Quizplus · Accepted Answer

Transferring residual fraud risk involves purchasing insurance coverage, such as fidelity insurance, to protect against losses resulting from fraud. Eliminating the asset or activity related to the fraud risk may reduce the risk, but it does not transfer it. Implementing countermeasures may also reduce the risk, but it does not transfer it. Therefore, the best choice is to purchase fidelity insurance.

Which of the Following Actions Might Management Take in Order