Choose the best definition of risk transfer.
A) Risk transfer is when an inherent risk is present, but the organization chooses not to act.
B) Risk transfer eliminates the risk by completely avoiding the events causing the risk.
C) Risk transfer is when a company decides to accept the risk but to minimize its impact if it occurs.
D) Risk transfer is the shifting of the risk to a third party.

Question

Quizplus · Accepted Answer

Risk transfer involves moving the responsibility or burden of a risk to another party, often through insurance or outsourcing, so that the third party assumes the financial or operational impact if the risk materializes.

Choose the Best Definition of Risk Transfer