In addressing an identified risk, which strategy aims to shift some of the risk to other parties?
- risk avoidance
- risk reduction
- risk retention
- risk sharing
Explanation: There are four potential strategies for responding to risks that have been identified:
- Risk avoidance – Stop performing the activities that create risk.
- Risk reduction – Decrease the risk by taking measures to reduce vulnerability.
- Risk sharing – Shift some of the risk to other parties.
- Risk retention – Accept the risk and its consequences.
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