In addressing an identified risk, which strategy aims to shift some of the risk to other parties?

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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