Which risk management response is being implemented when a company purchases insurance to protect against service outage?
a. Acceptance
b. Avoidance
c. Mitigation
d. Transference
Answer: D
The liability of risk is transferred through insurance policies. Answer A is incorrect because accepting a risk is to do nothing in response. Risk avoidance involves simply terminating the operation that produces the risk, making answer B incorrect. Answer C is not correct because mitigation applies a solution that results in a reduced level of risk or exposure.