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CAPM Certification Practice Test 4
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Question : 16
Total: 50
Looking at the trend of natural disasters that have occurred in India in the past 5 years, your company is adamant to buy an insurance against earthquakes, as the other disasters do not seem prevalent in the area where the work is to be done. Which of the risk response strategies does this belong to?
Mitigation
Contingency
Transference
Acceptance
Validate
Solution:
Correct Answer is C. Risk Transfer requires shifting some or all of the negative impact of a threat, along with ownership of the response to a third party. Transferring the risk does not eliminate it.
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