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Which activity relates to the strategy of transferring risk

A. Brainstorming with staff
B. Countersigning a check before proceeding with the transaction
C.insuring the company premises
D. Conducting a ‘what if’ analysis

2 Answers

4 votes

Answer:

C. insuring the company premises

Step-by-step explanation:

Trust me, I got 100% on the test.

What Is Risk Transfer? Risk transfer is a risk management and control strategy that involves the contractual shifting of a pure risk from one party to another. One example is the purchase of an insurance policy, by which a specified risk of loss is passed from the policyholder to the insurer.

User Ammar Bozorgvar
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1 vote

Answer:

A. Brainstorming with staff

Step-by-step explanation:

Risk transfer is a risk management strategy that is not used very often, and tends to be more common in projects where there are several parties. Basically, you transfer the impact and risk management to someone else. For example, you have a third party hired to write your software code, you can then transfer the risk of possible errors in the code to the third party. He will be responsible for managing that risk.

Transfers are usually formalized in project contracts. Insurance is another good example. If transportation of equipment is part of your project and the vehicle was involved in an accident, the insurance company will be responsible for providing new equipment to replace any damaged one. The project team recognizes that the accident can happen, but will not be responsible for handling replacement kits, or paying for damages, as it is now the responsibility of the insurance company.

As team consent is essential for risk transfer to be effective within a company, team brainstorming is an activity related to risk transfer. This is because through the group brainstoming to debate solutions to a problem, how to avoid them and who will be responsible for them.

User Cumhur
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