All of the following are examples of transference risk response except for which one?

Warranties transfer the risk of product defects or failures from the buyer to the manufacturer or seller for a defined period, qualifying them as a transference strategy.

Performance bonds transfer the financial risk of contractor non-performance or default to a surety or bonding company, making them a direct form of risk transference.

Life cycle costing is a financial analysis method used to estimate the total cost of owning or operating an asset across its entire useful life, including acquisition, operation, maintenance, and disposal. It is a cost-forecasting and decision-support tool, not a contractual or financial instrument that assigns risk responsibility to another party. Because it does not transfer risk exposure to a third party, it is categorically excluded from transference risk responses.

Insurance transfers the financial consequences of a specified loss event from the policyholder to the insurance provider in exchange for a premium, which is the most common transference risk response.