Which one of the following is the best example of transference?

Question

Options

• AYour program has some very dangerous activities so you hire a training company to train your
• BYour program creates an opportunity that your company can realize on its own so it brings in a
• CYour program must be completed by a given deadline as government inspectors are scheduled to
• DYour program is dealing with a new technology that you and your program team are not familiar

• B
  7% (2)
• C
  4% (1)
• D
  89% (25)

Explanation

Transference means shifting the risk to a third party who is better equipped to handle it. Option D describes a program dealing with unfamiliar new technology - the risk here is the team's lack of expertise - and the implied response is to bring in an external firm or specialist to manage that work, thereby transferring the risk. Option A (hiring a training company to train your team) is mitigation - it reduces the risk without shifting it. Option B (bringing in a partner to exploit an opportunity) is sharing - a positive-risk response. Option C (a deadline imposed by inspectors) is a constraint, not a risk response at all.

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