Which of the following is described as placing responsibility for addressing the potential effects of an uncertain future event on an entity outside the organization?

Risk avoidance eliminates exposure to the risk entirely by choosing not to engage in the activity that creates it, rather than assigning responsibility to an outside party.

Risk transfer is defined as the strategy of shifting responsibility for the consequences of a risk to an outside entity - commonly through insurance policies, contracts, or outsourcing agreements. The key distinction is that the organization no longer bears the direct impact if the uncertain event occurs; instead, the external party assumes that liability or obligation.

Risk exploitation is a positive risk strategy that seeks to ensure an opportunity actually occurs to maximize its benefit, not a response to negative uncertain events.

Risk mitigation reduces the probability or impact of a negative risk event through corrective actions taken internally, not by transferring responsibility externally.