A construction company is building a plant in a territory that is prone to earthquakes. To address the risk and consequences of potential earthquakes during and after plant construction, the company purchases additional insurance. Which of the following risk responses has occurred?
A) Avoiding
B) Mitigating
C) Accepting
D) Transferring

Question

Quizplus · Accepted Answer

The company is transferring the risk by purchasing insurance, which shifts the financial consequences of an earthquake to the insurance provider.

A Construction Company Is Building a Plant in a Territory