During a risk assessment, results show that a fire in one of the company's datacenters could cost up to $20 million in equipment damages and lost revenue. As a result, the company insures the datacenter for up to $20 million damages for the cost of $30,000 a year. Which of the following risk response techniques has the company chosen?

Question

Quizplus · Accepted Answer

The company has chosen transference as the risk response technique by purchasing insurance to transfer the financial risk of a fire to the insurance company.

During a Risk Assessment, Results Show That a Fire in One