The shifting of risk to someone else through a contract is an example of what type of risk management strategy?

Question

Quizplus · Accepted Answer

Risk transference involves shifting the risk to another party through a contract or insurance policy. This is different from risk avoidance, which involves avoiding the activity altogether, risk retention, which involves accepting the risk and handling it internally, or risk acceptance, which involves accepting the risk without taking any additional action.

The Shifting of Risk to Someone Else Through a Contract