An organization that chooses to outsource its risk management practice to independent consultants is taking the ____ control approach.
A) avoidance
B) mitigation
C) transference
D) acceptance

Question

Quizplus · Accepted Answer

When an organization outsources its risk management practice to independent consultants, it is transferring the responsibility of managing risks to a third-party. This means that if any risk materializes, the organization will not be directly responsible for handling it. Therefore, the organization is taking the transference control approach.

An Organization That Chooses to Outsource Its Risk Management Practice