One of the risk events you've identified is classified as force majeure. What risk response is likely to be used? A. Acceptance B. Transference C. Enhance D. Mitigation
Correct Answer: A
Explanation:
Explanation: Force majeure describes acts of God (Natural disaster), such as tornados and fires, and are usually accepted because there’s little than can be done to mitigate these risks.
Incorrect Answers:
B: Transference transfers the risk ownership to a third party, usually for a fee.
C: Enhance is used for a positive risk event, not for force majeure.
D: Mitigation isn’t the best choice, as this lowers the probability and/or impact of the risk event.
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