Certified Authorization Professional – CAP – Question250

The risk transference is referred to the transfer of risks to a third party, usually for a fee, it creates a contractual-relationship for the third party to manage the risk on behalf of the performing organization. Which one of the following is NOT an example of the transference risk response?

A.
Use of insurance
B. Life cycle costing
C. Warranties
D. Performance bonds

Correct Answer: B