What risk response is likely to be used?

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

View Answer

Answer: A

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.