All of the following are examples of transference risk response except for which one?
Correct Answer: C
Explanation
Transference risk response is a strategy that involves transferring the risk to another party or entity, such as through insurance, outsourcing, or warranties. Life cycle costing is not a transference risk response, but a technique for estimating the total cost of ownership of a product or service over its entire life cycle. Life cycle costing does not transfer the risk, but rather helps to identify and compare the costs and benefits of different alternatives. References:
BABOK Guide v3, section 11.6.5.4, page 402
Risk response strategies: mitigation, transfer, avoidance, acceptance, paragraph 4 Risk Response Planning: A Guide to Effective Risk Management, paragraph 3