Which option is part of the risk management strategy known as 'transfer'?

The option that defines the risk management strategy known as 'transfer' involves shifting the burden of risk from one party to another. This is often accomplished through mechanisms such as insurance, outsourcing, or contractual agreements, where the responsibility for certain risks is handed off to another entity that is more equipped to manage or absorb that risk. In this way, the original party mitigates its exposure to potential losses or adverse outcomes.

This approach is fundamental in risk management as it allows organizations to focus on their core competencies while managing financial or operational vulnerabilities by leveraging the expertise or stability of other parties. Consequently, 'transfer' is a proactive method to manage risk without completely eliminating it, balancing potential impacts with the need for resource allocation and efficiency.