Question 79
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Which of the following best describes “risk sharing”?
A. Accepting all risks jointly with the regulator
B. Transferring risk to another party, such as via insurance
C. Outsourcing to reduce IT costs
D. Ignoring risks below a specific threshold
Answer: B. Transferring risk to another party, such as via insurance
Risk sharing involves shifting part of the risk exposure—often through contracts, insurance, or partnerships.