EXIN M_o_R Foundation (Management of Risk) — Question 1

Which describes the risk response option 'share the risk'?

Answer options

• A. Perform an action to minimize the impact of the risk should it occur
• B. Carry out an action to make the uncertain situation certain
• C. Obtain an insurance policy to cover the impact should the risk occur
• D. Partake in a pain/gain contract with another party for the specified risk

Correct answer: D

Explanation

'Share the risk' involves entering into a pain/gain contract with another entity, which allows for the distribution of the risk's potential impact. Option A is about risk mitigation, which is a different response strategy. Option B focuses on eliminating uncertainty, which does not align with the concept of sharing risk. Option C pertains to risk transfer through insurance, rather than sharing it.