Certified Business Analysis Professional (CBAP) — Question 316

All of the following are examples of transference risk response except for which one?

Answer options

• A. Warranties
• B. Performance bonds
• C. Life cycle costing
• D. Use of insurance

Correct answer: C

Explanation

The correct answer is C, as life cycle costing focuses on the total cost of ownership over the life of an asset rather than transferring risk. In contrast, warranties, performance bonds, and insurance all serve to shift potential risks away from the entity, making them valid examples of transference risk responses.