Which negative risk response usually has a contractual agreement?

A.
Sharing

B.
Transference

C.
Mitigation

D.
Exploiting

Explanation:

Transference is the risk response that transfers the risk to a third party, usually for a fee.
Insurance and subcontracting of dangerous works are two common examples of transference with
a contractual obligation.
Answer C is incorrect. Mitigation is a negative risk response used to lower the probability and/or
impact of a risk event.
Answer A is incorrect. Sharing is a positive risk response. Note that sharing may also have
contractual obligations, sometimes called teaming agreements.
Answer D is incorrect. Exploiting is a positive risk response and not a negative response and
doesn’t have contractual obligations.