Which negative risk response usually has a contractual agreement? 

Answer options:

A. Sharing
B. Transference
C. Mitigation
D. Exploiting

B

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. Incorrect Answers: A: Sharing is a positive risk response. Note that sharing may also have contractual obligations, sometimes called teaming agreements. C: Mitigation is a negative risk response used to lower the probability and/or impact of a risk event. D: Exploiting is a positive risk response and not a negative response and doesn`t have contractual obligations.