Q: 19
Management assessed the organization’s risk of expanding operations into a new, but volatile, region
and began looking for a compatible local partner to manage sales and distribution. Which of the
following best describes this risk management technique?
Options
Discussion
I don’t think it’s C. Finding a local partner splits the exposure, it isn’t just reducing it through controls. D fits because risk is literally being shared, not absorbed or avoided completely.
D imo since they're finding a partner, which means they're sharing the risk with another party. If they were just dealing with it themselves, it'd be acceptance or reduction. Pretty sure this lines up with COSO guidance. Anyone see it differently?
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