Which STAAR action is used to shift risk to another party?

• A. Accept
• B. Transfer
• C. Reduce
• D. Avoid

Answer: (B)

Transferring risk to another party means shifting responsibility and potential losses to someone else, usually through contracts or insurance. This action moves the financial burden or liability away from you and onto the other party, who then bears the impact if something goes wrong. That’s why it’s the best choice when the goal is to shift risk rather than avoid it, mitigate it, or simply accept it. For example, buying insurance transfers financial risk of damage or loss to the insurer, and using a contractor to perform work can transfer liability for errors or delays to the contractor. Avoid would eliminate the activity to remove risk, reduce would lessen the chance or impact, and accept means you’re willing to bear the consequences yourself if something occurs.