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Accepting potential impacts of risks without mitigation is an example of transferring the risk.
False
True
This statement is false. Accepting potential impacts without mitigation is known as risk acceptance, not risk transference. Risk transference involves shifting the risk to a third party, such as purchasing insurance or outsourcing services. By accepting the risk, an organization chooses to bear the consequences themselves, whereas risk transference involves another entity assuming the risk on behalf of the organization.
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