Risk treatment is the process of selecting and implementing measures to modify risk, according to the organization’s risk appetite and tolerance. There are four main risk treatment options: avoid, reduce, transfer, or retain the risk123. Among these options, risk transfer typically requires a negotiation of contract terms between parties, as it involves shifting the responsibility or burden of the risk to another entity, such as an insurer, a supplier, a partner, or a customer1234. Risk transfer can be achieved through various contractual arrangements, such as insurance policies, indemnity clauses, warranties, guarantees, service level agreements, or outsourcing agreements1234. These arrangements usually involve a cost-benefit analysis, a due diligence process, and a mutual agreement on the terms and conditions of the risk transfer1234. Therefore, option D is the correct answer, as it is the only one that reflects a risk treatment approach that typically requires a negotiation of contract terms between parties. References: The following resources support the verified answer and explanation:
1: Risk Treatment — ENISA
2: Four Basic Risk Treatment Planning Approaches - DigiLEAF
3: 3 Steps to Treating Your Organizational Risks - American Society of …
4: Risk Management Framework - Treat Risks - Chartered Accountants ANZ
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