Physical Security Professional Certification Practice Exam

Which type of risk management involves sharing the risk across multiple sites?

1. Risk avoidance

2. Risk spreading

3. Risk transfer

4. Risk assumption

The correct answer is: Risk spreading

The type of risk management that involves sharing the risk across multiple sites is best described by the concept of risk spreading. This approach aims to distribute the impact of potential risks to minimize the effect on any single location or operation. By spreading risk, an organization can reduce the likelihood that a single failure or issue at one site will significantly affect the overall operation. Risk spreading is commonly utilized in organizations that operate in multiple locations, as it allows them to leverage diversifications, such as geographic distribution or operational redundancy, to minimize the adverse effects of risks that may affect one specific site. In contrast, other risk management strategies like risk avoidance focus on eliminating the risk entirely, rather than sharing it. Risk transfer involves shifting the risk to another party, often through insurance or contracts, which is different from sharing risks across sites. Risk assumption entails accepting the risk and its consequences, without any strategies to mitigate or distribute those effects.