A company decides to purchase an insurance policy.

Purchasing insurance is a classic example of risk transfer, where financial risk associated with potential losses is shifted to a third party (the insurer). This strategy does not eliminate the risk but moves the financial burden.

Mitigation (A) reduces risk impact or likelihood through controls, acceptance (B) involves acknowledging the risk without action, and avoidance (C) eliminates the risk by not engaging in the activity.

Risk transfer is a fundamental concept taught in the Risk Management domain of SY0-701【6:Chapter 17†CompTIA Security+ Study Guide】.