Ace the 2026 Certified Governance Risk & Compliance (CGRC) Challenge – Navigate the Governance Maze with Confidence!

Hiring a licensed electrician for electrical wiring work packages exemplifies the risk response strategy of transference. This approach involves shifting the burden of risk to a third party who has the expertise and ability to manage it effectively. By engaging a licensed professional, Adrian is not only ensuring that the work complies with safety regulations but also transferring the inherent risks associated with improperly conducted electrical work to the electrician's professional liability insurance.

When an organization transfers a risk, it often does so through contracts, outsourcing, or insurance, thereby mitigating potential negative impacts on its own operations. In this scenario, the licensed electrician assumes responsibility for the quality and safety of the electrical work performed. This safeguards Adrian from potential risks such as electrical failures, safety hazards, and regulatory non-compliance that may arise from subpar work.

Other strategies, such as mitigation, avoidance, and acceptance, do not apply as directly in this context. Mitigation would involve implementing measures to reduce the likelihood or impact of the risk, while avoidance would require changing plans to eliminate the risk altogether. Acceptance means acknowledging the risk and proceeding with it, which does not align with hiring an expert to manage the electrical work. Engaging a licensed electrician clearly aligns with the concept of risk transference, making that the appropriate choice.