A risk-averse person is most likely to transfer risk through which means?

A risk-averse person is most likely to transfer risk through insurance. This is because insurance acts as a financial safety net that protects against potential losses. Individuals who are risk-averse tend to prioritize minimizing uncertainty and financial exposure. By purchasing insurance, they can transfer the financial risk associated with unforeseen events, such as accidents, health issues, or property damage, to an insurance company. This allows them to have peace of mind knowing that they have protection against significant financial losses.

In contrast, risk assessment involves identifying and analyzing risks but does not provide a mechanism for transferring those risks. Risk surveys are tools used to gather information about potential risks, but again, they do not offer a solution for transferring risk. Similarly, while savings and investment can be strategies for managing finances and preparing for future expenses, they do not directly address the transfer of risk in the same way that insurance does.