Which method is NOT part of the five methods for handling risk?

The correct answer is C, "Outsource it," because outsourcing is not recognized as one of the traditional methods for handling risk. The five common methods for managing risk include retention, transfer, avoidance, and reduction, each serving a distinct purpose in risk management strategies.

When discussing the method of retention, it involves accepting the risk and potentially preparing for its consequences through self-funding. Transfer refers to shifting the risk to another party, such as through insurance. Avoidance means altering plans to sidestep potential risks entirely. Reduction involves taking steps to lessen the impact or likelihood of risks occurring.

Outsourcing, on the other hand, is primarily a business strategy aimed at delegating work or tasks to external parties and does not specifically address how risks are managed. While outsourcing may impact risk management indirectly by shifting certain responsibilities or liabilities, it does not fit the traditional classifications of risk management methods.