Which of the following represents a method to share risk?

Transferring risk to an insurance company is a fundamental method of risk-sharing. When an organization purchases insurance, it pays a premium to the insurer, who then assumes certain risks on behalf of the organization. This arrangement allows the organization to mitigate financial loss from unforeseen events such as accidents, natural disasters, or liability claims. By transferring the financial burden to an insurance company, organizations can better manage their risk exposure, stabilize their financial outcomes, and allocate resources more efficiently.

Reducing operational costs focuses on improving efficiency and managing expenses rather than sharing risk. Increasing security measures primarily aims to minimize risk rather than share it, while diversifying product offerings can be a strategy to spread risk across different revenue streams, but it does not involve transferring risk in the same way insurance does. Thus, the option that directly addresses risk sharing is the one involving the insurance company.