What does STARR stand for in handling risk?

The acronym STARR in the context of handling risk represents the strategies that individuals and organizations can apply to manage and mitigate risks. The correct interpretation, which is not option B, includes strategies for efficiently responding to potential losses.

The term "sharing" refers to distributing the risk among multiple parties, which can lessen the impact on any one participant. "Transfer" involves shifting the risk from one party to another, commonly done through insurance policies. "Avoidance" is a strategy where one modifies behaviors or plans to eliminate exposure to the risk entirely. "Reduction" pertains to measures taken to lessen the probability of occurrence or mitigate the severity of a loss, while "retention" indicates a decision to assume the risk rather than transfer it, often because the costs associated with transferring the risk may outweigh the potential loss.

Each component of STARR provides a structured approach to managing risk, making it essential for developing effective risk management plans. While the other options include relevant terms related to risk management, they do not accurately encapsulate the correct strategies denoted by the STARR framework.