Which of the following is NOT part of the STARR risk management strategy?

The STARR risk management strategy consists of five components: Sharing, Transfer, Avoidance, Retention, and Reduction. Each of these components plays a vital role in effectively managing risk.

In this context, "Innovation" is not part of the STARR framework. The STARR strategy focuses on established methodologies for managing risk rather than on innovation, which implies creating new approaches or ideas. Unlike Sharing, where the risk is distributed among multiple parties, Transfer, where risk is assigned to another entity (like through insurance), Retention, where the individual or organization accepts the risk, and Avoidance or Reduction techniques that aim to minimize the risk, "Innovation" does not represent a method of management concerning risk but rather relates to creativity and new solutions.

By identifying "Innovation" as the outlier, it highlights how the other terms are specifically aimed at defining structured ways to handle risk rather than introducing novel concepts. Understanding these distinctions is crucial for anyone studying risk management as they will encounter scenarios requiring the application of the STARR components in practical situations.