A company purchased insurance due to the risks involved with a cloud migration project.

 Transference is a risk response strategy that involves shifting the responsibility or impact of a risk to a third party, such as an insurance company, a vendor, or a partner. By purchasing insurance, the company transferred the financial liability of the cloud migration project to the insurance provider, in case of any losses or damages. Transference does not eliminate the risk, but it reduces the exposure of the company to the risk12. References: CompTIA Cloud Essentials+ Certification Study Guide, Second Edition (Exam CLO-002), Chapter 4: Risk Management, pages 104-105.