It shifts costs to a third party but creates ongoing expenses and depends on the third party's risk controls is correct.

Transferring risk by buying insurance or hiring a managed provider moves financial exposure off the company balance sheet but it also creates continuing costs such as premiums or service fees and it makes the organization dependent on the third party for effective controls and incident response. These ongoing costs and the need to monitor and manage the vendor are the principal drawbacks of transfer.

It requires eliminating all activities that might create risk is incorrect because transferring risk does not force an organization to stop all risky activities. Risk transfer is one option among accept mitigate and avoid and it is used while business operations continue.

It can leave the original organization legally accountable even after the transfer is incorrect as the primary drawback in this context. While contracts and law can create residual legal obligations in some cases the exam focus here is on cost and dependence on another party rather than automatic retained legal liability.

It guarantees that an incident will not occur in the future is incorrect because insurance or outsourcing cannot prevent incidents from happening. They provide financial protection or operational support but they do not eliminate the possibility of breaches or failures.

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