What is the term for the methods of risk management that includes transfer, sharing, and avoidance?

The correct term for the methods of risk management that encompass transfer, sharing, and avoidance is Risk Management. Risk management involves identifying, evaluating, and prioritizing risks, followed by the application of resources to minimize, control, or eliminate the impact of those risks.

Transfer refers to shifting the risk to another party, typically through insurance, thereby protecting oneself against potential losses. Sharing entails distributing the risk among multiple parties, which can reduce the burden on any one entity. Avoidance means eliminating the risk altogether by not engaging in activities that would lead to potential losses. These concepts are foundational to effective risk management strategies, ensuring that individuals and organizations can navigate potential challenges while minimizing negative outcomes.

The other options do not accurately capture the broader scope of these methodologies. Personal liability focuses specifically on an individual's responsibility for damages they may cause to others, which is a narrow aspect rather than a comprehensive risk management strategy. Risk assessment pertains to identifying and evaluating risks but does not encompass the various strategies to manage those risks. Claims handling involves the process of managing insurance claims after a loss event has occurred, which is a specific operational procedure rather than an overarching risk management concept.