The spread of exposures or activities over several locations

• A. Segregation
• B. Risk Appetite
• C. Risk Identification
• D. Separation

Answer: (D)

This item tests separation — distributing exposures or activities across multiple locations so a problem at one site doesn’t impact all operations. Spreading assets and activities reduces concentration risk and boosts resilience by avoiding a single point of failure.

The other terms don’t fit as well. Segregation focuses on keeping elements apart to prevent interference or cross-contamination, not on proactively dispersing exposures across locations. Risk appetite is about how much risk an organization is willing to accept, and risk identification is about recognizing risks, not distributing exposures.