Which statement regarding the transfer and retention of risk in property management is incorrect?

When discussing risk transfer and retention in property management, it’s essential to understand the principles of insurance deductibles. A low deductible typically means that the property owner is more insulated from financial loss because they are responsible for only a small amount of loss before insurance coverage kicks in. This scenario effectively transfers more risk to the insurance provider. Conversely, a high deductible indicates a greater financial responsibility for the property owner before the insurance coverage applies, which means they retain more risk.

The statement that a low deductible retains risk and a high deductible transfers risk misrepresents how deductibles function in the context of risk management. A high deductible increases the financial exposure for the property owner, meaning they bear more risk themselves rather than transferring it to the insurer.

Other statements highlight the effectiveness of risk control measures and the removal of high-risk features to avoid certain liabilities, which are valid approaches to risk management. Therefore, the statement that presents the relationship between deductible levels and risk incorrectly reflects the established understanding within property management.