Question: An organization determined that its variable interest rate on an existing loan will increase significantly in the near future. It therefore decided to hedge its

An organization determined that its variable interest rate on an existing loan will increase significantly in the near future. It therefore decided to hedge its variable rate by locking in a fixed rate over the remaining loan period. According to the COSO ERM framework, this decision is which response to risk?

.

Avoidance.

.

Acceptance.

.

Sharing.

.

Reduction.

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