Which process aims to reduce risks through specific controls and risk transfer?

The process that aims to reduce risks through specific controls and risk transfer is best described as risk mitigation. Risk mitigation involves identifying potential risks that could negatively impact an organization and implementing strategies to manage these risks effectively. This can include various techniques such as risk avoidance, risk reduction through implementing specific controls, and risk transfer methods like insurance or outsourcing.

By employing risk mitigation strategies, organizations can minimize the likelihood of adverse events occurring and lessen the impact of risks that cannot be entirely eliminated. This comprehensive approach not only focuses on controlling the risks but also on managing them through different techniques, which includes transferring certain risks away from the organization.

Other options do not encapsulate the breadth of risk reduction and transfer that defines risk mitigation. Transaction testing is primarily focused on verifying the accuracy and reliability of transactions, while business continuity tests aim to ensure that an organization can continue operating after a disruption. Preventive controls are a part of an overall risk management strategy but do not encompass the broader risk transfer aspect inherent in risk mitigation. Thus, the correct answer—risk mitigation—accurately reflects the intended process of addressing and managing risks comprehensively.