Sharing risk is exemplified through what strategy?

The correct answer focuses on enhanced use leases, which are a strategy that exemplifies sharing risk in the context of utilizing government or military-owned property for joint purposes with private entities. This type of lease arrangement allows for mutual benefits where both parties can share the costs associated with maintenance, operation, and potential profits derived from the use of the property. By entering into an enhanced use lease, the government can mitigate its own financial burdens while also allowing private partners to engage in development and investment on that property.

In this scenario, the risk associated with managing and developing the property is shared between the government and the private entity, creating a partnership that balances financial exposure. This model is particularly useful in contexts where resource constraints are a concern, enabling more efficient use of assets.

Other options might involve sharing risk to certain extents, but enhanced use leases specifically emphasize a formalized agreement that leverages the strengths of both public and private sectors, thus making it a distinctive example of risk sharing.