When selecting a technical solution for identity management, changing from in-house to a third-party SaaS provider exemplifies which risk management strategy?

Choosing to switch from in-house identity management to a third-party Software as a Service (SaaS) provider demonstrates the transference risk management strategy. This strategy involves shifting the responsibility and management of risk away from the organization to a third party.

In this case, by outsourcing identity management to a SaaS provider, the organization is transferring the risks associated with managing identities, such as data breaches, compliance issues, and system maintenance. The SaaS provider assumes these risks, which can lead to a reduction in the organization's internal workload and the potential financial impact from a security incident. This approach often results in better resource management, as the organization can focus on its core functions while relying on a specialized provider to handle the complexities of identity management.

The other strategies mentioned such as acceptance, mitigation, and avoidance involve different approaches to managing risk. Acceptance refers to recognizing and accepting the potential consequences without taking further action, mitigation involves implementing controls to reduce risk severity, and avoidance means altering plans to sidestep the risk entirely. However, transference distinctly emphasizes shifting the burden of risk away from the organization, making it the most suitable choice in this scenario.