Risk Transfer

Definitions

1. A risk response in which some financial or operational consequences are shifted to another party, often through insurance, outsourcing, contracts, or indemnification. Risk transfer does not remove the underlying technical weakness, but it can change who bears the cost if the risk materializes.

   In plain English: Shifting some of the consequences of a risk to another party.

   Example: "Cyber insurance helped with risk transfer, but the company still had to fix the exposed storage bucket and improve access controls."

Related Terms

• IT Risk
• Operational Risk
• Risk Acceptance
• Risk Analysis
• Risk Category
• Risk Communication
• Risk Control
• Risk Framework