Learn in the textbookOptions for Risk Treatment
DefinitionRisk transfer (リスク移転) is a treatment that uses insurance or contracts to shift the burden of losses to a third party when the risk materializes.
ExplanationThe typical example is buying insurance, where the insurer covers the financial burden when damage occurs. The likelihood of the risk itself does not change; only who carries the burden when it occurs does.
AnalogyIt is like insuring your belongings for a move so that the insurer pays if something breaks. Your things are no less fragile than before.
Memory hookThink of rewriting the address on the bill for the damage from your company to another one: the burden is transferred.