Learn in the textbookRisk Management and Response Strategies
DefinitionTransfer (転嫁) is the response of using insurance or a contract to shift the loss or responsibility from a risk onto a third party.
ExplanationThe typical case is insurance: you pay a premium, and the insurer covers the loss if the risk occurs. Outsourcing work under a contract that makes the other party pay for damage caused by delays is also transfer. The likelihood and impact of the risk stay the same; only who bears the loss changes.
AnalogyIt is like buying travel insurance so the insurer covers you if your luggage is stolen on the trip. The chance of it being stolen stays the same.
Memory hookThink of passing the buck: transfer hands the bill to someone else, while the problem itself stays exactly where it was.