Learn in the textbookOptions for Risk Treatment
DefinitionRisk sharing (リスク共有) is a treatment that splits a risk with other organizations by agreement, so that the company does not bear all the damage alone when the risk materializes.
ExplanationBuying insurance and signing contracts with business partners that divide costs and responsibilities both fall into this category. The risk is no less likely to occur, but the company's share of the damage becomes smaller.
AnalogyIt is like a few friends renting a holiday house together and agreeing in advance on how to split any repair bills.