Definition(s)
Risk Transfer
Action taken to manage risk that shifts some or all of the risk to another entity, asset, system, network, or geographic area.
Source:API STANDARD 780, Security Risk Assessment Methodology for the Petroleum and Petrochemical Industries, First Edition, May 2013. Global Standards
Risk Transfer
Action taken to manage risk that shifts some or all of the risk to another entity, asset, system, network, or geographic area.
Sample Usage: A risk transfer may occur after increasing security at one facility because it might make an alternate facility a more attractive target.
Annotation:
- Risk transfer may refer to transferring the risk from asset to asset, asset to system, or some other combination, or shifting the responsibility for managing the risk from one authority to another (for example, responsibility for economic loss could be transferred from a homeowner to an insurance company).
- Risk transfer is one of a set of four commonly used risk management strategies, along with risk control, risk acceptance, and risk avoidance.
Source: DHS Risk Lexicon, U.S. Department of Homeland Security, 2010 Edition. September 2010 Regulatory Guidance
Risk Transfer
Sharing with another party the burden of loss of benefit of gain, for a risk.
Other Related Terms and Definitions:
ISO Guide 73 – Sharing with another party the burden of loss of benefit of gain, for a risk.
Source: International Association of Drilling Contractors, Appendix 2 to Health, Safety and Environment Case Guidelines for Offshore Drilling Contractors, Issue 3.3.2, February 2010. IADC Guidelines