MANAGEMENT

Detailed explanation-1: -Risk transfer is a risk management and control strategy that involves the contractual shifting of a pure risk from one party to another. One example is the purchase of an insurance policy, by which a specified risk of loss is passed from the policyholder to the insurer.

Detailed explanation-2: -Transferring risk examples include commercial property tenants assuming the risk for keeping sidewalks clear, an apartment complex transferring the risk of theft to a security company and subcontractors assuming the risk for the work they perform for a contractor on a property.

Detailed explanation-3: -Examples of insurance risks include the risk of fire, earthquake losses, or even liability when an insured is found responsible for causing bodily injury, death, or property damage to 3rd parties.

Detailed explanation-4: -Transferring risk means that one party assumes the general liabilities of another party. One example of risk transfer is purchasing insurance.

Detailed explanation-5: -Risk management is a broad topic. It involves taking steps to minimize the likelihood of things going wrong, a concept known as loss control. It also involves the purchasing of insurance to reduce the financial impact of adverse events on a company when, despite your best efforts, bad things happen.