MANAGEMENT

Detailed explanation-1: -The most common example of risk transfer is insurance. When an individual or entity purchases insurance, they are insuring against financial risks. For example, an individual who purchases car insurance is acquiring financial protection against physical damage or bodily harm that can result from traffic incidents.

Detailed explanation-2: -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-3: -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-4: -Examples of insurance risks include data breaches, property damage and manufacturing issues.

Detailed explanation-5: -Transferring risk means that one party assumes the general liabilities of another party. One example of risk transfer is purchasing insurance.