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13. What does it mean to "transfer risk"?

User Smur
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Contractual shifting risks from one party to another
User Attila Fulop
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Answer:

Risk transfer is a risk management and control strategy that involves the contractual shifting of a pure risk from one party to another.

Example:

The purchase of an insurance policy, by which a specified risk of loss is passed from the policyholder to the insurer.

User Gtmtg
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