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Risk Transfer

What is Risk Transfer?

A risk treatment strategy that shifts the financial impact of a risk to another party, typically through insurance policies or contractual arrangements.

Risk Management

Each of these is named in at least one of the same controls as risk transfer. The number is how many controls name both.

What the standards actually require on risk transfer

Requirements naming risk transfer across 6 standards, quoted from the control text.

Articles A2 (Delivery) + A3 (Transfer of Risks) + A9 (Allocation of Costs) are the critical economic articles in Incoterms 2020. Risk transfer timing varies by Incoterm: EXW at seller premises;

ICC-Incoterms2020-Delivery-RiskTransfer-CostAllocation-A2-A3-A9 · ICC Incoterms 2020 - Delivery + Risk Transfer + Cost Allocation - Articles A2 A3 A9 + Critical Timing

Insurers manage reinsurance and risk transfer arrangements with appropriate counterparty risk controls.

ICP13 · Reinsurance and Other Forms of Risk Transfer

Cyber Insurance. RLEs should consider the benefits of purchasing a cyber insurance policy as part of their risk transfer strategy (para 24).

BMA-27 · Cyber Insurance

Select and implement options for addressing AI-specific risks including risk avoidance, acceptance, mitigation through controls, or risk transfer.

ISO23894-6.4 · AI Risk Treatment

Implement Online Financial Services Authentication + Payment Card Security per MAS TRM Chapters 12 + 13. Chapter 12 Online Financial Services Authentication - Two-Factor Authentication (2FA) for customer-facing online services + Strong Customer Authentication...

MAS-TRM-Online-Authentication-Payment-Card-Chapters-12-13-2FA-Strong-Customer-Authentication-PCI-DSS · MAS TRM Online Authentication + Payment Card + Chapters 12-13 + 2FA + Strong Customer Authentication + PCI DSS

Questions people ask about risk transfer

What is Risk Transfer?
A risk treatment strategy that shifts the financial impact of a risk to another party, typically through insurance policies or contractual arrangements.
Why is Risk Transfer important for compliance?
Risk Transfer is a key concept in Risk Management. Understanding risk transfer helps organizations meet regulatory requirements, reduce risk, and demonstrate due diligence during audits. Our compliance platform maps 686 frameworks with 311K cross-framework control mappings.
Which compliance frameworks address Risk Transfer?
Risk Transfer appears in the requirement text of ICC Incoterms 2020 - International Commercial Terms, IAIS Insurance Core Principles (ICPs), Bermuda Monetary Authority (BMA) Cyber Risk Management Code of Conduct, IRM Enterprise Risk Management Framework (Institute of Risk Management), ISO/IEC 23894:2023. Across these standards we have identified 11 controls that name it directly, each linked to the control text on the compliance platform.
Where can I learn more about Risk Transfer?
Explore our compliance framework pages to see how risk transfer applies across different standards and regulations. Our implementation guides provide step-by-step guidance, and the compliance platform offers AI-powered analysis of how this concept maps across 686 frameworks.

See how Risk Transfer applies across compliance frameworks

Our platform maps 686 frameworks with 311K cross-framework control mappings. Explore how this concept is addressed across standards.

Written and maintained by Gerard Blokdyk, The Art of Service.