We get someone else to take the risk for us.

A transfer of risk is not free and can introduce risks of its own.

Insurance is an example of a risk transfer. It is also a RiskMitigation in that it lowers the impact of the risk materialising by providing us with compensation to carry out our ContingencyPlan. We pay up front whether or not the risk materialises.

----

See AnatomyOfRisk, RiskManagement