Outsourcing disaster recovery activities is an example of risk transfer. The organization is transferring the responsibility for managing the risk of a disaster to a third-party provider. The organization still faces the risk, but the responsibility for mitigating it now lies with the provider.
Risk mitigation (A) would involve implementing measures to reduce the likelihood or impact of a disaster. Risk avoidance (B) would mean ceasing the activity that creates the risk.
[Reference: ISACA materials on risk response options, often within the Risk IT Framework and related publications, discuss risk transfer as one of the key responses. Outsourcing is a common example of risk transfer., , ]
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