Shabbir TaiyabiSenior Expert Quality| Indivis emirates FZCRas Al Khaimah, United Arab Emirates
There was an interesting discussion in my organization while doing Risk Assessment of a particular product. During Risk response strategy there was a discussion regarding Risk Transfer, wherein the debating issue was how could we transfer Risk because ultimate responsibility of Risk is with us and that cannot be delegated to third party. What if third party or insurance company is bankrupt. Are we going to go to our customer shrugging off shoulders from the problem and say that we transferred our risk to XYZ company and now it is bankrupt or not fulfilled its commitment. So we are mainly left with either Accept or Mitigate the risks. Logically we cannot transfer our risk to anybody else. Looking for forum views on this. Saving Changes...
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Michael AdamsSolutions Architect| LANLLos Alamos, Nm, United States
Interesting points, and true, though theoretical. An insurer could go belly up, a vendor could refuse to honor their commitments. But part of good risk management is choosing a solid insurer and a vendor with a good track record for providing excellent service.
Ultimately, you could be left holding the bag, and then you'll have to deal with the actualized risk, but choosing good vendors is important as a risk strategy, and it does generally transfer the risk to another part, who is willing to take it for a fee.
So I sort of agree with your colleagues (in a highly theoretical sense), but from a practical perspective, I don't agree. Risk can be transferred and there industries built around this practice. Saving Changes...
Mansoor MustafaSenior PM| Government DepartmentRawalpindi Punjab, Pakistan
I agree with you, with transfer strategy of risk management, risk is not completely transfer to third party. But with careful selection and evaluation you transfer some risk. Saving Changes...
