Which term describes attempts to reduce risk by transferring some or all of the risk to another organization?

• A. Risk Segregation
• B. Risk Separation
• C. Risk Duplication
• D. Risk Transfer

Answer: (D)

Transferring risk means shifting financial responsibility or liability for potential losses to another party, usually through contracts or insurance. In practice, an EMS operation does this by obtaining liability insurance to cover claims or by including indemnification clauses in agreements with vendors or subcontractors so they bear the losses or defense costs if something goes wrong. This reduces the agency’s exposure because the other party legally takes on the risk for specified situations.

Other terms describe different approaches that don’t move the risk to someone else. For example, dividing risk into parts without transferring it, separating components to limit impact, or creating duplicates to ensure continuity—these are about containment or redundancy, not about shifting liability to another organization.