Risk Transfer: A risk management strategy that involves shifting the potential impact of certain risks from one party to another, typically by contractual agreement or by purchasing insurance. In the context of cybersecurity, organizations can use risk transfer to offload some of the financial risks associated with data breaches, cyber-attacks, and other security incidents to third-party insurers or other business partners. For example, a company might use a cloud service provider and include terms in the contract that make the provider responsible for certain types of security incidents. Similarly, cyber insurance policies can provide compensation for direct and indirect costs resulting from cyber incidents, effectively transferring the financial risk away from the organization itself. Risk transfer does not eliminate the risk but redistributes the potential burden of loss.