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Unformatted text preview: w it is delivered (sometimes
dramatically) so that the risk cannot occur.
Example… Dr. Maged Ezzat Georgy Risk
The transfer strategy is to:
“give responsibility for this risk to someone else (or
some other organization) inside or outside the
One form of risk transfer is:
◦ From an owner to a contractor, or
◦ From an owner/contractor to a vendor.
Through a fixed price contract.
Dr. Maged Ezzat Georgy Risk Transfer
Beware, the contractor’s or vendor’s response to this risk transfer strategy could be:
◦ To increase his selling price.
◦ This way, you might end up paying for the impact of
the risk (or a large part of it) whether it happens or
not. Dr. Maged Ezzat Georgy Risk
Risk Transfer: Insurance
Probably the most common method of transfer is to
With insurance you give a relatively small amount of
money, called a premium, to an insurance company,
who becomes responsible for the risk.
How can you tell if a premium is small enough to buy
an insurance policy ??? Dr. Maged...
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This document was uploaded on 01/22/2014.
- Winter '14