Mark has purchased a Mac laptop.

Risk transference is a risk management strategy in which an organization or individual shifts the financial impact of a risk to a third party. Purchasing insurance is a classic example of risk transference. In this scenario, Mark transfers the financial consequences of potential damage to the laptop screen to the insurance provider.

Risk acceptance involves acknowledging a risk and choosing to do nothing. Risk deterrence discourages risky behavior through controls or penalties. Risk mitigation reduces the likelihood or impact of a risk through safeguards such as protective cases or training.

Risk transference does not eliminate the risk itself; the laptop can still be damaged. However, it reduces the financial burden associated with the event. In cybersecurity, common examples include cyber insurance, outsourcing, and service-level agreements (SLAs).

This strategy is widely recognized in risk management frameworks such as NIST SP 800-30 and ISO 31000 as an appropriate option when mitigation is too costly or impractical.