In the TARA matrix, what does 'Transfer' refer to?

In the TARA matrix, 'Transfer' specifically refers to the approach of shifting the risk to another party, often through insurance or outsourcing. This strategy is typically applied to high impact, low probability risks. The rationale behind this is that while the risk could have significant consequences, the likelihood of its occurrence is low enough that it can be managed by transferring the financial responsibility to someone else.

By selecting this strategy for high impact but low probability risks, an organization can mitigate potential harm without focusing excessive internal resources on unlikely events that could incur substantial costs if realized. This allows the company to focus more on managing more certain risks while having a plan in place for significant disruptions.

In this context, the other options do not align with the concept of transferring risk. High impact, high probability risks often require more proactive management strategies, while low impact risks, irrespective of probability, may be deemed acceptable within the organization's risk appetite without needing to transfer them. Low impact, high probability risks typically lead to mitigation or acceptance as they do not warrant the expense or effort required to transfer responsibility.