Non-transferable risk

Non-transferable risks are risks which must be borne by an organisation.

Non-transferable risks might be avoided or accepted and retained or reduced as appropriate. In the case of non-transferable business risks (which by definition are not avoided) it is important that the firm has a distinctive competence in the relevant areas.

For example, a pharmaceutical company's non-transferable risks would include the risk that failure to gain approval for use of a new drug means that the research and development costs have been wasted.

See also

• Transferable risk