Non-transferable risk

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Revision as of 08:16, 19 May 2015 by imported>Doug Williamson (Create the page. Source: MCT reading 4.1.3, p12, 01 March 2012.)
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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