What does the Transfer/Share strategy in AI Risk Response entail?

• A. Moving part of the risk impact to an external third party
• B. Maintaining complete control over all risk internally
• C. Ignoring risk while proceeding with the project
• D. Documenting risk without remediation

Answer: (A)

Transfer/Share means shifting risk to another party, typically through contracts or insurance, so that some of the potential losses from an AI system are borne by someone else. In AI risk response, you might transfer liability to a vendor via indemnities, place certain risks under a cyber insurance policy, or use a service provider whose capabilities reduce the impact of a failure that the organization would otherwise bear. The benefit is lowering the organization's exposure when a partner or insurer is better positioned to absorb or manage that risk, often at a cost that makes sense compared with mitigating it internally. You still vet and define who is responsible for what, set limits, and ensure coverage; it's not about maintaining complete internal control, ignoring risk, or merely documenting risk without remediation.