Outsourcing and insurance are ways of risk.

Outsourcing and insurance are ways of transferring risk.

Explanation:

Outsourcing involves the practice of using an external supplier or contractor to provide a service or product even when the buyer (company) has the capacity to do same. It is also known as contract manufacturing.

It is more cost efficient for the business  and is a another of  transferring risk.

Insurance is a contract between a insurance company (insurer) and the insured where the former agrees to compensate the latter, for a fee, in case the insured suffers loss as a result of a specific risk.

Insurance is another way to transfer risk

Outsourcing and insurance are ways of transferring risk.

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