What is the outcome of sharing the responsibility for managing risk?

Sharing the responsibility for managing risk functions to distribute the potential impact of risks across multiple parties involved in a project or initiative. This sharing often leads to a strategic transfer of risk, particularly when responsibilities for certain risks are assigned to other stakeholders who may be better positioned to handle them.

When risk is shared, it allows for collaboration and leveraging the strengths of various team members or partners to mitigate the potential negative outcomes. The expectation is that each party can absorb or manage the risk to a certain extent, ideally leading to a more stable overall project environment. While this approach can lead to a lowering of individual liabilities and improved project documentation, the primary outcome focuses on how risk management influences the ownership and responsibilities across different parties, which is best characterized as a transfer of risk.