Which method for handling a risk implies sharing the risk with others?

The method of sharing a risk with others is indeed referred to as sharing. This approach involves the division of risk among multiple parties, which can help mitigate the financial impact on any single entity. By sharing the risk, individuals or organizations can manage their exposure more effectively, as they partner with others who take on part of the risk in exchange for a portion of the potential benefits or costs.

For example, in a joint venture or a partnership, two or more businesses may collaborate on a project, thereby distributing the risk associated with the venture among themselves. This can lead to a more favorable scenario where the financial burdens are lessened for each party involved.

The other concepts offer different strategies for managing risks. Reduction involves minimizing the likelihood or impact of a risk, retention means accepting the risk and bearing the losses as they occur, and transferring entails moving the risk to another party, usually through some form of insurance. However, only sharing specifically implies a collaborative approach to taking on risk with others.