A SaaS provider specifies in a user agreement that the customer agrees that any misuse of the service will be the responsibility of the customer…

Transference is a risk response method that involves shifting the responsibility or impact of a risk to a

third party3. Transference does not eliminate the risk, but it reduces the exposure or liability of the

original party. A common example of transference is insurance, where the risk is transferred to the

insurer in exchange for a premium4. In this case, the SaaS provider transfers the risk of misuse of the

service to the customer by specifying it in the user agreement.

Reference:

Avoid, Mitigate, Transfer, or Accept? PMP Exam Guide, ProjectPractical

Avoid, Mitigate, Accept or Transfer?, St Andrews Consulting