Which Risks Are Transferred from Consumer to Provider in ITIL 4?
An organisation decides to outsource its IT support to a third-party provider. According to ITIL 4, what is a key risk that the service consumer transfers to the provider?
Quick Answer
The answer is the risk of IT infrastructure obsolescence. In ITIL 4, risk transfer in a service relationship occurs when the consumer shifts specific operational and financial burdens to the provider, such as the cost and responsibility of keeping hardware, software, and systems current. By outsourcing IT support, the consumer no longer bears the direct impact of technology becoming outdated or unsupported; instead, the provider must manage upgrades, patches, and lifecycle replacements. On the ITIL 4 Foundation exam, this concept tests your understanding of how service relationships distribute risk and cost, often appearing in questions about outsourcing or cloud adoption. A common trap is confusing operational risks like staffing with strategic risks like obsolescence—remember that the provider absorbs long-term technology decay, not just daily hiccups. Memory tip: think “old gear, new fear” to recall that obsolescence is the key transferred risk.
⚠ Common exam trap
Many candidates confuse the transfer of operational risks (like infrastructure obsolescence) with retained risks (like compliance or market competition), assuming outsourcing shifts all responsibility to the provider, whereas ITIL 4 emphasizes that accountability for certain risks stays with the consumer.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
The risk of IT infrastructure obsolescence
When an organization outsources IT support, the provider assumes responsibility for maintaining and upgrading the hardware and software used to deliver the service. This transfers the risk of IT infrastructure obsolescence, as the provider must manage technology lifecycles to ensure continued service performance and availability, aligning with the ITIL 4 concept of risk ownership in service relationships.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The risk of regulatory compliance
Why it's wrong here
Compliance risk is often shared but not fully transferred.
- ✗
The risk of market competition
Why it's wrong here
Market risk remains with the consumer.
- ✓
The risk of IT infrastructure obsolescence
Why this is correct
The provider manages the infrastructure, transferring the risk of obsolescence.
- ✗
The risk of low employee morale
Why it's wrong here
Morale is internal to the consumer, not transferred.
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Same concept, more angles
1 more way this is tested on ITIL4F
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. An organization is considering adopting a cloud-based CRM system to replace its on-premise solution. According to ITIL 4, which of the following is a risk that is transferred from the consumer to the service provider?
medium- A.The risk of non-compliance with industry regulations
- ✓ B.The risk of hardware failure in the data center
- C.The risk of data loss due to user error
- D.The risk of reduced employee productivity during migration
Why B: When using a cloud service, the provider typically takes on risks like hardware failures, so the consumer no longer bears that risk.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This ITIL4F practice question is part of Courseiva's free PeopleCert certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the ITIL4F exam.