Establishing the risk diversification and transfer mechanism to reduce the direct harm to universities and colleges affected by the risk-events. Strictly, it is true that not all risks can be foreseen and prevented, and that any organization cannot resist all risks. Thus the key approach to reduce the harm caused by the risks to universities and colleges is to establish the risk diversification and transfer mechanism. Focus should be put on two efforts. First, reinforce the management of the contracts, and establish the risk diversification mechanism between all the related parties in the international joint education program by signing contract, making it possible for all the parties to undertake the potential risks together, with the focus on ensuring the contracts’ legality and comprehensiveness so as to get rid of the loophole of the contract. Second, transfer the risks to the insurance companies by buying life, finance and accident insurance, with focus on making a proper choice based on sufficient risk assessment and cost calculation. As a result, the risks will be cut down. This approach becomes more and more important and practical as the increasing development and improvement of insurance industry in China.
