Transfer Risk Pricing — in reference to multinational insurance programs, this is the internationally
recognized process for proper recognition of local taxable revenue and
deductions involving intercompany transactions. Organizations may need to seek
advice from both internal and external tax and audit experts in these
processes. Establishing an arm's length, reasonable price, and
documentation of the process is the key to the organization's ability to
defend transactions that could be subject to outside auditing by governmental
agencies.