In a fixed price contract the supplier is obligated to deliver the contracted-for item at a fixed price. The supplier is aware of the risk and will put an allowance for the risk in the contracted price. This often means that the project team will pay the supplier for the cost of the risk regardless of whether the risk occurs.
Risk avoidance is eliminating the risk from consideration by doing something that will eliminate it as a possibility. Risk acceptance is allowing the risk to happen and dealing with it if it occurs. Risk deflection or transfer is transferring the risk to someone other than the project team, such as an insurance company or outside supplier.
Risk mitigation is the process ...