It's some kind of technical business usage. I'm going to guess. To "take on" risk means to accept it. I think that "decline risk" means to refuse to take on the risk, and that to "lay off" risk means to take on the risk, and then to pass it on to somebody else--for example, by buying insurance. When you buy insurance, you are no longer taking the risk yourself--you are paying the insurance company to take it for you. You are "laying off" the risk.

Lay Off means terminate; discard. It's usually applied in making staff redundant, whereby they lose their job due to a failing business but are not fired due to misconduct. But in this case it may refer to completely removing a risk. We really need to see more surrounding text to be sure of the context and meaning. Decline means reduce in performance. Not completely kill; only lower. Again we need to see more surrounding text to be sure of the context and meaning.

"lay off risk" makes no sense; nor does 'decline risk,' although that could be 'decline to take on risk" Really quite a poorly written sentence!!!!