Category: R

The spreading of exposure by combining firms with similar risk factors by risk pooling. Similar to group captive this is a retention vehicle.

Liablity insurance held by the policy holders.All policy holders will be in the same business and exposed to the same level of risks.

An evaluationof the possibility and magnitude of a risk.

A reduction, systematic in nature, of exposure to risks and the possibility of its occurence. Called risk reduction.

The tracking and reporting of exposures to risk to external stakeholders. Refer to risk identification, risk management, and risk quantification.

An attitude of investors where any loss or gain is of equal chance.

A characteristic that is measurable that can affect the value of assets.

The chance of bearing the costs that are associated with destruction, damage or the inability of locating goods, documents and other property.

A delay in the funding of losses until they are more affordable instead of transferring them to a third party. Refer to finite insurance contract and finite reinsurance.

See burden of proof.