What Is The Difference Between Risk Retention And Risk Transfer? Risk retention is an individual or organization’s decision to take responsibility for a particular risk it faces, as opposed to transferring the risk over to an insurance company by purchasing insurance. … Risks they choose not to retain are transferred out via a reinsurance policy.
What Is Risk Retention And How Do We Retain Risk? Retention refers to the assumption of risk of loss or damages. This expresses how a party, usually a business, handles or manages its risk. When a business retains risk, they absorb it themselves, as opposed to transferring it to an insurer. What are some examples
What Is The Correct Risk Management Term For Minimizing The Chance Of A Loss? Risk avoidance and risk reduction are two strategies to manage risk. Risk avoidance deals with eliminating any exposure to risk that poses a potential loss, while risk reduction deals with reducing the likelihood and severity of a possible loss. Which risk