0
What is the difference between risk retention and risk transfer?
Wiki User
∙ 12y ago
risk retention is to accept when the loss occurs and risk transfer is shifting the responsibilty of one's own losses to someone else.
Wiki User
∙ 12y ago
Risk retention is when a company decides to bear the financial impact of a potential loss itself, while risk transfer involves shifting the risk to another party through insurance or other financial arrangements. Risk retention allows a company to potentially save on insurance premiums but also exposes it to higher financial losses, while risk transfer helps mitigate potential losses by passing them onto another party.
Add your answer:
Earn +20 pts
How do risk taking and risk assessment relate to right and responsibilities?
Risk taking involves making decisions that may have uncertain outcomes, while risk assessment involves evaluating the potential consequences of those decisions. In terms of rights and responsibilities, individuals have the right to take risks, but they also have the responsibility to assess those risks to ensure they do not infringe on the rights and safety of others. Balancing risk-taking with responsible risk assessment helps maintain a healthy balance between individual freedom and the well-being of society.
What is MAIN difference between the rights of juveniles arrested for driving under the influence (DUI) who posses a Georgia Driver's License and juveniles arrested for DUI who do NOT posses a Georgia?
The main difference is that juveniles arrested for DUI who possess a Georgia Driver's License are subject to stricter penalties, such as license suspension or revocation. On the other hand, juveniles arrested for DUI who do not possess a Georgia Driver's License may face legal consequences but are not at risk of losing their license since they do not have one.
What is reasonable risk?
Reasonable risk refers to a level of risk that is justified or acceptable in a given situation. It typically involves weighing the potential benefits against the potential harm or negative consequences. It involves making informed decisions based on the likelihood and impact of the risk.
Are there defenses for strict liability?
Yes, defenses for strict liability typically include: Assumption of risk by the plaintiff Product misuse by the plaintiff Contributory negligence by the plaintiff Lack of causation between the defendant's conduct and the harm suffered
How does risk assesments relate to rights and resposibilities?
Risk assessments help to identify potential hazards and ensure that rights are protected by outlining measures to address them. Individuals have the responsibility to participate in risk assessments to actively protect their rights and the rights of others. By conducting risk assessments, organizations can fulfill their responsibility to provide a safe environment that upholds the rights of all involved.
What is the difference between risk retention and self insured?
Risk retention refers to the ability to accept risk and or can be referred to as risk taking, however self insured refers to a situation when someone is very much hopeful
What is difference between active passive risk retention?
Retaining risk passively - Understanding the risk without taking any actions to prevent possible outcomes. Active retention - preparing for risk to happen, having plan for in case it would happen. Some form of self insurance (direct insurance would be form of transferring risk.)
What is risk financing?
Risk financing is any technique used to obtain funds to restore losses that strike an individual or entity. These techniques fall into three general categories Risk retention contractual transfer to non insurer in which legal liability is retained transfer to an insurer.
What is Difference between wholesaler and retailer on the basis risk?
what is Difference between wholesaler and retailer on the basis risk?
What is difference between constraint an risk?
A constraint is a limitation that is visible and present. The difference between a constraint and risk is that a risk is problem that is not yet seen, or a potential problem.
What is the difference between risk behavior and risk situation?
Risk behavior refers to actions or activities that increase the likelihood of potential harm or negative consequences. On the other hand, risk situation refers to circumstances or environments that expose individuals to potential danger or harm. Risk behavior involves individual choices and actions, while risk situation relates to external factors that may increase the likelihood of harm.
What are the difference between political risk and country risk?
they are the same
What is the difference between transaction risk and economic risk?
Transaction is bank risk
What does risk retention mean?
Risk retention is a form of self-insurance. An organization sets aside a reserve fund to be able to offset unexpected claims.
What is the difference between a risk and a benefit?
a risk is taking a chance and a benefit is benfiting from it
What are the advantage and disadvantage of risk transfer?
advantages of risk transfer
What is the difference in risk assumed between participating and non-participating policies?
What risk? Assumed by who?
