Risk reduction techniques that spread risks geographically or by line of business to avoid the problems of risk accumulation or overdependence on a particular class of business. The object is to increase the number of mutually independent risks.
Insurance Encyclopedia
Risk elimination
Means risk avoidance.
Risk evaluation/measurement
A process to establish risk management priorities by comparing the level of controllability or other criteria. Risk mapping is a useful tool for prioritising risks by placing them on a risk profile and revealing which threats require management time and resources.
Risk excess
An excess of loss reinsurance contract that is limited to property risks. The reinsured is protected within his overall exposure on an individual risk basis, i.e. the limit and the deductible apply to each and every loss on each and every risk.
***
an excess of loss reinsurance applicable to claims arising on individual risks.
Risk Excess of Loss
Excess of loss reinsurance that related to individual losses affecting only one insured risk at any one time.
Risk Factor
A factor that is expected possibility with the support of statistical evidence, to have an influence on the intensity of risk in an insurance cover.
Risk factor reduction
In a managed care plan, this phrase refers to a decrease of a risk (loss foreseen) in the group of members.
Risk factors
Situations that influence an individual’s health and may cause illness including heredity, sex, race, age, biological factors, environmental factors, and behavioral factors (smoking, inactivity, response to stress).
Risk financing
Risk management techniques to provide funding for losses after they have occurred. Some risks are retained and paid out of normal cash flow, reserves or a formal self-insurance scheme, the ultimate of which is a captive insurer. Insu ance is a common external source of finance while non-insurance risk transfer through hold harmless agreements and financial instruments such as weather derivatives also entails external financing. There are numerous alternative risk transfer products that offer a range of solutions, particularly for firms active in the financial and capital markets.
Risk Financing Tool
A technique designed to provide money to deal with those losses that do occur.