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.