Decision stage of risk management when the firm decides how to respond to risk. The options include risk transfer (insurance and non-insurance), risk financing; reduction, avoidance, prevention, control, etc. This is followed by implementation.

A measure of the capital required to absorb any unexpected losses that result from the risks an organisation assumes in regard to its business and operational activities. In insurance RBC management means an insurer calculates the capital needed to support different classes of business. Overall RBC is expressed as a ratio, the total capital of the company divided by the company’s RBC as determined by formulae. The FSA has proposed that insurers will be required to hold the higher amount of minimum capital requirement as set out in the EC Directives and enhanced capital requirement, a more risk sensitive calculation specified by the FSA.

Excess of loss reinsurance covering losses on policies issued or renewed during the treaty period until they expire. The attachment point is the key.
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UK: a type of reinsurance; in excess of loss property reinsurance, a risks attaching clause means that cover continues until the expiry of the original risk.