What Does Cost of Risk Mean?

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What does Cost of Risk mean? Read on to discover the definition & meaning of the term Cost of Risk - to help you better understand the language used in insurance policies.

Cost of Risk

Cost of Risk

The cost of managing risks and incurring losses. Total cost of risk is the sum of all aspects of an organization's operations that relate to risk, including retained (uninsured) losses and related loss adjustment expenses, risk control costs, transfer costs, and administrative costs.

We hope the you have a better understanding of the meaning of Cost of Risk.

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