What does Risk Financing mean? Read on to discover the definition & meaning of the term Risk Financing - to help you better understand the language used in insurance policies.
Achievement of the least-cost coverage of an organization's loss exposures, while ensuring post-loss financial resource availability. The risk financing process consists of five steps: identifying and analyzing exposures, analyzing alternative risk financing techniques, selecting the best risk financing technique(s), implementing the selected technique(s), and monitoring the selected technique(s). Risk financing programs can involve insurance rating plans, such as retrospective rating, self-insurance programs, or captive insurers.
We hope the you have a better understanding of the meaning of Risk Financing.