What does Risk Management Techniques mean? Read on to discover the definition & meaning of the term Risk Management Techniques - to help you better understand the language used in insurance policies.
Risk Management Techniques
Methods for treating risks. Traditional risk management techniques for handling event risks include risk retention, contractual or noninsurance risk transfer, risk control, risk avoidance, and insurance transfer. Other techniques used for other types of risk (e.g., credit, operational, interest rate risks) include financial tools such as hedges, swaps, and derivatives.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
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