What Does Value of Risk Mean?

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

Value of Risk

Value of Risk

The contribution to shareholder value or other stakeholder interests resulting from a risk-taking activity. Like the "captive value added" concept, VOR looks at components of the cost of risk as an investment required to further organizational objectives.

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

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