Most businesses know what “risk transfer” means. It means buying insurance and
passing the risk of financial loss to an insurance company. Yet, in today’s business
world many companies are facing the fact that insurance/risk transfer is either not
complete (there are exclusions and deductibles) or not available (at any price). That
is where the concept of “risk financing” takes shape. Now, we recognize that a
company could simply self-insure...
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