Risk is defined as volatility of outcome and thus includes both worse-than-expected as well as better-than-expected outcomes. Financial Risk may be taken as downside risk, the difference between the actual return and the expected return (when the actual return is less), or the uncertainty of that return. Greater the uncertainty greater is the risk.
How to manage risk ? The strategies to manage risk include transferring the risk to another party, avoiding the risk, reducing the negative effect or probability of the risk, or even accepting some or all of the consequences of a particular risk.
How to manage risk ? The strategies to manage risk include transferring the risk to another party, avoiding the risk, reducing the negative effect or probability of the risk, or even accepting some or all of the consequences of a particular risk.
What is Insurance ?
Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Risk is important for insurance as it decides whether or not you need insurance. Risk is what insurance companies measure when determining whether or not to offer you insurance and how much will it cost.
Insurance is defined as the equitable transfer of the risk of a economic loss, from one entity to another, in exchange for payment. An insurer is a company taking risk; an insured, or policyholder, is the person or entity buying the insurance policy by giving premiums against transferring risk.
Insurance is defined as the equitable transfer of the risk of a economic loss, from one entity to another, in exchange for payment. An insurer is a company taking risk; an insured, or policyholder, is the person or entity buying the insurance policy by giving premiums against transferring risk.
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