Methods used in risk financing

Methods used in risk financing

Blog Article

Given that in most risk management programs, risk control, which involves avoiding, preventing and reducing risks, is not fully effective and over time several methods of financing Wooden House the losses that have occurred have been developed, such as would be detention or transfer.The withholding assumes that the injured party is also the one that bears the financial consequences, and the transfer involves the occurrence of a different entity from the injured party that bears the direct financial consequences.This method transfers the risk to another entity and involves an additional cost paid by the transferor to the one he accepts, namely the insurance premium or fees.

By transferring risk through insurance, the bank is offered related risk management services, better defining its risk profile or can Iron contribute to improving performance indicators and flows, thus preventing the crisis situation.