01.Core Concepts

Self Insurance is a special form of planned retention by which part or all of a given loss exposure is retained by the firm A Noninsurance transfer transfers a risk to another party. A transfer of risk by contract, such as through a hold-harmless clause in a contract Hedging is a technique for transferring the risk of unfavorable price fluctuations to a speculator Incorporation of a business firm transfers to the creditors the risk of having insufficient assets