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Can someone explain to me risk financing, or point me to a good website that explains this?
I can't seem to find this anywhere in more detail, I need to know the meaning function and importance of this. Also can someone explain to me how the stock market works? Thanks!
1 Answer
- ?Lv 51 decade agoFavorite Answer
"risk financing" is concerned with providing funds to cover the financial effect of unexpected losses experienced by a firm.
Achievement of the least-cost coverage of an organization's loss exposures, while assuring post-loss financial resource availability. ...
provision of funds to meet the cost of implementing risk treatment and related costs. In some industries, risk financing refers to funding only the financial consequences related to the risk.
Definition
Money consumed in losses, funded either from internal reserves or from purchase of insurance.