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What is Risk Transfere about?
Risk transfer is a risk management technique where one party shifts its liabilities to a third party, commonly through purchasing insurance. This involves periodic payments to the third party in exchange for assuming the risk of potential financial losses. Methods of risk transfer include insurance policies and indemnification clauses in contracts, while risk transfer is distinct from risk shifting, which alters the distribution of risky outcomes without transferring the risk.
- Author
- Mohamed Elfakeeh
- Language
- EN