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Risk Financing
In business economics, risk financing is concerned with providing funds to cover the financial effect of unexpected losses experienced by a firm. Traditional forms of finance include risk transfer, funded retention by way of reserves (often called self-insurance) and risk pooling. Alternative risk finance is the use of products and solutions which have grown out of the convergence of the banking and insurance industry. They include captive insurance companies and catastrophic bonds, and finite risk products such loss portfolio transfers and adverse development covers. Professor Lawrence A. Cunningham of George Washington University suggests adapting cat bonds to the risks that large auditing firms face in cases asserting massive securities law damages. References Financial risk management {{finance-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Business Economics
Business economics is a field in applied economics which uses economic theory and quantitative methods to analyze business enterprises and the factors contributing to the diversity of organizational structures and the relationships of firms with labour, capital and product markets.Moschandreas, Maria (2000). ''Business Economics'', 2nd Edition, Thompson Learning,Descriptionand chapter-previelinks A professional focus of the journal '' Business Economics'' has been expressed as providing "practical information for people who apply economics in their jobs." Business economics is an integral part of traditional economics and is an extension of economic concepts to the real business situations. It is an applied science in the sense of a tool of managerial decision-making and forward planning by management. In other words, business economics is concerned with the application of economic theory to business management. Macroeconomic factors are at times applied in this analysis. Busi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Risk Transfer
Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself (at least in part) from the risk of a major claims event. With reinsurance, the company passes on ("cedes") some part of its own insurance liabilities to the other insurance company. The company that purchases the reinsurance policy is referred to as the "ceding company" or "cedent". The company issuing the reinsurance policy is referred to as the "reinsurer". In the classic case, reinsurance allows insurance companies to remain solvent after major claims events, such as major disasters like hurricanes or wildfires. In addition to its basic role in risk management, reinsurance is sometimes used to reduce the ceding company's capital requirements, or for tax mitigation or other purposes. The reinsurer may be either a specialist reinsurance company, which only undertakes reinsurance business, or another insurance company. Insurance companies that accept reinsurance r ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Self-insurance
Self insurance is a risk management method in which an organization that is liable for some risk does not take out any third-party insurance, but rather chooses to bear the risk itself. When used prudently, the organization that self insures sets aside money using actuarial and insurance information and the law of large numbers so that the amount set aside (similar to an insurance premium) is enough to cover the future uncertain loss. The advantage is that no premium has to be paid, but the organizations own assets are used to pay out claims or losses. The idea of self insurance is that by retaining, calculating risks, and paying the resulting claims or losses from captive or on-balance sheet financial provisions, the overall process is cheaper than buying commercial insurance from a commercial insurance company. Cost savings to the self-insured entity are usually realised through the elimination of the carrying-costs that commercial insurers are obliged to pass on to their ins ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Risk Pool
A risk pool is a form of risk management that is mostly practiced by insurance companies, which come together to form a pool to provide protection to insurance companies against catastrophic risks such as floods or earthquakes. The term is also used to describe the pooling of similar risks within the concept of insurance. It is basically like multiple insurance companies coming together to form one. While risk pooling is necessary for insurance to work, not all risks can be effectively pooled in a voluntary insurance bracket unless there is a subsidy available to encourage participation. In supply chain management Risk pooling is an important concept in supply chain management. Risk pooling suggests that demand variability is reduced if one aggregates demand across locations because as demand is aggregated across different locations, it becomes more likely that high demand from one customer will be offset by low demand from another. The reduction in variability allows a decr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lawrence A
Lawrence may refer to: Education Colleges and universities * Lawrence Technological University, a university in Southfield, Michigan, United States * Lawrence University, a liberal arts university in Appleton, Wisconsin, United States Preparatory & high schools * Lawrence Academy at Groton, a preparatory school in Groton, Massachusetts, United States * Lawrence College, Ghora Gali, a high school in Pakistan * Lawrence School, Lovedale, a high school in India * The Lawrence School, Sanawar, a high school in India Research laboratories * Lawrence Berkeley National Laboratory, United States * Lawrence Livermore National Laboratory, United States People * Lawrence (given name), including a list of people with the name * Lawrence (surname), including a list of people with the name * Lawrence (band), an American soul-pop group * Lawrence (judge royal) (died after 1180), Hungarian nobleman, Judge royal 1164–1172 * Lawrence (musician), Lawrence Hayward (born 1961), Briti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
