Frequently Asked Questions

11. What is Risk Financing?

Achievement of the least-core coverage of an organization's loss exposures, while ensuring post-loss financial resource availability.  The risk financing process consists of five steps:  identifying and analyzing exposures, analyzing alternative risk financing techniques, selecting the best risk financing techniques, implementing the selected techniqes, and monitoring the selected techniques.  Risk Financing programs can involve insurance rating plans, such as retrospective rating, self-insurance programs or captive insurance