Difference between revisions of "Risk Transfer"
Jump to navigation
Jump to search
(→National Definitions) |
|||
| Line 11: | Line 11: | ||
=== National Definitions === | === National Definitions === | ||
| − | + | ==== Australia ==== | |
| + | {{definition| Risk transfer is shifting the responsibility or burden for loss to another party through legislation, contract, insurance or other means. <ref name="MAIMAus">[https://www.em.gov.au/Documents/Manual03-AEMGlossary.PDF Australian Emergency Management Glossary, Emergency Management Australia (1998)]</ref>}} | ||
| + | Risk transfer can also refer to shifting a physical risk or part thereof elsewhere. | ||
| + | <br /> | ||
===Standard Definition=== | ===Standard Definition=== | ||
Revision as of 00:31, 24 May 2015
Contents
Definitions
European Definitions
Other International Definitions
UNISDR
The process of formally or informally shifting the financial consequences of particular risks from one party to another whereby a household, community, enterprise or state authority will obtain resources from the other party after a disaster occurs, in exchange for ongoing or compensatory social or financial benefits provided to that other party[1].
- Insurance is a well-known form of risk transfer, where coverage of a risk is obtained from an insurer in exchange for ongoing premiums paid to the insurer.
- Risk transfer can occur informally within family and community networks where there are reciprocal expectations of mutual aid by means of gifts or credit, as well as formally where governments, insurers, multi-lateral banks and other large risk-bearing entities establish mechanisms to help cope with losses in major events. Such mechanisms include insurance and re-insurance contracts, catastrophe bonds, contingent credit facilities and reserve funds, where the costs are covered by premiums, investor contributions, interest rates and past savings, respectively.
National Definitions
Australia
Risk transfer is shifting the responsibility or burden for loss to another party through legislation, contract, insurance or other means. [2]
Risk transfer can also refer to shifting a physical risk or part thereof elsewhere.
