Difference between revisions of "Risk Transfer"
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=== Other International Definitions === | === Other International Definitions === | ||
==== UNISDR ==== | ==== UNISDR ==== | ||
| − | {{definition|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<ref> [http://www.unisdr.org/files/7817_UNISDRTerminologyEnglish.pdf 2009 UNISDR Terminology on Disaster Risk Reduction]</ref> | + | {{definition|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. <ref> [http://www.unisdr.org/files/7817_UNISDRTerminologyEnglish.pdf 2009 UNISDR Terminology on Disaster Risk Reduction]</ref> }} |
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* 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. | * 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. | ||
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=== National Definitions === | === National Definitions === | ||
==== Australia ==== | ==== Australia ==== | ||
| − | {{definition| Risk transfer is shifting the responsibility or burden for loss to another party through legislation, contract, insurance or other means. | + | {{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. | Risk transfer can also refer to shifting a physical risk or part thereof elsewhere. | ||
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[[Category:Risk]] | [[Category:Risk]] | ||
| + | {{#set:defined by=UNISDR|defined by=Australia|defined by=United States}} | ||
Revision as of 21:43, 10 June 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.
United States
Risk transfer is an action taken to manage risk that shifts some or all of the risk to another entity, asset, system, network, or geographic area. [3]
