Definition Of Risk Sharing
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Did you know that dozens of times every day you share risk.
Definition of risk sharing. Risk management method in which the cost of the consequences of a risk is distributed among several participants in an enterprise such as in syndication. A self insurance method of managing or reducing exposure to risk by spreading the burden of loss among several units of an enterprise or business syndicate. The assumption by multiple parties of shared responsibility for the risks associated with a joint venture. Risk risk sharing definition.
Risk is the probability of an event occurring in a given time period. Note 1 legal or regulatory requirements can limit prohibit or mandate risk sharing. Form of risk treatment 3 8 1 involving the agreed distribution of risk 1 1 with other parties.
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