Planning: Risk Financing: A risk management technique that includes steps to pay for or transfer the cost of losses.

Method: Retention: A technique that involves retaining all or part of a particular loss exposure.

Execution: Example: A restaurant may not identify its liability exposure for serving too much alcohol to a customer and therefore may fail to purchase liquor liability insurance to cover this exposure. In the long run retention is less expensive than insurance.

Learn More About Claims outsourcing