Defines the policy for managing risks and the relevance to the organization’s strategic plan, goals, and objectives; clarifies risk management goals and direction; outlines the

Reaffirms and communicates senior management’s support for the risk management program to all employees with a brief statement; defines scope, responsibilities and authority of risk

Provides an overview of risk management programs on a periodic basis to identify successes and opportunities for improvement.

An action taken to break the sequence of events that leads to a loss or that makes the event less likely; the goal of this

Measurement of expected losses for a finite period of time based on historical data including but not limited to, total losses, number of losses, average

Group formed in compliance with the Risk Retention Act for the purpose of negotiating for and purchasing insurance from a commercial insurer.

Actual forecasting of loss frequency and severity to determine allocation decisions.

A risk control technique in which the goal is to reduce the severity or financial impact from losses that are not prevented.

Conscious acceptance of losses that the organization or company will finance using only internal funds. See retention.

A special type of group captive whose business is limited to liability coverage for owners/insureds. Formed under the Federal Liability Risk Retention Act of 1986,

An isolation of an exposure from other exposures, perils, or hazards; a risk control technique in which the goal is to reduce overall severity.

The spread of exposures or activities over several locations; a risk control technique in which the goal is to reduce overall severity.

Risk control technique that attempts to reduce or prevent loss by transferring some or all of the risk to another organization, either through a physical

Difference between an anticipated result (loss) and the standard deviation.

An organization’s financial capacity for assuming risk.

The unlawful taking of property from a person by actual violence or threat of violence.

A retirement savings account that allows an individual to deposit after-tax funds (not tax-deductible) up to specified annual contribution limits and accrue earnings income tax

Acronym for Regional President

Acronym for Risk Retention Group

Damaged or recovered stolen property taken over by the insurance company.

1) Gross salvage is the total amount a company expects to recover from salvage, and 2) net salvage is the gross amount less costs associated

In statistics, a subset of a larger group having the same characteristics of the group.

See Severability clause.

A type of life insurance policy that insures two lives, also referred to as a survivorship policy, where the death benefit is payable at the

A person designated by the policy owner to receive policy proceeds if the primary beneficiary is deceased at the time benefits become payable, also known