risk sharing

Definition

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. Risk retention pools formed with the contributions of participants are often utilized as a way to self insure risks among multiple entities.

Use risk sharing in a sentence

You should always try to make sure that there is some risk sharing going on so that it is not all on you.

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Our risk sharing strategy was just meant to prevent us from drowning and getting too many problems in our company.

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Several small businesses in the town of Santa Clara have banded together in a risk sharing entity for safety purposes.

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