Tashkent institute of finance department «state finance» presentation on the discipline “Finance” on the Theme

Theme 2.17. «Finance and risks»

Risk retention and risk transfer

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3. Risk retention

• Risk retention consists in covering losses from own resources. Sometimes this happens by itself, for example, when a person is unaware of the existence of a risk or does not pay attention to it. There are times when people consciously decide to take risks. In particular, some people refuse medical insurance, preferring to donate part of the earned money for treatment in case of illness. Family precautionary savings are one way to alleviate the costs of risk taking.