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" Risk Finanincing: Risk management techniques to provide funding for losses after they have occurred. Some risks are retained and paid out of normal cash flow, reserves or a formal self-insurance scheme, the ultimate of which is a captive insurer (qv). Insurance is a common external source of finance while non-insurance risk transfer through hold harmless agreements (qv) and financial instrument such as weather derivatives (qv) also entails external financing. There are numerous alternative risk transfer products (qv) that offer a range of solutions, particularly for firms active in the financial and capital markets."
C. Bennett. Dictionary of Insurance, (New York: Prentice Hall, 2004), 269.
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