Risk transfer
What Risk transfer means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Risk transfer
Check what you remember
Read the wording for your board, then hide it and explain Risk transfer in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
A mechanism where a business pays a premium to a provider to cover potential future financial losses.
Topics that use Risk transfer
- Risks and uncertainty (Pearson Edexcel A-Level)
Related terms
- Business resilience
- Contingency planning
- Exchange rate risk
- Financial stability
- Forward contract
- Risk
- Supply-side shocks
- Uncertainty
Using Risk transfer in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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