What is "risk" and how can people reduce it through "risk shifting"?

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Business

Kelsie Stanton

20 January, 08:24

What is "risk" and how can people reduce it through "risk shifting"?

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Landen Pugh · Answer 1

Risk is the possibility of not getting expected result of something.

Risk shifting is one way of reducing risk. Best example for risk shifting is 'Insurance'. In this, risk is shifted to an another party like insurance company. After shifting risk to another party, if the shifted risk happened other party will gain that loss and you can claim the loss that happened because of the risk from other party. So if you have shifted your risk then you don't have to be afraid of getting that risk. Because another party is taking that risk for you but for a cost.