Risk financing

Having analysed the risks faced by the organisation, one must then define mitigation strategies and selected a series of controls to implement your mitigation. However, not all risks can be mitigated - at least not completely, and so one is now left with a level of risk that may have a business impact on the organisation and must be treated in some other way.

This is where risk financing comes into play, using the concept of insurance. Risk financing is designed to manage the financial impact of a risk event if it occurs. There are two main themes:

· Risk acceptance - self-insurance.

· Risk transfer - taking out insurance through a third party insurer.

Risk acceptance
Risk transfer: the concept of insurance
Types of insurance
Self-insurance
Problems with insurance

An Introduction To Information, Network and Internet Security
Risk financing Having analysed the risks faced by the organisation, one must then define mitigation strategies and selected a series of controls to implement your mitigation. However, not all risks can be mitigated - at least not completely, and so one is now left with a level of risk that may have a business impact on the organisation and must be treated in some other way. This is where risk financing comes into play, using the concept of insurance. Risk financing is designed to manage the financial impact of a risk event if it occurs. There are two main themes: · Risk acceptance - self-insurance. · Risk transfer - taking out insurance through a third party insurer. Risk acceptance Risk transfer: the concept of insurance Types of insurance Self-insurance Problems with insurance	The Security Practitioner An Introduction to Information Security
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