Guaranteed mutual aid is a type of risk management method, which is a transfer. Transfer means that an unit or individual transfers losses or the financial consequences related to losses to other units or individuals through economic contracts, such as guaranteed mutual aid and fund systems.

wait.

Risk transfer There are two situations in risk management, one is retention and the other is transfer! Retention means leaving the risk to yourself, and you will bear the losses if an accident does occur.

This approach can save costs.

But if an accident does occur, you have to bear the losses yourself.

The basic content of risk transfer is the transfer of the responsibility for losses caused by risks. In the international sale of goods, it specifically means that the risk of the goods borne by the original seller is transferred to the buyer at some point.

The methods of classifying risk transfer can be divided into financial non-insurance transfer and financial insurance transfer.

Financial non-insurance transfer refers to the transfer of risks and risk-related financial results to others through the conclusion of economic contracts.

In economic life, common financial non-insurance risk transfers include leasing, mutual guarantees, fund systems, etc.