保险英语专业词汇（6）
——the cost of risk

1. The cost of risk:

——represents the extent to which an organization’s value has been affected by its risks and indicates how much the organizations value might be increased if risks are reduced.

2. six types of costs of risk:

(1) insurance premium（保费）;(4)outside services;

(2) retained losses;         (5)financial guarantees;

(3) internal administration; (6)fees, taxes and similar expenses.

3. Cost-of-risk’s five components:

(1)Expected cost of losses;

(2)Cost of loss control;

(3)Cost of loss financing;

(4)Cost of internal risk-reduction methods;

(5)Cost of residual(剩余的) uncertainty.