Handling Risk Copy

Since everyone has risk, the need to handle risk is universal. In various time and places, people have developed a variety of methods for meeting this need. You can remember these methods with the acronym, STARR:

• Sharing — Giving and receiving help within your community
• Transfer — Getting insurance
• Avoidance — Refraining from doing an activity or doing something that may come with a risk
• Reduction — Taking care to lessen the likelihood of incurring a loss
• Retention — Keeping the consequences of incurring a loss upon yourself

The next slides will explain each one in more detail.