Reserving Risk
/ˈrɛzərvɪŋ rɪsk/
Definitions
- (n.) The risk associated with setting aside reserves for future liabilities, particularly in insurance or financial contexts.
The company evaluated its reserving risk to ensure adequate funds for potential claims.
Forms
- reserving risk
Related terms
See also
Commentary
Reserving risk specifically involves the uncertainty in estimating the appropriate amount of reserves, highlighting the importance of actuarial judgment in legal and financial reporting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.