FAIR (Foundation for Insurance and Risk Management)

FAIR, or the Foundation for Insurance and Risk Management, is a systematic approach to understanding and quantifying risks, especially in insurance. It helps organizations assess how much risk they face, what the potential financial impact might be, and how to manage or transfer that risk effectively. By analyzing various factors like causes, consequences, and probabilities, FAIR provides a structured way to make informed decisions about risk mitigation and insurance coverage. Essentially, it helps insurance companies and businesses better understand the nature of risks to set appropriate premiums and develop strategies to protect against potential losses.