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Definitions from the Web

Shared-Risk

Description:

Shared-risk refers to a situation or arrangement where multiple individuals or entities bear the potential negative outcomes or losses together. It involves sharing the exposure to risks and taking collective responsibility for the potential consequences.

Sample Sentences:

• In a shared-risk partnership, both companies invest resources and share the financial gains or losses.
• Insurance policies often have shared-risk clauses, where the insured individual agrees to bear a percentage of the loss.
• In the case of a shared-risk investment strategy, the potential profits and losses are divided among the investors.

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