Operational risk financing securities (ORFS)

{
  "id": "MLC-T-INS-002420",
  "term": "Operational risk financing securities (ORFS)",
  "field": "Insurance and risk management",
  "definition": "Financial instruments designed to transfer specific operational risks from a company to capital market investors. These securities, often structured as catastrophe bonds or other insurance-linked securities, provide a mechanism for companies to hedge against large, infrequent operational losses. They offer an alternative to traditional insurance for managing certain types of operational exposures.",
  "abbreviation": "ORFS",
  "url": "https://mlchart.com/terminology/insurance/operational-risk-financing-securities-orfs/"
}