Which term refers to maintaining full responsibility for losses while continuing an activity?

The term that best fits the description of maintaining full responsibility for losses while continuing an activity is retention. In risk management and insurance contexts, retention refers to the strategy where an individual or organization decides to take on the financial burden of risks by accepting responsibility for any potential losses that may arise, rather than transferring that risk to an insurance policy or another entity.

This practice is often employed when the potential impact of the risk is considered manageable or when the costs of transferring the risk (like purchasing insurance) exceed the potential losses. By retaining risk, the party remains fully accountable for any outcomes related to that risk, allowing them to control the situation more directly rather than relying on external coverage.

Understanding retention is crucial for individuals or businesses as it influences their overall risk management strategy and financial planning. This concept ties into various industries, including title insurance, where entities might choose to retain certain risks associated with property ownership rather than transferring them to an insurance provider.