🦺Proactive Risk Management

Risk management is the identification, evaluation, and prioritization of risks followed by coordination or resources to minimize, monitor, and control the probability or impact of unfortunate events and/or to maximize the realization of opportunities. Risk management can be broken down into categories. We promise they are beneficial to you - and here's how:

Risk Retention:

This just means that you understand there is a certain risk and you are ok with it. You retain that risk and carry the cost of that risk. Deciding not to purchase insurance is one way to retain risk. If you experience a hack and lose some crypto - without insurance you are retaining the impact of that loss.

Risk Avoidance

Simply put, just don't do anything risky. It isn't always possible to avoid anything risky. In the world of DeFi we are bombarded with messages about the inherent risk. So, needless to say - it is tough to avoid it all together. Nimblr, however, can help you avoid the following

• Shady Actors: Nimblr is developing a Trust Score as part of the underwriting process.

Risk Spreading

Remember those Chinese Merchants we talked about earlier? By carrying each others cargo they were spreading their risk. This is something the a Decentralized Insurance Marketplace like Nimblr can help with:

• The community is built to spread risk. Each risk pool is diversified and contributing to the Nimblr Common Reserve for even further diversification/spread.

• The cost of insurance is spread out across the Nimblr ecosystem, resulting in a more efficient and transparent process.

Risk Prevention

Here's an easy explanation. How can you prevent the risk of a car crash? Don't drive with your eyes closed, don't text and drive, get your license, don't speed, pay attention. These are all risk prevention methods to prevent the risk of a car crash. How does Nimblr help you:

• When onboarding a project partner, Nimblr and the Nimblrs work with the project to support Smart Contract Audits, penetration testing, and other tools that can make them more secure.

• This information is available to Nimblrs looking to purchase coverage and LPs looking to provide capital.

• In the event of a hack, Nimblr has the unique position of notifying similar projects of the potential of a hack to avoid further impact.

Risk Transfer

You've identified your risk. You don't want to retain it, so you want someone else to handle it. That is Risk Transfer. Buying coverage through Nimblr is one way to transfer risk.