Maximum Foreseeable Loss (MFL)
Definition of 'Maximum Foreseeable Loss (MFL)'
The MFL is an important tool for risk management. It helps companies to identify and manage their risks. By knowing the maximum amount of money that they can lose, companies can make informed decisions about how to protect their assets.
The MFL is also used by insurance companies to set premiums. The higher the MFL, the higher the premium. This is because insurance companies want to make sure that they have enough money to pay for claims in the event of a loss.
The MFL is a dynamic figure. It changes over time as the company's assets and risks change. Companies should review their MFL on a regular basis to make sure that it is still accurate.
The MFL is an important tool for managing risk. By understanding the MFL, companies can make informed decisions about how to protect their assets.
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