Accepting Risk

Unlike their arch rival, Bag-o-Glass sold exclusively to preschoolers. Bag-o-Marbles decided that they did not need to insure against injuries to kids using its product. They decided to accept risk in their business, and this financial bet is an element of risk management. Bag-o-Marbles did the math on the $10 million a year their insurance company wanted to insure for injuries sustained by kids putting marbles in, um, wrong places...and it was just too much money. They'd rather self-insure, and hope that business continues to roll.