. Law: Negligence doctrine used in defense to a personal injury suit. It reduces the amount, or bars the recovery, of damages by an aggrieved party on the grounds that he or she acted with actual or inferable knowledge (see constructive knowledge) of the hazard that caused the injury.
2. Risk management: Practice of absorbing minor losses (such as due to petty larceny) but protecting against catastrophic losses (such as due to robbery or fire) by buying insurance cover. Also called assumption of risk.