What does Active Retention mean?

It is a term referring to the situation when there is being saved specific amounts of money with the purpose of covering eventual profit losses. The exact opposite of active retention is passive retention, case in which there are not set up specific amounts with the purpose of building a pool to cover these profit losses.

Active Retention explained

Active retention is the perfect solution in order to somehow safeguard against eventual profit losses. In most of the cases it is an option which helps when these losses occur on an occasional basis, but which do not constitute very high sums of money. Consequently, active retention can be regarded as a measure of insurance and good self management. Many times businesses seek to find the perfect form of insurance, while if a form of active retention is undertaken, this is most of the times unnecessary.