Term
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Definition
1. actual losses from various perils
2. fear and worry because of possible losses
3. less-than-optimal use of resources |
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Term
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Definition
| systematic process to deal with risks |
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Term
| Key steps in risk management process |
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Definition
1. Identification and classification of various risks
2. Measurement- frequency, severity and variability
3. Methods to treat identified risk - some avoidance, some controlled, some transferred via insurance
4. Implementing and monitoring |
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Term
| Objectives of Risk Management |
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Definition
1. Survival
2. Peace of mind
3. Lower costs
4. stable earnings
5. Minimal interruption
6. continued growth
7. good public image |
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Term
| Basic Methods of treating Risks |
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Definition
Risk control
Risk financing |
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Term
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Definition
-Risk Avoidance
-Loss Prevention
-Loss Severity Reduction
-Noninsurance transfers |
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Term
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Definition
Risk Retention - planned and unplanned risk retention
Risk Transfer - Noninsurance transfers and Insurance transfers |
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