Term
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Definition
1. Identify Risks
2. Asses the risks, forecasting future frequency and severity of losses.
3. Find risk mngmnt solutions.
4. Implement Solutions
5. Evaluate results. |
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Term
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Definition
| Low Severity/low frequency of losses |
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Term
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Definition
| high severity & frequency of losses |
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Term
| Retention w/ loss control |
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Definition
| Low severity & high frequency of losses |
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Term
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Definition
| High Severity & Low Frequency of Losses |
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Term
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Definition
| Evaluates all of an organization's risks, measuring the frequency and severity of each risk. |
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Term
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Definition
| Evaluates all of an organization's risks, measuring the frequency and severity of each risk. |
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Term
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Definition
| charting entire spectrums of risk, not individual risk "silos" from each separate business unit. |
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Term
Natural/man-mad risks
Financial risks
Business Risks
Operational Risks |
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Definition
| Four Basic Risk Categories |
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Term
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Definition
| Provides alternative financial actions for each frequency/severity combination on risk map. |
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Term
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Definition
| Projects the frequency and severity of losses into the future based on current data and statistical assumptions |
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Term
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Definition
| looks at the amount cash that will be saved; brings it into the present day world |
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Term
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Definition
| computerized data systems that allows a risk manager to quantify a firm's loss history |
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Term
| Risk Mapping Objectives (5) |
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Definition
1. Aid identification of risks and their interactions
2. Provide a mechanism to select best risk management strategy
3. Compare, evaluate and optimize current strategies
4. Evaluate leftover risks once all strategies are in place
5. Clearly communicate strategies to management and employees |
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