Title | Risk Management - Lecture notes 1 |
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Course | Risk Management |
Institution | Nottingham Trent University |
Pages | 3 |
File Size | 48.9 KB |
File Type | |
Total Downloads | 85 |
Total Views | 135 |
This lecture gives an overview of the risk management process., This lecture gives an overview of the risk management process....
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I sconcer nedwi t ht hepr ot ect i onofasset s,ear ni ngs,l i abi l i t i esandpeopl eofanent er pr i sewi t h maxi mum effici encyandatmi ni mum cost . Ri skManagementDefini t i on “ Thei dent i ficat i on,anal ysi sandeconomi ccont r oloft hoser i skst hatcant hr eat ent heasset sor ear ni ngcapaci t yofanent er pr i se’Hol l yoake( 2002)
Ri skmanagementhasani mpor t antr ol ei nachi evi nganor gani sat i onsobj ect i ves
-Pr event i onorr educt i onofr i sksi dent i fied -Pl anst oensur ecashflowsaf t erl oss -I ncl udi ngRi skasacosti ncapi t albudget i ng -I mpr ovi ngsaf et yst andar dswi t hi nt heor gani sat i on -Cr eat i ngpeaceofmi ndf ort hemanager s St agesofRi skManagement
1)Ri skI dent i ficat i on
-Maki ngl i st sofasset s -Det ai l i ngact i vi t i esandpr oduci ngchar t s -Physi cali nspect i ons -Cl assi f yi ngt her i sksi nameani ngf ulway 2)Ri skEval uat i on
-Fr equencyandsever i t y -Rol eofst at i st i cs -Pr obabi l i t yt heor y 3)Ri skcont r ol Physi cal El i mi nat i onandMi ni mi sat i on Pr el ossmi ni mi sat i on-mi ni mi si ngl ossbef or et heevent-war ni ngsi gns Postl ossmi ni mi sat i on-mi ni mi si ngl ossaf t ert heevent-aut omat i cspr i nkl ersy st ems
Fi nanci al Ret ent i onandTr ansf er Ret ent i on t or et ai nt her i sky our sel ffinanci al l y
-Excessonani nsur ancepol i cy-payf orsomuchoft hel ossyour sel f -Sel fi nsur ancef und -Capt i vei nsur ancecompany -Underi nsur ance-r esponsi bl ef ort heamountoft hatunderi nsur ancey our sel f( Condi t i onofaver age)
-Handl et her i skoutofpr ofit s-sui t abl ef ort hehi gherf r equencyl owers ever i t yt yper i sks-cal cul at et hepot ent i all osseasi l y
Tr ansf er Tr ansf ert her esponsi bi l i t y
-Tr ans f ert oani nsur ancecompany Tr ansf ert heact i vi t y
-Subcont r actpar toft heact i vi t y
Ri skI dent i ficat i on Ri ski dent i ficat i oni sanat t emptr i gor ousl yt oi dent i f yal lpossi bl eev ent s,si t uat i ons,oract i vi t i est hat coul dcauseorenhancel osses ’Di acon&Car t er( 1992)
Ther ef or er i ski dent i ficat i oni sacombi nat i onoft echni quesbr oughtt oget hert omakeal lt heact i vi t i esofafir m,andt hei ri nt er r el at i onshi ps,appar entandt ohel pi dent i f ypot ent i all osses
Howdoyoudi ffer ent i at ebet weenr i skandi nsur ance Ri skandchance ? Ri ski samor epessi mi st i ct er m -t her i skofsomeonedyi ng Chance-t hechanceofsomeonesur vi vi ng
Pur eRi sk-onl yapossi bi l i t yofl ossandnopossi bi l i t yofgai n-fir eandt hef t Specul at i ver i sk-possi bi l i t yofl ossandofgai n-gambl i ng,l aunchofanewpr oduct ,set t i ngup t hebusi nessi nt hefir stpl ace-cannotusual l yt ak eouti nsur ancef ort hese
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Fundament alr i sk-onet hataffect sl ar gesect i onsofsoci et y-nat ur aldi sast er s,t er r or i sm,i nflat i on,unempl oyment-t hesear enor mal l ynoti nsur abl e-candependonl ocat i on Par t i cul arr i sk-der i v esf r om ouri ndi vi dualdeci si onst hatwemak e-t hesear enor mal l yi nsur abl e
Whatwoul dt her i sksbecl assedas : a)Pol l ut i on-Pur eandf undament al b)Acci dent aldamaget oaT. V.-Pur eandpar t i cul ar c) Anewbusi nessv ent ur e-Specul at i veandPar t i cul ar Ar i skcanbespecul at i veandf undament al...