《风险管理与保险 齐瑞宗》Treisch12e_Ch01.pptVIP

Introduction to RiskChapter 1 Chapter Objectives Explain three ways to categorize risk List the components of an entity’s cost of risk Give several examples of risks involving property, liability, life, health, loss of income, and financial losses Distinguish between chance of loss and degree of risk Give examples of three types of hazards Identify the difference between hazards and perils Explain the evolving concept of integrated risk management Explain the four steps in the risk management process Introduction Risk regarding the possibility of loss can be especially problematic If a loss is certain to occur It may be planned for in advance and treated as a definite, known expense When there is uncertainty about the occurrence of a loss Risk becomes an important problem The Burden of Risk Some risks involve only the possibility of loss Risks surrounding potential losses create significant economic burdens for businesses, government, and individuals Billions of dollars are spent each year to finance potential losses But when losses are not planned for in advance they may cost even more Risk of loss may deprive society of services judged to be too risky For instance, without malpractice insurance many physicians would refuse to practice medicine The Burden of Risk Businesses may try to either avoid risk of loss or to reduce its negative consequences An entity’s cost of risk is the sum of Expenses of strategies to finance potential losses The cost of unreimbursed losses Outlays to reduce risks Opportunity cost of activities forgone due to risk considerations FIGURE 1-1 Types of Risk Pure vs Speculative Risk Pure risk exists when there is uncertainty as to whether loss will occur No possibility of gain is presented?only the potential for loss Speculative risk exists when there is uncertainty about an event that can produce either a profit or a loss Both pure and speculative risks may be present in some situations Subjective vs Objective Risk Subjectiv