30风险管理与保险.pptVIP

Trieschmann, Hoyt Sommer Risk Management Techniques: Noninsurance Methods Chapter 5 ?2005, Thomson/South-Western Chapter Objectives ? Give examples of the use of risk avoidance and explain when it is an appropriate risk management technique ? Differentiate between frequency reduction and severity reduction and give examples of each ? Explain three different forms of loss control, differentiated on the basis of timing issues, and provide examples of each ? List several potential costs and benefits associated with loss control measures ? List four forms of funded risk retention ? Explain the essential elements of self insurance and describe the financial as well as nonfinancial factors that affect a firms ability to engage in funded risk retention ? Describe the nature of risk transfer as a risk management tool and list five forms of risk transfer ? Explain how risk management adds value to a corporation 2 Risk Avoidance ? A conscious decision not to expose oneself or ones firm to a particular risk ? Can be said to decrease ones chance of loss to zero ? A doctor may decide to leave the practice of medicine rather than contend with the risk of malpractice liability losses ? Risk avoidance is common – Particularly among those with a strong aversion to risk ? However, avoidance is not always feasible – Or may not even be desirable if it is possible ? When risk is avoided, the potential benefits, as well as costs, are given up 3 Loss Control ? When particular risks cannot be avoided – Actions may often be taken to reduce the losses associated with them ? Known as loss control ? The firm or individual is still engaging in operations that give rise to particular risks ? Involves making conscious decisions regarding the manner in which those activities will be conducted 4 Focus of Loss Control ? Some loss control measures are designed primarily to reduce loss frequency – Called frequency reduction ? Some firms spend considerable funds in an