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Risk management is the systematic process of identifying, evaluating, and prioritizing uncertainties that could negatively impact an organization, project, or investment. Its goal is to minimize potential threats while capitalizing on opportunities

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Risk Management is a process that identifies loss exposures faced by an organization and selects the most appropriate techniques for treating such exposures

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1. identify potential losses

2. measure and analyze the potential loses exposure

3. select the appropriate techniques for treating the loss exposure

4. implement and monitor the risk management program

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Risk management refers to any situation or circumstance in which a loss is possible, regardless of whether a loss actually occurrs

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Risk management refers to any situation or circumstance in which a loss is possible, regardless of whether a loss actually occurrs

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OBJECTIVE OF RISK MANAGEMENT

PRE-LOSS OBJECTIVE

Prepare for potential losses in the most economical way

Reduce anxiety

Meet any legal obligations

POST - LOSS OBJECTIVE

Survival of the firm

Continue operating

Stability of earnings

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This topic is very interesting

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Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These risks stem from a variety of sources, including financial uncertainties, legal liabilities, technology issues, strategic management errors, accidents and natural disasters.

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Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These risks stem from a variety of sources, including financial uncertainties, legal liabilities, technology issues, strategic management errors, accidents and natural disasters.

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risk management is a process of identifying and controlling threats to an organizations capital and earning. these risk stem from a variety of source , for example natural disasters and technology issues.

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risk management is a process of identifying and controlling threats to an organizations capital and earning. these risk stem from a variety of source , for example natural disasters and technology issues.

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Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These risks stem from a variety of sources, including financial uncertainties, legal liabilities, technology issues, strategic management errors, accidents and natural disasters.

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Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These risks stem from a variety of sources, including financial uncertainties, legal liabilities, technology issues, strategic management errors, accidents and natural disasters.

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Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These risks stem from a variety of sources, including financial uncertainties, legal liabilities, technology issues, strategic management errors, accidents and natural disasters.

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risk managemnt can help a firm reduce its cost of risk

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Risk financing methods can help us save on loss costs nut theres a possibility of higher loss

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Risk financing methods can help us save on loss costs nut theres a possibility of higher loss

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pre-loss objectives:

reduce anxiety

meet any legal obligations

post-loss objectives:

survival of the firm

stability of earnings

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Advantages
– Save on loss costs
– Save on expenses
– Encourage loss prevention
– Increase cash flow

Disadvantages
– Possible higher losses
– Possible higher expenses
– Possible higher taxes

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1) Identify potential losses
2) Measure and analyze the loss exposures
3) Select the appropriate combination of techniques for treating the loss exposures
4) Implement and monitor the risk management program

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helpful infos!

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See all the wonderful things Diana J has made

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 explain the risk management pre-loss objective cost of risk

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Fathiah Yasmin binti Azli, CS1121

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- avoidance
Example: tsunami
- loss prevention
Example: CCTV
-loss reduction
Example : sprinkler system

Risk financing
- retention
-Non-insurance transfer
Example: contract
-insurance

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1. IDENTIFY LOSS EXPOSURE
2. MEASURE AND ANALYZE LOSS EXPOSURE
3. SELECT THE TECHNIQUE TO TREAT THE LOSS EXPOSURE
4. IMPLEMENT AND MONITOR RISK MANAGEMENT PROGRAM

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1) Risk Control
- Avoidance
- Loss prevention
- Loss reduction

2) Risk Financing
- Retention
- Non-insurance transfers
- Commercial insurance

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1) Low loss frequency and Low loss severity == Retention
2) High loss frequency and Low loss severity == Loss prevention/Retention
3) Low loss frequency and High loss severity == Transfer
4) High loss frequency and High loss severity == Avoidance

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Appropriate Combination of Teechniques for Treating the Loss

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Appropriate Combination of Teechniques for Treating the Loss

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1) Risk Control
- Avoidance
- Loss prevention
- Loss reduction

2) Risk Financing
- Retention
- Non-insurance transfers
- Commercial insurance

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- retention
- non-insurance transfer
- commercial insurance

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-avoidance
-loss prevention
-loss reduction

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- Enables firm to achieve its pre-loss and post loss objective easily
- A risk management program can decrease a firm's cost of risk
- reduction in pure loss exposures allows a firm to endorse an enterprise risk management program to treat both pure and speculative loss exposures

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•Post-loss objectives:

–Ensure survival of the firm

–Continue operations

–Stabilize earnings

–Maintain growth

–Minimize the effects that a loss will have on other persons and on society

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1) Identify potential losses
2) Measure and analyze the loss exposure
3) Select the appropriate combination of techniques for treating the loss exposures
4) Implement and monitor the risk management program

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-Avoidance
-Loss prevention
-Loss reduction

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Techniques for treating the loss exposures:
Risk Control
1) loss reduction
2) avoidance
3) loss prevention
Risk financing
1)retention
2)commercial insurance
3) non-insurance transfe

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this chapter is very complete and helpful

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this chapter is very complete and helpful

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Avoidance means a certain loss exposure is never acquired or undertaken,or an existing loss exposure is abandoned.

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In my opinion this chapter is pretty comple

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Reduce anxiety
Prepare for potential losses in the most economical way
Meet any legal obligations

POST-LOSS OBJECTIVES
Survival of the firm
Continue operating
Stability of earnings
Continued growth of the firm
Minimize the effects that a loss will have on other persons and on society

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avoidance is not suitable for all situation in order to manage risk

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avoidance is not suitable for all situation in order to manage risk

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Techniques for treating the loss exposures:

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Techniques for treating the loss exposures:

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Risk Control
* loss reduction
* avoidance
* loss prevention

Risk financing
- retention
- commercial insurance
- non-insurance transfer

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Techniques for treating the loss exposures:
Risk Control 
* loss reduction
* avoidance
* loss prevention

Risk financing 
- retention
- commercial insurance
- non-insurance transfe

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Risk financing exists to address one vexing problem: how to align a company’s willingness to take risks with its ability to do so, an exercise best done within the context of one’s organizational objectives. Risk management, of which financing is an integral part, is the set of measurable and sustainable actions for reducing the effect of uncertainty on those objectives. The establishment of measurable metrics is a key step in an organization’s growth toward a fully mature enterprise-wide risk management program.

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Risk retention is a company's decision to take responsibility for a particular risk it faces, as opposed to transferring the risk over to an insurance company. Companies often retain riskswhen they believe that the cost of doing so is less then the cost of fully or partially insuring against it.

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Pre-loss Objectives
-prepare for potential losses in the most economical way
-reduce anxiety
-meet any legal obligations

Post-loss Objectives
-survival of the firm
-continue operating
-stability of earnings
-continued growth of the firm
-minimize the effects that a loss will have on other persons and a society

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Risk Control -

i.Avoidance

ii.Loss prevention

iii.Loss reduction

Risk Financing

i.Retention

ii.Non-insurance transfers

iii.Commercial insurance

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risk management is a process that identifies loss exposure faced by an organisation and select the most appropriate technique to treat such exposure

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•Can’t take chance of your association suffering a loss•If a loss is perceived as an accident that couldn’t have been anticipated, you’re lucky. •If you anticipate and then prevent or prepare for an accidental loss, you’re perceived as valuable—not just lucky

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Loss exposure is any situation which a loss is possible, regardless of whether a loss occurs

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Loss exposure is any situation which a loss is possible, regardless of whether a loss occurs

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techniques that reduce the frequency and severity of losses

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a) retention
b) non-insurance transfer
c) insurance

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A process that identifies loss exposures faced by an organization and select the most appropriate technique for treating such exposures

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a) Avoidance
b)  Loss prevention
c) Loss reduction

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1 step: Identify the loss exposures.
2 step: Measure and analyze the loss exposures.
3 step: Select the appropriate combination of techniques for treating the loss exposures either by using risk control or risk financing.

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loss reductionlos
e.g-installing an automatic sprinkler system

Risk Management

ubauba66
8mo
Risk Management
The first step to defining risk management goals and risk management objectives is to define your organization's shared vision. ... While a vision statement is often aspirational, the goals and objectives should ordinarily describe in simple terms what is to be accomplished. They should be actionable by the organization.
Loss exposure

Anonymous
8mo
Loss exposure
Defective products is an example of liability loss exposures.
hai

Anonymous
8mo
hai
Discussion on Module 2 (Risk Management

Diana J
12mo
Discussion on Module 2 (Risk Management
You mare share your thoughts and opinions here. Happy discussing! 

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post-loss objective

1. survival of the firm
2. continue operating
3. stability of earnings
4. growth of firm
5. social responsibility is to minimize the effects that a loss will have on other people and on society

pre-loss objective
1. prepare for potential losses in the most economic way
2. reduction of anxiety
3. meet any legal obligation

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i) pre loss
ii) post loss

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1) Pre-loss objectives
2) Post-loss objectives

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1) Pre-loss objectives
2) Post-Loss objectives

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pre

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Techniques for treating the loss exposures:

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Techniques for treating the loss exposures:

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Risk Control
* loss reduction
* avoidance
* loss prevention

Risk financing
- retention
- commercial insurance
- non-insurance transfer

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1)loss control
2) loss financia

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- prepare for potential lossesin the most economical way
- reduce anxiety
- meet any legal obligation

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- survival of the firm
- to continue operating
- stability of earnings
- continued growth of the firm

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-Indemnification for loss
-Reduction of worry and fear
-Source of investment funds
-Loss prevention
-Enhancement of credit

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Risk management also faces difficulties in allocating resources. This is the idea of opportunity cost. Resources spent on risk management could have been spent on more profitable activities. Again, ideal risk management minimizes spending (or manpower or other resources) and also minimizes the negative effects of risks.

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Risk management also faces difficulties in allocating resources. This is the idea of opportunity cost. Resources spent on risk management could have been spent on more profitable activities. Again, ideal risk management minimizes spending (or manpower or other resources) and also minimizes the negative effects of risks.

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Chap2 - Methods for paying retained losses that can be taken :- 

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Chap2 - Methods for paying retained losses that can be taken :- 

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1- current net income ( by using this method, losses are treated as current expenses )
2-unfunded reserve( loss are deducted as bookkeeping acc) #katsinixfhmsikit
3-funded reserve ( loss are deducted from a liquid fund)#hahaygnipun
4-credit line( as losses are occured , then funds are borrowed to pay them)

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1.) pre-loss objectives
2. ) post loss objectives such as continues the firm earnings

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Risk management is important for a firm to treat losses with proper ways on how losses could be overcome 

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Risk management is important for a firm to treat losses with proper ways on how losses could be overcome 

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risk management is important for an organisation as it help to figure out appropriate ways to treat losses that could happen to a firm. its also an on-going programme  which monitor and review every selection it has made so its suitable with current situation

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risk management is important for an organisation as it help to figure out appropriate ways to treat losses that could happen to a firm. its also an on-going programme  which monitor and review every selection it has made so its suitable with current situation

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1.Pre-loss objectives
2.Post-loss objectives

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the process of identifying the loss exposures that faced by an organization and select the appropriate technique to treat such risk

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There are four steps in the risk management process such as

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There are four steps in the risk management process such as

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i)identify loss exposures
ii)measure and analyze the loss exposure
iii)select the appropriate combination of techniques for treating the loss exposures
iv)implement and monitor the risk management program

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Insurance is only one of many risk management techniques. Treat them (risks) like your life. Need to be very aware and conscious with any probability that might strike us in the future. Risk can be a tiger that looking straight at our eyes OR it can be our close, harmless and friendly friend that can back-stab us at any given opportunity. Deal with them wisely! 

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Insurance is only one of many risk management techniques. Treat them (risks) like your life. Need to be very aware and conscious with any probability that might strike us in the future. Risk can be a tiger that looking straight at our eyes OR it can be our close, harmless and friendly friend that can back-stab us at any given opportunity. Deal with them wisely! 

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avoidance is the appropriate risk management technique for high frequency of loss and high severity of loss

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avoidance is the appropriate risk management technique for high frequency of loss and high severity of loss

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The major sources of
production risks are
weather, climate changes,
pests, diseases, technology,
genetics, machinery
efficiency, and the
quality of inputs.

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-Avoidance
-Loss prevention
-Loss reduction

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- retention
- noninsurance transfers
- commercial insurance

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Risk Management is a process that identifies loss exposures faced by an organisation and selects the most appropriate techniques for treating such exposures. 

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Risk Management is a process that identifies loss exposures faced by an organisation and selects the most appropriate techniques for treating such exposures. 

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1.Frequency low, severity low(retention)
2.Frequency high, severity low(loss prevention and retention)
3.Low frequency, high severity(transfer)
4.High frequency, high severity(avoidance)

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e.g-installing an automatic sprinkler system

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The first step to defining risk management goals and risk management objectives is to define your organization's shared vision. ... While a vision statement is often aspirational, the goals and objectives should ordinarily describe in simple terms what is to be accomplished. They should be actionable by the organization.

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Defective products is an example of liability loss exposures.

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You mare share your thoughts and opinions here. Happy discussing!