- Subject: Management
- Fees: $100
- CPD: 3 Hours
- Prerequisites: Basic Accounting
- Advance preparation: None
- Course Level: Intermediate
- Delivery Method: E-Learning
- Language: English
Course description
This course is designed to provide an understanding of risk management.
Risk and its Treatment
- Explain the historical definition of risk
- Explain the meaning of loss exposure
- Understand the following types of risk
- Identify the major pure risks that are associated with great economic insecurity
- Show how risk is a burden to society.
- Explain the major techniques for managing risk
Risk Management
- Define risk management
- Explain the objectives of risk management
- List and describe the steps in the risk management process and understand the major methods of treating loss exposures.
- Discuss the major benefits of a risk management program
- Apply the principles of risk management to a personal risk management program.
Insurance and Risk
- Define insurance based on the definition drafted by the Commission on Insurance Terminology
- Explain the basic characteristics of insurance based on the aforementioned definition
- Explain the law of large numbers.
- Describe the characteristics of an ideally insurable risk from the viewpoint of a private insurer.
- Explain whether fire and unemployment meet the requirements of an insurable risk.
- Understand how adverse selection can lead to higher-than-expected losses and unprofitable business for insurers.
- Explain the methods insurers use to control adverse selection.
- Show how insurance is not the same thing as gambling.
- Understand how insurance differs from hedging as a technique for treating risk.
- Explain the social and economic benefits of insurance to society.
- Explain the costs of insurance to society.
