Risk Management

QUESTION ONE A.A risk is an uncertainty concerning the occurrence of a passing play. The difference surrounded by static work and Dynamic Rick is that static risk is a situation not importantly affected by the business environment and which remain unending overtime. Example of this risk involves fire and flood. While on the former(a) authorize Dynamic risk is the risk of breathing out takings from changing in culture taste or policy for example if one sell black sock in the US one take the dynamic risk that no one will buy a black socks afterwards labour day. B.A hazard is a condition that creates or increase the severity or frequency of loss. The difference between lesson hazard and morale hazard is that a moral hazard is a dishonesty or character defects in an individual that increases the frequency or severity of a loss an example of this is in the instance where an insured is giving phoney information to the insurer to get or to purpose an amends policy in favour of insured or lift a claim with exaggerated loss. On the other hand a morale hazard is an attitude that increases the probability of loss from a peril . C..

The risk identification involves several manners which go out managers to identify risk four of these methods include passing game Exposure, financial Statement Analysis, Flowcharts, Contracts, Onsite Inspection and Statistical Analysis of past losses. Loss exposure involves potential loss that may be associated with detail type of risk. Loss exposure however maybe categorize as to whether they result from property, liability, life, health, loss from income risks. Second Method of luck identification is the financial mastery analysis with this method each items of a firms balance sheet and income statement are analyzed in regards to risk that may be present. This method is important as it assist in financially forecasting losses from specific event and can prove the impact from the loss on other areas of the business. The third method is the flowcharts which are... If you want to get a full essay, order it on our website: Orderessay

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