Reference no: EM132424193

Question 1: Define risk. In your definition, state the relationship between risk and uncertainty.

Question 2: Risk may be classified in several ways. List the principal ways in which risk may be categorized, and explain the distinguishing characteristics of each class.

Question 3: List the four types of pure risk facing an individual or an organization and give an example of each.

Question 4: Explain why the number of risks and the severity of losses increase over time.

Question 5: Identify the two broad approaches to dealing with risk recognized by modern risk management theory.

Question 6: Identify and briefly describe the six steps in the risk management process.

Question 7: What is the relationship between risk management and insurance management? In your answer, you should demonstrate an understanding of the difference between the two fields.

Question 8: Distinguish among traditional risk management, financial risk management, and enterprise risk management.

Question 9: List and explain each of the desirable elements of an insurable risk.

Question 10: Explain the dual application of the law of large numbers as it pertains to the operation of insurance.