Discuss two methods that can be used by risk managers

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1. Discuss two methods that can be used by risk managers to forecast the average loss associated with a particular loss exposure. Which one do you prefer, and why is it important to have a large database of prior losses?

2. Describe two types of pure risk for which the technique of risk pooling can be used to reduce risk. If your answer, describe the characteristics of pure risks that make them well or poorly suited for risk reduction through pooling.

Reference no: EM132780332

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