Risk Management
                        Risk Management
     What is Risk?
        What is Risk?
     Specific types of Risk
        Specific types of Risk
         Inflation
            Inflation
         Market
            Market
         Principal
            Principal
         Liquidity
            Liquidity
         Credit
            Credit
     Two categories of risk
        Two categories of risk
         Speculative Risk
            Speculative Risk
         Pure Risk
            Pure Risk
     What is Risk Management?
        What is Risk Management?
                                        
                                        
                      Risk Management
                      Risk Management
     Types of losses
        Types of losses
        Property
           Property
        Financial
           Financial
        Liabilities
           Liabilities
        Losses involving personnel
           Losses involving personnel
                                     
                                     
                      Risk Management
                      Risk Management
     Risk Management Process
        Risk Management Process
        Identify and analyze loss exposure
           Identify and analyze loss exposure
        Evaluate alternatives
           Evaluate alternatives
        Select the best techniques
           Select the best techniques
        Implement
           Implement
        Monitor and adjust
           Monitor and adjust
                                     
                                     
                            Risk Management
                            Risk Management
    Risk / Return Tradeoff
                        n
                        r
                        u
                        t
                        e
                        R
                                       Risk
                                               
                                               
                      Risk Management
                      Risk Management
     Transfer risk exposure
        Transfer risk exposure
        Insurance
           Insurance
            Required
              Required
            Covers specific risk
              Covers specific risk
            Selection is important
              Selection is important
            Disclosure
              Disclosure
            Best’s Rating Guide 
              Best’s Rating Guide