BBM 224 Principles of Risk Management and Insurance

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TOPIC ONE: INTRODUCTION TO RISK MANAGEMENT

• Definition of Risk1
• Uncertainty versus Risks
• Basic Categories of Risk
• Risk and Insurance
• Peril and Hazard
• Moral Hazard and Adverse Selection
• Risk Management
• The Risk Management Department
• Review Questions
• Selected References

TOPIC TWO: RISK IDENTIFICATION

• Definition of Risk Identification
• Techniques and Tools for Risk Identification
  • Checklists
  • Information-Gathering Techniques
  • Hazard and Operability (HAZOP) Study
  • Documentation Reviews/Document Analysis
  • Combination Approach
• Risk Description
• Outputs from Risk Identification
• Review Questions
• Selected References

TOPIC 3. RISK ANALYSIS/EVALUATION

• The Prouty Approach
• Risk Maps
• Probability Theory
  • Practical Application of Probability Theory
• Event Tree Analysis (ETA)
• Gain/Loss Curves
• Tornado Charts
• Risk Corrected / Adjusted Revenues
• Earnings at Risk
• Revision Questions
• Selected References

TOPIC FOUR: RISK MANAGEMENT METHODS

• Meaning of Risk Management
• Objectives of Risk Management
• Steps in the Risk Management Process
• Methods of Handling Risks
• Risk Control and Risk financing
• Contingency or catastrophe planning
• Information Management
• Role of Government in Risk Management
• Funding Arrangements
• Non insurance Transfers
• Agreements and Combination
• Factors Affecting Choice between Retention and Transfer
• Commercial Insurance
• Review Questions
• Selected References

TOPIC FIVE: RISK MANAGEMENT THROUGH INSURANCE

• Definition of insurance
• Elements of an insurance transaction
• Characteristics of Insurance
• Distinguishing Features of Insurance Contract
• Principles of Insurance
• An Analysis Insurance Contracts
• Endorsement and Riders
• Deductibles
• Coinsurance
• Other Insurance Provision
• Benefits of Insurance
• Costs of Insurance
• Contemporary Issues in Risk Management
• Revision Questions
• Selected References