RMI-2302 Lecture Notes - Lecture 1: Moral Hazard, Retail Loss Prevention, Standard Deviation
14 Feb 2016
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Rmi 2302 exam 1 study guide. Uncertainty regarding loss is the scientific approach to dealing with risk. Danger is not the same thing as risk. There are many definitions: individual, organization and society. High risk driver is someone who is more likely of filing a claim, basically someone who has more potential to engage in risk. The burdens of risk on society is: need for larger emergency funds, loss of needed goods and services, and fear and worry. The rules of risk management is: don"t risk more than you can afford to lose, don"t risk a lot for a little, and consider the odds. Avoiding losses has always been one of humanity"s greatest concerns, and risk control was undoubtedly the first risk management technique. Risk control encompasses all techniques aimed at reducing the number of risks facing the organization or the amount of loss that can arise from these exposures. Risk control includes risk prevention and risk reduction.
