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Midterm

BU 353 Midterm: BU353 Midterm Notes


Department
Business
Course Code
BU353
Professor
Heather Graham
Study Guide
Midterm

This preview shows pages 1-3. to view the full 13 pages of the document.

Risk

Earnings
Medical expenses
Liability
Physical assets
Financial assets
Longevity !

Hazard risks" 
#
"!
$
$!
Financial risks
Operaonal risks"%"

Strategic risks 
&'
$
("minimize the cost"
("
)*
+", 
+"!,"
+" !, 
+"-,
Risk management is the process"../
 . -".

$
1. Idenfy potenal losses
+
0
#1
) 
2"

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

$
2. Evaluate potenal losses
+"1
"%, 
#1"
) *"

3. Select the appropriate technique for treang loss exposures
(
$ 
+
+%
3
$
4. Implement and administer the plan
5. Monitor
4
#

+"
)5"
4"" 
$
$ " 
2
Loss prevenon""%"
Loss reducon" "
3"*
3,
("
$!
Retain costs of losses:
+*"
$ 
"
0
1
21%
2
Transfer cost of losses:
+ 

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

+
+""!

6
78 2"!! 
98 ) "% "
8 # ":!;
<8 28
8 
("
Loss control*"-*
Loss prevenon"
Loss reducon ":;
!"
Basic cost-benet trade-o:
+" 8!"*
4$ "  " 
2"
=
=!
+>
+"
0 

("$"
!"*
)*7"
Costs:
)%

Benets:
$!
$*!


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