Two Dimensions of Risk Management Process:

Five Steps in Decision Making Process:

Four Administrative Areas in the Risk Management Process:

Five Advantages of a Risk Management Approach:

STEP ONE- IDENTIFY & ANALYZE LOSS EXPOSURES:
Purpose of Identification:

Purpose of Analysis:

Three Classifications of Loss Exposure:

Four Broad Categories of the Type of Value Exposed to Loss:

Two Types of Property Values:

Types of Tangible Property:

Types of Intangible Property:

Two Factors Affecting the Net Income Value of an Organization:

1. Decrease in Revenue:

1. Business Interruption:

2. Contingent Business Interruption:

3. Loss of Profits on Finished Goods:

4. Reduced Rental Income:

5. Decreased Collections of Accounts Recievables:

2. Increase in Expenses:

1. Increased Operating Expenses:

2. Increased Rental Expenses:

3. Expediting Costs:

Two Categories of Liability Loss Exposure:

Two Factors Affecting Measurement of Personnel Loss:

Three Origins of Perils Causing Loss:

Four Factors to Quantify the Financial Consequence of a Loss:

Loss Frequency:

Loss Severity:

Inverse Relationship Between Loss Severity and Loss Frequency:

Six Methods to Provide a Proper Basis of Exposure Identification and Analysis:

1. Standardized Surveys/ Questionnaires:

2. Financial Statements and Underlying Records:

Other Records and Documents:

4. Flowcharts

Personal Inspections:

6. Consultation with Experts Within and Outside the Business:

STEP TWO- EXAMINE ALTERNATIVE RISK MANAGEMENT TECHNIQUES:
Five Risk Control Techniques:

1. Exposure Avoidance:

2. Loss Prevention:

3. Loss Reduction:

Segregation of Exposure Units:

5. Contractual Transfer:

Pre-Loss Measures:

Post-Loss Measure:

1. Separation:

2. Duplication:

Forced Retention:

Optional Retention:

Contractual Transfer Can be Achieved By:

STEP THREE- SELECT RISK MANAGEMENT TECHNIQUE:
Two Steps Before Reaching a Decision of Risk Control and Financing Techniques:

1.Forecasting:

2. Selection Criteria:

STEP FOUR- IMPLEMENT TECHNIQUE:
Proper Implementation Involves Making the Following Decisions:

STEP FIVE- MONITOR RESULTS:
Once Implement the Risk Management Program Needs To Be:

Setting Standards to Measure Performance: