Principles of Risk Management and Insurance, 13th Edition

Review Questions

1. Name three speculative financial risks that may be considered by a risk manager.

2. How does enterprise risk management differ from traditional risk management?

3. What is the underwriting cycle? Differentiate between a “hard” and a “soft” insurance market.

4. What is meant by “consolidation” in the insurance industry?

5. How does securitization of risk increase capacity in the property and casualty insurance industry?

6. 1. a. Why is loss forecasting necessary when making a decision about whether to retain or transfer loss exposures?

   2. What techniques can a risk manager use to predict future losses?

7. What is the danger of simply using past losses to estimate future losses?

8. Why is time value of money analysis used in risk management decision making? ...