Question 5 week9 - Question 5 Group 11 Classes of risk management objectives The two broad classes into which risk management objectives cab be divided

Question 5 week9 - Question 5 Group 11 Classes of risk...

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Question 5 Group 11
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Classes of risk management objectives The two broad classes into which risk management objectives cab be divided are pre-loss objectives and post-loss objectives. Another approach suggests that risk management objectives can be divided into pure risk and speculative risk. A third view considers risk objectives from a process perspective risk management objectives are divided into risk control or treatment and risk financing.
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Objectives of Risk Management Risk management has objectives before and after a loss occurs Pre-loss objectives: Pre-loss objective is an important objective before a loss occurs including 1.Prepare for potential losses in the most economical way(The preparation involves an analysis of the cost of safety programs, insurance premium paid, and the costs associated with the different techniques for handling losses.) 2.Reduce anxiety(Certain loss exposures such as defective product
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