Question 5
Group 11
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.
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
