Unformatted text preview: 2. Loss financing: how are you going to cover loss? 1. Retention/self-insurance: out of pocket (you) 2. transfer: someone else 1. insurance (insurance company) 2. hedging (counter party) 3. other contractual transfers 3. Internal risk reduction 1. diversification 2. invest in information 5. Distinguish between loss prevention and loss reduction methods. 1. Loss Prevention- actions that primarily affect the frequency of losses 2. Loss Reduction- actions that primarily influence the severity of losses that do occur 6. Explain the four major types of loss financing methods. 1. Look at question 4 7. Provide two examples of internal risk reduction. 1. Diversification 2. Invest in information...
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This note was uploaded on 02/18/2012 for the course FINC 3134 taught by Professor Dr.eastman during the Spring '12 term at Georgia Southern University .
- Spring '12