# HW 3 - Math 422 Chapter 3 1, 6, 9, 13 1. Broad goals In the...

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Math 422 Chapter 3 1, 6, 9, 13 1. Broad goals – In the event of a loss, the firm should be able to continue operating, ideally to continue growing uninterrupted, and to continue behaving responsibly. Specific goals – To assume all risks that are not significant, insure all risks that are, and engage in a strict loss prevention plan to reduce losses. 3. To measure direct property losses a risk manager can use: - a checklist, detailing all the potential property losses - a flowchart, illustrating the whole production process to show consequential impact resulting from a loss - valuing property, or calculating the actual replacement cost for losses 6. Risk avoidance – Avoiding the peril and eliminating risk. Not operating in foreign countries to avoid infrastructure problems is an example. Loss reduction – Reduces the severity of the loss. Fire sprinklers or a car alarm would be an example. If the loss occurs, it won’t end up being as severe. Loss prevention – Reducing the frequency of losses.

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## This note was uploaded on 04/10/2008 for the course MATH 422 taught by Professor Huntington during the Winter '08 term at University of Michigan.

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HW 3 - Math 422 Chapter 3 1, 6, 9, 13 1. Broad goals In the...

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