RMIN 317 Midterm #1 Notes
Chapter 1: Why Manage Risk?
The Meaning of Risk
-Risk is uncertainty or the effect of uncertainty on objectives
-Measured by variability around the expected value (expected loss for hazard risks)
-Variance and standard deviation
Please note that a copy of the Alberta Auto Policy is posted on D2L under
Course Documents. We will be referring to it throughout the chapter.
Auto Insurance in Canada
Basis for Compensation
We will be referring to the Homeowners policy throughout
these slides; referring to the policy in the appendix will help
you to understand the material covered in class.
Homeowners, Condo Owners
and Tenants Insurance
Life Insurance and
Legal Interests in a Life Insurance
Fill in the blank with one of the following
words (owner, insured, insurer,
1. The Insured is the individual whose death
ultimately causes the poli
Life Insurance and
These 25 things will probably kill you
Bad News: These 25 Things Will Probably Kill You.
Watch Out For #7. Every Single Day.
Everyone will die, but the chances are one of these 25
things will kill you. These are you
RMIN 317: Assignment Three
Assuming an interest rate of 6 percent and using the mortality table from the textbook,
calculate the present value of expected claim costs for a one-year term policy with a
$250,000 death benefit for (round final answers to
Next guest speaker:
RMIN Career Fair November 3
Reading and pre-class work for Nov 8
Finish Chapter 11,
Review Examples: Application of Insurance Coverage, including
Concept Check. Questions?
Chapter 9 pp. 1-9, 13-18;
Managing Health Related Risks
Who are the Players in the
Health Care Market?
Three major players
Health Care Providers (doctors, etc.)
often can influence demand
Providers better informed
Consumers do not pay margi
The Law: Some Basics
Two sources of Law:
Branches of Law:
How Does Liability Arise
If you cause an accident while driving you are liable
to the other d
A PRESENTATION FOR RMIN
THE UNIVERSITY OF CALGARY
November 3, 2016
What is BFL CANADA?
What does a broker do?
What other types of insurance jobs
are out there?
How many of you plan to get a job in
Who we are:
Chapter 6 pp. 1-8
Chapter 1 pp.13-17
Dumb Ways to Die
Metro Trains Melbourne, an Australian train
company, recently created an entertaining
way to promote rail safety with an
animated video entitled Dumb Ways to
Personal Financial Planning
Financial Planning Process
Where are we today?
Where do we want to go?
How do we get there?
Are we on the right track?
Importance of Planning
RMIN 317: Answer Key for Assignment Two
Coverages A, C and D
and the Scheduled
Chapter 15.2, 15.7
What are Employee Benefits?
Non-wage compensation provided to employees
in addition to normal wages / salaries.
Group insurance (health, dental, life, etc.),
Disability income protection,
RMIN 317: Assignment Two
For each of the losses listed below, state the insurance consequences of each loss. Assume that you are
covered by a Homeowners Comprehensive Form (found at the back of Chapter 14 and on the website) and the
coverage amounts on
Risk Management &
Sean Mason Risk Analyst, Corporate
October 6, 2016
1) How did I get here?
2) About Enerplus
3) What are our exposures?
4) Risk Management at Enerplus
5) Risk Management & Insurance Team & Program
Risk Management Process
Read Chapter 3 pp. 1-13; and Chapter
17, p. 2
Do End of Chapter questions 1 3.
Self-study: Chapter 3 Appendix (Be sure
that you can do problems 1 5, and
review concept checks).
Correction to Question 2 in
Risk aversion in Action
Press Your Luck!
If you had won $50,000, $75000 or even $90,000 in a game
show, and had to decide whether to take one more turn to
try to win more or lose it all, what would you do?
Insurability of Risk,
Contractual Provisions, and
percentage of value of
property to be insured
the maximum amount
an insurer wil
Why Manage Risk?
What is it?
Why do we manage it?
Many Ways to Categorize Risk
Major Types of Personal Risks
Major Types of Business Risks
The Royal Cuisine Food Truck
Food spoilage; R
Review Questions Chapters 1-3, 7
The cost of risk includes the expected cost of losses; the cost of _
_; the cost of
_; the cost of internal risk reduction, and the cost of any residual uncertainty after the
other risk reduction method
Pooling Arrangements and
Diversification of Risk
How does Pooling Reduce Risk?
that Emily and Samantha each have the
same possibility of an auto accident:
Each person has a .20 probability of $2,500 loss
(also assume accident losses are
Involved in production oil assets, not drilling and exploration.
o Shale fracking
o Deep wells
o Ownership, and other companies operate
o Get return on sales of resources\
o Lots of fracking and horizonta
RMIN 317: ASSIGNMENT ONE
(Answer key will appear on D2L one week prior to the exam)
1. Give an example (i.e. dont just list) of each of the 5 components of the cost of risk for a company that
manufactures furniture. Be specific.
2. If a pharmaceutical com
CSA-ISO 31000 Framework
Source: CSA (2010)
current risk level to what is
current risk level is not acceptable,
evaluate risk treatment options:
RMIN 317 Assignment 1: Suggested Solutions
Expected cost of losses: cost of damages and lost time due to an employee being injured on the job
Cost of loss control: cost of safety training for employees working in the plant
Cost of loss financing: cost
In class assignment
Your uncle is trying to save money on his auto insurance
policy. He has heard that increasing his deductible could
reduce his premium. He has asked you for help in making a
decision. He is debating whether to leave
Methods of Receiving Income
Savings through employment based
retirement plans (focus of this chapter)
Why employer sponsored plans?
Name something that you consider risky
! Name something that you consider NOT to be
What distinguishes the risky from the non-risky?
In what other classes have you dealt with
What did it mean in those classes?
Many different definition