The essence ofrisk :nanagement lies in maximizing the
areas where we have some controi over the outcome while
minimizing the areas where we have absolutely no contra!
over the ontcnrrze . . 7"
Peter L. Semstein
Against the Goals: The Remarkable Story ofis
1. What does RMIIA stand for? (What do the initials mean?)
Answer: RMIIA stands for Rocky Mountain Insurance Information Association.
2. Who is the executive director of RMIIA?
Answer: Carole Walker is the executive director of RMIIA.
Hydro One Case Study
Hydro One Inc. is the largest electricity delivery company in Ontario, Canada, and one of the ten
largest such Company in North America. In October 1998, the Energy Competition Act
restructures Ontario Hydro into separate e
1. A. Expected value = 0.01 x $6,500,000 + 0.01 x $4,000,000 + 0.04 x $ 2,000,000 + 0.08 x
$700,000 + 0.86 x 0
= $65,000 + $40,000 + $80,000 + $56,000 + $0
B. Standard Deviation: 0.01 x ($6,500,000 $241,000) ^2 + 0.01 x ($4,000,000 -
Question 1: (5 points)
1. Michael has a PAP with liability limits of $50,000/$100,000/$25,000 (or 50/100/25). Michael
failed to stop for a stop sign and hit a pickup truck. The pickup truck had damages totaling
$20,000. Two passengers in the truck were in