RMI FINAL STUDY GUIDE
Module 10 A
What is a derivative?
o A contract between two or more parties whose value is based on an agreed upon
underlying financial asset, index, or security. Common underlying instruments
include: bonds, commodities, c
RMI Final Exam Study Guide
Module 11: Global Risk Report
a. Many risks do not respect national borders
b. Survey of >700 experts
c. Orient & inform decision makers
i. Explore the nature of systemic risks
ii. Map 31 global risks
RMI: Exam 3 Study Guide
Chapter 8 pt. 7: Margin Trading pt. 1
1. Margin trading
a. Leverage: the use of borrowed funds to buy securities.
b. Margin: the % of investors equity
i. Margin is the % of equity the investor puts in.
ii. Investor makes a $1,000 i
Module 5 - Government Decisions The U.S. Economy: Private and
Public Sectors Notes
Us economy 113 million households (were also this amount
10 years ago)
Most people go work for someone else
Income dist is not equal in the US, poor getting poorer, and
Chapter 8 Notes Overview of Risk for corporations
Lots of ways (categories) of looking at risk at the organization level
o Business risk, operational risk, hazard risk, financial risk, strategic risk
o Expertise, risk management techniques
Module 7 Notes
Lots of ways (categories) of looking at risk at the individual level
o risk management techniques
o Categories may not be mutually exclusive (some risks may appear in multip
Module 3 Notes
o Used to determine optimal strategies where a decision-maker is faced with several
alternatives and an uncertain, or risky, pattern of future events.
o How do you make decisions when faced with risk?
Decision making process
Chapter 11 Notes Global Risks Report 2016
Define global risk / global trends
Identify significant global risks/trends
Describe the pathways to resilience
Identify the seven driving forces of international security
Describe the three risks in fo
Module 14 Notes Managing Risk in an Unstable World
Economic analysis of potential international expansion (supply or demand side) does not take into
account political risk
Understanding the political context is vital to success
Political risk imp
Module 5 Notes Part 2
Balancing Liberty and the Pursuit of Well-Being
The free market fails to protect consumer interests, requiring the government to find appropriate
ways to protect us from ourselves
In a world dominated by rational behavior, the govern
Module 1 Introduction to Risk (cont) after RM process
What is Risk?
Many definitionsindividual, organization, society
It Is uncertainty regarding loss
Danger =/ to risk
Risk Measurement - Terminology
Frequency/likelihoodhow often someone has accidents
Module 4 Notes Individual Decision Making Decision Theory
Utility Theory: Utility as basis for decision-making
Decisions are made so as to maximize expected utility rather than expected monetary value
Utility measures and Utility Function
Utility index is
Module 9 Notes Strategy, Risk, and the Global Financial Crisis
The globval financial crisis was a failure of risk management
But strategy (lack therof) played a role
Fiercening of Capitalism vs Corporate strategy
What is strategy (what should it
Module 10A Are the risks of derivatives manageable?
What is a derivative? From Investopedia:
A derivative is a contract between two or more parties whose value is based on an agreed-upon
underlying financial asset, index or security. Common und
Module 2 Scientific View of Risk
New def of risk takes into account a time element
o Probability of a person suffering an adverse effect from some activity or exposure over a
given period of time/involvement.
Risk reduction has costsboth monetary and nonm
Module 12 Notes Natura Disasters and the Human Population
If a tree falls in a forest
If an hurricane makes landfall (earthquake, tornado, sharknado, etc), but there are no humans
there to experience it, what is it?
o Natural hazard?
Chapter 6 Notes - Results of Decision Making, Biases, Risk/Reward, & Incentive Systems90
o Measured using expected utility
o How much reward is necessary to induce you to take risk?
o Similaly, how much are you willing to pay to av
Module 13 Is Global Aging
Looking forward 1 decade
Global population aging and decline (unless we have a good pandemic)
How will it affect economic growth, living standards, fiscal policy, etc
No uniform effects
Impact on planning
Why is US bette
Several worksheets have been included in this workbook in order to help you to make projections from the workers
compensation claims data presented in your case. The first worksheet allows you to calculate the three ye
To evaluate workers' compensation claims reserving accuracy. This workbook provides you with places to calculate the total
incurred and paid values for a type of injury. In addition, this workbook will calculate the mean, the u
To evaluate potential problems with frequency and severity in workers' compensation losses and
determine what loss control steps are necessary.
This workbook contains several blank sheets.
What You Need to Know to Get Started
Auto Value (KBB value)
Gross Human Capital
Auto Value (KBB value)
Gross Human Capital
1) Know the major types/categories of business risk and a few risks in your case project
that fall under the categories. They are price, credit and pure risk.
Price risk: changes in input/output cash flow output: refers to the changes in the
RMI 4292 Review
- Proprietary: Stock: Investment in stock for payment of dividends (make a
profit), formed for this reason. The stockholders own them.
- Cooperative: Mutual: insureds own. They can earn a profit and earn
dividends but they are paid back to
Topic 1: Basics of Risk.
This reading is designed to offer a very brief introduction to risk and risk management, the first topic in
RMI 2302. Instead of assigning a large reading I have condensed much of my thoughts on risk and risk
management into a mor
Jeffrey Dato, Head of regional risk & reputation
Works for IHG (intercontinental hotels group), serves on global risks, security risks too
Crestar bank (now suntrust)
IHG5000 hotels globally, in 50 countries, only own 6
-because franchise, t
Chapter 1: Risk and Its Treatment
Risk: Uncertainty concerning the occurrence of a loss.
o Insurance professionals use risk to identify the property or life that is
being considered for insurance.
Loss Exposure: Any situation or circumstance in which a lo
RMI2302 Midterm II Modules 6-10a
Module 6: Results of Decision Making Biases, Risk/Reward, Incentive Systems
Contrast the risk/reward trade-off at the individual, organizational, and societal levels
Differentiate the types of biases