Tool kit 4: strategy formulation
Step 1: understanding the scope of analysis and formulation of business-level strategies
if the company operates in multiple industries, then the number of industry equals the number of
business-level strategy (i.e., the r
Tool kit 3: Internal Analysis (a procedure of understanding internal strengths and
Step 1: To identify the key activities that create value using Value chain analysis
What is value chain: a company is viewed as a chain of activities that trans
Tool Kit 1: Stakeholder management (a procedure of Stakeholder impact analysis)
Step 1: to identify who are our stakeholders?
Step 2: to understand what are our stakeholders interests and claims?, and to assess and
prioritize the needs of different stakeh
Melissa Ferguson-Cannon; 900229141
Homework Assignment 1
Topic 1: choose one from question number 1 OR 2
Topic 2: choose one from question number 3 OR 4
Assume that the chance of loss is 3 percent for two different fleets of trucks.
Tool: a comprehensive framework of SWOT analysis
SO box: represent
possible ways in which
the organization can use
its strength to take
favorable trends in the
ST box: rep
Tool Kit 2: analyzing external environment / external analysis
Step1: analyzing general environment/Macro environment using PESTEL framework
What is general environment (which factor(s) below do not belong to general environment)?
Study Guide Topic 5
1. What is stock insurance company? What are the characteristics of stock insurers?
2. What is mutual insurer? What are the characteristics of mutual insurer? Why are some mutual
insurers referred to as "assessment mutuals"?
3. The cor
Meaning of Risk Management
Objectives of Risk Management
Steps in the Risk Management Process
Benefits of Risk Management
Personal Risk Management
This topic corresponds with Chapter 3 of Rejda book
The Changing Scope of Risk Management
Enterprise Risk Management
Insurance Market Dynamics
Financial Analysis in Risk Management
Other Risk Management Tools
Advanced Topics in Risk
Study Guide Topic 6
What is rate in premium rating?
What is the role of an actuary?
Where do insurers obtain data which can be used to determine rates?
What are the pur
Study Guide Topic 3
1. What is risk management concerned with?
2. What is the definition of loss exposure?
3. What is the post-loss risk management objective?
4. what are the pre-loss objectives of risk management?
5. What is a risk manager concerned with
Fundamental Legal Principles
Principle of Indemnity
Principle of Insurable Interest
Principle of Subrogation
Principle of Utmost Good Faith
Requirements of an Insurance Contract
Distinct Legal Characteristics of Insurance
Rating and Ratemaking
Alternatives to Traditional Reinsurance
Other Insurance Company Functions
This topic corresponds with Chapter 6 of R
Analysis of Insurance Contracts
Basic parts of an insurance contract
Definition of Insured
Endorsements and Riders
This topic corresponds with Chapter 10 of Rejda book
Assignment 7 o
Overview of Private Insurance in the
Financial Services Industry
Types of Private Insurers
Agents and Brokers
Types of Marketing Systems
Group Insurance Marketing
Types of Insurers and
This topic corresponds with Chapt
Study Guide Topic 7
1. What are fundamental purposes of the principle of indemnity?
2. What type of loss settlement supports the principle of indemnity?
3. What is the broad evidence rule?
4. On what basis is the total loss under a valued policy settled?
Study Guide Topic 4
1. What are the financial risks faced by a business organization?
2. How did risk management change its scope?
3. What is commodity price risk? Can you give an example?
4. What is integrated risk program? What kind of risks does it com
Study Guide Topic 8
1. What is a declaration, insuring agreement, definitions, exclusion and condition in insurance
contract? What information is contained in each section?
2. What is an endorsement?
3. What is open-perils coverage?
4. What is an excluded
Definition and Basic Characteristics of
Characteristics of An Ideally Insurable
Adverse Selection and Insurance
Insurance and Gambling Compared
Insurance and Hedging Compared
Types of Insurance
Benefits and Costs of Insurance t
Definitions of Risk
Chance of Loss
Peril and Hazard
Classification of Risk
Major Personal Risks and Commercial
Burden of Risk on Society
Techniques for Managing Risk
Risk and Its Treatment
This topic corresponds with Chapter 1 of
Study Guide _ Topic 2: Insurance and Risk
1. What are the characteristics of insurance?
2. What is the meaning of pooling of losses?
3. What is the implication of law of large numbers?
4. What are the characteristics of a fortuitous loss?
5. What are the
Study Guide _ Topic 1: Risk and Its Treatment
How is risk defined traditionally?
How is objective risk defined? Can you give an example?
How does the objective risk change when the number of exposures increase/decrease?
How is subjective risk defined? Can