Name: Mai Hoang Vu
Class: SNHU 2010
Module 2: Risk Measurement and Matrix
2.2. Doing: Risk Management Matrix:
Using the basic risk management matrix, explain the following:
• When would you buy insurance?
The situation when low frequency and high severity involve in the risk management matrix. This represents the transfer of risk which is related to the third party – insurance company. The transfer of risk is defined as paying the insurance company to bear some or all the risk that cannot be avoided at acceptable levels.
• When would you avoid the risk?
Obviously at the intersection of high frequency and high severity, I will avoid the risk. If it is possible, everyone will seek to avoid any situation falling in that intersection. However,
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The situation when high frequency and low severity involve in the risk management matrix, I can find the retention in loss control. If frequency is substantial, I will find efforts to prevent losses usefully. If losses are of low value, it may be easily paid out of the organizations or individual’s own funds. Risk retention usually finances highly frequent.
2.4. Financial Instrument: 1. The financial instrument might a jeweler use to cap his price for gold; the main raw material used in jewelry production is options. 2. If an insurance company invests in the stock market, the type of instrument would the insurer use to mitigate the risk of stock price fluctuations is insurance – linked securities (ISLs).
2.3. Design a brief risk management policy statement for a small childcare company. Remember to include the most important objectives. For the same childcare company, create a risk identification list and plot the risks on a risk map.
The risk management process can generally involve grouping and assessing risks under the following headings:
• Strategic risk: arise from being within the childcare sector and geographical
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• Staff qualifications, all staff employed to work with children must be subject to Criminal Record Bureau checks and their qualifications, experience and history verified. All new staff should undergo induction training and supervision to ensure that their abilities are appropriate to the needs of the children.
• Premises and space standards, buildings should be in good condition, clean and tidy, well lit, welcoming and make children feel at home. No room should accommodate more than 26 children.
• The standard ratios required are: 2 to 3 years = 1 staff: 4 children, 3 to 5 years = 1 staff: 8 children.
• Size of groups: children develop better in small groups rather than large ones.
• Furniture and equipment: chairs and tables should be child sized and there should be adequate low adult sized furniture to allow staff to sit comfortably with children. Any vinyl floor coverings should be non-slip, but easy to clean. All floor surfaces should be maintained to prevent tripping hazards from arising, as children are not as accomplished at avoiding such
• Crude resources are a distinct global market. Questar is a profitable and reliable enterprise with all three segments highly revenue driven, secured by federal and state government regulations. Wholesale figures fluctuate within the industry by a minimal amount for distribution nationwide, but this type of commodity requires prices to be set by the market nationwide and not the company.
In order to become a risk manager you have to get your bachelors first, then follow it with master’s degree in business administration, finance or any similar major. In addition to the bachelor’s degree to become a risk manager should be certified or licensed from a healthcare related organization. A risk manager needs an experience of at least four to five years in either business or finance. Specific personal and computer skills should be developed as well, such as great organizational and communication skills, highly detailed oriented, multitasking, software’s, and spreadsheets.
Rousmaniere, Peter. “Facing a tough situation.” Risk & Insurance 17.7 (June 2006): 24-25. Expanded Academic ASAP. Web. 23 March 2011.
Rather, it is centered around comprehension the key risks an organization confronts then going for broke at the best time in the wake of utilizing the most suitable safety measures (Valderrey, 2016). Even in the best of times, in the event that you are to oversee risk successfully, you should make to a great degree decision making ability calls including information and measurements, have an unmistakable feeling of how all the moving parts cooperate, and convey that well. In the most noticeably awful of times, risk management can go into disrepair. Recorded models can come up short, liquidity can become scarce, and relationships can get to be more grounded all of a
From the ancient times civilization kept evaluating, by discovering and exploring something new and, as a result, facing new hazards. Within the last few decades traditional society has moved to modern one. Within that period, huge progress towards modernity has been made and lots of innovations have been introduced to society, what have resulted in new dangers and risks. Nowadays, accurate calculation and consideration of risk-acceptance, risk-assessment and control cannot be fully complete because at any time there are unpredicted and undesired aspects of risk environments. It can be seen more clearly at the level of global dangers, such as chemical, nuclear, technological, ecological, industrial and genetic engineering hazards, which cannot
... recommendation is that better protection should be provided for the management of financial risk. Benkol could use the Net Present Value technique to cover that. Benkol also lacks a proper risk assessment method. Benkol does not use a risk assessment matrix, nor scenario analysis and probability analysis is done by the project manager using subjective assumptions. This can be refined by implementing proper probability analysis and risk assessment matrix.
Jewelries are like objects that are worn for personal adornment. The precious metals are used to make ornaments that can completely change your look. Today, people utilize a wide range of jewelry to look attractive or to follow the trend. A various forms of jewelry like bracelets, rings, necklace, earrings, chains, bangles and many more are available in the market. All of these are accessible in a variety of materials like gold, silver, pearls, etc.
As project activities are directed and finished, risks components and events will be observed to figure out whether in certainty trigger occasions have happened that would show the risk is currently a reality. In view of trigger occasions that have been reported amid the risk investigation and moderation forms, the project group or project administrators will have the power to order emergency courses of action as esteemed suitable. Everyday risk relief exercises will be instituted and coordinated by the project managers.
Risk management purpose is to prevent and reduce the frequency and severity of potential losses. Loss prevention programs promote avoidance of losses, measuring the loss frequency. Some examples are safety programs implemented to prevent workplace injuries, fire detectors, burglar alarms, and other protective devices to prevent losses caused by fire and theft. Insurance companies offer discounts to organization or individuals taking loss prevention measures as incentive for their participation.
It is important to take notice of the existing risk adjustment; and to do this can be
people (Kenel, 8) . As you can see risk is always very high and should never be
...l level then the under estimation of the risk for a particular portfolio’s VAR. The exceptions must truly be showing the exact result as the interval level. If this possibility is matched then it shows that the portfolio’s VAR in reality is the actual figure.
The risk management process needs to be flexible. Given that, we operate in the challenging environment, the companies require the meaning for managing risk as well as continuous improvement in identifying new risks that will evolve and make allowances for those risks that are no longer existing.
This paper will reflect on the different uses of Project Risk Management and ways in which it can benefit organizations to have the ability to identify potential problems prior to the problem occurring. Risk, this is not something to be taken lightly whilst dealing with matters that include high end projects meeting specific details, deadlines and expectations for the end client. Project risk management teaches one to be aggressive early on in the phases of planning and implementing the tools for a project. This is usually easier as costs are less and the turnaround time to solve the issues at that present moment is beneficial rather than later. The result in a successful project for one’s self and other key people involved in the process is also another requirement. Stakeholder satisfaction is important because the
As has been discussed before, risk identification plays an important part in the risk such as unique, subjective, complex and uncertainly. There are no two identical leaves in the world; similar, there are no two exactly the same risk either. Hence the best risk manger could not identify risk completely. Besides, risk identification assessment is done by risk analysts. As the different level of risk management knowledge, practical experience and other aspects between individuals, the result of risk identification may be difference. Furthermore, the process of identifying risk is still risky. Once risks have been identified, corporations have to take actions on limiting risky actions to reduce the frequency and severity of risky. They have to think about any lost profit from limiting distribution of risky action. So reducing risk identification risk is one of assessments in the risk