Term
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Definition
| A process that identifies loss exposure faced by an organization and selects the most appropriate techniques for treating the exposure |
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Term
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Definition
| the probable number of losses that may occur during some given time period |
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Definition
-the probable size of the loss that may occur
-units = dollars |
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Term
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Definition
| the worst loss that could happen to a firm during its lifetime |
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Definition
| the worst loss that is most likely to happen |
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Term
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Definition
the dollar amount of losses that the firm will retain
ex: deductible |
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Term
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Definition
-a provision by which a specified amount is subtracted from the loss payment otherwise payable to the insured
-the insured "skin in the game" |
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Definition
| a plan in which the insurer does not participate in the loss until the actual loss exceeds the amount a firm has decided to retain |
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Term
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Definition
| Policy designed for a firm's specific needs and requirements |
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Term
| Risk Management Policy Statement |
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Definition
| Statement that outlines the risk management objectives of the firm, as well as company policy with respect to treatment of loss exposure |
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Term
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Definition
| describes the risk management program of the firm |
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