Tools and Techniques of Risk Management and Insurance
Outline
Techniques
a. Define risk and the traditional methods of looking at risk
b. Brief history of traditional risk management
c. The risk management process
d. Importance of risk management to the organization
e. The risk management policy statement
f. Traditional versus enterprise-wide risk management
a. Define enterprise risk management
b. Purpose of ERM
c. Risk classification in ERM
d. Overlay of risks
e. Concepts in ERM
f. Why use ERM instead of traditional risk management?
g. Risk assessment and analysis
h. Types of structures
i. The chief risk officer
a. Define risk assessment
b. Define exposure identification
c. Categorizing owned and nonowned assets
d. Identifying third-party liability
e. Choosing the resources for identification
f. Discussing resources
g. Advantages/disadvantages, additional resources, questions and answers, and glossary
a. Review risk assessment definition
b. Define exposure quantification
c. Determining frequency versus severity
d. Quantifying retained risk
e. Property exposures
f. Considering other factors
g. Advantages/disadvantages, additional resources and questions, answers, and glossary
h. How Much Risk Should a Business Retain? A Simple Loss Simulation Example
a. Define the loss treatment options
b. Avoidance
c. Noninsurance transfer
d. Retention
e. Insurance transfer
f. Loss prevention and reduction
g. Advantages/disadvantages, additional resources, questions and answers, and glossary
a. Define noninsurance risk transfer’
b. Before-loss transfers
c. After-loss transfers
d. Steps to implement technique
e. Advantages/disadvantages, time and cash commitment, additional resources, questions and answers, and glossary
f. Sample noninsurance transfer clauses
a. Define insurance as a risk-transfer technique
b. Steps to implement
c. Beginning the process
d. Choosing an intermediary
e. Binders of insurance
f. Receiving and reviewing policies
g. Advantages/disadvantages, additional resources,questions and answers, and glossary
a. What is alternative risk transfer (ART)?
b. The ART options
c. Funding loss retentions
d. Understanding types of captives
e. Choosing a captive domicile
f. Fronted and direct captives
g. The captive feasibility study
h. Captive tax issues
i. Other techniques, such as finite risk programs
j. Capital market tools and insurance derivatives
k. Advantages/disadvantages, additional resources, questions and answers, and glossary
a. Defining global risk management
b. Categories of temporary, export, and permanent multinational exposures
c. Steps to implement
d. Identifying global risks
e. Quantifying and analyzing global risks
f. Evaluating treatment options
g. The insurance option
h. Determining local insurance requirements
i. Identifying territorial limits
j. Structuring a worldwide insurance program
k. Other exposures
l. Global aspects of the Internet
m. Advantages/disadvantages, additional resources, questions and answers, and glossary
a. Defining loss control
b. Loss control overview
c. Loss control theories
d. Developing a contemporary loss control program
e. The five-step process
f. Measuring the effects of a proposed loss control project
g. Qualitative analysis
h. System administration
i. Regulations
j. Advantages/disadvantages, additional resources, questions and answers, and glossary
a. Defining emergency response planning
b. Steps to implement
c. Management policy
d. Planning committee
e. Risk assessment
f. Assess available resources
g. Determine level of response
h. Organize the emergency response team
i. Advantages/disadvantages, additional resources, questions and answers, and glossary
a. Defining business continuity planning
b. Steps to implement
c. Project initiation and management
d. Risk assessment
e. Business impact analysis
f. Recovery strategy evaluation
g. Business recovery plan development
h. Plan implementation, maintenance, and testing
i. Advantages/disadvantages, additional resources, questions and answers, and glossary
a. Defining claims management
b. Why claims management is important
c. The parties in a claim
d. Steps in the claims-management process
e. Incident occurs
f. Claim is made
g. Claim Is denied, accepted, or conditionally investigated
h. Claim is adjusted
i. First-party versus third-party claims
j. Claim is settled or closed
k. Advantages/disadvantages, additional resources, questions and answers, and glossary
a. Defining the technique
b. Setting up and obtaining data
c. Reviewing the data
d. Making inquiries
e. Methods to reduce the financial impact of losses
f. Advantages/disadvantages, additional resources, questions and answers, and glossary
a. Insurance companies and risk management
b. Types of insurance companies
c. Regulation
d. Choosing an insurance arrangement
e. Financial strength
f. Reinsurance
g. Financial services reform
h. Premiums and pricing of insurance
i. Advantages/disadvantages, additional resources, questions and answers, and glossary
a. Why is it necessary?
b. Steps to implement
c. Compensation
d. Sample agent/broker evaluation procedure and forms
e. Advantages/disadvantages, additional resources, questions and answers, and glossary