Page 54 - EBOOK RISK MANAGEMENT
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5) Usually applicable in insurance industries. It is a method to measure the minimum
amount of capital that an insurance company needs to support its overall
business operations. It is used to set capital requirements considering the size
and degree of risk taken by the company. This statement is referring to methods
of risk retention of
a. Risk Based Capital
b. Internal Sources
c. External Sources
d. Captive Insurance
6) Explain loss reduction and loss prevention that can be use to minimize risk at
petrol station.
7) Discuss the advantages and disadvantages of insurance.
8) Describe the reasons for the need of risk management programme to be
reviewed regularly by firm.
9) Differentiate between risk reduction and risk prevention.
10) Discuss the two factors that must be considered in the selection of risk
management programme.
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