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The Insurance Times
33. The two areas of applications of risk theory to risk
management are in statistics and in finances.
34. Goals of Risk Management
Risk management is the process of determining hw to
handle the pure risks to which an individual, family, or
entity is exposed with the following goals:
survive the loss event;
have peace of mind;
reduce total risk management costs and, thus, have
general higher profits;
stabilize earnings;
have little or no interruption in operations;
have continued growth; and
help carry out the individual's or entity's sense
of social responsibility or desire for a good
image.
35. The Risk Management Process
The risk management process encompasses the following
five steps:
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