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Foundations of Casualty Actuarial Science

Q5. Discuss the concept of risk management.
Q6. What are the goals of risk management?

Ans. Risk management is the process of determining how to
handle the pure risks to which an individual , family, or
entity is exposed with the following goals
(i) survive the loss event.
(ii) have peace of mind.
(iii) reduce total risk management costs and, thus, have
general higher profits.
(iv) stabilize earnings.
(v) have little or no interruption in operations.
(vi) have continued growth and
(vii)help carry out the individual's or entity's sense of
social responsibility or desire for a good image.

Q7. Discuss the different types of losses.

Ans. Loss primarily refers to the loss of assets resulting usually
from pure risks. The following are the types of losses
which are of concern to the risk managers :
(i) Personnel losses - personal losses facing an
individual include death, poor health,

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