Page 170 - RISK Management IC86 Ebook

Risk Management

and the method for calculation will depend on the
actuaries. It basically involves estimating the potential
variations in aggregate actual losses from the expected
losses.

If alternate uses for funds. For organizations having funds
with alternate uses, they might be unwilling to block such
a fund to establish a capital.

All these covers are most readily available in reinsurance
than in direct insurance.

These covers can be arranged into a captive insurance
company or used for internal fund.

Q7. Risk evaluation is an important part of risk
management process. Explain how risk evaluation
is done with the help of relevant data and use of
probability concept to make sensitive risk-
handling decisions.

Ans. Refer the answer in Question Number 1. May 2005

Q8. Identify the problems faced by the risk managers

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