Page 26 - RMAI BULLETIN Oct - Dec 2019

RMAI BULLETIN OCTOBER TO DECEMBER 2019

AttractiveNuisance: Covariancematrix:
A dangerous place or instrumentality attractive to A two-dimensional display of the covariances (or
children, the owner of which has the legal duty of correlation coefficients) among several random
taking unusual care to guard them from it. Builder’s variables; the covariance between any two variables is
shownattheircross-sectioninthematrix.
Risk: Insurance against loss to buildings and materials
in course of construction; also, known as “Course of
Construction”(COC). Capitalattribution:
The determination of the assignment of enterprise
Covariance: level capital to the various business segments (e.g.,
lines of business, regions, projects) that make up the
A statistical measure of the degree to which two
enterprise, in recognition of the relative risk of each
random variables are correlated. Related to correlation
segment, for purposes of measuring segment
coefficient (correlation coefficient is covariance
performance on a risk adjusted basis (e.g., to provide
dividedbytheproductofthestandarddeviationsofthe
thedenominatorforaRORACanalysisbysegment).
two random variables). A correlation coefficient of +1.0
indicates perfect positive correlation; -1.0 indicates Exposures:
perfect negative correlation (i.e., a "natural hedge"); A rating element used to measure an insured’s
zeroindicatesnocorrelation. expectedriskofloss.

RMAI Activities

Chapters

We are shortly going to open chapters of the Association all over India. The role of the chapters would be to
promote the cause of Risk Management in the local area by organizing workshops, seminars and interactions.
Interested persons/bodies having the urge to promote the concept may contact the Secretary General for the
formalities.
Workshop/Seminars

We shall be conducting workshops and seminars across India on recent Risk Management Developments to
discuss and deliberate on various issues related to Risk Management, Safety, Fraud, Technology and other
relevantareas.
Research/Casestudy

We are encouraging members to submit case study on various industries which may serve as a road-map to
othersandhelptoadoptbestbusinesspracticesinRiskManagement.

CertificateCourses
We ar going to offer certificate courses on Risk Management and allied areas for the members. We have tiedup
with Association of Internal Control United Kindom to offer their courses in India. We have also tiedup with
CharteredInsuranceInstitute,LondontooffertheircoursesinIndia.

Tie-upwithRiskManagementBodies
We have tiedup with the Professional bodies around the world to gain insight about their activities and new
developmentsintheRiskManagementfield.
OnlineRepository
We are maintaining a online repository of Risk management related information at our website
www.rmaindia.org We shall be sharing various information, PPT, articles, Links, Glossary, Case study for the
members.

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