Page 103 - RISK Management IC 86

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(AOG) perils involving no human intervention. They include
earthquake, rockslides, landslides, flood , tides, etc.

n Human perils
These relate to actions of individuals or a small group of
individuals and include human error, arson, chemical leakage,
industrial contamination, discrimination, etc.

n Economic perils
These relate to actions of a large group of people who act
independently of each other while responding to a particular
situation and include changes in consumer tastes and behaviour,
currency fluctuations, recession, inflation, etc.

n Consequential monetary effects
Ascertaining monetary effects means valuing the exposures
of the property to identified perils. Following discussions on
this issue of loss valuation are primarily from the point of
view of owner of a property:

Methods of valuing an owner's direct property loss
exposures

n It is important to note that each method of property loss
valuation has certain advantages and disadvantages depending

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