Page 222 - RISK Management IC 86
P. 222
Risk Management
(c) Losses may be financed by loans and repaid over
the next period of time.
The probability and severity of possible losses play an
important part in the structuring of risk enhancing
program. Practically high probability of loss generally
cause hand-in-hand with relatively low severity, and vice
versa. If otherwise, exposure to a high probability of
catastrophic losses can place an organisation in a difficult
situation. Any venture exposed to such a high probability,
high severity risk should be abandoned.
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