Risk Management for Enterprises and Individuals
v. 1.0
Table of Contents
Licensing Information
Chapter 1: The Nature of Risk: Losses and Opportunities
Chapter Introduction
Links
The Notion and Definition of Risk
Attitudes toward Risks
Types of Risks—Risk Exposures
Perils and Hazards
Review and Practice
Chapter 2: Risk Measurement and Metrics
Chapter Introduction
Quantification of Uncertainty via Probability Models
Measures of Risk: Putting It Together
Review and Practice
Chapter 3: Risk Attitudes: Expected Utility Theory and Demand for Hedging
Chapter Introduction
Utility Theory
Uncertainty, Expected Value, and Fair Games
Choice under Uncertainty: Expected Utility Theory
Biases Affecting Choice under Uncertainty
Risk Aversion and Price of Hedging Risk
Information Asymmetry Problem in Economics
Why Corporations Hedge
Review and Practice
Chapter 4: Evolving Risk Management: Fundamental Tools
Chapter Introduction
The Risk Management Function
Beginning Steps: Communication and Identification
Projected Frequency and Severity and Cost-Benefit Analysis—Capital Budgeting
Risk Management Alternatives: The Risk Management Matrix
Comparisons to Current Risk-Handling Methods
Appendix: Forecasting
Review and Practice
Chapter 5: The Evolution of Risk Management: Enterprise Risk Management
Chapter Introduction
Enterprise Risk Management within Firm Goals
Risk Management and the Firm’s Financial Statement—Opportunities within the ERM
Risk Management Using the Capital Markets
Chapter 6: The Insurance Solution and Institutions
Chapter Introduction
Links
Nature of Insurance
Ideal Requisites for Insurability
Types of Insurance and Insurers
Appendix: More Exposures, Less Risk
Review and Practice
Chapter 7: Insurance Operations
Insurance Operations: Marketing, Underwriting, and Administration
Insurance Operations: Actuarial and Investment
Insurance Operations: Reinsurance, Legal and Regulatory Issues, Claims, and Management
Appendix: Modern Loss Reserving Methods in Long Tail Lines
Review and Practice
Chapter 8: Insurance Markets and Regulation
Insurance Market Conditions
Insurance Regulation
Review and Practice
Chapter 9: Fundamental Doctrines Affecting Insurance Contracts
Agency Law: Application to Insurance
Requirements of a Contract
Distinguishing Characteristics of Insurance Contracts
Review and Practice
Chapter 10: Structure and Analysis of Insurance Contracts
Entering into the Contract
The Contract
Review and Practice
Chapter 11: Property Risk Management
Chapter Introduction
Property Risks
E-Commerce Property Risks
Global Property Exposures
Review and Practice
Chapter 12: The Liability Risk Management
Chapter Introduction
Nature of the Liability Exposure
Major Sources of Liability
Possible Solutions
Review and Practice
Chapter 13: Multirisk Management Contracts: Homeowners
Packaging Coverage, Homeowners Policy Forms, and the Special Form (HO-3)
Endorsements
Other Risks
Personal Umbrella Liability Policies
Shopping for Homeowners Insurance
Review and Practice
Chapter 14: Multirisk Management Contracts: Auto
The Fault System and Financial Responsibility Laws
Ensuring Auto Insurance Availability
Types of Automobile Policies and the Personal Automobile Policy
Auto Insurance Premium Rates
Review and Practice
Chapter 15: Multirisk Management Contracts: Business
Commercial Package Policy and Commercial Property Coverages
Other Property Coverages
Commercial General Liability Policy and Commercial Umbrella Liability Policy
Other Liability Risks
Review and Practice
Chapter 16: Risks Related to the Job: Workers’ Compensation and Unemployment Compensation
Chapter Introduction
Workers’ Compensation Laws and Benefits
How Benefits Are Provided
Workers’ Compensation Issues
Unemployment Compensation
Review and Practice
Chapter 17: Life Cycle Financial Risks
Chapter Introduction
Links
The Risks Related to Mortality
The Risks Related to Longevity
The Risks Related to Health and Disability
Global Trends and Their Impact on Demography and the Life Cycle Risks
Appendix: How Much Life Insurance to Buy?
Review and Practice
Chapter 18: Social Security
Chapter Introduction
Definition, Eligibility, Benefits, and Financing of Social Security
Medicare
Issues and Global Trends in Social Security
Review and Practice
Chapter 19: Mortality Risk Management: Individual Life Insurance and Group Life Insurance
How Life Insurance Works
Life Insurance Market Conditions and Life Insurance Products
Taxation, Major Policy Provisions, Riders, and Adjusting Life Insurance for Inflation
Group Life Insurance
Review and Practice
Chapter 20: Employment-Based Risk Management (General)
Chapter Introduction
Overview of Employee Benefits and Employer Objectives
Nature of Group Insurance
The Flexibility Issue, Cafeteria Plans, and Flexible Spending Accounts
Federal Regulation Compliance, Benefits Continuity and Portability, and Multinational Employee Benefit Plans
Review and Practice
Chapter 21: Employment-Based and Individual Longevity Risk Management
The Nature of Qualified Pension Plans
Types of Qualified Plans, Defined Benefit Plans, Defined Contribution Plans, Other Qualified Plans, and Individual Retirement Accounts
Annuities
Pension Plan Funding Techniques
Review and Practice
Chapter 22: Employment and Individual Health Risk Management
Chapter Introduction
Group Health Insurance: An Overview, Indemnity Health Plans, Managed-Care Plans, and Other Health Plans
Individual Health Insurance Contracts, Cancer and Critical Illness Policies, and Dental Insurance
Disability Insurance, Long-Term Care Insurance, and Medicare Supplementary Insurance
Review and Practice
Chapter 23: Cases in Holistic Risk Management
Chapter Introduction
Case 1: The Smith Family Insurance Portfolio
Case 2: Galaxy Max, Inc., Employee Benefits Package
Case 3: Nontraditional Insurance Programs and Application to the Hypothetical Loco Corporation
Review and Practice
Chapter Bibliography
Appendix A
Appendix B
Appendix C
Appendix D