RMI 2101 Lecture Notes - Lecture 2: Risk Management, Financial Statement, Flowchart

• School: Temple University
• Department: Risk Management and Insurance
• Course: RMI 2101
• Professor: Mccloskey

Document Summary

Manage pure risk (trm) and speculative risk (erm) Risk management goal: minimize financial impact on organization (defend what you already have) Risk management: specialized branch of financial management. Financial department (small), risk manager (medium), chief risk officer cro (large) 1950"s firms did not manage risk, just bought insurance - very narrow and not strategic. Mid 60"s professor wayne snider (temple) helps coin the term risk management ; after that, it becomes a strategy. Present - very important function in a firm, very broad. Loss exposures: possibility of financial loss that a particular entity faces as a result of peril striking a thing of value. Most crucial step failure to properly identify can lead to bankruptcy. Assets - physical (building and land) & nonphysical (trademark, copyright, patent, good will) Tangible - equipment, furniture, clothes, accounting records. Intangible - goodwill, patent, trademark, copyright, accounts receivable. If there is a loss to the property, you also suffer a loss.