Week 4, Chapter 4- Enterprise Risk Management and Insurance Market Dynamics
Please read chapter 4 in it’s entirety and answer the following questions:
Enterprise Risk Management:
There are external and internal risks to an organization, list two of each here and give a short example:
Why would a risk management program in a business be a good idea (a benefit)?
Insurance Market Dynamics:
Right now in the insurance market place the premiums are high and underwriting is very strict and capacity is low, are we in a soft market or a hard market?
Why would limited available capacity in the insurance marketplace make insurance premiums go up?
If insurance companies can make money in the stock market is it more likely that premiums are high or low?
What’s the combined ratio and is it better to have a high CR or a low CR? If a combined ratio was 120 would the insurance carrier be in good shape?