The Week 4 Case Study Assignment requires you to assess, in writing, the steps you have taken to manage risk. After reviewing the material below, on the topic of risk management methods, consider your current insurance coverage. Are you sufficiently insured? How could you change your insurance coverage to better manage risk, in your situation?
Discuss your answers to these questions in 1-2 page essay.
While there is not a particular format in which the essay must be written, please be sure to clearly label each step and to cite and reference all your sources. There is no minimum or maximum required page number for this assignment.
Risk Management Methods:
- Risk management is an organized strategy for protecting and conserving assets and people.
- Risk avoidance: You can avoid the risk of automobile accident by not riding in a car. There are, however, situations in which risk avoidance is a practical technique.
- Risk reduction: You can reduce the risk of injury in an auto accident by wearing a seat belt.
- Risk assumption: Risk assumption is the act of taking on responsibility for the loss or injury that may result from a risk.
- Self-insurance is the process of establishing a monetary fund that can be used to cover the cost of a loss.
- Risk shifting: The most common method of dealing with risk is to shift, or transfer, it to an insurance company or some other organization.