Strategy Session

The low loss frequency and severity distributions for this past quarter (below) imply the risk management strategies associated with Quadrant 3 of the Risk Management Technique Decision Matrix should have been adopted, i.e. retain financial responsibility (do not buy insurance) for losses and do not invest in risk management programs.

The Challenge Sponsors

Shareholder Reports

 

Oneders

Pink Patriots

Team $Ca$hflow$

¡Equipo Fabuloso!

Money in the Bank

Additionally, aggregate quarterly losses follow the percentile distribution found in graph to the right. The mean aggregate loss value is $301. Note that aggregate losses never exceed $1,000, suggesting the probable lack of need for insurance (because $1,000 is something that your company can probably afford).

The table below summarizes the appropriate combination of risk management techniques for the risky environment described above.

The Previous Quarter’s Risk Environment