Licentiate Examination - IC 01 - Principles of Insurance Exam - Important Points
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Risk management by individuals - There are four ways to manage risk: - Avoidance or prevention of risk, Reduction of risk, Retention of risk, Transfer of risk
Avoidance or prevention of risk - cannot be completely avoided as these are often caused by natural perils or actions of others
Reduction of risk - possible to reduce risk before or after an incident has occurred
Retention of risk - assess seriousness of the risk (how often it may occur, extent of damage, possibility damage to environment, potential damage to safety of people)
Transfer of risk - it can be transferred to an insurance company
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