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    Stephy - 25 - Writing Materials#fundamental of Risk and Risk Management - 250 - CB - Ting - 23feb - Vincent

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    Samridhi Dokwal
    The document discusses the responsibilities of a risk manager at a medium-sized manufacturing firm. The key responsibilities are insuring the firm's fixed assets to mitigate risks, as these assets are the most important. It was merely coincidence that no losses occurred over the past two years when insurance was not renewed, as a loss could have caused significant direct and indirect costs. The risk manager should admit mistakes and take corrective actions to convince senior leadership of the importance of insuring assets. Analyzing both risk and return is important for risk management decisions.

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    Stephy - 25 - Writing Materials#fundamental of Risk and Risk Management - 250 - CB - Ting - 23feb - Vincent

    Uploaded by

    Samridhi Dokwal
    10 views2 pages
    The document discusses the responsibilities of a risk manager at a medium-sized manufacturing firm. The key responsibilities are insuring the firm's fixed assets to mitigate risks, as these assets are the most important. It was merely coincidence that no losses occurred over the past two years when insurance was not renewed, as a loss could have caused significant direct and indirect costs. The risk manager should admit mistakes and take corrective actions to convince senior leadership of the importance of insuring assets. Analyzing both risk and return is important for risk management decisions.

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    Stephy-_25_Writing materials#fundamental of risk and risk management__250_CB.Ting_23Feb_Vincent

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    The document discusses the responsibilities of a risk manager at a medium-sized manufacturing firm. The key responsibilities are insuring the firm's fixed assets to mitigate risks, as these assets are the most important. It was merely coincidence that no losses occurred over the past two years when insurance was not renewed, as a loss could have caused significant direct and indirect costs. The risk manager should admit mistakes and take corrective actions to convince senior leadership of the importance of insuring assets. Analyzing both risk and return is important for risk management decisions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    10 views2 pages

    Stephy - 25 - Writing Materials#fundamental of Risk and Risk Management - 250 - CB - Ting - 23feb - Vincent

    Uploaded by

    Samridhi Dokwal
    The document discusses the responsibilities of a risk manager at a medium-sized manufacturing firm. The key responsibilities are insuring the firm's fixed assets to mitigate risks, as these assets are the most important. It was merely coincidence that no losses occurred over the past two years when insurance was not renewed, as a loss could have caused significant direct and indirect costs. The risk manager should admit mistakes and take corrective actions to convince senior leadership of the importance of insuring assets. Analyzing both risk and return is important for risk management decisions.

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    of 2

    FUNDAMENTAL OF RISK

    AND RISK MANAGEMENT


    Week 2 Discussion Question
    I do not agree with Tom. Being a risk manager of a medium-sized manufacturing firm, the key
    assets are its fixed assets. Thus, the risk manager’s main responsibility is to get its fixed assets
    insured. It was a mere coincidence that no loss was incurred during the past two years otherwise
    saving $2,65,000 could have caused a huge direct and indirect cost loss to the company.
    Moreover, the risk manager’s responsibilities are mitigating risk and getting insurance cover for
    the key assets. Thus, he can convince the VP by admitting his mistake and taking corrective
    measures for it.

    Good decision: I have invested in a profitable firm before the COVID-19 outbreak but ended up
    having losses due to the after effect COVID-19.

    Bad decision: I have included a healthcare company in my portfolio from a considerably low
    growth industry that has provided me with huge profits due to an upsurge in the healthcare
    industry after the outbreak of the COVID-19.

    On reflecting on these examples, I came to know that we should evaluate and analyze both the
    risk and return at a time. This would help in analyzing the percentage of risk involved
    concerning the expected return. This way risk management decisions would be taken in a better
    way.

    Reply:

    I do agree with you, if the possible loss is higher, one should not take the risk to save the
    premium. Tom was able to save over half a million dollars for 2 years for the company.
    However, if any uncertain causality would happen then the company would have to suffer a huge
    loss.

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