NOORFATIN BT ABDUL RAZAK 241373 RISK MANAGEMENT

Chapter4: Analysis of risk exposures

1. Physical asset loss exposure
 Flood/ hurricanes (A property is exposed to losses because of accidents or
catastrophes)
 Fire protection
 chemical
 explosion
 electrical
 vandalism
 loss of business
 type of construction(frame fire resistive, windstorm resistive)
 equipment guarding
 traffic exposures (ship, rail, vehicular)

2. Liability asset loss exposure

 Occupier’s Liability
 Employer’s Vicarious Liability
 Joint and Several Liability
 Moto vehicle liability
 Product liability (a firm is responsible for compensating persons injured by
supplying a defective product, which causes damage to an individual or another
firm)
 Contractual liability
 Bailments
 Public officials liability
 Pollution liability
 Aircraft liability
3. Human asset loss exposure
 retirement
 unemployment
 death
 resignation of key employees
 poor health condition
 disability
 accident
 sickness
 injury
 Loss for providing EPF to the employees
NOORFATIN BT ABDUL RAZAK 241373 RISK MANAGEMENT

4. Financial asset loss exposure

 Economy fluctuation risk
 Penalties
 losses below your insurance deductible
 punitive damages
 market risk
 losses excluded by insurance policy
 increases in premiums due to claims experience
 repay the loans
 interest rate risk
 exchange risk