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2. A large corporation has 12 regional warehouses, a central headquarters, and many retail outlets throughout the United States. In total, it has 20.000 employees.
2. A large corporation has 12 regional warehouses, a central headquarters, and many retail outlets throughout the United States. In total, it has 20.000 employees. Its main risk financing goals are to pay for the financial consequences of its loss exposures while minimizing the total cost of risk. It is also a public corporation, so managing uncertainty is of concern. The corporation usually has access to sufficient liquidity, but it faces certain significant loss exposures, such as products liability and property damage due to natural catastrophe in each region, that it may not be able to pay for on its own.|| a. To what extent should the corporation use retention to meets its risk financing goals? Be sure to explain how your recommendations support the corporation's risk financing goals. b. What exposures, if any, should the corporation transfer? Why? Be sure to explain how your recommendations support the corporation's risk financing goals. 2. A large corporation has 12 regional warehouses, a central headquarters, and many retail outlets throughout the United States. In total, it has 20.000 employees. Its main risk financing goals are to pay for the financial consequences of its loss exposures while minimizing the total cost of risk. It is also a public corporation, so managing uncertainty is of concern. The corporation usually has access to sufficient liquidity, but it faces certain significant loss exposures, such as products liability and property damage due to natural catastrophe in each region, that it may not be able to pay for on its own.|| a. To what extent should the corporation use retention to meets its risk financing goals? Be sure to explain how your recommendations support the corporation's risk financing goals. b. What exposures, if any, should the corporation transfer? Why? Be sure to explain how your recommendations support the corporation's risk financing goals
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