Identifying loss exposures is an important part of the risk management process. Your firm has identified the following loss exposures for your firm: Environmental pollution, job related injuries, acts of terrorism, and damage to the companys public image. Explain the best risk management techniques for each of these exposures. Defend your position.

Thoroughly explain why exclusions are necessary in an insurance contract. What is the main difference between inherent vice and a kitchen fire?

Give an example of a loss exposure that is BEST managed by avoidance, retention, loss prevention, and insurance. Explain and defend your answer.

Give 4 different examples of when retention would be the best method to handle a risk at the firm level. Defend your answers.

Explain why loss severity is more important that loss frequency.