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The frequency and severity of an organisation's losses can be determined by looking at the lognormal distribution of losses, which can also help determine how
The frequency and severity of an organisation's losses can be determined by looking at the lognormal distribution of losses, which can also help determine how to finance these risks. Additionally, this might be a factor in determining the organisation's risk appetite. Explain the concept of risk appetite. Discuss the best financing method for the risks shown for each sector by analysing the below lognormal distribution.
High Frequency Low E FL G Severity H High
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Risk Appetite Risk appetite refers to the level of risk that an organization is willing to accept or tolerate in pursuit of its objectives It represents the organizations willingness to take on risks ...Get Instant Access to Expert-Tailored Solutions
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