STANDARD COMPETENCIES:

 

 I.      Define risk, loss, loss exposure, and risk financing.

 II.     Identify and explain various sources of risk for an organization.

 III.    Describe various risk financing objectives.

 IV.     Explain the relationship between liquidity and the funding of an organization¿s losses.

 V.      Explain how insurance can function as park of a risk financing program.

 VI.     Describe typical reinsurance transactions.

 VII.    Given premium, losses, and the terms of either a pro rata or an excess of loss reinsurance agreement, calculate the division of premium and losses between the insurer and reinsurer.

 VIII.   Describe the characteristics of reinsurance.

 IX.     Explain the advantages and disadvantages of retrospective rating plans and illustrate the relationship between a retrospective rating plan and an organization¿s risk financing objectives.

 X       Describe and analyze finite and integrated risk insurance plans.

 XI.     Explain the concepts of securization, insurance derivatives, and contingent capital arrangement.

 XII.    Describe how to develop a basic loss forecast.

 XIII.   State, describe, and explain, the purposes of, and the risk financing significance of, some important principles of accounting and taxation.

 XIV.    Describe how accounting and income tax procedures could affect an organization¿s choices of risk management measures.

 XV.     Prepare a request for proposal property and liability risk management and insurance consulting services.

 XVI.    Describe the claims administration process and its importance for an organization that is either payor or payee.

 XVII.   Given a case scenario, illustrate how an organization¿s risk management costs could be allocated.

 TOPICAL OUTLINE:

 

 I.      Introduction to Risk Financing

 II.     Risk Financing Objectives

 III.    Introduction to Risk Financing Plans

 IV.     Insurance

 V.      Reinsurance and Self-Insurance

 VI.     Retrospective Rating Plans and Captive Insurance Companies

 VII.    Finite and Integrated Risk Insurance Plans

 VIII.   Capital Market Products for Risk Financing

 IX.     Forecasting Accidental Losses and Risk Financing Needs

 X       Accounting and Income Tax Aspects of Risk Management

 XI.     Dealing with Insurers¿ Representatives

 XII.    Claims Administration

 XIII.   Allocating Risk Management Costs