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Managing Risk


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After you have read and studied this chapter, you should be able to

  1. Identify the environmental changes that have made risk management important.


  2. Explain the four ways of managing risk, and distinguish between insurable and uninsurable risk.


  3. Define insurance policies, and explain the law of large numbers and the rule of indemnity.


  4. Discuss the various types of insurance businesses can buy to manage risk.







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