Risk Management Measuring Risks & Statistical Functions Discussion
Risk Management Measuring Risks & Statistical Functions
Description
Competency
Examine the application of statistical functions and derivatives as instruments for measuring risks.
Instructions
You will assume the role of a senior analyst hired by a fictitious company, Premium Acceptance, a midsized property insurance carrier. Premium Acceptance is performing well with respect to several key performance indicators, including policies in force, policy retention, and new business counts.
One of your objectives as the newly appointed senior risk analyst is to develop a framework for managing loss ratios which is one of the firm’s largest key performance indicators. A loss ratio is simply the difference between the ratio of claims paid by an insurance carrier and the ratio of premiums paid. The board of directors depends on the ability to forecast loss ratios, which in turn enables them to forecast profitability metrics to the shareholders. The organization will now consider implementing the use of statistics for measuring risks.
Your deliverable should be composed in a report. Be sure to address the following items:
- Explain how statistics is used to formally define risk in the risk assessment process.
- Discuss at least two statistical tools that can be employed to measure risk.
- Convey which tool best serves the company’s purposes and explain why it is.
- What are the ramifications of the organization electing not to use statistics in this process?
For help writing a business report, please use the guide found here.
Grading Rubric
| F | F | C | B | A |
| 0 | 1 | 2 | 3 | 4 |
| Not Submitted | No Pass | Competence | Proficiency | Mastery |
| Not Submitted | An inaccurate overview of how statistics support the risk assessment process is given OR no overview of how statistics support the risk assessment process is given. | An accurate overview of how statistics support the risk assessment process is given. A definition of risk is included. | An accurate overview that includes specific examples of how statistics support the risk assessment process is given. A definition of risk is included. | A thorough and detailed overview that includes specific examples of how statistics support the risk assessment process is given. A definition of risk is included. |
| Not Submitted | Less than two valid statistical tools that can be used to measure risk are included. | At least two valid statistical tools that can be employed to measure risk are discussed. | At least two valid statistical tools that can be employed to measure risk are explained with details on specific applications. | More than two valid statistical tools that can be employed to measure risk are explained with details on specific applications. |
| Not Submitted | Does not correctly identify which tool will best serve the company’s purpose OR does not correctly explain why it is the best tool. | Correctly identifies which tool best serves the company’s purpose AND explains why it is the best tool. | Correctly identifies which tool best serves the company’s purpose AND explains why it is the best tool through specific examples of an application of the tool. | Correctly identifies which tool best serves the company’s purpose AND gives a thorough and detailed explanation of why it is the best tool. Includes specific examples of an application of the tool. |
| Not Submitted | Less than two valid ramifications of choosing not to use statistics in the risk assessment process are given. | At least two valid ramifications of choosing not to use statistics in the risk assessment process are given. | At least two valid ramifications of choosing not to use statistics in the risk assessment process are thoroughly explained. | More than two valid ramifications of choosing not to use statistics in the risk assessment process are thoroughly explained. |
Click here to ORDER an A++ paper from our MASTERS and DOCTORATE WRITERS:
Who We Are
We are a professional custom writing website. If you have searched for a question and bumped into our website just know you are in the right place to get help in your coursework.
Do you handle any type of coursework?
Yes. We have posted over our previous orders to display our experience. Since we have done this question before, we can also do it for you. To make sure we do it perfectly, please fill out our Order Form. Filling the order form correctly will assist our team in referencing, specifications, and future communication.
Is it hard to Place an Order?
1. Click Order Now and a new page will appear with an order form to be filled.
2. Fill in your paper’s requirements in the “PAPER INFORMATION” section and the system will calculate your order price/cost.
3. Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
4. Click “FINAL STEP” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
100% Reliable Site. Make this your Home of Academic Papers.
SCORE A+ WITH HELP FROM OUR PROFESSIONAL WRITERS: ORDER NOW FOR AN ORIGINAL PAPER ASSIGNMENT
Always Order High-Quality Academic Papers from here
5. From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.
We will process your orders through multiple stages and checks to ensure that what we are delivering to you, in the end, is something that is precise as you envisioned it. All of our essay writing service products are 100% original, ensuring that there is no plagiarism in them. The sources are well-researched and cited so it is interesting. Our goal is to help as many students as possible with their assignments, i.e. our prices are affordable and services premium.
Looking for a Similar Assignment? Order a custom-written, plagiarism-free paper