Fin 321 Personal Risk Management Plan
Personal risk management plan
FIN 321
Risk and costs happen all the time in our lives. Everyone will encounter a variety of risks. A risk management plan is a process that identifies loss exposures faced by an organization and selects the most appropriate techniques for trading such exposures. The first step for all of the risk plans is identifying the loss exposures. The first kind of loss exposure I'm identifying is health loss exposures. This kind of loss exposure can be costly, such as disability, sickness or even premature death. The second loss exposure is property loss, such as pet damage for the apartment. I have a cat for which I have to pay a deposit for it to live in the apartment, but …show more content…
Because I'm from a foreign country, I have to travel to go back home so when I take the plane, some loss exposures exist, such as acts of terrorism on the plane or at the airport, accidents, and lost baggage in the airport with all my belongings inside. Sometimes, when I purchase plane tickets I also purchase the flight insurance to cover up the loss if anything happens. Also the currency lost exposures are also under the foreign loss exposures. For example, I bought Chinese currency when the exchange rate was 1:8 and now the exchange rate change to 1:6, I lost part of my money because of the change of the currency in the market and the possibility that the rate may keep dropping throughout …show more content…
According to my insurance policy, sickness is identified as “Illness or disease which first manifests itself, is contracted or commences, and for which a licensed physician identified diagnosis is recorded during the period the Insured Person’s coverage is in force”. The probability of me getting sick during the flu season is really high. I may have to go to the clinic to get treatments and skip classes, which will cost me the chance to be in class and learn knowledge. For that circumstance, the loss frequency is low and the loss severity is not high, either. If I missed class while I was in the clinic, I could get an excuse for being sick. I could also ask my classmates for the notes and even email my professors to ask what I missed and study it by myself, after all. Depending on the risk management matrix in the case, my getting the flu fits the retention technique. But if I get a horrible virus from the flu that causes me to stay in the hospital and be absent for a few days, the loss severity will be higher because the cost of recovery will be higher and the cure time will be longer. In that case, I need the medical insurance that Marshall University requires all the international students to have. The medical expense benefits under the policy are the maximum benefit of $250,000 per injury and sickness with the deductible of $50 per policy year. The policy will pay 90% of the PPO (preferred
FIN 321
Risk and costs happen all the time in our lives. Everyone will encounter a variety of risks. A risk management plan is a process that identifies loss exposures faced by an organization and selects the most appropriate techniques for trading such exposures. The first step for all of the risk plans is identifying the loss exposures. The first kind of loss exposure I'm identifying is health loss exposures. This kind of loss exposure can be costly, such as disability, sickness or even premature death. The second loss exposure is property loss, such as pet damage for the apartment. I have a cat for which I have to pay a deposit for it to live in the apartment, but …show more content…
Because I'm from a foreign country, I have to travel to go back home so when I take the plane, some loss exposures exist, such as acts of terrorism on the plane or at the airport, accidents, and lost baggage in the airport with all my belongings inside. Sometimes, when I purchase plane tickets I also purchase the flight insurance to cover up the loss if anything happens. Also the currency lost exposures are also under the foreign loss exposures. For example, I bought Chinese currency when the exchange rate was 1:8 and now the exchange rate change to 1:6, I lost part of my money because of the change of the currency in the market and the possibility that the rate may keep dropping throughout …show more content…
According to my insurance policy, sickness is identified as “Illness or disease which first manifests itself, is contracted or commences, and for which a licensed physician identified diagnosis is recorded during the period the Insured Person’s coverage is in force”. The probability of me getting sick during the flu season is really high. I may have to go to the clinic to get treatments and skip classes, which will cost me the chance to be in class and learn knowledge. For that circumstance, the loss frequency is low and the loss severity is not high, either. If I missed class while I was in the clinic, I could get an excuse for being sick. I could also ask my classmates for the notes and even email my professors to ask what I missed and study it by myself, after all. Depending on the risk management matrix in the case, my getting the flu fits the retention technique. But if I get a horrible virus from the flu that causes me to stay in the hospital and be absent for a few days, the loss severity will be higher because the cost of recovery will be higher and the cure time will be longer. In that case, I need the medical insurance that Marshall University requires all the international students to have. The medical expense benefits under the policy are the maximum benefit of $250,000 per injury and sickness with the deductible of $50 per policy year. The policy will pay 90% of the PPO (preferred