1. Risk Management and fraud in retail practice

2. Concept of Risk Management
Introduction to risk
Nature of risk
Types of risk
Risk management
Risk evaluation

3. Defining of Risk
Uncertainity & Certainity
Measurement risk
Severity and frequency

4. Nature of Risk Fundamental and particular risk Personal risk
Property risk
Liability risk
Risk due to ownership and use of transport vehicle

5. Personal risk Premature death Dependent old age
Sickness or disability (resulting in loss of income and earning power involving additional expenses and extra needs)
Unemployment (loss of income may be permanent/temporary

6. Property risk Loss/damage of property Loss of use of property
Additional expense may lead to loss of property

7. Liability risk
They arise out of human mistakes often termed as civil wrong by a person resulting in injury or death

8. Management of risk
Definition :- It is concerned with direct purposeful activity towards achievements of individual or organization goals Or
It may be defined as identification analysis & economic control of those risk which can threaten the asset or earning capacity of an enterprises

9. Risk identification various method for risk identification are :-
Preparing the checklist of risk or various losses which may arise due to risk
Financial statement analysis
Flowchart preparation and identification of risk activities
Statistical records of occurrence of loss related to various categories of risk

10. Methods for Handling risk
Prevention/avoidance of risk
Reduction of risk
Shifting or transferring of risk
Accepting/resuming risk
Spreading risk

11. Basic characteristic of insurance
Risk pooling
Risk transfer from individual to a pool of the insurance company policy holder
The company charge premium for accepting risk
Law of large number
Larger the pool more predictable the amount of losses in a given period

12. Advantage and disadvantage of insurance handling risk
Advantages :- Indemnification Rupee benefit period or service rendered to insurance who suffer cover loss Reduction of uncertainty Permit lengthening planning allow the firm to accept more uncertainties in other areas
Disadvantages :-
Less incentive for loss control insurance expected estimate will arise causing premium to rise
Exaggeration or false reporting of insured claim
Subsequently premium may rise or there may be difficulty retaining insurance coverage