#6 Notes about “Risk Management” course

Hi all, I continue watching the “Risk Management” course provided by the Alison platform. And here are main items from the Module #7 that I think are worth sharing with you:

1. Property is something that has value and which ownership rules belongs to the person;
2. Property can be real (permanent, e.g. building) and personal (mobile, e.g. car). This distinguishing is to different level of security (can’t move building from hurricane, but can ride away in a car);
3. When perils are often and small, insurers suggest using deductibles — requirement for the insured to bear some loss before insurer becomes liable for paying premium for it. It also reduces the peril itself and decreases operational cost as insured, gaining the part of the burden, won’t call the insurer each time;
4. Types of deductible: Straight (insured always pays for a risk exposure a certain amount of money. When the loss is bigger, the former compensation the insurer gives). Franchise (insured pays only for losses smaller than the decided limit, all other losses are completely paid by the insurer). Disappearing (the same as in franchise, however the limit is flexible and decreases when losses grow);
5. E-commerce thefts: Hackers, Crackers, Insiders, Virus. Crackers are like Hackers, but more goal and gain oriented;
6. Companies face losses when they have to align with the advancement of technologies and therefore need their employees to learn new systems which cause a delay;
7. Potential risks for companies are placed also in the governmental involvement — it makes laws tighter and can make existing business being legal before out of law.
8. Cybersquatting — the process of someone is buying the domain name with trademark name and then sells it to the trademark holder;
9. Website Hijacking — redirection to the sites that user was not likely to open;
10. Companies can mitigate the security risks by: applying security practices in developing products, system audits, antivirus protection, backup, data protection, digital signatures, encryption, firewalls, VPN.
11. Political Risks Service (prsonline.com) ranks countries for their instability;
12. Political risks are risks of unattended events to appear (revolution, expropriation, terrorism);
13. Main categories of global risk exposures: political instability, terrorism, changes in local law, lack of data, currency unconvertability, cultural barriers;

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