大学生创业的英语作文-大学生创业的英语作文
pure
risk
:
Risk
where
the
random
outcome
can
only
result
in
loss
(produce a cash outflow); that is, no
outcome involving a gain (cash flow)
is
possible.
retention
: With which a business or individual retains the obligation to
pay for part of all of the losses. When
coupled with a formal plan to fund
losses for medium-to-large business,
retention often is self-insurance.
integrated risk management
: It is a new approach to corporate the risk
management, which uses the technology
of both finance and insurance
to
address
the
whole
range
of
corporate
risk-financial,
insurable,
operational, and business risk.
the return on equity (ROE)
: It is defined as the ratio of net operating
earnings to the book value of equity.
the weighted-average cost of capital
(WACC)
:
valued
contracts
:
It
establishes
the
amount
of
that
the
insurer
pays
at
the
time
the
contract
is
initiated
without
regard
to
the
amount
of
the
loss caused by the insured
event.
policy
limits
:
Insurance
policies
often
limit
the
amount
of
coverage
by
placing
an
upper
limit,
known
as
policy limits,
on
the
amount
that
the
insurer will pay for any loss.
保单限额
deductibles
:
It
is
a
common
way
to
limit
the
amount
of
the
coverage,
which eliminate
coverage for relatively small losses.
免赔额
multi-line/multi-year
products
(MMPs)
: Several lines
of
insurance
are
bundled within the same
insurance programme.
multi-tragger
products
(MTPs)
:
The
most
important
feature
of
these
covers is that claims are only paid if,
in
addition to an insurance
event
(“first
trigger”)
during
the
term
of
the
policy,
a
non- insurance
event
(“second
trigger”) also occurs.
1.
Intuitively
explain
why
risk
management
activities
like
insurance
purchases
and
loss
control
expenditures
may
be
redundant
form
the
perspective of diversified
shareholders.
1 Risk management
is unlikely to decrease the opportunity cost of
capital
for
firms
with
well-diversified
shareholders
because
risk
management
activities
generally
decrease
the
type
of
risk
(diversifiable
risk)
that
shareholders can eliminate
on their own by holding diversified portfolios.
2 If risk management does decrease non-
diversifiable risk and therefore
the
opportunity cost of capital, the cost of doing so
is likely to negate the
benefits of
reducing the discount rate.
2. Analyze relations between risk
management activities (like insurance
purchase and loss control) and the
opportunity cost of capital for firms.
The
discount
rate
(the
opportunity
cost
of
capital)
equals
the
risk-free
rate
plus
a
risk
premium.
The
risk-free
rate
is
the
rate
of
return
on
government bonds and cannot be
influenced by firm decisions. Thus, if
risk
management
is
to
affect
the
discount
rate
it
must
affect
the
risk
premium.
The
risk
premium
depends
only
on
the
amount
of
non-
diversifiable
risk.
As
a
result,
if
risk
management
decreases
diversifiable
risk
only
(the
risk
that
investors
can
eliminate
by
holding
diversified
portfolios),
the
risk
premium
will
be
unaffected
and
so
the
opportunity cost of capital will be
unaffected.
1
Risk
management
activities
like
insurance
purchases
and
loss
control
expenditures
typically only reduce a firm
’
s diversifiable risk. The type of
risk
that insurance companies tend to insure also are
risks that insurance
company
can
largely
diversified
by
selling
insurance
to
many
different
policyholders.
If
insurance
companies
can
diversified
the
risk,
then
so
can
shareholders
by
holding
well-diversified
portfolios,
can
thus
insurance
purchases generally do not reduce a
firm
’
s opportunity cost of
capital.
2
The
risk
that
is
reduced
through
loss
control
also
tends
to
be
firm-specific risk. For
example, the frequency and severity of workplace
accidents and product failures are
likely to be uncorrelated across firms.
These
firm-specific
risks
can
be
diversified
by
shareholders
and
so
control activities usually will not
decreases a firm
’
s opportunity cost of
capital.
3. Explain why
exposures with low severity of losses are not
likely to be
insured?
Exposures with low severity of losses
are not likely to be insured on an
individual basis because the fixed
costs associated with underwriting and
distributing a policy make the loading
very high compared to expected
losses.
4. Describe the advantages of captives
for a company.
自保
1 Efficiency gains through
participating in one
’
s claims experience
Captive were originally
invented because companies questioned the
efficiency transferring high-frequency
risks. Captives help companies
avoid
the
cost
of
substantial
transaction
cost
as
well
as
improve
claims experience through appropriate
risk management measures.
2 Tax and
financial advantages?
At the start of
the captive boom towards the end of the sixties
and
the start of the seventies, tax and
financial considerations played an
important role. The financial
advantages include the explicit inclusion
of
investment
income
for
claims
payments
and
the
ability
to
influence
investment
policy
as
well
as
direct
access
to
the
reinsurance market.
3
Stabilization of insurance costs
High
price and the lack of capacity in the traditional
market, as well
as the long-term
stabilization of insurance cost make the number of
captives rose sharply.
4 The
strategic benefit is becoming more and more
important: captive as
an instrument of
holistic risk management
Increasingly a
broader spectrum of risks is being ceded to
captives, as
well as the entire range
of insurance risks. Captives allow a business
to benefit from the natural smoothing
and diversification effects of
different risks.
5. Explain
why correlated exposures are not likely to be
insured?