31. Maximum possible loss is the worst loss that could happen to a firm during its lifetime.
32. Maximum probable loss is the worst loss that is likely to happen.
33. Select appropriate techniques for treating the loss exposures: It broadly consist of two techniques:
34.
35. Loss Prevention: It refers to measures that reduce the frequency of a particular loss.
36. Loss Reduction: It refers to measures that reduce the severity of a loss after it occurs.2.Risk Financing: It refers to the techniques that provide funding of losses after they occur.
37.
38. Noninsurance Transfers: Noninsurance transfers are methods other than insurance by which a pure risk and its potential financial consequences are transferred to another party.
39.
40. Risk Management Policy Statement: This statement outlines the risk management objectives of the firm.
41. Risk Management Mannual : It consists of details of risk management program & helps in training new employees .
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