This textbook is suitable for the following courses: Risk Management and Insurance.
Risk Management for Individuals and Enterprises introduces one of the most critical topics of study for 21st century students. This book covers how individuals, businesses, countries, and the global marketplace as a whole are at risk from natural and human-generated disasters and what can be done to minimize such risk. Every chapter is focused on risk management aspects and while many solutions include insurance, a main objective of this textbook is to ensure students realize that insurance is only one of many possible risk management solutions. The authors leverage their extensive and diverse teaching experience and research and draw on core knowledge bases from law, engineering, finance, economics, medicine, psychology, accounting, mathematics, statistics, and other fields to create a holistic decision-making framework that is sustainable and valuable to students.
New in This Version
Version 2.1 includes information about COVID-19 and the pandemic’s widespread health, economic, and social consequences. Coverage of the impact of the coronavirus is integrated throughout most chapters, examining the pandemic’s effects on individuals, businesses, and on risk management more broadly. COVID-19 highlights include:
- Pandemic risk (Ch. 1)
- Financial implications of COVID-19 and financial tools used to address them (Ch. 5)
- Government-mandated shutdowns and bad-faith lawsuits filed against insurers (Ch. 9)
- Exclusion of pandemic as an insurable risk (Ch. 10 & Ch. 15)
- COVID-19 as a global risk (Ch. 11)
- Auto insurance premium reductions and decrease in driving accidents (Ch. 14)
- Workers’ compensation and unemployment compensation (Ch. 16)
- Excess deaths and vaccines preventive impacts (Ch. 17)
- Impacts on Medicare (Ch. 18) and private health insurance (Ch. 22)
Reflects the recent updates in Version 2.0
- Key updates and additions such as Chapter 4: Enterprise Risk Management, Sustainability, and InsurTech Innovations; Chapter 5: Financial Risk Management Using the Capital Markets; and Chapter 11: Property Risk Management, Cyber Risk, and Global Risk Exposures.
- Chapter 23 provides up-to-date hypothetical case studies for students on a diverse set of topics.
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Additions & Errata
3/30/22: The second bullet point in the Learning Objective for 21.3 replaced "cash balance plan" to "money purchase plan".