trm loss exposures What is the likelihood of a loss? What about losses to the property while in possession of the Bailee?

Topic 1 Risk  Uncertain outcome  Possibility of loss Uncertainty- about type and /or timing of outcome All losses in financial terms  Losses to individuals and organizations Ways to manage risk:  Loss mitigation (mitigate = lessen); loss control (train employees)  Avoid loss situation if possible  Budget for the loss Probability of Loss  Measurable  Between 0 and 1  Probability of 0% is impossible event; No risk  Probability of 100% is a certain event; No risk I. Risk Classifications  Pure vs. Speculative (both involve uncertainty) Pure Risk  Loss  No Loss  No cha