Woodland Villages, Inc. - Case study - Up to 50 points of Extra Credit In order to receive any credit, you must write about all 5 sections of the risk management process and provide the necessary explanations and through processes you used for your paper. Points will be based on how well you identify, explain and discuss the overall risk process using Woodland Villages, Inc.’s information. Also take the time to fully explain your answers and comments. Using the Risk Management Process 1. Risk Identification a. Provide at least 5 risk classifications and explain the potential perils for each identified risk. b. Explain 3 types of methods you can use to identify these classifications and what information you can gather with these methods 2. Risk Analysis a. Qualitative i. What kind of losses would force the company to close ii. Determine overall loss ratio iii. Loss concerns on any particular lines of business b. Quantitative i. Calculate the Average losses for General Liability, Auto, Property, Work Comp. 1. Example GL – ($38,500+$12,500+$18,500)/3= $23,084 ii. Given the following Standard Deviations, predict the loss range for the four lines of business using a 95% confidence level or two standard deviations: 1. General Liability - $13,712 2. Auto - $ 6,121 3. Property - $38,617 4. Work Comp - $13,613 iii. Would you consider three years of data adequate for this analysis? What other information on the losses would you need to identify any frequency or severity issues? 3. Risk Control a. Identify and explain 3 Pre-Loss techniques to minimize loss potential b. Identify 1 Post-Loss technique used to potentially reduce losses 4. Risk Financing a. Would you retain any risk exposures? If so what would you retain and why? b. Do you think Woodland is potentially retaining any risks or loss exposures? (think really big losses) c. If you knew that there will be 10-15 small (less than $1,000) workers comp losses each year, would you consider retaining these losses knowing you would get a discount on your Work Comp premium? Why or Why not? What additional information would you need to make a definitive decision to retain the small Work Comp losses? 5. Risk Administration a. Explain what this means and what you would do know that you have gone through the risk management cycle