1. Integrated risk management programs are new to many risk managers and the insurance companies that offer such programs. What additional expertise, aside from knowledge of property and casualty insurance, must an insurance company possess to offer integrated risk management products?

2. A risk manager self-insured a property risk for one year. The following year, even though no losses had occurred, the risk manager purchased property insurance to address the risk. What is the best explanation for the change in how the risk was handled, even though no losses had occurred?

3. Why do insurance brokerage mergers and acquisitions have a greater influence on corporate risk managers than do property and casualty insurance company mergers and acquisitions?

4. a. What would be the effect of ignoring the time value of money when making risk management decisions? b. What does the net present value of a loss control investment really represent to the owners of the organization?

5. During a hard insurance market, a manufacturing company decided to self-insure its workers compensation loss exposure. The company hired a third party to administer the workers compensation claims. Even though the risk was being self-insured, the risk manager insisted that the third-party administrator maintain meticulous records. When asked why such detailed records were necessary, the risk manager replied, So we have a good story to tell an insurance company next year. What did the risk manager mean?