After studying this chapter, you should be able to Explain the meaning of financial risk management and enterprise risk management. Describe the impact of the underwriting cycle and consolidation in the insurance industry on the practice of risk management. Explain the securitization of risk, including catastrophe bonds and weather options. Explain the methods that a risk manager employs to forecast losses. Show how financial analysis can be applied to risk management decision making. Describe other risk management tools that may be of assistance to risk managers. "Prepared by Michael J. McNamara, Washington State University, 61