Risk Assessment

Assessment of Risks and Risk Aggregations

The Risk Manager has to assess each Risk and each Risk Aggregation to accomplish transparency of the tisk exposure of the company.

Itís possible, that just one risk has such a high risk exposure that the Company will not be able to, or even want to carry this risk. Most of the time these risks can be transferred (see Risk Optimization).

Itís also possible that more than one risk can take place within one year and that the company is not able or willing to carry the loss.

The risk managerís job is therefore to calculate and assess the different situations-

In each case the Risk Manager needs Risk Ratios and Risk Threshold Levels for the Risk assessment processes in his company.