Lesson Notes By Weeks and Term - Senior Secondary 2
Risk management I
Risk management I
Term – 3rd Term
Week: 10
Class: Senior Secondary School 2
Age: 16 years
Duration: 40 minutes of 2 periods each
Date:
Subject: Insurance
Topic:- Risk management I
SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to
INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source
INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures
INSTRUCTIONAL PROCEDURES
PERIOD 1-2
|
PRESENTATION |
TEACHER’S ACTIVITY |
STUDENT’S ACTIVITY |
|
STEP 1 INTRODUCTION |
The teacher reviews the previous lesson on business interruption insurance |
Students pay attention |
|
STEP 2 EXPLANATION |
He defines risk management
|
Students pay attention and participates |
|
STEP 3 DEMONSTRATION |
He enumerates and explains the methods of risk management |
Students pay attention and participate |
|
STEP 4 NOTE TAKING |
The teacher writes a summarized note on the board |
The students copy the note in their books |
NOTE
RISK MANAGEMENT
In simple terms, risk is the possibility of something bad happening.
Risk is a chance of a loss.
Risk is the probability or likelihood of an unfortunate event.
Risk is the probability of occurrence of an undesired outcome and its consequences.
Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environment), often focusing on negative, undesirable consequences.
Risk is defined as the possibility that an event will occur that adversely affects the achievement of an objective.
Risk management is the identification, evaluation, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities.
Methods of risk management
Once risks have been identified and assessed, all techniques to manage the risk fall into one or more of these four major categories:
This means completely avoiding risk or an activity that poses a potential risk. Though the method is attractive yet it is not always practicable because by avoiding risks completely we can also lose potential gains. Refusing to purchase a property or business to avoid legal liability is one such example.
- Avoiding airplane flights for fear of hijacking.
- Not entering a business to avoid the risk of loss also avoids the possibility of earning profits.
- Increasing risk regulation in hospitals has led to avoidance of treating higher risk conditions, in favour of patients presenting with lower risk.
Risk transfer method refers to sharing with another party the burden of loss or the benefit of gain, from a risk, and the measures to reduce a risk. This relates to buying of an insurance policy. The financial implication of a risk is transferred to the insurance company.
This refers to the ability to reduce the extent or possibility of a loss. This can be done by increasing precautions and limiting the amount of risk and activities. Examples of risk reduction technique is installing of security alarms on cars, or smoke detector in building, wearing of seat belt etc.
Risk retention involves accepting the loss, or benefit of gain, from a risk when the incident occurs. i.e. This entails retaining a risk. Self-insurance falls in this category. Risk retention is a viable strategy for small risks where the cost of insuring against the risk would be greater over time than the total losses sustained. This also includes risks that are so large or catastrophic that either they cannot be insured against or the premiums would be infeasible. War is an example since most property and risks are not insured against war. Individuals retain risks for two reasons either because they have to or because they can afford it. For example, a billionaire like Aliko Dangote or Femi Odetola or Bill Gates may not have to worry about insuring his car because he has the money to always buy another if that one is lost or damaged.
EVALUATION: 1. Define risk management
CLASSWORK: As in evaluation
CONCLUSION: The teacher commends the students positively