Quantitative Risk Evaluation
Determine value and sales price of properties
Compare every management-threatening risk in numeric value - Quantitative risk evaluation
Comparison of various risks in a single scale enables to determine the priority of risk countermeasures for implementation, and provides useful reference data in effective decision making for business management.
- Various risks concerning companies are represented by numeric value such as money value.
- Besides value in moneys, anything represented by numeric value, including casualties and time delay, can be used as loss index for comparison.
Measurement of risks undertaken by property and casualty insurance: It helps study validity of property and casualty insurance company's capital and reinsurance.