Property & Casualty Exam Prep 3, Risk Management Methods

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The five primary methods of handling risk are Sharing, Transfer, Avoidance, Reduction, and Retention (STARR). - Purchasing an insurance policy is the most common and direct example of risk transfer. - A deductible in an insurance policy represents risk retention, where the policyholder accepts a portion of the loss. - Installing safety measures like sprinkler systems or burglar alarms is a form of risk reduction, not elimination. - Deciding not to participate in a risky activity at all, such as not owning a swimming pool to avoid liability, is risk avoidance. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep