How does the “time value of money” impact the process of risk management decision-making? What does the “net present value” of a loss control investment really represent to the owners of the organization? What are the advantages and disadvantages of using insurance as a means of controlling the financial aspects of risk? Provide a contemporary example to help explain your answer.
Why should it make a difference when deciding on risk treatment options, as to whether a risk has the potential for positive or negative outcomes? Please provide an example or current event to support your perspective.
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