Level: Intermediate
Why you need this course:
After completing this course, you’ll be able to evaluate the workers compensation losses your organization might
face and choose an appropriate risk management technique to manage a particular workers compensation exposure.
Upon successful completion of this course, you should be able to:
- Explain why loss forecasts are important to organizations, risk management professionals, and the risk
management process.
- Explain how relevant, complete, consistent, and organized loss data are developed and why such data are
important.
- Explain probability distributions and their characteristics.
- Contrast theoretical and empirical probability distributions.
- Use the standard deviation of a normal probability distribution to calculate probabilities.
- Describe the risk management significance of trend analysis and the two methods of trending loss data.
- Given a case, analyze past data using the appropriate forecasting technique to project the expected value of the
accidental losses that an organization will incur during a given time period.
- Calculate the joint probability of the following:
- Two or more independent events
- Two or more dependent events
- Two or more sequential events
- Two or more events’ not occurring
- Calculate the alternative probability of the following:
- Two mutually exclusive events
- Two nonmutually exclusive events
- Calculate trend lines showing the following:
- Combined effects of two or more trends that can properly be added
- Constant percentage rate of change
Cost: $20 per Professional Development Hour (PDH). Information on Professional Development Hours (PDH)
provided can be found here.
Understanding and Applying Forecasting Topics Include:
- Importance of Loss Forecasts
- Importance of Loss Data and How Loss Data Are Developed
- Theoretical and Empirical Probability Distributions
- How to Use the Standard Deviation of a Normal Probability Distribution to Calculate Probabilities Based on
Integer Values of Standard Deviations
- Risk Management Trend Analysis and the Two Methods of Trending Loss Data
- How to Use the Appropriate Forecasting Technique to Project the Expected Value of Accidental Losses that an
Organization Will Incur During a Given Time Period
- How to Calculate Joint Probability of Two or More Independent Events, Dependent Events, Sequential Events, or
Events’ Not Occurring
- How to Calculate the Alternative Probability of Two Mutually Exclusive Events or Nonmutually Exclusive Events
- How to Calculate Trend Lines Showing Combined Effects of Two or More Trends That Can Properly Be Added and the
Constant Percentage Rate of Change
Additional Course Resource
Additional Knowledge Solutions
E-mail: customerservice@TheInstitutes.org
Phone: (800) 644-2101
Fax: (610) 640-9576
Mail: AICPCU/IIA
720 Providence Road
Suite 100
Malvern, PA 19355-3433
Customer Service hours are Monday through Friday, 8:00 a.m. to 6:00 p.m. eastern time.
