Net Income Risk Management examines the areas of net income exposures that are difficult to handle. Net income exposures are caused by the loss of use of property or loss of a key employee, and net income losses reduce revenues and/or increase expenses. For an organization, the likelihood of financial failure arising from a net income loss is far greater than that arising from a property or liability loss. Net Income Risk Management concentrates on the net income loss exposures and valuations arising from property, liability, and human resources exposures. Examples and cases are cited that explain the critical net income exposures.
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