Remembering TCPaul, 2016-2019

"exposure"

Still don't know exactly what people mean when they discuss junkwired03/14/19
Worst-case monetary, reputational, and operations risk. F jackofspeed03/14/19
susceptibility jeffm03/14/19
I generally use it to mean any kind of potential liability, quillan03/14/19
IMHO, Exposure = Potential Monetary Liability. That's what jd4hire03/14/19
junkwired (Mar 14, 2019 - 9:06 am)

Still don't know exactly what people mean when they discuss the "exposure" in a given case. But I know enough to realize the term is fairly elementary and I SHOULD know it. This, in turn, has caused me to become too fearful and ashamed to ask others in my office.

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jackofspeed (Mar 14, 2019 - 9:31 am)

Worst-case monetary, reputational, and operations risk.

For example, for an insurer, paying a claim is expensive but the cost of doing business.
It also has a limit.

But the exposure from a successful bad-faith claim exposes them to regulator calls and potentially losing their license or having to change profitable business processes to get back to the department of Insurance good graces.

That's a bet-the-company exposure.

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jeffm (Mar 14, 2019 - 9:51 am)

susceptibility

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quillan (Mar 14, 2019 - 2:17 pm)

I generally use it to mean any kind of potential liability, whether criminal, civil, or administrative, as in, "that arrangement is fairly low risk on its face, but depending on what the sales guys are saying, there could be some exposure for the company". Depending on the context, "exposure" is also used as jackofspeed defines it - i.e., the measure of risk associated with a particular claim.

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jd4hire (Mar 14, 2019 - 4:20 pm)

IMHO, Exposure = Potential Monetary Liability. That's what it means in the ID world.

If you are a corporate litigator, exposure may mean the entire realm of liability (reputation, monetary, lost business, etc).

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