The facts are simple: a loss event draws a Sacha Dens extent of 1,000,000 € and occurs according to past experience, once in five years. As regards the risk managers?
a) he "calculated" so that on average an annual loss occurs from 200,000 €.
b) he "calculated" so that even "tomorrow" a damage occurs to the extent of 1,000,000 Euros.
The solution of the problem I do not give here!
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