Abstract
The structural elements of the stochastic model formulated by the present paper consist a discrete random variable, three sequences of discrete distributions, one of which is a sequence of Bernoulli random variables, a frequency of positive random variables, and finally a sequence of random variables taking values in the standard unit interval. The representation of the stochastic model as a random sum is another theoretical contribution of the present work. In addition to the formulation of the stochastic model and representing it as a random sum, the present paper interprets the stochastic model in the study of processes related to global risk severity reduction.