Insurance

6 years ago

The correct order of the steps in the Risk Management Process is:

The correct order of the steps in the Risk Management Process is:
A) Establish Goals, Identify Potential Loss Exposure, Measure Potential Loss Exposure, Choose Risk Handling Techniques, Implement Techniques and Monitor Effectiveness
B) Esta

medulla 193 1 Reply

6 years ago

Which of the following is not a type of risk when identifying a pure risk?

Which of the following is not a type of risk when identifying a pure risk?
A) Retention Risk
B) Property Risk
C) Liability Risk
D) Human Resource Risk

medulla 172 1 Reply

6 years ago

Which of the following is a true statement?

Which of the following is a true statement?
A) Liability risks are risks associated with building calamities.
B) Theft is a diversifiable risk.
C) Most individuals in the industrialized countries carry no insurance.
D) The Law of

medulla 129 1 Reply

6 years ago

Which of the following is not a risk handling technique?

Which of the following is not a risk handling technique?
A) Loss control
B) Loss diversification
C) Loss transfer
D) Loss financing

medulla 92 1 Reply

6 years ago

Which of the following potential losses is not an example of a pure risk?

Which of the following potential losses is not an example of a pure risk?
A) Loss of a home by fire
B) Theft of a car
C) Loss of $10,000 in the stock market
D) Theft of your wallet containing $100

keyone 90 1 Reply

6 years ago

Diversifiable risk is defined as:

Diversifiable risk is defined as:
A) risk with two possible outcomes
B) risk with three possible outcomes
C) an individual's perception of risk
D) none of the above

medulla 140 1 Reply

6 years ago

Why is a large number of exposure units generally required for a risk to be insurable?

Why is a large number of exposure units generally required for a risk to be insurable?
A) It allows the insurer to accurately predict the aggregate dollar amount of loss.
B) It allows for at least some losses to occur.
C) It reduces sp

medulla 92 1 Reply

6 years ago

Why is a large number of exposure units generally required for a risk to be insurable?

Why is a large number of exposure units generally required for a risk to be insurable?
A) It prevents the insurer from losing money.
B) It guarantees that losses will be unintentional and measurable.
C) It enables the insurer to better

medulla 93 1 Reply

6 years ago

Examine the following list of "risks." Determine which of these are "pure ...

Examine the following list of "risks." Determine which of these are "pure risks."
I. The risk that your antique Corvette will depreciate in market value
II. The risk that you will have a collision in your Corvette, thus

medulla 101 1 Reply

6 years ago

The law of large numbers states that as the number of exposure units increases:

The law of large numbers states that as the number of exposure units increases:
A) accuracy of predictions should improve
B) the chance of loss declines
C) Speculative risk increases
D) the number of accidents decreases

medulla 99 1 Reply

6 years ago

In the context of ERM, hazard risk is defined as:

In the context of ERM, hazard risk is defined as:
A) being associated with the strategic direction of a firm
B) being associated with the operations of a firm
C) adverse financial losses associated with diversifiable risks.
D) adv

keyone 94 1 Reply

6 years ago

The most difficult and important step in the risk management process generally is:

The most difficult and important step in the risk management process generally is:
A) evaluating risk
B) reviewing the program
C) selecting the best method(s) to handle the risk
D) identifying the risk

keyone 118 1 Reply

6 years ago

A "pure risk" is defined as a situation where there is the possibility:

A "pure risk" is defined as a situation where there is the possibility:
A) of loss or no change
B) of profit or no change
C) of profit or loss
D) that actual losses will deviate from expected losses

medulla 113 1 Reply

6 years ago

Loss prevention and control: (Multiple Choice)

Loss prevention and control:
A) eliminate risk
B) are an alternative to self insurance
C) reduce the probability and severity of loss
D) directly minimize the probability of a natural disaster occurring

medulla 86 1 Reply

6 years ago

Risk retention is not a good idea if:

Risk retention is not a good idea if:
A) the risk is unimportant
B) you did not identify the risk
C) the frequency is so low it almost will never happen
D) the exposure is potentially catastrophic

medulla 140 1 Reply

6 years ago

Which of the following would not normally be identified in the risk management process?

Which of the following would not normally be identified in the risk management process?
A) Property exposures
B) Speculative exposures
C) Indirect loss exposures
D) Operations exposures

medulla 97 1 Reply

6 years ago

The Chief Risk Officer is concerned primarily with the management of:

The Chief Risk Officer is concerned primarily with the management of:
A) operational risks
B) financial risks
C) strategic risks
D) all of the above

keyone 94 1 Reply

6 years ago

When faced with a risk of loss that is low frequency-high severity in nature, a prudent risk manager ...

When faced with a risk of loss that is low frequency-high severity in nature, a prudent risk manager would choose which of the following methods for handling the loss exposure?
A) self-insure
B) avoidance
C) transfer
D) mediate

keyone 115 1 Reply

6 years ago

If you were the risk manager of the World Trade Center buildings, what loss prevention or reduction ...

If you were the risk manager of the World Trade Center buildings, what loss prevention or reduction technique could you have implemented before the 9/11/01 tragedy that might have made a significant difference in the number of lives lost?
A) Gua

medulla 135 1 Reply

6 years ago

Risk diversification is based on the principle that:

Risk diversification is based on the principle that:
A) one should not be exposed to only one event
B) one should put all her "eggs in one basket"
C) risk can be measured subjectively
D) pure risk seldom happens

medulla 91 1 Reply

6 years ago

A flood is an example of a non-diversifiable risk.T/F?

A flood is an example of a non-diversifiable risk.
T/F?

keyone 106 1 Reply

6 years ago

Risk averse people have a tendency to shy away from insurance.T/F?

Risk averse people have a tendency to shy away from insurance.
T/F?

medulla 114 1 Reply

6 years ago

Enterprise Risk Management is a comprehensive approach to corporate risk.T/F?

Enterprise Risk Management is a comprehensive approach to corporate risk.
T/F?

medulla 124 1 Reply

6 years ago

The first step in the Risk Management Process is choosing appropriate risk handling techniques.T/F?

The first step in the Risk Management Process is choosing appropriate risk handling techniques.
T/F?

medulla 121 1 Reply

6 years ago

Enterprise Risk Management is the response of the accounting profession to corporate fraud. T/F?

Enterprise Risk Management is the response of the accounting profession to corporate fraud.
T/F?

medulla 112 1 Reply

6 years ago

Why is Enterprise Risk Management so important for firms?

medulla 109 1 Reply

6 years ago

Discuss risk reduction through diversification.

keyone 72 1 Reply

6 years ago

Which of the following would not normally be identified in the risk identification process?

Which of the following would not normally be identified in the risk identification process?
A) Property Risk
B) External Risk
C) Human Resource Risk
D) Pure Risk

keyone 86 1 Reply

6 years ago

Which of the following is true about external risks?

Which of the following is true about external risks?
A) They deal with issues related to the operations of the firm.
B) They are beyond the control of the risk manager.
C) They are easier to manage than external risks.
D) They are

medulla 66 1 Reply

6 years ago

Which of the following is true about pure risks?

Which of the following is true about pure risks?
A) The risk/return tradeoff is applicable to pure risks.
B) A firm cannot profit from its exposure to pure risk.
C) Risk managers must be tolerant of negative outcomes related to pure ri

medulla 84 1 Reply

6 years ago

Which of the following is true about speculative risks?

Which of the following is true about speculative risks?
A) A firm cannot profit from its exposure to speculative risk.
B) The risk/return tradeoff is not applicable to speculative risks.
C) Risk managers must be tolerant of negative ou

keyone 78 1 Reply

6 years ago

Which of the following is true about pure risks?

Which of the following is true about pure risks?
A) They are also known as hazard risks.
B) They are completely unrelated to hazard risks.
C) Are only recently being considered by risk managers.
D) Consist of Property and associat

keyone 78 1 Reply

6 years ago

Property Risk: (Multiple Choice)

Property Risk:
A) is an example of a speculative risk
B) is an example of an indirect risk
C) only relates to buildings
D) is an example of a pure risk

keyone 73 1 Reply

6 years ago

Why is the damage to the property of others also relevant for a firm?

Why is the damage to the property of others also relevant for a firm?
A) It is a speculative risk.
B) Since a firm needs to pay for the damage to the property of others
C) Due to the complex supply chains upon which firms rely
D)

medulla 46 1 Reply

6 years ago

According to a survey, which of the following is the most challenging risk to manage?

According to a survey, which of the following is the most challenging risk to manage?
A) Human resource risk
B) Third-party liability
C) Speculative risk
D) Reputation risk

medulla 63 1 Reply

6 years ago

All the following are objectives of risk management except:

All the following are objectives of risk management except:
A) to insure all exposures to loss
B) minimize reputation risk
C) minimize supply chain interruption
D) develop and maintain plant safety program

medulla 120 1 Reply