Risk Classification
Pure vs. Speculative
Factors Affecting Risk
Classification of Hazards
Financial Consequences of Risk
100
What are the four categories of Risk Classification?
Pure vs. Speculative,Static vs. Dynamic, Subjective vs. Objective, Diversifiable vs. Non-Diversifiable
100
Random, insurable events with no chance of gain are otherwise know as?
What is pure risk.
100
The immediate cause of loss is otherwise known as?
What is peril.
100
Property located in a flood zone or the construction of a house are known as?
What are physical hazards
100
Financial consequences are also know as the __________.
What is cost/burden of risk
200
Risk that does not change over time and is always present is know as what?
Static Risk
200
The inability to generate income or loss of human capital is known as?
What is personal pure risk
200
Low frequency=Low Probability. This is an example of the ____.
What is frequency of loss.
200
Increased frequency or severity of loss due to chances in behavior with the presence of insurance is known as?
What is moral hazard
200
Training, safety implementations, and insurance are examples of the _______.
What is cost of risk management
300
The article Wizards of Odds dealt with the odds and risks of disaster versus personal attitudes, or what type of Risk Classification?
What is subjective vs. objective
300
The focus of ERM is investing, otherwise known as?
What is speculative risk. (gamble, chance of loss or gain)
300
Because you did ______, ______ happened.
What is hazard, peril
300
Leaving your keys in an unlocked car is an example of ____.
What is morale hazard (carelessness)
300
A doctor may decide not to delivery babies because the __________ is too high.
What is cost of residual uncertainty
400
A company expects a loss of $100, but its actual loss is $102. Calculate the risk.
2% (102-100/100)
400
A fire incinerates a building and is closed for three months. What type of risk is this? What is the cost to repair the building? What is the loss of revenue during the repair?
What is property pure risk. Direct loss. Indirect Loss.
400
The Article Whatever Happened to the 100-Year Event deals with what types of factors that affect risk?
What is the frequency and severity of loss due to peril.
400
If someone becomes more careless because they have insurance, what type of hazard would it be?
What is moral hazard.
400
In The article Have you Cultivated your Risk, the differentiation of TRM vs ERM is an example of _______.
What is cost of risk management.
500
Cyber threats,new laws, tax changes, and fuel prices are all examples of what type of risk?
What is dynamic risk. (economic/regulatory changes, new/emerging risks)
500
The Toyota Acceleration and NFL Head Injury Cases as examples of what type of pure risk?
Liability Pure Risk
500
You are in a DUI accident. Driving the vehicle is the _____. Drinking and driving is the _______. The collision is the ______.
What is risk, hazard, peril
500
Large damage awards in liability suits are an example of what type of hazard?
What is legal hazard
500
In the Toyota Acceleration case, Crisis Management was a failure and added to the billion-dollar settlement, which could top 3.1 Billion. These are examples of what? The 1.1 billion dollar lawsuit is an example of? The tarnishing of their reputation or "good will" and Toyota's increase of Quality Control are examples of what?
What are the expected costs of losses. Direct Costs. Indirect Costs.
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