A chance of loss or no loss, but no chance of gain
What is Pure Risk?
100
Enterprise-wide risk management
What is ERM?
100
A risk management technique that includes steps to pay for or transfer the cost of losses.
What is Risk Financing?
100
Do not retain more than you can afford.
What is first guideline?
100
Peace-of-mind
Improved access to affordable insurance
Ability to take on more risk
What are the benefits of Risk Management?
200
A chance of loss, no loss, or gain
What is Speculative Risk?
200
Developing a thorough list of accidental losses that could affect a particular household or organization.
What is Step 1 Identifying loss exposures?
200
Acceptance of the costs associated wtih all or part of a particular loss exposure.
What is Retention?
200
Exposures with potential of low frequency but high severity.
What is Guideline #2 - do not retain large exposures to save a little premium?
200
Any personal property affixed to real property in such a way as to become part of the real property.
What is Fixture?
300
Avoidance
Loss prevention
Loss reduction
Separation
Duplication
What are common Risk Control techniques?
300
Estimating how large a possible loss could be and how often it might occur.
What is Step 2 Analyzing Loss Exposures?
300
One party transfers the potential financial consequences or a particular loss exposure to another party that is not an insurer.
What is Transfer?
300
It is better to retain exposures of this type because the household or organization could absorb the cost of a loss almost as easily as the cost of insurance.
What is Guideline #3 - do not spend a lot of money for a little protection?
300
The party temporarily possessing the personal property in a bailment.
What is Bailee?
400
Using several suppliers for raw materials.
What is Separation?
400
The number of losses that occur within a specified period of time.
What is loss frequency?
400
Select the most appropriate risk management technique based on financial criteria and guidelines.
What is Step 4 Selecting the appropriate risk management techniques?
400
When insurance takes the place of risk control, the insured only transfers the loss to the insurer.
What is Guideline #4 - do not consider insurance a substitute for risk control?
400
The legally enforceable obligation of a person or an organization to pay a sum of money (called damages) to another person or organization.
What is Legally Liability?
500
A method that uses backups, spares, or copies and keeps them in reserve.
What is duplication?
500
Examine all possible techniques for handling the exposures.
What is Step 3 Examining feasabiility of risk management techniques?
500
What should be done?
Who should be responsible?
How to communicate the risk management information?
How to allocate the costs of the risk management program?
What is Step 5 - Implementing selected risk management techniques?
500
The last step is really a return to the first.
What is Step 6 - Monitoring results and revising the risk management program?
500
A written law passed by a legislative body, at either the federal or state level.