Definitions
Chance of Loss
What is Risk ?
Business risks fall into 3 Classes of general insurance, personal lines, commercial lines and....
What are Special Risks ?
Having proper protocols in place, limiting hazards and having the correct insurance policy in force prior to a loss
What is Peace of Mind ?
Surveys, Flow chars and Financial Statements are all part of
What is Identifying and Analyzing Exposures ?
The major financial objection for an organization after a loss
What is survival ?
The possibility of either a financial loss or a financial gain, such as purchasing shares, or betting on horses.
What is Speculative Risk?
A house sustains heavy damage from a cooking fire, and a vistor slips on ice that the property owner neglected to clear. These are examples of?
What is a Peril?
Meant to be there before a loss occurs
What are Pre Loss Objectives ?
The three general categories are Human, Natural and Economic
What are Perils ?
After a loss it is important to consider the employees and the communality at large. Insurers have to ensure that the community is restored after a loss event. Some organizations may decide to keep as many employees on the payroll as possible despite a major loss affecting a building and equipment
What is Social Responsibility
A contract in which on party, the insurer for monetary consideration agree to reimburse another, the insured for the loss or the liability for a loss based on a defined subject caused by specified hazards or perils
What is Insurance
A cause that in natural and continuous sequence unbroken by any new and independent cause, provides, an event and without which the event would not have happened
What is Proximate cause?
demands made by organizations and governments
What is externally imposed obligations ?
What is Avoidance ?
This may not have been as big as a priority before the loss, but it is still important to focus on keeping earning stable
What is Sustained Growth?
A Hazard arising from the character, interest, habits and the lack of integrity of the insured or persons concerned.
What is a Moral Hazzard
Failure to use the degree of care expected from a reasonable and prudent person
What is negligence ?
A government may impose more stringent tests of financial worthiness on banks compared to other industries, they may have lower what compared to other industries ?
What is a low Risk Tolerance?
For non insurance companies, the risk insured . For an insurance company, the risk reinsured
What is risk transfer ?
All costs associated with managing pure risk are known as
Cost of Risk
Loose tiles, Debris pilled in basement or stairwells, poorly maintained heating and air conditioning units, bare electrical wires, dangerous manufacturing processes, untidy general housekeeping
What are Physical Hazards ?
A situation involving a chance of a loss, or no loss but no chance of gain
What is pure risk ?
For non insurance company, the risk is not insured or self insured. For an insurance company the risk is not reinsured
What is risk retention ?
Vital after a loss
Operational Continuity