Exam 4: Evolving Risk Management: Fundamental Tools

When insurers or risk managers use frequency and severity to project the future, they use trending techniques that apply to the loss distributions known to them.Identify the most commonly used tool to predict future losses and claims based on the past.

When an organization uses a highly formalized method of retention of a risk, it is said the organization has:

IT system failures and intellectual property violation risks fall under hazard risks.

This process involves charting entire spectrums of risk, not individual risk "silos" from each separate business unit.It becomes useful both in identifying risks and in choosing approaches to mitigate them.They present a cumulative picture of all the risks in one risk management solution chart.Identify the process.

Identify the process that evaluates all the risks of the organizations and measures the frequency and severity of each risk.

Insurance is a common form of planned risk retention as a financing technique for individuals and most organizations.

Identify the type of risk that relates to the ongoing day-to-day business activities of the organization.

_____ is the displacement of risk to a third, unrelated party.

The role of chief risk officer (CRO) expanded the traditional risk manager's role by:

Identify the correct statement about the risk management matrix.

If the firm is organized as a sole proprietorship, the proprietor's personal assets are separable from those of the firm because the firm is a separate legal entity.

Both loss prevention and loss reduction techniques reduce the probability of loss.

In linear regression, if 'X' is the year (Year 1, 2, 3… and so on), how would you calculate future claims?

Which of the following statements is true about the different forms of business?

How can risks be transferred through the formation of a corporation?

_____ are separate insurance entities under the corporate structure-mostly for the exclusive use of the firm itself.

Which of the following are risks unforeseen events that arise outside of the normal operating environment?

If you want to ski in spite of the hazards involved, you can take instruction to improve your skills and reduce the likelihood of you falling down a hill or crashing into a tree.This is an example of:

A _____ provides risk management and retention to a few players in the same industry who are too small to act on their own.

A(n) _____ puts the risks a company faces into a visual medium to see how risks are clustered and to understand the relationships among risks.