Question 1

According to the risk management matrix, risk exposures with high frequency of losses and low severity of losses are:

Accepted Answer

A) retained or self-insured. 
B) transferred or insured. 
C) avoided. 
D) ignored. 
E) retained with loss control. 
A) retained or self-insured. 
B) transferred or insured. 
C) avoided. 
D) ignored. 
E) retained with loss control.

Question 2

When we focus on one risk only, we work with this matrix.It provides alternative financial action to undertake for each frequency/severity combination.Identify this matrix.

Accepted Answer

A) A space risk matrix 
B) A forced matrix 
C) A risk map 
D) Kernel's risk matrix 
E) A risk management matrix 
A) A space risk matrix 
B) A forced matrix 
C) A risk map 
D) Kernel's risk matrix 
E) A risk management matrix

Question 3

According to the risk management matrix, risk exposures with low frequency of losses and high severity of losses are:

Accepted Answer

A) retained or self-insured. 
B) transferred or insured. 
C) avoided. 
D) ignored. 
E) retained with loss control. 
A) retained or self-insured. 
B) transferred or insured. 
C) avoided. 
D) ignored. 
E) retained with loss control.

Question 4

In times of high insurance prices, the likelihood of using risk transfer is greater than in times of high rates.

Accepted Answer

A) True 
 B)False

Question 5

This is a visual tool used to consider alternatives of the risk management tool set.It forms a grid of frequency and severity intersection points of each identified and measured risk.Identify the topic of discussion.

Accepted Answer

A) Risk profile 
B) Kernel's risk matrix 
C) Risk map 
D) Forced matrix 
E) Risk management matrix 
A) Risk profile 
B) Kernel's risk matrix 
C) Risk map 
D) Forced matrix 
E) Risk management matrix

Question 6

Risk retention groups are similar to group self-insurance.

Accepted Answer

A) True 
 B)False

Question 7

Loss _____ efforts seek to lessen loss severity.

Accepted Answer

The answer of Loss _____ efforts seek to lessen loss...

Question 8

Some risks can be _____ through the formation of a corporation with limited liability for its stockholders.

Accepted Answer

The answer of Some risks can be _____ through the...

Question 9

If you want to ski in spite of the hazards involved, you can engage in a physical fitness program to toughen your body to withstand spills without serious injury.This is an example of:

Accepted Answer

A) loss reduction, which reduces the probability of loss. 
B) loss prevention, which reduces the severity of loss. 
C) loss reduction, which reduces the frequency of loss. 
D) loss reduction, which reduces the severity of loss. 
E) loss prevention, which reduces the probability of loss. 
A) loss reduction, which reduces the probability of loss. 
B) loss prevention, which reduces the severity of loss. 
C) loss reduction, which reduces the frequency of loss. 
D) loss reduction, which reduces the severity of loss. 
E) loss prevention, which reduces the probability of loss.

Question 10

Like sole proprietorship, general partnership assumes unlimited liability for the firm's obligations.

Accepted Answer

A) True 
 B)False

Question 11

In a risk map, natural and man-made risks are also known as _____ risks.

Accepted Answer

The answer of In a risk map, natural and man-made...

Question 12

Reputation risk is a type of:

Accepted Answer

A) hazard risk. 
B) financial risk. 
C) business risk. 
D) household risk. 
E) operational risk. 
A) hazard risk. 
B) financial risk. 
C) business risk. 
D) household risk. 
E) operational risk.

Question 13

When a corporation insures a risk, it is:

Accepted Answer

A) retaining its risk. 
B) avoiding its risk. 
C) retaining its risk with loss control. 
D) assuming its risk. 
E) transferring its risk. 
A) retaining its risk. 
B) avoiding its risk. 
C) retaining its risk with loss control. 
D) assuming its risk. 
E) transferring its risk.

According to the risk management matrix, risk exposures with high frequency of losses and low severity of losses are:

When we focus on one risk only, we work with this matrix.It provides alternative financial action to undertake for each frequency/severity combination.Identify this matrix.

According to the risk management matrix, risk exposures with low frequency of losses and high severity of losses are:

In times of high insurance prices, the likelihood of using risk transfer is greater than in times of high rates.

This is a visual tool used to consider alternatives of the risk management tool set.It forms a grid of frequency and severity intersection points of each identified and measured risk.Identify the topic of discussion.

Risk retention groups are similar to group self-insurance.

Loss _____ efforts seek to lessen loss severity.

Some risks can be _____ through the formation of a corporation with limited liability for its stockholders.

If you want to ski in spite of the hazards involved, you can engage in a physical fitness program to toughen your body to withstand spills without serious injury.This is an example of:

Like sole proprietorship, general partnership assumes unlimited liability for the firm's obligations.

In a risk map, natural and man-made risks are also known as _____ risks.

Reputation risk is a type of:

When a corporation insures a risk, it is:

The Nature of Risk: Losses and Opportunities

Risk Measurement and Metrics

Risk Attitudes: Expected Utility Theory and Demand for Hedging

The Evolution of Risk Management: Enterprise Risk Management

The Insurance Solution and Institutions

Insurance Operations

Insurance Markets and Regulation

Fundamental Doctrines Affecting Insurance Contracts

Structure and Analysis of Insurance Contracts

Property Risk Management

The Liability Risk Management

Multirisk Management Contracts: Homeowners

Multirisk Management Contracts: Auto

Multirisk Management Contracts: Business

Risks Related to the Job: Workers Compensation and Unemployment Compensation

Life Cycle Financial Risks

Social Security

Mortality Risk Management: Individual Life Insurance and Group Life Insurance

Employment-Based Risk Management General

Employment-Based and Individual Longevity Risk Management

Employment and Individual Health Risk Management

Filters

Exam 4: Evolving Risk Management: Fundamental Tools

According to the risk management matrix, risk exposures with high frequency of losses and low severity of losses are:

When we focus on one risk only, we work with this matrix.It provides alternative financial action to undertake for each frequency/severity combination.Identify this matrix.

According to the risk management matrix, risk exposures with low frequency of losses and high severity of losses are:

In times of high insurance prices, the likelihood of using risk transfer is greater than in times of high rates.

This is a visual tool used to consider alternatives of the risk management tool set.It forms a grid of frequency and severity intersection points of each identified and measured risk.Identify the topic of discussion.

Risk retention groups are similar to group self-insurance.

Loss _____ efforts seek to lessen loss severity.

Some risks can be _____ through the formation of a corporation with limited liability for its stockholders.

If you want to ski in spite of the hazards involved, you can engage in a physical fitness program to toughen your body to withstand spills without serious injury.This is an example of:

Like sole proprietorship, general partnership assumes unlimited liability for the firm's obligations.

In a risk map, natural and man-made risks are also known as _____ risks.

Reputation risk is a type of:

When a corporation insures a risk, it is:

The Nature of Risk: Losses and Opportunities

Risk Measurement and Metrics

Risk Attitudes: Expected Utility Theory and Demand for Hedging

The Evolution of Risk Management: Enterprise Risk Management

The Insurance Solution and Institutions

Insurance Operations

Insurance Markets and Regulation

Fundamental Doctrines Affecting Insurance Contracts

Structure and Analysis of Insurance Contracts

Property Risk Management

The Liability Risk Management

Multirisk Management Contracts: Homeowners

Multirisk Management Contracts: Auto

Multirisk Management Contracts: Business

Risks Related to the Job: Workers Compensation and Unemployment Compensation

Life Cycle Financial Risks

Social Security

Mortality Risk Management: Individual Life Insurance and Group Life Insurance

Employment-Based Risk Management General

Employment-Based and Individual Longevity Risk Management

Employment and Individual Health Risk Management

Filters