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CPCU 500 Chapter 3 Questions And Answers With Verified Solutions 100% Correct!!!
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CPCU 500 Chapter 3 Questions And Answers With Verified Solutions 100% Correct!!!
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CPCU 500 Chapter 3 Questions AndAnswers With Verified Solutions 100%
Correct!!!
risk control - ANSWER✔✔ a conscious act or decision not to act that reduces the
frequency and/or severity of losses or makes losses more predictable
avoidance - ANSWER✔✔ involves ceasing or never undertaking an activity so that
the possibility of a future loss occurring from that activity is eliminated
loss prevention - ANSWER✔✔ a risk control technique that reduces the frequency
of a particular loss
loss reduction - ANSWER✔✔ reduces the severity of a particular loss
disaster recovery plan - ANSWER✔✔ a plan for backup procedures, emergency
response, and post-disaster recovery to ensure that critical resources are
available to facilitate the continuity of operations in an emergency situation
separation - ANSWER✔✔ isolates loss exposures from one another to minimize
the adverse effect of a single loss
duplication - ANSWER✔✔ uses backups, spares, or copies of critical property,
info, or capabilities and keeps them in reserve
diversification - ANSWER✔✔ spreads loss exposures over numerous projects,
products, markets, or regions
, proactive avoidance - ANSWER✔✔ seeks to avoid a loss exposure before it exists
reactive avoidance - ANSWER✔✔ seeks to eliminate a loss exposure that already
exists
pre-loss measures - ANSWER✔✔ reduce the amount or extent of property
damaged and the number of people injured or the extent of injury incurred from
a single event
post-loss measures - ANSWER✔✔ focus on emergency procedures, salvage
operations, rehabilitation activities, public relations, or legal defenses to halt the
spread or to counter the effects of a loss
life safety - ANSWER✔✔ the portion of fire safety that focuses on the minimum
building design, construction, operation, and maintenance requirements
necessary to assure occupants a safe exit from the burning portion of the building
advantages of cash flow analysis - ANSWER✔✔ -helps achieve the org's value-
maximization goal by providing a basis of comparison for all value-maximizing
decisions
-increases efficiency by reducing unnecessary expenditures on risk control
disadvantages of cash flow analysis - ANSWER✔✔ -weakness of the assumptions
that often must be made to conduct the analysis
-difficulty of accurately estimating future cash flows
-lack of consideration of nonfinancial goals or selection criteria
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