Brown RMIN 5100s test 1 UPDATED ACTUAL Questions and CORRECT Answers
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Course
Brown RMIN 5100
Institution
Brown RMIN 5100
Brown RMIN 5100s test 1 UPDATED
ACTUAL Questions and CORRECT
Answers
Categories of commercial loss exposures - CORRECT ANSWER- 1. property loss
2. personnel loss
3. liability loss
4. net income loss
Property loss - CORRECT ANSWER- -tangible (real estate, personal property)
-intangible (pa...
Brown RMIN 5100s test 1 UPDATED
ACTUAL Questions and CORRECT
Answers
Categories of commercial loss exposures - CORRECT ANSWER- ✔✔1. property loss
2. personnel loss
3. liability loss
4. net income loss
Property loss - CORRECT ANSWER- ✔✔-tangible (real estate, personal property)
-intangible (patent, copyright)
Personnel Loss - CORRECT ANSWER- ✔✔death, disability, retirement, injury of employees
liability loss - CORRECT ANSWER- ✔✔your responsibility for bodily injury, property
damage, or financial loss to someone
net income loss - CORRECT ANSWER- ✔✔reduction in income due to direct loss
Risk management process - CORRECT ANSWER- ✔✔1. Identify loss exposures
2. Measure and analyze the loss exposures
3. Consider and select the appropriate risk management techniques
4. Implement and monitor the risk management program
identify loss exposures - CORRECT ANSWER- ✔✔first step and most important in the risk
management process
How to identify loss exposures - CORRECT ANSWER- ✔✔-document analysis
-compliance reviews
-inspections
, -expertise
Ways to identify loss exposures with document analysis? - CORRECT ANSWER- ✔✔1. risk
assessment questionnaires and checklists
2. financial statements
3. contracts
4. insurance policies
5. organizational policies
6. flowcharts & organization charts
7. loss histories
Step 2: Measure and Analyze Loss Exposures - CORRECT ANSWER- ✔✔involves
estimating the likely significance of possible loss exposures based on: frequency, severity,
total dollar losses, maximum possible losses, probable maximum losses (PML), and timing
high frequency, low severity - CORRECT ANSWER- ✔✔funded reserve (retain) or loss
prevention
high frequency, high severity - CORRECT ANSWER- ✔✔avoidance, captive or risk
retention group, loss prevention/reduction
low frequency, high severity - CORRECT ANSWER- ✔✔insurance or loss reduction
implement and monitor the chosen techniques - CORRECT ANSWER- ✔✔-often require
cooperation among multiple departments
-reviews are needed to ensure expected results are achieved
-if needed, adjusts should be made
Good RM heuristics - CORRECT ANSWER- ✔✔-dont risk a lot for a little
-never risk more than you can afford to lose
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