Nondiversifiable risk - Study guides, Class notes & Summaries

Risk Management Exam 1 (2024) || Complete Questions & Solutions (100% Correct) Risk Management Exam 1 (2024) || Complete Questions & Solutions (100% Correct) A situation where an individual or business is exposed to the chance of experiencing a loss. - ANSWER - Risk A situation where there is a chance of loss; there is uncertainty as to whether or not a loss will occur. - ANSWER - Pure Risk A situation where there is a chance of loss or no loss, plus the possibility of gain. - ANSWER -...

RMIN TEST 1 Questions And Answers Exam 2024 risk - ANS-an uncertainty concerning the occurrence of a loss loss exposure - ANS-any situation/circumstance in which a loss is possible, regardless of whether a loss occurs objective risk - ANS-(degree of risk) the relative variation of actual loss from expected loss law of large numbers - ANS-as the number of exposure units increases, the more closely the actual loss will approach the expected loss subjective risk - ANS-uncertainty based on ...

RMIN Test 1 pt 2 Questions and Answers Already Passed All of the following are characteristics of insurance EXCEPT A) risk avoidance. B) pooling of losses. C) payment of fortuitous losses. D) indemnification. A) risk avoidance. Which of the following is implied by the pooling of losses? A) sharing of losses by an entire group B) inability to predict losses with any degree of accuracy C) substitution of actual loss for average loss D) increase of objective risk A) sharing of loss...

Risk - uncertainty concerning the occurrence of a loss loss exposure - any situation or circumstance in which a loss is possible objective risk - defined as the relative variation of actual loss from expected loss subjective risk - defined as uncertainty based on a person's mental condition or state of mind Chance of loss - the probability that an event will occur Objective probability - refers to the long run relative frequency of an event assuming an infinite number of observations and ...

CPCU 500 EXAM STUDY GUIDE 2024 QUESTIONS WITH COMPLETE ANSWERS GRADED A+ In the context of risk, the chance of being injured while driving to and from work, loading a truck at work, moving furniture at home, or falling in an icy parking lot at the mall are all examples of A. Possibilities. B. Uncertainties. C. Probabilities. D. Losses. - CORRECT ANSWER A. Possibilities. The statement, "There is a five percent chance that John will be injured in an automobile accident while driving...

AIDA 182 Exam Questions with 100% Correct Answers | Latest Version 2024 | Verified Risk quadrants are different from risk classifications. Risk quadrants focus on what? - The source of the risk itself and what part of the organization has managed it in the past. An enterprise risk management approach is categorizing risks into quadrants. What are hazard risks? - Normally managed by risk management professionals. What are the four risks in the enterprise risk management model? - Hazard,...

ERM Final Review Exam Questions & Answers 2024/2025 Classification of Pure Risk - ANSWERSA chance of loss or no loss, but no chance of gain Classification of Speculative Risk - ANSWERSa chance of loss, no loss, or gain Speculative risk: price risk - ANSWERSuncertainty over the size of cash flows resulting from possible changes in the cost of raw materials and other inputs, as well as cost-related changes in the market for completed products and other outputs Speculative risk: credi...

In the context of risk, the chance of being injured while driving to and from work, loading a truck at work, moving furniture at home, or falling in an icy parking lot at the mall are all examples of A. Possibilities. B. Uncertainties. C. Probabilities. D. Losses. - A. Possibilities. The statement, "There is a five percent chance that John will be injured in an automobile accident while driving to work tomorrow," is an example of A. Quantifying risk. B. Verifying risk. ...

RMIN 4000 UGA Test 1 Questions and Answers (Scored A+) types of risk - ANSWER--pure risk -speculative risk -diversifiable risk -nondiversifiable risk -enterprise risk -systemic risk risk - ANSWER-uncertainty concerning the occurrence of a loss uncertainty - ANSWER-probabilities cannot be estimated loss exposure - ANSWER-any situation or circumstance in which a loss is possible, regardless of whether a loss actually occurs example: earthquake or flood causing damage to a manufa...

ARM 400 Exam Questions and Answers 100% Verified what two things lie at the base of every risk management concept - answerthe intersection of different types of risk a method for identifying, assessing, and treating all risks traditional risk assessment techniques focus on what - answerroot cause analysis - which identifies a loss's predominant cause what is wrong with Root Cause Analyses - answerit can only look backward and might not catch all root causes what are the 3 steps in how ...