RMIN 4000 EXAM 1 QUESTIONS AND ANSWERS 100% CORRECT
4 vistas 0 veces vendidas
Grado
RMIN 4000
Institución
RMIN 4000
RMIN 4000 EXAM 1 QUESTIONS AND ANSWERS 100% CORRECTRMIN 4000 EXAM 1 QUESTIONS AND ANSWERS 100% CORRECTRMIN 4000 EXAM 1 QUESTIONS AND ANSWERS 100% CORRECTRMIN 4000 EXAM 1 QUESTIONS AND ANSWERS 100% CORRECT
Exposures - ANSWER-things of value (assets) that could be lost
perils - ANSWER-things that...
RMIN 4000 EXAM 1 QUESTIONS AND ANSWERS 100% CORRECT
Exposures - ANSWER-things of value (assets) that could be lost
perils - ANSWER-things that could happen to these assets
Risk management - ANSWER-what do you do to protect these assets and/or prevent/reduce losses? process that identifies loss exposures faced by an organization and selects the most appropriate techniques for treating such exposures
Risk - ANSWER-a calculates possibility of a negative outcome
Calculated possibility - ANSWER-a probabilistic outcome (chance of loss, the likelihood of loss) that is known or estimated; ranges from 0 to 1
Negative outcome - ANSWER-lost must be quantifiable
frequency - ANSWER-how often does a loss occur; The number of losses that occur within a specified time period;
Probability of a loss
Severity - ANSWER-how much does it cost when a loss does occur;
The dollar amount of loss for a specific peril
Peril - ANSWER-Cause of loss ex: fire, tornado, collision, burglary etc
Hazard - ANSWER-a condition that creates or increases the frequency and/or severity of a loss
Moral hazard - ANSWER-The presence of insurance changes the behavior of the insured; Dishonesty or character defects in an individual that increases the frequency and/or severity of a loss
examples→ using a hammer to create "hail" damage to a roof or exaggerating the value
of insured property
Morale (attitudinal) hazard - ANSWER-The carelessness of indifference to a loss, which
increases the frequency and/or severity of a loss examples→ leaving car keys in an unlocked car; neglecting a tree limb growing over your roof
Legal Hazard - ANSWER-Characteristics of the legal system or regulatory environment that increase the frequency and/or severity of a loss
examples→ juries in some areas are more sympathetic than other areas (meaning larger damage awards in liability lawsuits); Georiga now requires Diminution in Value to be paid on property losses (meaning increased severity in Georgia).
(Diminution in value is a legal term of art used when calculating damages in a legal dispute, and describes a measure of value lost due to a circumstance or set of circumstances that caused the loss.)
Pure risk - ANSWER-2 future states: loss or no loss
you can buy insurance for these risks!
ex: fire to your house, cancer, your dog bites someone
Speculative risk - ANSWER-3 future states; loss, no loss/no gain, or gain
you can not buy insurance for these risks!
ex: investment, gabling
diversifiable risk - ANSWER-Affects only individuals or small groups, not the entire economy;
Can be reduced/eliminated through diversification;
Risks are not correlated (fire, theft, collision)
nondiversifiable risk - ANSWER-Affects the entire economy or large numbers of groups/persons within the economy; Cannot be reduced/eliminated through diversification;
Government assistance may be needed to insure;
Risks are correlated (inflation, unemployment.)
enterprise risk - ANSWER-Encompasses all major risks faced by a business firm:
Pure risk
Speculative risk
Strategic risk
Operational risk
Financial risk
systemic risk - ANSWER-Risk of the collapse of an entire system or entire market due to the failure of a single entity or group of entities that can result in the breakdown of the
entire financial system;
Los beneficios de comprar resúmenes en Stuvia estan en línea:
Garantiza la calidad de los comentarios
Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!
Compra fácil y rápido
Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.
Enfócate en lo más importante
Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable.
Así llegas a la conclusión rapidamente!
Preguntas frecuentes
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
100% de satisfacción garantizada: ¿Cómo funciona?
Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller NursingTutor1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for $11.99. You're not tied to anything after your purchase.