Nondiversifiable risk Study guides, Class notes & Summaries

Exposures Things of value (assets) that could be lost (Any situation/circumstance in which a loss is possible, regardless of whether a loss actually occurs) Perils Things that could happen to your assets - cause of loss Risk Management What you do to protect these assets and/or prevent/reduce losses (Identifies loss exposures faced by an organization and selects the most appropriate techniques for treating such exposures) Risk The calculated possibility of a negative outcome Loss Negative...

Risk involves The possibility of a negative outcome. Possibility means - Answer- That an outcome may or may not occur. Probabilities are stated as decimal figure, a percentage, or a - Answer- Fraction To understand risk, one needs to know the probability of an outcome or event occurring. Which one of the following statements is correct with respect to probability? - Answer- It can be used to decide which activities to undertake. The statement, "There is a five percent chance that John ...

CPCU 500 - Foundations of Risk Management and Insurance Latest 2024 Graded A+ CHAPTER 1 ... What are the two elements of risk? -Uncertainty of outcome - Time of the outcome and type of outcome are uncertain -possibility of a negative outcome - at least 1 outcome is negative What is the difference between probability and possibility? Possibility - an outcome or event may or may not occur. It does not quantify the risk, only verifies the risk is there Probability - the likelihood ...

Risk - Uncertainty concerning the occurrence of a loss Loss Exposure - Any situation or circumstance in which a loss is possible, regardless of whether a loss occurs Objective vs Subjective Risk - Objective risk is defined as the relative variation of actual loss from expected loss Subjective risk is defined as uncertainty based on a person's mental condition or state of mind Objective vs Subjective Probability - Objective probability refers to the long-run relative frequency of an event...

Final Study Set: RMIN 4000 - Daniel Jeremy Brown Questions and Answers Rated A+ Exposures Things of value (assets) that could be lost (Any situation/circumstance in which a loss is possible, regardless of whether a loss actually occurs) Perils Things that could happen to your assets - cause of loss Risk Management What you do to protect these assets and/or prevent/reduce losses (Identifies loss exposures faced by an organization and selects the most appropriate techniques for tre...

RMIN 4000 UGA- Brown- Exam 1 Questions And Answers Rated A definition of risk A calculated possibility of a negative outcome calculated possibility probabilistic outcome, ranges from 0-1 (0-100%) negative outcome loss, must be quantifiable ($) frequency -"how often does a loss occur?" -number of losses in a certain time period -probability of a loss Severity -"how much does it cost when a loss occurs?" - dollar amount how to calculate frequency # of losses/# of exposure...

CPCU 500 Questions and Answers Rated A+ Risk the uncertainty about outcomes, with the possibility that some of the outcomes can be negative. Quantified by knowing the probability of the possible outcomes Probability the likelihood that an outcome or event will occur. Probabilities are stated as a decimal figure, a percentage, or a fraction. What are the 2 elements associated with risk? uncertainty of outcome + possibility of negative outcome Pure Risk a chance of loss or no los...

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 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 ...

Risk - Answer the uncertainty about outcomes, with the possibility that some of the outcomes can be negative. Quantified by knowing the probability of the possible outcomes Probability - Answer the likelihood that an outcome or event will occur. Probabilities are stated as a decimal figure, a percentage, or a fraction. What are the 2 elements associated with risk? - Answer uncertainty of outcome + possibility of negative outcome Pure Risk - Answer a chance of loss or no loss, bu...