Question 1

Loss _____ efforts seek to lessen loss severity.

Accepted Answer

The answer of Loss _____ efforts seek to lessen loss...

Question 2

Reputation risk is a type of:

Accepted Answer

A)  hazard risk.
B)  financial risk.
C)  business risk.
D)  household risk.
E)  operational risk.F) B) and E)
G) A) and E)

Question 3

When a corporation insures a risk, it is:

Accepted Answer

A)  retaining its risk.
B)  avoiding its risk.
C)  retaining its risk with loss control.
D)  assuming its risk.
E)  transferring its risk.F) A) and D)
G) A) and E)

Question 4

If you want to ski in spite of the hazards involved, you can engage in a physical fitness program to toughen your body to withstand spills without serious injury.This is an example of:

Accepted Answer

A)  loss reduction, which reduces the probability of loss.
B)  loss prevention, which reduces the severity of loss.
C)  loss reduction, which reduces the frequency of loss.
D)  loss reduction, which reduces the severity of loss.
E)  loss prevention, which reduces the probability of loss.F) None of the above
G) C) and D)

Question 5

In a risk map, natural and man-made risks are also known as _____ risks.

Accepted Answer

The answer of In a risk map, natural and man-made...

Question 6

This is a visual tool used to consider alternatives of the risk management tool set.It forms a grid of frequency and severity intersection points of each identified and measured risk.Identify the topic of discussion.

Accepted Answer

A)  Risk profile
B)  Kernel's risk matrix
C)  Risk map
D)  Forced matrix
E)  Risk management matrixF) A) and E)
G) A) and D)

Question 7

Some risks can be _____ through the formation of a corporation with limited liability for its stockholders.

Accepted Answer

The answer of Some risks can be _____ through the...

Question 8

Like sole proprietorship, general partnership assumes unlimited liability for the firm's obligations.

Accepted Answer

A) True 
 B)False

Question 9

When we focus on one risk only, we work with this matrix.It provides alternative financial action to undertake for each frequency/severity combination.Identify this matrix.

Accepted Answer

A)  A space risk matrix
B)  A forced matrix
C)  A risk map
D)  Kernel's risk matrix
E)  A risk management matrixF) B) and C)
G) All of the above

Question 10

Risk retention groups are similar to group self-insurance.

Accepted Answer

A) True 
 B)False

Question 11

According to the risk management matrix, risk exposures with low frequency of losses and high severity of losses are:

Accepted Answer

A)  retained or self-insured.
B)  transferred or insured.
C)  avoided.
D)  ignored.
E)  retained with loss control.F) A) and E)
G) A) and B)

Question 12

According to the risk management matrix, risk exposures with high frequency of losses and low severity of losses are:

Accepted Answer

A)  retained or self-insured.
B)  transferred or insured.
C)  avoided.
D)  ignored.
E)  retained with loss control.F) All of the above
G) A) and B)

Question 13

In times of high insurance prices, the likelihood of using risk transfer is greater than in times of high rates.

Accepted Answer

A) True 
 B)False

Exam 4: Evolving Risk Management: Fundamental Tools

In times of high insurance prices, the likelihood of using risk transfer is greater than in times of high rates.

Correct Answer
verified

Risk retention groups are similar to group self-insurance.

Correct Answer
verified

In a risk map, natural and man-made risks are also known as _____ risks.

Correct Answer
verified

Like sole proprietorship, general partnership assumes unlimited liability for the firm's obligations.

Correct Answer
verified

Some risks can be _____ through the formation of a corporation with limited liability for its stockholders.

Correct Answer
verified

Loss _____ efforts seek to lessen loss severity.

Correct Answer
verified

When a corporation insures a risk, it is:

Correct Answer
verified

According to the risk management matrix, risk exposures with high frequency of losses and low severity of losses are:

Correct Answer
verified

This is a visual tool used to consider alternatives of the risk management tool set.It forms a grid of frequency and severity intersection points of each identified and measured risk.Identify the topic of discussion.

Correct Answer
verified

If you want to ski in spite of the hazards involved, you can engage in a physical fitness program to toughen your body to withstand spills without serious injury.This is an example of:

Correct Answer
verified

Reputation risk is a type of:

Correct Answer
verified

When we focus on one risk only, we work with this matrix.It provides alternative financial action to undertake for each frequency/severity combination.Identify this matrix.

Correct Answer
verified

According to the risk management matrix, risk exposures with low frequency of losses and high severity of losses are:

Correct Answer
verified

Exam 4: Evolving Risk Management: Fundamental Tools

In times of high insurance prices, the likelihood of using risk transfer is greater than in times of high rates.

Correct AnswerverifiedShow Answer

Risk retention groups are similar to group self-insurance.

Correct AnswerverifiedShow Answer

In a risk map, natural and man-made risks are also known as _____ risks.

Correct AnswerverifiedShow Answer

Like sole proprietorship, general partnership assumes unlimited liability for the firm's obligations.

Correct AnswerverifiedShow Answer

Some risks can be _____ through the formation of a corporation with limited liability for its stockholders.

Correct AnswerverifiedShow Answer

Loss _____ efforts seek to lessen loss severity.

Correct AnswerverifiedShow Answer

When a corporation insures a risk, it is:

Correct AnswerverifiedShow Answer

According to the risk management matrix, risk exposures with high frequency of losses and low severity of losses are:

Correct AnswerverifiedShow Answer

This is a visual tool used to consider alternatives of the risk management tool set.It forms a grid of frequency and severity intersection points of each identified and measured risk.Identify the topic of discussion.

Correct AnswerverifiedShow Answer

If you want to ski in spite of the hazards involved, you can engage in a physical fitness program to toughen your body to withstand spills without serious injury.This is an example of:

Correct AnswerverifiedShow Answer

Reputation risk is a type of:

Correct AnswerverifiedShow Answer

When we focus on one risk only, we work with this matrix.It provides alternative financial action to undertake for each frequency/severity combination.Identify this matrix.

Correct AnswerverifiedShow Answer

According to the risk management matrix, risk exposures with low frequency of losses and high severity of losses are:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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