Fin 341 Liebenberg Exam 2 UPDATED ACTUAL
Questions And Correct Answers
Terms in this set (163)
, Risk Management A process that identifies loss exposures faced by
an organization and selects the most appropriate
treatment techniques.
Pre-Loss Objective #1 - Economy Prepare for potential losses in the most
economical way (cost-effective risk management).
Pre-Loss Objective #2 - Anxiety Reduce anxiety experienced by managers and
Reduction employees regarding potential losses.
Pre-Loss Objective #3 - Legal Meet any legal obligations (e.g., OSHA compliance,
Obligations legally required insurance).
Post-Loss Objective #1 - Survival Ensure survival of the firm after a loss occurs.
Post-Loss Objective #2 - Continuity Continue operating after a loss — especially critical
for essential services.
Post-Loss Objective #3 - Earnings Maintain stability of earnings following a loss.
Stability
Post-Loss Objective #4 - Continued Allow continued growth of the firm despite losses.
Growth
Post-Loss Objective #5 - Minimize Minimize the effect of a loss on employees,
Effect on Others customers, suppliers, and the community.
Risk Identification The process of identifying all potential loss
exposures faced by an organization before they
result in actual losses.
Questions And Correct Answers
Terms in this set (163)
, Risk Management A process that identifies loss exposures faced by
an organization and selects the most appropriate
treatment techniques.
Pre-Loss Objective #1 - Economy Prepare for potential losses in the most
economical way (cost-effective risk management).
Pre-Loss Objective #2 - Anxiety Reduce anxiety experienced by managers and
Reduction employees regarding potential losses.
Pre-Loss Objective #3 - Legal Meet any legal obligations (e.g., OSHA compliance,
Obligations legally required insurance).
Post-Loss Objective #1 - Survival Ensure survival of the firm after a loss occurs.
Post-Loss Objective #2 - Continuity Continue operating after a loss — especially critical
for essential services.
Post-Loss Objective #3 - Earnings Maintain stability of earnings following a loss.
Stability
Post-Loss Objective #4 - Continued Allow continued growth of the firm despite losses.
Growth
Post-Loss Objective #5 - Minimize Minimize the effect of a loss on employees,
Effect on Others customers, suppliers, and the community.
Risk Identification The process of identifying all potential loss
exposures faced by an organization before they
result in actual losses.
