Risk Management

A business buys multiple small warehouses to minimize the effects of a single loss. This is an example of Select one: A. Loss prevention. B. Avoidance. C. Duplication. D. Separation. ;Correct Answers- D. Separation. A business installs bars on windows and door deadbolts to prevent burglaries. This is an example of Select one: A. Loss prevention. B. Avoidance. C. Loss reduction. D. Separation. ;Correct Answers- A. Loss prevention. A company interested in improving cash flow should consider meeting its insurance needs through which one of the following types of insurance organizations? Select one: A. Reciprocal insurance exchanges B. Captive insurers C. Mutual insurers D. Stock insurers ;Correct Answers- B. Captive insurers A document listing potential loss exposures that a household or an organization may face is a Select one: A. Flowchart. B. Loss exposure analysis. C. Method of monitoring loss exposures. D. Loss exposure survey or checklist. ;Correct Answers- D. Loss exposure survey or checklist. A physical inspection is a method used to Select one: A. Examine the feasibility of techniques. B. Monitor results. C. Analyze loss exposures. D. Identify loss exposures. ;Correct Answers- D. Identify loss exposures. A risk manager in an industrial plant is trying to determine where she needs to spend most of her time in reducing the number of work-related accidents. Which one of the following should the risk manager measure to determine where she should expend her efforts? Select one: A. Loss frequency B. Flow chart bottlenecks C. Number of workers in each area D. Loss severity ;Correct Answers- A. Loss frequency A taxi firm maintains a few spare vehicles to keep all drivers on the road even if one vehicle needs repair. Which one of the following identifies the risk management technique being used in this example?