CISR - Elements of Risk Management CH 1 Questions With 100% Correct Answers.

Risk - condition of either positive or negative uncertainty arising from a given set of cirumstances pure risk - chance of loss or no loss speculative risk - chance of loss, no loss, or gain loss - reduction in asset value exposure - situation, practice or condition that MAY lead to a loss peril - cause of loss hazard - increases the likelihood that a peril will occur physical hazard - smoking, spills moral hazard - dishonesty or other behaviors that lead to a loss morale hazard - insureds neglect or feel indifferent toward their possessions because losses will be covered true or false: a hazard is a cause of loss - false; peril true or false: a situation, behavior or condition that may lead to adverse financial consequences is an exposure - truetrue or false: a cyberattack is an example of an exposure - false; peril true or false: a spill on a supermarket aisle is an example of a hazard because it increases the likelihood that someone will fall - true