RMIN 4000 Exam 1 Brown Questions and Answers | 100% Pass| Updated 2024

RMIN 4000 Exam 1 Brown Questions and Answers | 100% Pass| Updated 2024 Textbook definition of RISK -Answer-Uncertainty concerning the occurrence of a loss Better definition of RISK -Answer-A calculated possibility of a negative outcome Calculated Possibility -Answer-0 = Impossible event (NO RISK) 0.5 = Highest Risk (Most Uncertainty) 1 = 100% Certain Event (NO RISK Negative Outcome -Answer-Loss Losses must be __________? -Answer-Quantifiable Pure Risk States -Answer-Loss or No Loss Examples of Pure Risks -Answer-Fire, Cancer, Dog bites a visitor Speculative Risk States -Answer-Loss No Loss/No Gain Gain Examples of speculative risks -Answer-Investment, Gambling, Drinking Frequency answers what question? -Answer-How often does a loss occur The number of losses that occur in a specified time period Probability of a loss -Answer-Frequency Severity answers what question? -Answer-How much does it cost when a loss does occur? The dollar amount for a loss of a specific peril Peril -Answer-Cause of a loss Hazard -Answer-Condition that creates or increases the frequency and/or severity of a loss DOES NOT CAUSE A LOSS Examples of Peril -Answer-Fire, Tornado, Collision, Burglary Types of Hazard -Answer-Physical Moral Morale (Attitudinal) Legal Physical Hazard -Answer-A physical condition that increases the frequency and/or severity of a loss