RMI 2302 Nyce Module 1 Questions and Answers 100% Pass

RMI 2302 Nyce Module 1 Questions and Answers 100% Pass What is Risk? Uncertainty Regarding Loss Danger does not equal what? Risk Uncertainty doubt about our ability to predict future outcomes Sources of risk Personal Risks Property Risks Liability Risks Financial Risks Exposure person or property facing risk of loss Peril the immediate cause of loss Hazard condition affecting the frequency or severity of loss Physical hazards property conditions Intangible hazards attitudes or culture Moral hazard behavioral changes Morale hazard indifference Societal hazards legal or cultural Risk Neutral indifferent toward risk Value of risky situation is expected loss Risk Averse - Prefer to avoid risk Willing to pay more than expected loss to avoid risk MOST INDIVIDUALS Risk Seeker prefer risk Would pay more than expected return to engage in risky situation Rules of Risk Management Don't risk more than you can afford to lose Don't risk a lot for a little Consider the odds The Risk Management Process Determination of objectives Identification of risks Evaluation of risks Consideration of alternatives - selection of the tool Implementing the decision Evaluation and review Evaluation and Review In theory, the evaluation and review are the final step in the risk management process. Except in the rare case where an organization is newly created, every organization will have a risk management program already in existence. Determination of objectives Post-Loss Objectives: Survival, Continuity of Operations, Earnings Stability, Continued Growth, Social Responsibility Identification of Risk There are a variety of tools available to assist in risk identification, including questionnaires, checklists, and procedure guides. The preferred approach to risk identification is a "combination approach," in which all of the tools available are brought to bear on the problem. Inspections Just as one picture is worth a thousand