AIDA 182 - Assignment
7 - Controlling Risk
complete with verified
solutions (latest
updated version)
Risk control - answer A conscious act or decision not to act that
reduces the frequency and/or severity of losses or makes losses
more predictable.
Residual risk - answer The level of risk remaining after actions are
taken to alter the level of risk.
Avoidance - answer A risk control technique that involves ceasing or
never undertaking an activity so that the possibility of a future loss
occurring from that activity is eliminated.
Complete avoidance isn't the most common risk control technique;
it's typically neither feasible nor desirable. Loss exposures often
arise from essential activities that people and organizations cannot
avoid.
Loss prevention - answer A risk control technique that reduces the
frequency of a particular loss.
Generally, a loss prevention measure is implemented before a loss
occurs in order to break the sequence of events that leads to the
, loss. So determining effective loss prevention measures usually
requires carefully studying how particular losses are caused.
Loss reduction - answer A risk control technique that reduces the
severity of a particular loss.
The two broad categories of loss reduction measures are pre-loss
measures, which are applied before a loss occurs, and post-loss
measures, which are applied after a loss occurs.
The aim of pre-loss measures is to reduce the property damage and
the number and extent of bodily injuries caused by a single event.
Post-loss measures typically focus on emergency procedures,
salvage operations, rehabilitation activities, public relations, or
legal defenses to halt the spread or counter the effects of loss.
Disaster recovery planning - answer A risk management technique
in which the insured prepares for a loss before it occurs.
Separation - answer A risk control technique that isolates loss
exposures from one another to minimize the adverse effect of a
single loss.
Separation is rarely undertaken for its own sake; it's usually a
byproduct of another management decision.
The intent of separation is to reduce the severity of an individual
loss at a single location. However, by creating multiple locations,
separation most likely increases loss frequency.
Duplication - answer A risk control technique that uses backups,
spares, or copies of critical property, information, or capabilities
and keeps them in reserve.
7 - Controlling Risk
complete with verified
solutions (latest
updated version)
Risk control - answer A conscious act or decision not to act that
reduces the frequency and/or severity of losses or makes losses
more predictable.
Residual risk - answer The level of risk remaining after actions are
taken to alter the level of risk.
Avoidance - answer A risk control technique that involves ceasing or
never undertaking an activity so that the possibility of a future loss
occurring from that activity is eliminated.
Complete avoidance isn't the most common risk control technique;
it's typically neither feasible nor desirable. Loss exposures often
arise from essential activities that people and organizations cannot
avoid.
Loss prevention - answer A risk control technique that reduces the
frequency of a particular loss.
Generally, a loss prevention measure is implemented before a loss
occurs in order to break the sequence of events that leads to the
, loss. So determining effective loss prevention measures usually
requires carefully studying how particular losses are caused.
Loss reduction - answer A risk control technique that reduces the
severity of a particular loss.
The two broad categories of loss reduction measures are pre-loss
measures, which are applied before a loss occurs, and post-loss
measures, which are applied after a loss occurs.
The aim of pre-loss measures is to reduce the property damage and
the number and extent of bodily injuries caused by a single event.
Post-loss measures typically focus on emergency procedures,
salvage operations, rehabilitation activities, public relations, or
legal defenses to halt the spread or counter the effects of loss.
Disaster recovery planning - answer A risk management technique
in which the insured prepares for a loss before it occurs.
Separation - answer A risk control technique that isolates loss
exposures from one another to minimize the adverse effect of a
single loss.
Separation is rarely undertaken for its own sake; it's usually a
byproduct of another management decision.
The intent of separation is to reduce the severity of an individual
loss at a single location. However, by creating multiple locations,
separation most likely increases loss frequency.
Duplication - answer A risk control technique that uses backups,
spares, or copies of critical property, information, or capabilities
and keeps them in reserve.
