Unit 1 - ISR3701
Study online at https://quizlet.com/_euxk7l
1. Risk The uncertainty of loss.
2. Risk Manage- a process that identifies loss exposures faced by an organization and selects the
ment most appropriate techniques for treating such exposures
3. Speculative risk a situation in which either profit or loss is possible.
4. Event Risk the risk that some major, unexpected event will occur that leads to a sudden and
substantial change in the value of an investment
5. examples of gambling, buying stock, buying a home
speculative risk
6. examples of - Decrease in value of insurance company stock after a major hurricane
event risk - Decrease in value of real estate after a major earthquake
7. Risk Manage- The method of making, implementing, and monitoring decisions that minimize the
ment Process adverse effects of risk on an organization.
8. Risk Manage- (I) Risk Identification
ment Process
Phases At this phase, risk is identified by looking at organizational charts, flow charts or
checklists.
(II) Risk Evaluation
At this phase, the risk manager accesses the severity and frequency of the risk. Risk
is assessed through quantitative and qualitative measures:
- Quantitative measures:- Using statistical data to evaluate the risk.
- Quantitative measures:- Investigating the cause of losses.
(III) Risk Control
1/2
Study online at https://quizlet.com/_euxk7l
1. Risk The uncertainty of loss.
2. Risk Manage- a process that identifies loss exposures faced by an organization and selects the
ment most appropriate techniques for treating such exposures
3. Speculative risk a situation in which either profit or loss is possible.
4. Event Risk the risk that some major, unexpected event will occur that leads to a sudden and
substantial change in the value of an investment
5. examples of gambling, buying stock, buying a home
speculative risk
6. examples of - Decrease in value of insurance company stock after a major hurricane
event risk - Decrease in value of real estate after a major earthquake
7. Risk Manage- The method of making, implementing, and monitoring decisions that minimize the
ment Process adverse effects of risk on an organization.
8. Risk Manage- (I) Risk Identification
ment Process
Phases At this phase, risk is identified by looking at organizational charts, flow charts or
checklists.
(II) Risk Evaluation
At this phase, the risk manager accesses the severity and frequency of the risk. Risk
is assessed through quantitative and qualitative measures:
- Quantitative measures:- Using statistical data to evaluate the risk.
- Quantitative measures:- Investigating the cause of losses.
(III) Risk Control
1/2
