CISR - Elements of Risk Management
2026/2027 With Questions And Answers
Written Correctly
An Insured who shows no regard for his insured property demonstrates a - CORRECT ANSWER✔✨-
morale hazard
A spill on a supermarket aisle is an example of a ____ because it increases the likelihood that someone
will fall - CORRECT ANSWER✔✨-hazard
A passenger enters an elevator. His clothing is caught in the elevator door as the door closes. The
passenger snatches the clothing from the door before the elevator begins to move. He is uninjured and
his clothes are not damaged. - CORRECT ANSWER✔✨-incident
A mixing paddle on a faulty bakery mixer snaps and strikes an employee's hand. The employee's hand is
cut and bleeding - CORRECT ANSWER✔✨-accident
A driver is at fault in a minor auto accident. The other driver is uninjured, but the bumper on her car
requires repairs. The other driver demands that the at-fault driver's insurance company pay for the loss.
- CORRECT ANSWER✔✨-claim
The total dollar amount of all losses for a given period of time - CORRECT ANSWER✔✨-severity
A loss has occurred but is unlikely to occur again in the future - CORRECT ANSWER✔✨-low frequency
An organization's tolerance for risk - CORRECT ANSWER✔✨-risk appetite
The product of loss frequency multiplied by loss severity - CORRECT ANSWER✔✨-expected losses
, The total amount of losses in a given period divided by the total number of claims - CORRECT
ANSWER✔✨-average severity
A loss expected to continue occurring regularly - CORRECT ANSWER✔✨-high frequency
A cause of loss - CORRECT ANSWER✔✨-peril
An unplanned event definite as to time and place that results in injury or damage to a person or
property - CORRECT ANSWER✔✨-accident
An event that disrupts normal activities and may become a loss or business interruption - CORRECT
ANSWER✔✨-incident
A demand for payment or an obligation to pay as a result of a loss or occurrence - CORRECT
ANSWER✔✨-claim
A situation, practice, or condition that may lead to an adverse financial consequence or loss; an activity
or resource; people or assets - CORRECT ANSWER✔✨-exposure
A reduction in value - CORRECT ANSWER✔✨-loss
An accident with the limitation of time removed; an "accident" extended over a period of time rather
than a single, observable event - CORRECT ANSWER✔✨-occurrence
A condition or characteristic that may create or increase the likelihood or severity of a loss - CORRECT
ANSWER✔✨-hazard
A response to a focus on the frequency with which events occur - CORRECT ANSWER✔✨-Prevention
The isolation of an exposure from other exposures, perils, or hazards - CORRECT ANSWER✔✨-
Segregation
2026/2027 With Questions And Answers
Written Correctly
An Insured who shows no regard for his insured property demonstrates a - CORRECT ANSWER✔✨-
morale hazard
A spill on a supermarket aisle is an example of a ____ because it increases the likelihood that someone
will fall - CORRECT ANSWER✔✨-hazard
A passenger enters an elevator. His clothing is caught in the elevator door as the door closes. The
passenger snatches the clothing from the door before the elevator begins to move. He is uninjured and
his clothes are not damaged. - CORRECT ANSWER✔✨-incident
A mixing paddle on a faulty bakery mixer snaps and strikes an employee's hand. The employee's hand is
cut and bleeding - CORRECT ANSWER✔✨-accident
A driver is at fault in a minor auto accident. The other driver is uninjured, but the bumper on her car
requires repairs. The other driver demands that the at-fault driver's insurance company pay for the loss.
- CORRECT ANSWER✔✨-claim
The total dollar amount of all losses for a given period of time - CORRECT ANSWER✔✨-severity
A loss has occurred but is unlikely to occur again in the future - CORRECT ANSWER✔✨-low frequency
An organization's tolerance for risk - CORRECT ANSWER✔✨-risk appetite
The product of loss frequency multiplied by loss severity - CORRECT ANSWER✔✨-expected losses
, The total amount of losses in a given period divided by the total number of claims - CORRECT
ANSWER✔✨-average severity
A loss expected to continue occurring regularly - CORRECT ANSWER✔✨-high frequency
A cause of loss - CORRECT ANSWER✔✨-peril
An unplanned event definite as to time and place that results in injury or damage to a person or
property - CORRECT ANSWER✔✨-accident
An event that disrupts normal activities and may become a loss or business interruption - CORRECT
ANSWER✔✨-incident
A demand for payment or an obligation to pay as a result of a loss or occurrence - CORRECT
ANSWER✔✨-claim
A situation, practice, or condition that may lead to an adverse financial consequence or loss; an activity
or resource; people or assets - CORRECT ANSWER✔✨-exposure
A reduction in value - CORRECT ANSWER✔✨-loss
An accident with the limitation of time removed; an "accident" extended over a period of time rather
than a single, observable event - CORRECT ANSWER✔✨-occurrence
A condition or characteristic that may create or increase the likelihood or severity of a loss - CORRECT
ANSWER✔✨-hazard
A response to a focus on the frequency with which events occur - CORRECT ANSWER✔✨-Prevention
The isolation of an exposure from other exposures, perils, or hazards - CORRECT ANSWER✔✨-
Segregation
