CPCU 500 Practice exam - assignment 1 Graded A 2024

The risk of increased competetitio falls into the category of which quadrant of risk - Strategic Risk Failing to respond to changing customer demand and preferences in the design could drop the market share. Which quadrants of risk is this? - Strategic risk, arise from trends in the economy and society If car is stolen and the tracking device can be used to recover the car more quickly. Which RM technique is this? - Loss reduction How traditional RM works - Silo apprach Cost of risk of opening a new facility? - Safety System upgrades insurance prems retained losses RM budget Which one of the following statements is true regarding risk management efforts on the part of individuals, organizations, and society in general - Risk management makes those who own or run an organization more willing to undertake risky activities. Tolerable Uncertainty - aligning risks with the organization's risk appetite An organization must meet the standard of care that it owes to others in order to ensure that - Legal obligations are satisfied. Which one of the following is essential to an effective risk management program? - Support of the organization's senior management The cost of a risk management technique can be determined through a - cost-benefit analysis that considers the technique's effect on the frequency, severity, and timing of expected losses relative to an estimate of the after-tax costs involved in applying the various risk management techniques. A new computer chip that could position a company for explosive growth is an example of - Strategic risk.