Fundamentals of Risk Management-Section 1 (Well-enlightened)

What is the most important step in Risk Management? correct answers Identification of risks Three (3) Types of Risk correct answers Pure Speculative Gambling Pure Risk correct answers Loss only; insurable, everywhere (i.e. injury of the job) Speculative Risk correct answers Loss or gain; business/market risks (i.e. investing school bonds) Gambling Risk correct answers Loss or gain; odds favor loss (i.e. using a bus company without getting their proof of insurance) Ways of Defining Risk correct answers 1. Chance of loss 2. Uncertainty concerning loss 3. Possibility of a variation of outcomes from a given set of circumstances 4. Difference between expected loss & actual loss Six (6) major classes of risk correct answers 1. Economic 2. Legal 3. Political 4. Social 5. Physical 6. Juridical Economic Risk correct answers Reduced funding to school/district Legal Risk correct answers Complying with statutes, building codes, new laws Political Risk correct answers Change in state/federal regulations; change in Board policy Social Risk correct answers Decisions impacting school/district images or relationship with community Physical Risk correct answers Damage to property and/or people Juridical Risk correct answers Case law Prevention Phase correct answers Manage loss prevention Prevention Phase Risk Terms correct answers 1. Exposure 2. Hazard