RMI 2303 Exam 1 Nyce Questions With 100% Correct Answers

RMI 2303 Exam 1 Nyce Questions With 100% Correct Answers Which describes the immediate cause of a loss - answerperil Carly is involved in a 3 car auto accident. Which risk is this an example of - answerparticular risk risk prevention and risk reduction are both included in which of the following - answerrisk (loss) control which is a common pre-loss objective - answereconomy which is the last step in the risk management process (but is often done first)? - answerreview and evaluate risk reduction methods are best applied to - answerhigh severity losses hazards may be categorized as which of the following groups - answertangible and intangible risk prevention is best applied to - answerhigh frequency loss individual risk - answerthe risk associated with playing sports, driving a car, investing money organizational risk - answeran uncertain future event that could adversely effect the organizations. Investing money, hiring/firing society risk - answera health risk or economic risk effecting the population DANGER DOES NOT MEAN RISK - answerjumping out of building example frequency - answerhow often something is likely to happen. probability of a single event occurring times the number of trials. severity/impact - answerhow bad something is when it happens expected value (loss) - answerexpected frequency times expected severity pure risk - answeronly have 2 outcomes, loss or no loss. (parked car) speculative risk - answer3 outcomes, loss, no loss or gain (stock) static risk - answerunchanging over time (earthquake) dynamic risk - answerchanges with time (technology things) fundamental risk - answereffects a large number of people, hurricane particular risk - answereffects a few people, car accident core risk - answerparticular to the organizations operations secondary risk - answerdoes not effect the organizations operations peril - answerimmediate cause of the loss exposure - answerperson or property facing the risk of a loss Hazard - answercondition affecting the frequency of severity of a loss physical hazard - answertangible conditions - wet floor moral/morale hazard - answerattitude or behavior that affects the frequency or severity of a loss - not being careful with your cell phone because you got insurance societal hazard - answerlegal/cultural/attitude that effect the severity or frequency of a loss - how easy or hard it is to sue someone who has caused you a loss risk neutral - answerindifferent towards a risk risk averse - answerprefer to avoid risk risk seeking - answerprefers risk risk management - answerdont risk more than you can afford to lose dont risk a lot for a little consider the odds 6 steps of risk management - answer- Determine the objectives - identify the risks -evaluate the risks - consider alternatives - implement the decision - evaluate and review 1. Determine the objectives - answerpre-loss/po