RMI 2303 EXAM 1 NYCE QUESTIONS AND CORRECT
ANSWERS A+GRADED
Which describes the immediate cause of a loss - ANSWER peril
Carly is involved in a 3 car auto accident. Which risk is this an example of - ANSWER
particular risk
risk prevention and risk reduction are both included in which of the following - ANSWER
risk (loss) control
which is a common pre-loss objective - ANSWER economy
which is the last step in the risk management process but is often done first? - ANSWER
review and evaluate
risk reduction methods are best applied to - ANSWER high severity losses
hazards may be categorized as which of the following groups - ANSWER tangible and
intangible
risk prevention is best applied to - ANSWER high frequency loss
individual risk - ANSWER the risk associated with playing sports, driving a car, investing
money
organizational risk - ANSWER an uncertain future event that could adversely effect the
organizations. Investing money, hiring/firing
, society risk - ANSWER a health risk or economic risk effecting the population
DANGER DOES NOT MEAN RISK - ANSWER jumping out of building example
frequency - ANSWER how often something is likely to happen. probability of a single
event occurring times the number of trials.
severity/impact - ANSWER how bad something is when it happens
expected value (loss) - ANSWER expected frequency times expected severity
pure risk - ANSWER only have 2 outcomes, loss or no loss. (parked car)
speculative risk - ANSWER 3 outcomes, loss, no loss or gain (stock)
static risk - ANSWER unchanging over time (earthquake)
dynamic risk - ANSWER changes with time (technology things)
fundamental risk - ANSWER effects a large number of people, hurricane
particular risk - ANSWER effects a few people, car accident
core risk - ANSWER specific to the organizations operations
secondary risk - ANSWER does not affect the organization operations
ANSWERS A+GRADED
Which describes the immediate cause of a loss - ANSWER peril
Carly is involved in a 3 car auto accident. Which risk is this an example of - ANSWER
particular risk
risk prevention and risk reduction are both included in which of the following - ANSWER
risk (loss) control
which is a common pre-loss objective - ANSWER economy
which is the last step in the risk management process but is often done first? - ANSWER
review and evaluate
risk reduction methods are best applied to - ANSWER high severity losses
hazards may be categorized as which of the following groups - ANSWER tangible and
intangible
risk prevention is best applied to - ANSWER high frequency loss
individual risk - ANSWER the risk associated with playing sports, driving a car, investing
money
organizational risk - ANSWER an uncertain future event that could adversely effect the
organizations. Investing money, hiring/firing
, society risk - ANSWER a health risk or economic risk effecting the population
DANGER DOES NOT MEAN RISK - ANSWER jumping out of building example
frequency - ANSWER how often something is likely to happen. probability of a single
event occurring times the number of trials.
severity/impact - ANSWER how bad something is when it happens
expected value (loss) - ANSWER expected frequency times expected severity
pure risk - ANSWER only have 2 outcomes, loss or no loss. (parked car)
speculative risk - ANSWER 3 outcomes, loss, no loss or gain (stock)
static risk - ANSWER unchanging over time (earthquake)
dynamic risk - ANSWER changes with time (technology things)
fundamental risk - ANSWER effects a large number of people, hurricane
particular risk - ANSWER effects a few people, car accident
core risk - ANSWER specific to the organizations operations
secondary risk - ANSWER does not affect the organization operations
