CRM PRINCIPLES OF RISK MANAGEMENT
ACTUAL EXAM 2026 COMPLETE
QUESTIONS AND SOLUTIONS GRADED A+
⩥ Speculative risk. Answer: A chance of loss, no loss, or gain.
⩥ Business risk. Answer: Risk that is inherent in the operation of a
particular organization, including the possibility of loss, no loss, or gain.
⩥ Enterprise risk management. Answer: An approach to managing all of
an organization's key business risks and opportunities with the intent of
maximizing shareholder value. Also known as enterprise-wide risk
management.
⩥ Risk. Answer: Uncertainty about outcomes that can be either negative
or positive.
⩥ Risk management. Answer: The process of making and implementing
decisions that will minimize the adverse effects of accidental losses on
an organization.
The process of making and implementing decisions that enable an
organization to optimize its level of risk.
, ⩥ Exposure. Answer: Any condition that presents a possibility of gain or
loss, whether or not an actual loss occurs.
⩥ Peril. Answer: The cause of a loss.
⩥ Hazard. Answer: A condition that increases the frequency or severity
of a loss.
⩥ Physical hazard. Answer: A tangible characteristic of property,
persons, or operations that tends to increase the frequency or severity of
loss.
⩥ Moral hazard. Answer: A condition that increases the likelihood that a
person will intentionally cause or exaggerate a loss.
⩥ Morale hazard (attitudinal hazard). Answer: A condition of
carelessness or indifference that increases the frequency or severity of
loss.
⩥ Claim. Answer: A demand by a person or business seeking to recover
from an insurer for a loss that may be covered by an insurance policy.
⩥ Risk management program. Answer: A system for planning,
organizing, leading, and controlling the resources and activities that an
ACTUAL EXAM 2026 COMPLETE
QUESTIONS AND SOLUTIONS GRADED A+
⩥ Speculative risk. Answer: A chance of loss, no loss, or gain.
⩥ Business risk. Answer: Risk that is inherent in the operation of a
particular organization, including the possibility of loss, no loss, or gain.
⩥ Enterprise risk management. Answer: An approach to managing all of
an organization's key business risks and opportunities with the intent of
maximizing shareholder value. Also known as enterprise-wide risk
management.
⩥ Risk. Answer: Uncertainty about outcomes that can be either negative
or positive.
⩥ Risk management. Answer: The process of making and implementing
decisions that will minimize the adverse effects of accidental losses on
an organization.
The process of making and implementing decisions that enable an
organization to optimize its level of risk.
, ⩥ Exposure. Answer: Any condition that presents a possibility of gain or
loss, whether or not an actual loss occurs.
⩥ Peril. Answer: The cause of a loss.
⩥ Hazard. Answer: A condition that increases the frequency or severity
of a loss.
⩥ Physical hazard. Answer: A tangible characteristic of property,
persons, or operations that tends to increase the frequency or severity of
loss.
⩥ Moral hazard. Answer: A condition that increases the likelihood that a
person will intentionally cause or exaggerate a loss.
⩥ Morale hazard (attitudinal hazard). Answer: A condition of
carelessness or indifference that increases the frequency or severity of
loss.
⩥ Claim. Answer: A demand by a person or business seeking to recover
from an insurer for a loss that may be covered by an insurance policy.
⩥ Risk management program. Answer: A system for planning,
organizing, leading, and controlling the resources and activities that an
