CISR - Elements of Risk Management | 132 Questions and Answers(A+ Solution guide)

A ____ is a cause of loss - Answer peril A situation, behavior, or condition that may lead to adverse financial consequences - Answer exposure A cyberattack is an example of a ____ - Answer peril An Insured who shows no regard for his insured property demonstrates a - Answer morale hazard A spill on a supermarket aisle is an example of a ____ because it increases the likelihood that someone will fall - Answer hazard A passenger enters an elevator. His clothing is caught in the elevator door as the door closes. The passenger snatches the clothing from the door before the elevator begins to move. He is uninjured and his clothes are not damaged. - Answer incident A mixing paddle on a faulty bakery mixer snaps and strikes an employee's hand. The employee's hand is cut and bleeding - Answer accident A driver is at fault in a minor auto accident. The other driver is uninjured, but the bumper on her car requires repairs. The other driver demands that the at-fault driver's insurance company pay for the loss. - Answer claim The total dollar amount of all losses for a given period of time - Answer severity A loss has occurred but is unlikely to occur again in the future - Answer low frequency An organization's tolerance for risk - Answer risk appetite The product of loss frequency multiplied by loss severity - Answer expected lossesThe total amount of losses in a given period divided by the total number of claims - Answer average severity A loss expected to continue occurring regularly - Answer high frequency A cause of loss - Answer peril An unplanned event definite as to time and place that results in injury or damage to a person or property - Answer accident An event that disrupts normal activities and may become a loss or business interruption - Answer incident A demand for payment or an obligation to pay as a result of a loss or occurrence - Answer claim A situation, practice, or condition that may lead to an adverse financial consequence or loss; an activity or resource; people or assets - Answer exposure A reduction in value - Answer loss An accident with the limitation of time removed; an "accident" extended over a period of time rather than a single, observable event - Answer occurrence