CISR – ELEMENTS OF RISK MANAGEMENT STUDY GUIDE LATEST VERSION 2025/2026 GRADED A+.

CISR – ELEMENTS OF RISK MANAGEMENT STUDY GUIDE LATEST VERSION 2025/2026 GRADED A+. 1. A is a cause of loss CORRECT ANSWER peril 2. A situation, behavior, or condition that may lead to adverse financial conse- quences CORRECT ANSWER exposure 3. A cyberattack is an example of a CORRECT ANSWER peril 4. An Insured who shows no regard for his insured property demonstrates a CORRECT ANSWER morale hazard 5. A spill on a supermarket aisle is an example of a because itincreases the likelihood that someone will fall CORRECT ANSWER hazard 6. 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. CORRECT ANSWER incident 7. A mixing paddle on a faulty bakery mixer snaps and strikes an employee's hand.The employee's hand is cut and bleeding CORRECT ANSWER accident 8. 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. CORRECT ANSWER claim 9. The total dollar amount of all losses for a given period of time CORRECT ANSWER severity 10. A loss has occurred but is unlikely to occur again in the future CORRECT ANSWER low frequen- cy 11. An organization's tolerance for risk CORRECT ANSWER risk appetite 12. The product of loss frequency multiplied by loss severity CORRECT ANSWER expected losses 13. The total amount of losses in a given period divided by the total number of claims CORRECT ANSWER average severity 14. A loss expected to continue occurring regularly CORRECT ANSWER high frequency 15. A cause of loss CORRECT ANSWER peril 16. An unplanned event definite as to time and place that results in injury or damage to a person or property CORRECT ANSWER accident 17. An event that disrupts normal activities and may become a loss or busi- ness interruption CORRECT ANSWER incident 18. A demand for payment or an obligation to pay as a result of a loss or occurrence CORRECT ANSWER claim 19. A situation, practice, or condition that may lead to an adverse financial consequence or loss; an activity or resource; people or assets CORRECT ANSWER exposure 20. A reduction in value CORRECT ANSWER loss 21. An accident with the limitation of time removed; an "accident" extended over a period of time rather than a single, observable event CORRECT ANSWER occurrence 22. A condition or characteristic that may create or increase the likelihood or severity of a loss CORRECT ANSWER hazard 23. A response to a focus on the frequency with which events occur CORRECT ANSWER Preven- tion 24. The isolation of an e