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Enterprise Risk Management - ANS A structured, consistent, and continuous process applied across an entire organization that fosters better understanding and ability to address its material risks relative to strategic objectives 2 direct drivers of ERM - ANS 1. Internal stakeholders - board of directors - senior management 2. External - regulators - rating agencies - lenders / insurers 4 indirect drivers of ERM - ANS 1. Shareholders 2. Employees 3. Financial...

Probability - ANS The likelihood that an outcome or event will occur Two elements within the definition of risk - ANS Uncertainty of outcome and possibility of a negative outcome Pure risk - ANS A chance of loss or gain Speculative risk - ANS A chance of loss, no loss, or gain Credit risk - ANS The risk that customers or other creditors will fail to make promised payments as they come due Subjective risk - ANS The perceived amount of...

Donna has a home that is insured to its maximum value. She often leaves the door unlocked in case she forgets her keys. She knows that her insurance policy will pay for any losses if her home is robbed. Which of the following best applies to Donna? a. moral/morale hazard b. physical hazard c. societal hazard d. none of the above - ANS a. moral/morale hazard Loss frequency describes which of the following? a. number of losses b. financial impact of losses c. both the number...

Risk Management - ANS specialized branch of financial management Steps in a Risk Management Process - ANS 1. identify exposures to loss 2. evaluate exposures to loss 3. identify possible alternatives 4. select among the alternatives 5. implement the selection 6. re-evaluate periodically the chose strategies Loss exposure - ANS possibility of a financial loss that a particular entity faces as the result of peril striking a thing of value -anything that could ...

Objective Risk - ANS the relative variation of actual loss from expected loss Law of Large Numbers - ANS the number of exposure units increases, the more closely the actual loss experience will approach the expected loss experience Subjective Risk - ANS uncertainty based on a person's mental condition or state of mind Chance of Loss - ANS the probability that an event will occur Objective Probability - ANS The probability that an event will ...

Two Elements of Risk - ANS 1. Uncertainty of outcome 2. Possibility of negative outcome Uncertainty - ANS about what will actually happen (Type) and when the outcome will occur (timing) Possibility - ANS that an outcome or event may or may not occur Probability - ANS is measurable and has a value between zero and one Difference between Possibility and Probability - ANS Possibility verifies that risk is present Probability qunatifies risk ...

Risk management in the case of individuals is best described as concerned with: a. hedging risk exposures b. maximizing utility while bearing a tolerable level of risk c. maximizing utility while avoiding exposure to undesirable risks - ANS b. maximizing utility while bearing a tolerable level of risk. certain risks cannot be avoided ( eg, health, theft, accident etc ) Which of the following may be controlled by an investor? a. Risk b. Raw returns c. Risk-adjusted...

What is the definition of risk? - ANS No single definition of risk. Uncertainty concerning the occurrence of a loss. Any situation where there is uncertainty about what outcome will occur. Variation of outcomes. What is loss exposure? - ANS Any situation or circumstance in which a loss is possible, regardless of whether a loss occurs. What are the three different types of risk attitude? - ANS 1. Risk Averse 2. Risk Neutral 3. Risk Taker (Lover) What is a ris...

Which of the following would be an example of a pure risk? a The risk from opening a small business b The risk of fire damage to a restaurant c The risk of a change in tax rates d All of the above - ANS B Cyber attack risk would be best classified as a Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a pure static risk b pure dynamic risk c speculative static risk d speculative dynamic risk - ANS B In d...

Which of the following would be an example of a pure risk? - ANS a. The risk from opening a small business b. The risk of fire damage to a restaurant (Correct Answer) c. The risk of a change in tax rates d. All of the above Cyber attack risk would be best classified as a - ANS a. pure static risk b. pure dynamic risk (Correct Answer) c. speculative static risk d. speculative dynamic risk Joe looks at a particular situation and considers it to be high risk. Sarah looks...

Peril - ANS a cause of a loss. EG: fire, auto accident, thief Pure risk - ANS a chance of loss or no gain speculative risk - ANS a chance of no loss or a chance or a chance of profit. EG: invest in the stock market, credit risk of default subjective risk - ANS a person's perspective of the risk that is a chance of loss objective risk - ANS the actual chance of loss based on factual data hazard - ANS a condition that either increas...

Define Risk - ANS What are the step in the risk management process? - ANS The risk management process: 1. Identifying and analyzing risk exposures 2. Formulating options for dealing with each exposure 3. Selecting the best technique (or combination of techniques) to deal with the exposure 4. Implementing the chosen technique (or combination of techniques) 5. Monitoring the results and modifying techniques used What is risk management? - ANS Define and cont...

Risk is a term that is regularly used and that is generally understood in context. As used in this discussion, which one of the following is one of the two elements within the definition of risk? A. Uncertainty of outcome B. Likelihood of injury or damage to property C. Probability of financial loss D. Opportunity for profit - ANS A. Uncertainty of outcome Uncertainty of outcome is one of the two elements within the definition of risk as used in this discussion. T...

MCLETC Exam 1 Questions And Answers Graded A+!!! Package Deal

MCLETC quiz 1 Questions And Answers

The central questions addressed by the field of child development - ANS have applied, or practical, importance In diverse cultures around the world, __________ in particular fosters patterns of thinking and behaving that greatly improve quality of life, for both parents and children. - ANS education of women Sperm live for up to - ANS six days Two Apgar ratings are given because - ANS some babies have trouble adjusting at first but do quite well after a f...

Compare the views of Locke and Rousseau in relationship to the "nature-versus-nurture" debate. Pages 9-12 - ANS Locke viewed children's development as entirely shaped by their experience. Therefore, Locke would subscribe to the notion that nurture, our environmental influences, shape and affect development. Alternatively, Rousseau viewed children as born with an innate sense of right and wrong and that growth occurred in stages and unfolded automatically. He is more closely alig...

- ANS A one year child is likely to have 20 teeth. False - ANS It is ok to put infants aNd toddlers to bed with a milk bottle. - ANS The typical child learns to walk at about 18 months. True - ANS As children spend more time away from home, they begin to want toys and clothing like other children. True - ANS Offering choices allows young children the chance to feel they are in control. False - ANS As children begin school they becom...

way of acting or responding, that is common at each stage of childhood, is: - typical behavior A person who takes care of a child is called a - caregiver Who believed each stage of development included a personal crisis? - Erikson Another term for "theory" is - belief The biological transfer of certain characteristics from earlier generations is - genetics This describes people, places and things that surround and influence a person. - environment He believed children go ...

Noam Chomsky's theory of language development is - ANS based on the idea that certain features of LANGUAGE are inborn Four-year-old Brittany mistakes her next-door neighbor's new pet rabbit for a kitten. How would Piaget explain Brittany's error? - ANS she used assimilation Which process did Piaget propose to explain why people respond in NEW WAYS to change in the environment? - ANS Accommodation According to Piaget, which statement describes cognitive b...