Exam (elaborations)
Cpcu Exam 1 Questions And Answers With Verified Solutions 100% Correct!!!
- Course
- Institution
Cpcu Exam 1 Questions And Answers With Verified Solutions 100% Correct!!!
[Show more]
Content preview
Cpcu Exam 1 Questions And AnswersWith Verified Solutions 100% Correct!!!
Probability - ANSWER✔✔ The likelihood that an outcome or event will occur
Risk - ANSWER✔✔ Uncertainty about outcomes, with the possibility that some
outcomes can be negative
Pure Risk - ANSWER✔✔ A chance of loss or no loss, but no chance of gain
Speculative Risk - ANSWER✔✔ A chance of loss, no loss, or gain
Credit Risk - ANSWER✔✔ The risk that customers or other creditors will fail to
make promised payments as they come due
Subjective Risk - ANSWER✔✔ The perceived amount of risk based on an
individual's or organization's opinions
Diversifiable Risk - ANSWER✔✔ A risk that affects only some individuals,
businesses, or small groups
Systemic Risk - ANSWER✔✔ The potential for a major disruption in the function of
an entire market or financial system
Market Risk - ANSWER✔✔ Uncertainty about an investment's future value
because of potential changes in the market for that type of investment
,Liquidity Risk - ANSWER✔✔ The risk that an asset cannot be sold on short notice
without incurring a loss
Risk Source (ISO 31000) - ANSWER✔✔ Element which alone or in combination has
the intrinsic potential to give rise to risk
Four Quadrants of Risk - ANSWER✔✔ - Hazard Risk
- Operational Risk
- Financial Risk
- Strategic Risk
Hazard Risk - ANSWER✔✔ Arises from property, liability or personnel loss
exposures
Operational Risk - ANSWER✔✔ Arises from people, processes, systems, or
controls
Financial Risk - ANSWER✔✔ Arises from the effect of market forces on financial
assets or liabilities
Strategic Risk - ANSWER✔✔ Arises from trends in the economy and society
Residual Uncertainty - ANSWER✔✔ Level of risk remaining after an individual or
organization implements their risk management plans
, Risk Management - ANSWER✔✔ The process of making and implementing
decisions that will minimize the adverse effects of accidental losses on an
organization
Loss Exposure - ANSWER✔✔ Any condition or situation that presents a possibility
of loss, whether or not an actual loss occurs
3 Elements of Loss Exposure - ANSWER✔✔ - An asset exposed to loss
- Cause of loss (peril)
- Financial consequences of that loss
Hazard - ANSWER✔✔ A condition that increases the frequency or severity of a
loss
Moral Hazard - ANSWER✔✔ A condition that increases the likelihood that a
personal intentionally cause or exaggerate a loss
Morale Hazard - ANSWER✔✔ A condition of carelessness or indifference that
increases the frequency or severity of loss
Physical Hazard - ANSWER✔✔ A tangible characteristic of property, persons, or
operations that tends to increase the frequency or severity of loss
Legal Hazard - ANSWER✔✔ A condition of the legal environment that increases
loss frequency or severity
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller classhub. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now