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RMI 2302 NYCE MODULE 1 EXAM QUESTIONS AND ANSWERS

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RMI 2302 NYCE MODULE 1 What is Risk? - Answer- Uncertainty Regarding Loss Danger does not equal what? - Answer- Risk Uncertainty - Answer- doubt about our ability to predict future outcomes Sources of risk - Answer- Personal Risks Property Risks Liability Risks Financ...

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  • October 10, 2024
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  • 2024/2025
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  • Questions & answers
  • RMI 2302 NYCE MODULE 1
  • RMI 2302 NYCE MODULE 1
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RMI 2302 NYCE MODULE 1
What is Risk? - Answer- Uncertainty Regarding Loss

Danger does not equal what? - Answer- Risk

Uncertainty - Answer- doubt about our ability to predict future outcomes

Sources of risk - Answer- Personal Risks
Property Risks
Liability Risks
Financial Risks

Exposure - Answer- person or property facing risk of loss

Peril - Answer- the immediate cause of loss

Hazard - Answer- condition affecting the frequency or severity of loss

Physical hazards - Answer- property conditions

Intangible hazards - Answer- attitudes or culture

Moral hazard - Answer- behavioral changes

Morale hazard - Answer- indifference

Societal hazards - Answer- legal or cultural

Risk Neutral - Answer- indifferent toward risk
Value of risky situation is expected loss

Risk Averse - Answer- - Prefer to avoid risk
Willing to pay more than expected loss to avoid risk
MOST INDIVIDUALS

Risk Seeker - Answer- prefer risk
Would pay more than expected return to engage in risky situation

Rules of Risk Management - Answer- Don't risk more than you can afford to lose
Don't risk a lot for a little
Consider the odds

The Risk Management Process - Answer- Determination of objectives
Identification of risks
Evaluation of risks
Consideration of alternatives - selection of the tool
Implementing the decision
Evaluation and review

Evaluation and Review - Answer- In theory, the evaluation and review are the final step in the risk
management process.

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