100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
RMIN 4000 UGA test 1 Questions and Answers. $12.49   Add to cart

Exam (elaborations)

RMIN 4000 UGA test 1 Questions and Answers.

 1 view  0 purchase
  • Course
  • RMIN 4000
  • Institution
  • RMIN 4000

RMIN 4000 UGA test 1 Questions and Answers.

Preview 2 out of 10  pages

  • October 31, 2024
  • 10
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • RMIN 4000
  • RMIN 4000
avatar-seller
Wisdoms
RMIN 4000 UGA test 1 Questions and Answers




What is risk? - (correct answer) -a calculated possibility of a negative outcome
io io io io io io io io io io io io




What is calculated possibility? - (correct answer) -a probabilistic outcome that is known or estimated
io io io io io io io io io io io io io io




(ranges from 0% to 100%)
io io io io io




What is a negative outcome? - (correct answer) -a loss that must be quantifiable
io io io io io io io io io io io io io




What is frequency? - (correct answer) -how often a loss occurs (frequency= number of losses / number
io io io io io io io io io io io io io io io io




of exposures)
io io




What is severity? - (correct answer) -How much a loss costs when it occurs (severity = total losses ($) /
io io io io io io io io io io io io io io io io io io io




number of losses)
io io io




What is a peril? - (correct answer) -a cause of a loss (fire, tornado, collision)
io io io io io io io io io io io io io io




What is a hazard? - (correct answer) -a condition that creates to increases the frequency and/or
io io io io io io io io io io io io io io io




severity of a loss but does not cause the loss
io io io io io io io io io io




What are the four types of hazards? - (correct answer) -- physical
io io io io io io io io io io io io




- moral
io




- morale
io




- legal
io




What is a physical hazard? - (correct answer) -a physical condition that increases the frequency and/or
io io io io io io io io io io io io io io io




severity of a loss (corrosion on pipes, too many wires plugged in to an outlet)
io io io io io io io io io io io io io io io




what is a moral hazard? - (correct answer) -dishonesty in an individual that increases the frequency or
io io io io io io io io io io io io io io io io




severity of a loss. the presence of insurance changes the behavior of the insured (causing "hail"
io io io io io io io io io io io io io io io io




damage with a hammer)
io io io io




What is a morale hazard? - (correct answer) -carelessness or indifference to a loss, which increases the
io io io io io io io io io io io io io io io io




frequency and/or severity of a loss (leaving the car keys in your unlocked car)
io io io io io io io io io io io io io io

, What is a legal hazard? - (correct answer) -characteristics of the legal systems or regulatory
io io io io io io io io io io io io io io




environment that increase the frequency and/or severity of a loss (juries being more sympathetic in
io io io io io io io io io io io io io io io




some areas)
io io




What is a pure risk? - (correct answer) -a risk in which there is no gain. the outcomes are either loss or
io io io io io io io io io io io io io io io io io io io io io




no loss
io io




what is speculative risk? - (correct answer) -a risk in which there is a possibility for gain. the outcomes
io io io io io io io io io io io io io io io io io io




are either loss, no change, or gain.
io io io io io io io




What is the difference between pure and speculative risk? - (correct answer) -with speculative risk,
io io io io io io io io io io io io io io




there is a chance of gain, whereas there is no chance for gain with pure risk
io io io io io io io io io io io io io io io io




can you buy insurance for pure risks? - (correct answer) -yes
io io io io io io io io io io




can you buy insurance for speculative risks? - (correct answer) -No
io io io io io io io io io io




What is diversifiable risk? - (correct answer) -a risk that affects only individuals or small groups, not the
io io io io io io io io io io io io io io io io io




entire economy. risk is not correlated
io io io io io io




How do you reduce/eliminate diversifiable risk? - (correct answer) -diversification
io io io io io io io io io




What is nondiversifiable risk? - (correct answer) -a risk that affects the entire economy or a large group
io io io io io io io io io io io io io io io io io




of people. this cannot be reduced/eliminated through diversification. this risk is correlated.
io io io io io io io io io io io io




What is enterprise risk? - (correct answer) -encompasses all major risks faced by a business firm:
io io io io io io io io io io io io io io io io




- pure risk
io io




- speculative risk
io io




- strategic risk
io io




- operational risk
io io




- financial risk
io io




What is systemic risk? - (correct answer) -the risk of collapse of an entire system or market due to
io io io io io io io io io io io io io io io io io io




failure of a single entity or group of entities that can result in the breakdown of the entire financial
io io io io io io io io io io io io io io io io io io io




system. this is due to the interdependency between the players in the system
io io io io io io io io io io io io io




What are the major types of pure risk? - (correct answer) -- personal risk
io io io io io io io io io io io io io




- property risk
io io




- liability risk
io io




- loss of business income
io io io io io

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 Wisdoms. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

85169 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.49
  • (0)
  Add to cart