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...
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.
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 Freshy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.