Chapter 2 Flashcards

0
Q

Risk control methods

A

Risk avoidance

Loss prevention

Loss reduction

Non insurance transfers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

Steps in risk management

A

Identification

Measurement

Choice and use of methods to treat each risk

Administration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Risk retention

A

Retaining the burden of any financial losses that may occur

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Risk transfer

A

Shifting as much of the possible consequences to a third party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Risk measurement

A

Loss frequency

Loss severity

Variability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Maximum possible loss

A

The worst that could happen

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Maximum probable loss

A

The worst that is likely to happen

How well did you know this?
1
Not at all
2
3
4
5
Perfectly