Chapter 2 Flashcards
0
Q
Risk control methods
A
Risk avoidance
Loss prevention
Loss reduction
Non insurance transfers
1
Q
Steps in risk management
A
Identification
Measurement
Choice and use of methods to treat each risk
Administration
2
Q
Risk retention
A
Retaining the burden of any financial losses that may occur
3
Q
Risk transfer
A
Shifting as much of the possible consequences to a third party
4
Q
Risk measurement
A
Loss frequency
Loss severity
Variability
5
Q
Maximum possible loss
A
The worst that could happen
6
Q
Maximum probable loss
A
The worst that is likely to happen
