Chapter 6

Question 1

2 dimensions of risk management

Answer 1

• Decision process
• Management or administrative process

Question 2

5 steps in the decision making process

Answer 2

1. Identity and analyze loss exposures
2. Examine alternative risk management techniques
3. Select risk management techniques.
4. Implement techniques.
5. Monitor results.

Question 3

4 administrative areas in the risk management process

Answer 3

Plan organize, lead and control

Question 4

Five advantages for achievable results of brokers who use risk management

Answer 4

More informed clientele
Increased retention
Increased customer referrals
Increased claims satisfaction
Reduction in errors and omissions potential

Question 5

Risk management

Answer 5

The process of making and carrying out decisions that will minimize the adverse effects of accidental losses upon an organization.

Question 6

Tangible property

Answer 6

Tangible property is real can be touched and has form and substance

Question 7

Intangible property

Answer 7

Intangible property has no physical substance in consists of legal rights rather than things