Chapter one Flashcards
1
Q
What is risk?
A
chance or uncertainty of loss
2
Q
what are the four methods to managing risk?
A
avoid the risk
risk reduction (sprinklers)
retain a risk
transfer
3
Q
what are the two types of risk?
A
pure and speculative
4
Q
what is a peril?
A
the actual cause of loss (fire and collision)
5
Q
what is a hazard?
A
increases the chance of loss
6
Q
what is the three types of hazards?
A
physical, morale, and moral
