Evaluation and Analysis of Risk Exposures

Question 1

What are the six steps to risk management?

Answer 1

establishing objectives
identifying loss exposure
measuring loss exposure
developing a plan
implementing the plan, and
regularly reviewing the plan

Question 2

What are the two main lines of defense against a charge of negligence?

Answer 2

contributory negligence and assumption of risk

Question 3

What are intentional torts?

Answer 3

Intentionally interfering with another person’s property or business relations eg trespassing

Question 4

The Consumer Products Safety Act of 1972 (not OSHA) requires

Answer 4

notification of the Consumer Product Safety Commission (CPSC) by manufacturers and retailers of any product hazard of which they become aware.

Question 5

Which of the following is not considered a personal risk?

Liability to others
Death
Disability
Health

Answer 5

Liability to others is considered a property risk.

Question 6

If it is established that Bill knowingly assumed the risk of injury, he will not be awarded a judgment under the assumption of risk doctrine.

Which of the following acts is considered tortious?

Shooting fireworks toward a building
Slander
Libel
Texting while driving resulting in injury to a pedestrian

Answer 6

Each of these acts is tortious. A person who commits a tort is known as a tortfeasor, and acts or omissions constituting torts are said to be tortious.