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Risk Management > MIDTERM REVIEWER > Flashcards

MIDTERM REVIEWER Flashcards

1
Q

Refers to a thing providing protection against possible eventuality

A

Insurance

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2
Q

Refers to the assessment and quantification of the likelihood and financial impact of events that may occur in the customers world that require settlement by the insurer.

A

Insurance Risk Management

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3
Q

Types of Risk Management

A
  1. Business Risk
  2. Non Business Risk
  3. Financial Risk
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4
Q

Is the exposure a company or organization has to factor that could lower its profits or lead it to fail.

A

Business Risk

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5
Q

Anything that threatens a company’s ability to achieve its financial goals is considered a __________

A

Business Risk

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6
Q

Whether a company can make enough sales and revenue to cover its expenses and turn a profit

A

Business Risk

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7
Q

What makes us whole when things go wrong in both personal and business lives

A

Risk Management and Insurance

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8
Q

Arise due to uncertanties

A

Business Risk

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9
Q

is when it is not known what
is going to happen in future.

A

Uncertainty

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10
Q

Examples of Uncertainties that affects the business are:

A
  1. Change in Demand
  2. Change in Technology
  3. Change in Government Policy
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11
Q

Identification, evaluation, and prioritization of risk followed by economical and coordinated application of resources to minimize, monitor, and control the probability of impact of unfortunate events.

A

Risk Management

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12
Q

Importance of Risk Management and Insurance

A

Allows our lives and economy to operate smoothly despite the risk and reality that bad thing will occasionally happen.

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13
Q

Examples of Business Risk

A
  1. Damage by fire
  2. Flood
  3. Natural Disasters
  4. Unexpected financial loss due to an
    economic down turn (pandemic)
  5. Bankruptcy of other businesses.
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14
Q

4 Types of Business Risk

A
  1. Strategic Risk
  2. Compliance and Regulatory Risk
  3. Financial Risk
  4. Operational Risk
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15
Q

A competitor coming on to the market

A

Strategic Risk

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16
Q

Introduction of new rules and legislation

A

Compliance and Regulatory Risk

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17
Q

Interest rate rise on your business loan or a non paying customer

A

Financial Risk

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18
Q

The breakdown or theft or key equipment

A

Operational Risk

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19
Q

Sources of Strategic Risk

A
  1. Mergers, acquisitions and other competition.
  2. Market or industry changes
  3. Changes among customers or in demand
  4. Change management.
  5. Human resource issues such as staffing.
  6. Financial issues with cashflow, capital or
    cost pressures.
  7. It disasters and equipment failure
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20
Q

RELATES TO A POTENTIAL CHANGE IN LAWS AND REGULATIONS ,

A

Regulatory Risk

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21
Q

RELATES TO THE POTENTIAL OF YOUR BUSINESS TO VIOLATE EXISTING LAWS OR REGULATIONS.

A

Compliance Risk

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22
Q

Common compliance risks involve illegal practices and include:

A

• Fraud
• Theft
• Bribery
• money laundering
• embezzlement

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23
Q

A common compliance risk is the violation of:

A

• privacy laws
• hacking, viruses
• and; malware are some of the cyber
risks that affect organizations.

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24
Q

refers to the internal and external events that may make it difficult or even impossible for an organization to achieve their objectives and strategic goals

A

Strategic Risk

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25
Q

Identifying, Assessing, and Controlling threats to an organizations capital and earnings.

A

Risk Management

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26
Q

do not derive from the products or services supplied. For example, risk that are associated with the long-term sources of finance used.

A

Non Business Risk

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27
Q

is a potential future situation that causes your business to lose money. The situation could affect your cashflow and leave you unable to meet your obligations.

A

Financial Risk

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28
Q

Examples of Financial Risk

A
  • Loss of investment assets
  • Theft
  • Damage to assets you own
  • Assets values depreciating or depreciating
    in value
  • Insufficient savings to continue investing
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29
Q

Other Functions of Insurance

A

• Provides Certainty
• Provides Certainty of payment at the
uncertainty of loss
• Provides protection.
• Risk Sharing
• Prevention of losses
• Promotes Economic Development
• Improves Efficiency

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30
Q

Can be defined as a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period.

A

Life Insurance

31
Q

Primary Purpose of Insurance. Protection against:

A
  1. Future Risk
  2. Accidents
  3. Uncertainties
32
Q

2 core Functions of Insurance

A
  1. Protection
  2. Safety
33
Q

Importance of Insurance

A
  1. Financial Safety Net
  2. Helping you and your loved ones recover after bad things happen
34
Q

When you purchase an insurance, you will receive an ______________ which is legal contract between you and your insurance provider.

A

Insurance Policy

35
Q

is the price you pay to buy an insurance policy. Premiums are your regular payments for many common insurance policies including:
o Life
o Auto
o Business
o Homeowners o Renters

A

Insurance Premium

36
Q

is a government agency under the DEPARTMENT OF FINANCE.

A

Insurance Commission

37
Q

SUPERVISES AND REGULATES THE OPERATIONS OF LIFE AND NON-LIFE COMPANIES, MUTUAL BENEFIT ASSOCIATIONS, HMO (HEALTH MAINTENANCE ORGANIZATIONS) AND TRUST FOR CHARITABLE PURPOSES.

A

Insurance Commission

38
Q

Used to be part of the central bank

A

Insurance Commission

39
Q

Insurance Commission started on

A

January 4, 1949

40
Q

Prudent move to establish a separate regulator for the insurance industry

A

Insurance Commission

41
Q

To ensure that insurance company adopt good corporate governance policy.

A

Insurance Commission

42
Q

Secretary of Finance

A

Benjamin Diokno

43
Q

Felipe Medalla

A

Governor of BSP

44
Q

It helps you make sure you are prepared for life’s unfavorable circumstances such as sickness, disability, old age and death.

A

Importance of Life Insurance

45
Q

Common Types of Insurance in the Philippines

A
  1. Life insurance
  2. Health or medical insurance
  3. Savings and investment
46
Q

If you fail to pay your premiums you risk having your policy _________ ?

A

Cancelled

47
Q

It protects the interests of the insuring public.

A

Insurance Commission

48
Q

Two major types of life insurance

A
  1. Traditional Life
  2. Variable Life
49
Q

Focuses primarily on guaranteed death and or living benefits a type of life insurance contract that provides for insurance coverage of the contract holder for their entire life.

A

Traditional Life

50
Q

It is a policy that pays a specified amount to your family or your beneficiaries upon your death.

A

Variable Life

51
Q

Top 1 insurance in the Philippines in terms of asset

A

Pru Life insurance corporation of UK

52
Q

Examples of Traditional Life Insurance Products

A
  1. Endowment Policies
  2. Whole Life Insurance Policies
  3. Retirement Plans
  4. Money Back Plans
53
Q

a life insurance contract designed to pay a lump sum after a specific term or on death typically maturities are, 10, 15 and 20 years.

A

Endowment Policies

54
Q

Buong buhay

A

Whole life insurance policies

55
Q

Pagka retire

A

Retirement Plans

56
Q

Babalik yung pera kasi wala nangyari sa sarili

A

Money Back Plans

57
Q

Top 5 Insurance companies in the Philippines in terms of Assets

A
  1. Pru Life Insurance corporation of UK
  2. The Philippine Americam Life and General zinsurance co. Inc
  3. Sun life of Canada Inc.
  4. Philippine Axa Life Insurance corporation
  5. Insular life assurance company LDT.
58
Q

Advantages of Variable Universal Life Insurance

A
  1. A death benefit that wont decrease as long as you continue to make your minimum premium payments on time.
  2. Flexible Premium Payment options
  3. The potential to earn higher than average returns compared to other
    types of permanent life insurance.
59
Q

an act strengthening the insurance industry.

A

Republic Act No. 10607

60
Q

amending presidential decree No.612. Otherwise known as the insurance code

A

Republic Act No. 10607

61
Q

How to control Financial Risk

A
  1. Identify and measure the risk
  2. Decide on the level of risk you are willing
    to accept
  3. Consider insurance to protect against
    business risk
  4. Identify Potential issues with cashflow
  5. Review your financial arrangements
    with creditors.
62
Q

A person or persons who will receive the death benefit from your life insurance policy, When you. If you die without naming anyone, the money will go to your estate. (The sum of all your property possessions, financial assets and debts) by default.

A

Beneficiary

63
Q

is the person or entity that you legally designate to receive the benefits from your financial products. For life insurance coverage, that is the debt benefit your policy will pay if you die.

A

Beneficiary

64
Q

4 Classes of Beneficiary

A
  1. You and your spouse
  2. Friends and Family
  3. Charity
  4. Government
65
Q

3 Types of Beneficiaries

A
  1. Primary Beneficiaries
  2. Contingent Beneficiary
  3. Residuary Beneficiary
66
Q

is the person (or people or organizations) you name to receive your stuff when you die. Typically, your spouse.

A

Primary Beneficiary

67
Q

is the second in line to receive your assets in case the primary beneficiary passes away.

A

Contingent Beneficiary

68
Q

gets any property that isn’t specifically left to another beneficiary.

A

Residuary Beneficiary

69
Q

PREMIUM MODE OF PAYMENT

A
  • One time or Lump sum - Yearly
  • Semi annually
  • Quarterly
  • Monthly
70
Q

More often than not, people select
their _________ as their primary beneficiary

A

spouse

71
Q

and then name their __________ as contingent or secondary beneficiaries.

A

children

72
Q

Is a person whose name is recorded on
the legal documentation by the force of law or a decree.

A

Named Beneficiary

73
Q

This person is the sole or shared collector of benefits from the trust, insurance policy, pension plan, annuity etc.

A

Named Beneficiary

74
Q

regular payments for many common insurance policies

A

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Risk Management (2 decks)

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