Risk Management Flashcards
1
Q
A condition where the chance of loss exists
A
Risk
2
Q
A situation where the results could be loss, no loss, or gain
A
Speculative risk
3
Q
Situation where there is no chance for gain. Only loss
A
Pure risk
4
Q
Reduction, decrease, or disappearance of value
A
Loss
5
Q
The cause of loss
A
Peril
6
Q
A condition that increases the likelihood of loss
A
Hazard
7
Q
Type of hazard
Physical condition that increases probability of loss
A
Physical
8
Q
Type of hazard
Dishonest tendencies increase probability of loss
A
Moral
9
Q
Type of hazard
Attitude increases probability of loss
A
Morale
10
Q
The condition of being at risk of loss
A
Loss exposure
11
Q
An imbalance created when risks that are more prone to loss than the average risk are seeking insurance
A
Adverse selection
