Risks

Question 1

Risk Definition

Answer 1

An uncertainty concerning loss

Question 2

Speculative Risk

Answer 2

Has potential for gain/loss (gambling)

Question 3

Pure Risk

Answer 3

Only has potential for loss, no gain

Question 4

Risk Treatments

Answer 4

1. Avoidance
2. Reduction
3. Assumption
4. Self-Insurance (savings)
5. Transfer (through contracts, insurance, indemnity, +)

Question 5

Laws relating to Risk

Answer 5

1. Statutory Liability
2. Contractual Liability
3. Tort Liability

Question 6

Laws relating to Risk: Statutory Liability

Answer 6

Established by legislature
Often applies to workplace safety and property conditions

Question 7

Laws relating to Risk: Contractual liability

Answer 7

Defined by agreements
Specifying responsibility for different parties

Question 8

Laws relating to Risk: Tort liability

Answer 8

Related to negligence
If harm is caused, the negligent party my restore the affected party to their prior state

Question 9

Liability in Construction Project: Owner’s

Answer 9

Statutory: must ensure property is safe
Contractual: Obligations toward design and construction teams
Tort: Liable for personal negligence

Question 10

Liability in Construction Project: Design professional’s

Answer 10

Statutory: must provide a safe workplace for employees
Contractual: obligations defined by the owner’s contract
Tort: liable for personal negligence in professional duties

Question 11

Liability in Construction Project: Contractor’s

Answer 11

Statutory: required to ensure a safe site for all
Contractual: responsibilities outlined in the contract with owner
Tort: Liable for personal negligence on the job