Topic 1: RM Applications & Impacts Flashcards
1
Q
What is risk?
A
uncertainty regarding an outcome, and what could occur based on that outcome
2
Q
Is risk the same as the probability of a loss occurring?
A
no
3
Q
What is human capital?
A
the ability to generate income into the future
4
Q
What is personal risk?
A
human capital is exposed to risk / risk of loss (injury, illness, death, unemployment, etc)
5
Q
What is property risk?
A
comes from ownership of physical or intangible assets; you incur cost of repair/replace
6
Q
Where does liability risk come from?
A
tort, contract, statutory liability
