Week 1 - Controlling the future

Question 1

Definition of a Risk

Answer 1

influence/ calculating the future

*** no control over the future

Question 2

emancipatory catastrophism

Answer 2

modern exposure to the tweetificiation of risk

the sensitivity of risk/ offering argument wher it shouldnt be )

Question 3

actuarial fair premium

Answer 3

frequency x severity

Question 4

objective risk

Answer 4

the relative variation of actual loss from expected loss

Question 5

subjective risk

Answer 5

uncertainty based on a person’s mental condition or state of mind
(personal perspectives)

Question 6

peril

Answer 6

the cause of loss

Question 7

hazard

Answer 7

a condition that creates or increases the chances of loss

Question 8

types of hazard

Answer 8

physical, moral, legal

Question 9

moral hazard

Answer 9

eg is a fraudulent claim

carelessness/ indifference - because of the existence of insurance

Question 10

pure risk

Answer 10

adverse or neutral outcome (loss or no loss)

eg break a leg or not

Question 11

speculative risk

Answer 11

either profit or loss

eg. a bet

Question 12

fundamental risk

Answer 12

effects the whole economy