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Terms in this set (34)
What is measureable and quantifies risk?
The chance of being injured while driving to and from work, loading a truck at work moving furniture at home, or falling in an icy parking lot at the mall are all examples of...
Risks categorized as hazard risks are traditionally managed by whom?
Risk management professionals
Major Corporation delivers its products nationally using its own fleet of vehicles that are specially designed to encapsulate and protect the cargo they are carrying. What risk management technique is being used?
The delivery drivers for Yard Mulch, Inc. receive extensive training at the Backing-Up Institute. What risk management technique is being used?
Conrad Sales Company's vehicles are equipped with a device that allows them to locate each vehicle for tracking purposes. If a vehicle is stolen, the tracking devices can be used to recover the vehicle more quickly. Conrad Sales Company is using the risk management technique of
Which one of the following products has led to significant improvements in supply chain management by allowing for the immediate identification of discrepancies and interruptions as well as timely actions that can prevent or reduce losses?
Which one of the following is a virtual ledger of data that has been verified, timestamped, encrypted, and protected against tampering?
The consensus process by which the veracity of data is confirmed and verified is known as...
Insurers and risk managers can use the large volumes of data collected and organized through telematics to help improve results for which one of the following types of insurance?
The two benefits of risk management affecting individuals, organizations, and society are: it preserves financial resources by reducing expected losses and it
Reduces the residual uncertainty associated with risk
As part of its risk management program, a vending company installed a new top of the line security system with an expectation of fewer thefts and less...
True or False: Risk management makes those who own or run an organization more willing to undertake risky activities.
Dave owns a computer store. He stores backup media copies of confidential records off site in case there is a fire at the computer store. The risk control technique Dave is using to protect the confidential records is...
True or false: Activities standards are necessary to obtain a complete picture of the success or failure of a risk management program.
What are the two elements within risk?
1. Uncertainty of outcome
2. Possibility of a negative outcome
A chance of loss or no loss, but no chance of gain
Involves a chance of gain
Not highly correlated, can be managed through spread of risk
Inflation, unemployment, natural disasters are all examples. These risks tend to occur simultaneously rather than randomly.
Generally nondiversifiable type of risk
Arise from property, liability or personnel loss exposures and are generally the subject of insurance
Arise from people or a failure in processes, systems, or controls
Are operational risks pure or speculative?
The effect of market forces on financial assets or liabilities and include market risk, credit risk, liquidity risk and price risk
Arise from trends in the economy and society, including changes in the economic, political and competitive environments, as well as from demographic shifts
Is strategic risk pure or speculative?
developed as a way to manage all of an organization's risks
"coordinated activities to direct and control an organization with regard to risk."
Enterprise Risk Management (ERM)
Three main theoretical concepts explain how ERM works:
a main theoretical concept that explains how traditional risk management works
considers how the individual risks in the portfolio interact with each other
- Enabled primarily by smart products that sense their environment, process data and communicate with other smart products throught the Internet of Things (IoT).
Generates the data to which advanced analytics can be applied
Data gleaned allows sensors to react immediately to hazardous situations
the network through which sensors and other smart products capture and transmit data.
Internet of Things
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