Ch. 13 - Decision Making and Risk Management

The first step in making a decision is to
identify the decision to the made.
identify all the alternative decisions that could be made.
search for information about all possible alternative decisions.
predict the possible consequences of each of the alternative decisions.
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Terms in this set (14)
The first step in making a decision is to
identify the decision to the made.
identify all the alternative decisions that could be made.
search for information about all possible alternative decisions.
predict the possible consequences of each of the alternative decisions.
identify the decision to the made.
Good decision making requires weighing the rewards
with possible gains.
with expenses.
against the losses.
against time.
against the losses.
Good decision making involves weighing the anticipated desired attributes of a decision
against anticipated negative attributes.
to see if it's worth the trouble.
and then discussing it with someone you respect.
and then seeking agreement.
against anticipated negative attributes.
This course suggests that it is good company policy for each brokerage to
provide photo ID badges to each agent.
provide auto insurance to all full-time agents.
maintain escrow loss insurance on each agent.
have a hard copy of any changes to the company policy and procedures manual signed by each agent.
have a hard copy of any changes to the company policy and procedures manual signed by each agent.
If it is impossible to acquire sufficient information to make an informed decision, doing nothing can be
the biggest mistake of all.
the riskiest option of all.
the least risky option to take.
viewed as noncompliance.
the least risky option to take.
Regarding decision making, doing nothing can be
the worse idea.
the riskiest option of all.
the biggest mistake of all.
the road to more risk.
the worse idea.
To help manage risk, a broker should
keep lines of communication open.
keep lines of communication closed.
avoid open communications.
maintain multiple levels of reporting structures.
keep lines of communication open.
Risk is best defined as
recklessness.
a loss.
due diligence.
the possibility of experiencing a loss.
the possibility of experiencing a loss.
The first step in making a decision is to
ask a question.
identify alternatives.
identify what decision is to be made.
predict the consequences.
identify what decision is to be made.
How many recognized steps are there in decision-making?
Three
Four
Five
Ten
Five
How many steps are there in the decision-making process? Ten Three Six FiveFiveKeeping open lines of communication is one of the simplest and most valuable assets in taking risks. managing risk. understanding different personality types. making task assignments.managing risk.What method does a brokerage use to insure against risk? Errors and Omissions Insurance Title Insurance Performance Insurance Workers InsuranceErrors and Omissions InsuranceIt is a good company policy for each brokerage to renew contractor agreements monthly. have mandatory meeting times with all agents. keep a current file on auto insurance information for all agents. require each contractor to submit expense reports.keep a current file on auto insurance information for all agents.